“The new growth loan program, with a total of 1,000 billion forints (3.5 billion USD) will be initiated in the beginning of 2019,” MNB posted on its official website.
Accordingly, the MNB provides zero-interest rates to credit institutions for refinancing funds, which can be transferred to SMEs at a rate of maximum 2.5 percent, well under market-levels, according to the central bank.
The loan will be available for investment purposes only, (including financial leasing), only in Hungarian forints, with a maturity of more than 3 years and specific utilization opportunities.
This loan is the fourth chapter of specific low-interest loan programs of MNB, the first three programs took place between 2013 and 2017 in a total value of 2,800 billion forints (9.8 billion USD).
Experts estimated that the program’s contribution to Hungarian GDP has been between 2 and 2.5 percent.
According to the latest official figures, the Hungarian economy grew by 4.4 percent year-on-year in the second quarter of 2018.
- Central bank launches new K100 note and 50t coin
- Central Bank launching Dracula coin to honour Bram Stoker
- EBRD, EIB, World Bank launch new enterprise survey in Belarus
- Central bank sets to tighten unsecured consumer finance
- Vietnam central bank attempts to address sluggish growth
- Central Bank confirm no change to mortgage rules
- Latest News. Romania’a central bank to decide today tighter rules for bank loans granted to individuals
- Central Bank proposals would allow credit unions 'to offer home loans in a meaningful way'
- Saudi Central Bank Vets Local Lenders Ahead of Aramco IPO
- Greek central bank sets out plan to reduce banks' bad loan burden, MICHELE KAMBAS