Elections approaching: PM Viktor Orbán announces cheap loans for businesses
A new preferential loan scheme will be launched on Monday for Hungarian small and medium-sized enterprises (SMEs), offering a fixed interest rate of 3% and a maximum limit of HUF 150 million (EUR 386,000), Prime Minister Viktor Orbán announced at a press conference held jointly with the President of the Hungarian Chamber of Commerce and Industry.
Orbán’s announcement: details of the loan
The programme will be available through the Széchenyi Card system, with the interest rate on all loan products offered there reduced to 3%. The scheme can be applied for up to HUF 150 million, is freely usable, easily accessible, and carries a fixed rate of interest, providing businesses with predictable planning conditions.
The government will allocate HUF 250 billion (EUR 643 million) to support the programme this year, and HUF 320 billion (EUR 823 million) in 2026, of which around HUF 60 billion (EUR 154 million) will specifically fund this fixed 3% loan.
Viktor Orbán stressed that the aim is to provide businesses with a financing option that can be accessed quickly and without bureaucracy, offering genuine support in an uncertain economic environment.
Political and economic context
The programme represents the second pillar of the government’s declared economic strategy, following subsidised housing loans for families, and now focusing on supporting businesses. The Prime Minister also indicated that the Cabinet intends to assist companies through tax cuts.
Orbán offered a pessimistic assessment of the current European economic situation, highlighting the energy crisis, the consequences of the Russia–Ukraine war, and what he described as the EU’s defensive economic policy. He stated that Hungary seeks to develop even in an environment where Europe’s competitiveness is weakening.
International perspective
According to Reuters analysis, the introduction of preferential loans marks another significant economic stimulus ahead of next year’s elections. The fixed 3% rate is extremely favourable compared to the National Bank of Hungary’s 6.5% base rate. Experts, however, warn that such spending programmes carry fiscal risks, and that pre-election stimulus may only deliver temporary growth while potentially allowing the budget deficit to spiral.
What does this mean for businesses?
Hungarian SMEs now have the opportunity to access low-interest financing under fixed conditions — a particularly important measure in today’s uncertain market environment. The government argues that the programme offers a simple, rapid, and predictable solution for companies considering investments or seeking to stabilise their operations.
Where is the money going to come from to pay for this? More debt on the Hungarian state which it must borrow from foreign sources at much higher interest rates and all of that will have to be repaid by Hungarian taxpayers along with all the other debt. Hungary has free money waiting from the EU which is equivalent to 10% of Hungary’s entire GDP. Unfortunately Fidesz for years has failed to meet the rule of law conditions to access it.