End of SME interest rate freeze in Hungary

A rate freeze on SME credit will end on 1 April, as lending rates are expected to fall under the 7.77% threshold set in November 2022, the national economy ministry said on Thursday.

SME rate freeze to end

The ministry said the rate freeze had saved over 50,000 SMEs, with close to HUF 1,500 billion (EUR 3.78 billion) in loans, around HUF 150 billion (EUR 380.6 million). It added that the benchmark three-month Budapest Interbank Offered Rate (BUBOR) had stood over 16.5% when the measure was rolled out.

The ministry noted that lenders had voluntarily agreed to reduce, temporarily, their spreads on corporate credit over the BUBOR to 0% from 1 February for a period of three months.

Construction sector output up 17.2% in January

Output of Hungary’s construction sector in January climbed by an annual 17.2%, the Central Statistical Office (KSH) said on Thursday.

Output of the buildings segment jumped by 20.5% while civil engineering output grew 11.6%.

Month on month, construction sector output rose by 10.2%, adjusted for seasonal and working-day effects.

Read also:

• Hungary restarts golden visa scheme: everyone can join
• Positive surprise: Wages grew the most in Hungary in the last 10 years