National Bank of Hungary
Photo: DNH

Budapest, January 14 (MTI) – Without credit disbursements under the second phase of the National Bank of Hungary’s (NBH) Funding for Growth Scheme (FGS) economic growth would have been significantly slower in Hungary, department head at the NBH Gyorgy Pulai said on Thursday.

According to Pulai, the second phase of the FGS lifted Hungarian GDP growth in 2014-2015 by about 1-1.5 basis points.

Most of the allocated credit went to the trading sector, to agriculture and manufacturing. The effects are most marked in farming, he added.

The scheme has proved successful, he said, but it is temporary since otherwise it would end up thwarting market-based lending.

Under the FGS, the NBH provides zero-interest refinancing to banks which they can lend to SMEs at an APR not exceeding 2.5 percent.


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