BUDAPEST: Hungary’s central bank (MNB) has said it will push back the deadline for companies and small and medium-sized firms accessing credit under its funding for growth schemes to December 31, 2016. The deadline was extended to allow for the implementation of financing longer investment projects, the central bank said. The bank also said it will allow lenders who use the cheap financing to add guarantee fees on top of a 2.5% lending margin limit.
“While raising financing costs just a bit, this step will allow a number of micro and small businesses access to credit available under the programme,” the bank said. Under the schemes, the bank provides zero-interest refinancing to banks which they can lend to SMEs at an APR not exceeding 2.5%. Details of the changes, to come into force on May 1, will be announced later. Originally, most of the amounts allocated under the programmes were to have been available until the end of this year.
