Against the pandemic economic crisis
- fresh resources granted for companies
As we previously reported, the government has announced 2,000 billion fresh funding programs in the Economic Protection Action Plan a few weeks ago.
In this newsletter, we have collected the most important fresh resources which available for companies, and we publish in a tabular format at the end of the article, also.
The largest part of the financing package is provided by Hungarian Development Bank (MFB) and its group (MFB Group).
They created some restructured and some fresh financial products, three loans-, two guarantees- and four capital programs, thus MFB Group provides a total of HUF 1,490 billion in financing solutions to businesses.
Among the self-financed loan programs, one is the MFB Crisis Loan, which can be applied by Financial Enterprises and helps micro- and small enterprises primarily.
The MFB Competitiveness Loan Program is an effective tool for large companies and medium-sized companies for planning new investments. Within the framework of the EU-funded GINOP products, MFB will provide a loan program available under modified conditions, renamed the Loan Program for Technological Modernization of Micro and Small Enterprises (GINOP-8.3.5-18).
The SME Technology Loan Program which is already well-known for enterprises, can also be used to finance investments and liquidity in the MFB Points network - still with zero customer interest rate.
In addition to lending, a highest-than-ever loan guarantee program of HUF 500 billion, called the Crisis Guarantee Program, will be managed by Garantiqa Hitelgarancia Zrt. as by partner of the MFB.
The MFB Group announces four new capital programs that also mobilize private capital, with a total amount of HUF 371 billion. The programs can provide a lifeline for distressed, low-coverage SMEs (SME Rescue Capital Program) and provide quick assistance to successful startups that have stalled due to the crisis to strengthen their domestic innovation potential (Startup Rescue Capital Program).
In addition, they provide assistance to distressed strategic firms, provide a tool for company and real estate acquisitions at home and abroad, and provide capital financing to restart the economy (Crisis Capital Program I-II.).
The programs will be managed by Hiventures Zrt. (MFB Group) in one hand and by the private market capital fund in the other hand. Capital programs managed by Hiventures are available from April 30, 2020.
The Magyar Nemzeti Bank (MNB) has also launched fresh financial program called NHP Hajrá, and EXIM has also created a special support program “Kárenyhítő”, which can provide loan collateral guarantees to exporters, suppliers and those preparing to export. The details of this loan you can be found at the website of EXIM.
The VGD Hungary has collected these sources in a tabular form, which you can found our website (in Hungarian) here.
