Gov't to Launch HUF 700 bln Business Credit Scheme 

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Hungary's government will launch a HUF 700 billion subsidized credit scheme for businesses from February, the Economic Development Ministry said on Monday, according to a report by state news wire MTI.

Credit in the Baross Gábor Reindustrialization Program will be available to businesses, regardless of size, for investment or working capital loans. Rates for the credit will be capped at 6pc for forint loans and 3.5% for euro loans, but will be even lower for investments that boost energy efficiency.

The ministry noted that commercial lending rates for businesses now stand over 20%.

The ministry said the scheme will give businesses a chance to refinance a "large volume" of maturing 2.5% credit taken out in the framework of the Funding for Growth Scheme (FGS) of the National Bank of Hungary (MNB).

The Baross Gábor Reindustrialization Program will be funded by Magyar Eximbank.

The government is pumping around HUF 3 trillion in business credit into the economy this year in the framework of Magyar Eximbank, Hungarian Development Bank (MFB), and Széchenyi Card programs, the ministry said. 

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