Hungarian Government Offers No-Fee Guarantee for SME Investment Loans
The Hungarian government has announced that guarantee fees will be waived on certain loans for local small and medium-sized enterprises (SMEs) for the first year of the credit term. The state secretary for SMEs, Richárd Szabados, and the head of guarantor Garantiqa, István Attila Szabó, revealed this news in a statement released by the National Economy Ministry on Friday.
This new measure will specifically apply to Széchenyi Card credit and other subsidised loans intended for investments. Garantiqa, the guarantor, currently has a surety stock totaling HUF 2,580 billion (EUR 6.45 billion) on HUF 3,330 billion (EUR 8.32 billion) of credit. The organization has provided guarantees for 73,000 loans taken out by 54,000 businesses, with one in every two SME loans being guaranteed by Garantiqa.
This development is expected to provide much-needed financial relief for local SMEs as they navigate the challenges brought on by the ongoing economic uncertainties. Small businesses play a vital role in driving economic growth and job creation, and this initiative aims to support their sustainability and expansion.
It is worth noting that the guarantee fees waiver is part of a broader effort by the Hungarian government to bolster the country’s small business sector and encourage entrepreneurship. As more details about the implementation of this measure are released, SMEs are encouraged to stay informed and take advantage of this opportunity to access affordable credit.
For more information on this topic and other relevant news, stay tuned for updates on the latest developments in the Hungarian economy.
Featured image: depositphotos.com
