Gov't to Add Equity Element to Business Credit Scheme

Government

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The government plans to launch an equity program to give businesses access to sufficient resources for working capital or to move forward with postponed investments, Economic Development Minister Márton Nagy said at an awards ceremony organized by the Joint Venture Association on Saturday, according to a report by state news wire MTI.

The program, to target equity funds, will be submitted to the government "in the coming weeks", Nagy said. It will extend to green investments and capacity expansions, he added.

According to plans, it will be launched in the framework of the Baross Gábor Reindustrialization Program, "complementing" the scheme's credit pillar, he said.

The government launched the HUF 700 billion subsidized credit scheme for businesses at the start of February.

Credit in the Baross Gábor Reindustrialization Program is available to businesses, regardless of size, for investment or working capital loans.  Rates for credit are capped at 6% for forint loans and 3.5% for euro loans. Credit for green investments is available at rates capped at 5% for forint loans and 3% for euro loans.

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