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Gov't Raises Allocation for Interest-free SME Credit

Government

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The government has more than tripled the allocation for a scheme offering SMEs interest-free working capital credit to HUF 313 billion, Economic Development Ministry state secretary Máté Lóga said in a statement issued by the ministry on Monday, according to a report by state news wire MTI.

The credit program was launched with an initial allocation of HUF 100 bln by the Hungarian Development Bank (MFB) in December. Close to 6,000 applications for the credit were submitted after the rollout and disbursals of HUF 210 bln have been made to over 3,000 businesses.

Most of the applications for the credit, available for contracts between HUF 5 mln and HUF 150 mln, were submitted by microbusinesses and SMEs in the commerce, manufacturing and construction sectors, Lóga said.

The program top-up comprises HUF 105 bln of European Union funding and HUF 108bn of government support. The scheme is expected to support over 5,000 businesses.

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