Report: Loans granted in the second phase of the Funding for Growth Scheme

MNB

Not sharp!

Until February 27, credit institutions participating in the first and second phases of the Funding for Growth Scheme (FGS) concluded contracts for a total of HUF 624.3 bln, through 21,809 transactions with 14,908 enterprises, the National Bank of Hungary (MNB) reported in its monthly report.

The report said that credit institutions have so far disbursed HUF 491 bln to small- and medium-sized enterprises participating in the FGS. According to the report, almost 20,000 enterprises received financing amounting to more than HUF 1.325 trillion in the first and second phases of the Scheme.

In the second phase, new loans account for approximately 97% of the contracted HUF 624.3 billion. Within the new loans category, the share of new investment loans (and new leasing transactions) is 63%, while the share of new working capital loans is 26% and the share of loans granted to pre-finance EU funds is 11%.

New investment loans account for half of the lending by large banks, whereas new investment loans constitute the vast majority of loans granted by small and medium-sized banks and cooperative credit institutions, the report added. EU funds are mainly granted by large banks under the scheme. With regards to company size, nearly 80% of the loans to micro

enterprises are new investment loans, while this share is around 50% in the case of small- and medium-sized enterprises.

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