Factory loan program launched in Hungary
The program has a budget of HUF 200 billion.
The Hungarian government, with a view to avoiding an economic recession and maintaining full employment, in addition to the already announced Factory Rescue Program, has decided to launch a Factory Rescue Guarantee and Loan Program with a budget of HUF 200 billion as a further measure to help. The two-part program will be launched on January 1, 2023, Economic Development Minister Márton Nagy announced in a statement on Thursday.
Hungarian Development Bank Zrt. (MFB) is launching a HUF 100 billion Liquidity Guarantee Program as part of the initiative for large and medium-sized enterprises, in which MFB will provide a state guarantee for working capital loans, overdrafts and loans to finance operations. On the one hand, this will directly reduce the interest burden on companies and, on the other hand, it will also provide financing to suppliers and service providers from the micro, small and medium-sized enterprise sector.
Eximbank Zrt. EXIM will also provide state-subsidized, highly preferential investment loans with fixed interest rates until the end of the term to medium and large domestic producers for energy efficiency and renewable energy investments. The maximum interest rate is 5 percent for forint loans and 3.5 percent for euro loans, the minister said.
Exim Bank’s investment loan complements the HUF 150 billion non-repayable support under the already announced Factory Rescue Program, for which 168 companies have already registered.
