Gov’t to Launch HUF 700 bln Business Credit Scheme

Image by Shutterstock.com

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.

Transport

Paralympians Return Home With Special Wizz Air Plane

Construction

Évosz Advocates Allowing Use of Pension Savings for Home Purchase, Renovation

Crops

Farmers Growing Nuts on 9,200 Hectares

In Budapest

Wine, Food, and Culture Converge at the Budapest Wine Festival

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.