Gov't urges subsidized loans, not grants, for SMEs

Parliament

The government believes development subsidies for SMEs should come mainly in the form of preferential loans rather than grants, Prime Minister Ferenc Gyurcsány said on Thursday, after a meeting of the National Development Council.

"If businesses are not backed by a genuine ability to take risks, if they want to use public money to take risks and then to create private property using the yields, that raises some serious moral issues," Gyurcsány said. Gyurcsány said he had asked the National Development Council to form an opinion on the matter. He added that some Ft 3,000 billion in development support would be available to SMEs during the 2007-2013 EU budgetary period. Speaking about the 2007 budget, Gyurcsány said that they plan a very tight budget. He named two areas where allocations would not be reduced: pensions and family allowances on the one hand and national co-funding requirements for EU subsidies on the other. He also said that the government aim to concentrate on building highways, rather than motorways, citing "significant tension" in the development of the country's infrastructure. Gyurcsány said the government would approve the latest version of the New Hungary Development Plan next week, then submit it to Brussels. (Mti-Eco)

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Gov't calls tender for HUF 137 bln in corporate R&D funding Government

Gov't calls tender for HUF 137 bln in corporate R&D funding

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.