Ministry of Finance transfers €2.9m to Development Bank to back domestic investments
The new transfer brings total government support for domestic companies to €239 million; funds come from a Hungarian Ex-Im loan.
The Ministry of Finance transferred a new budgetary allocation of 176.5 million denars (approximately €2.9 million) to the Development Bank to finance investment projects by domestic companies.
The transfer raises the total state support channelled to local firms to 14.7 billion denars (around €239 million), the ministry says.
According to the Ministry of Finance, the funds that are being placed through the Development Bank and a network of domestic commercial banks originate from a loan provided by the Hungarian Export-Import Bank. The government has earmarked a total of €250 million in the budget for this programme.
Loan terms and target beneficiaries
Loans to companies under the scheme carry a fixed interest rate of 1.95% and offer repayment periods of up to 15 years, with a grace period of up to three years. The money is intended to stimulate an investment cycle in the private sector and to make financing available on favourable terms.
“This is a significant boost for the implementation of private investments and an incentive for the economy,” the Ministry of Finance said, describing the latest transfer.
Officials expect the additional disbursement to accelerate capital investment by domestic businesses by improving access to long-term, low-cost financing.
Photo: press material from the event
