Andrea Bártfai-Mager, Minister without Portfolio for the Development of Public Assets, said the following in relation to the economic package offered by the MFB Group: “Before accepting the financing package for economic recovery, the Government conducted extensive discussions and examined several proposals and opinions. The programme package, which relies heavily on the harmonised programmes of the MFB Group, not only helps businesses to survive this period but also assists them in becoming successful participants in relaunching the economy and carrying it forward. For this purpose, businesses will receive assistance through government guarantees as well as interest and fee subsidies via the individual products of the package.”

Dr. Levente Sipos-Tompa, Chairman & CEO of MFB, described the programmes as the most robust economic stimulus programme of the MFB Group: “Through the concerted effort of the MFB Group, we can make available close to HUF 1,500 billion to Hungarian enterprises and companies. The programme, which is built on the concentrated impact of loan, capital and guarantee instruments, gives a lifeline to struggling businesses, and at the same time acts an important instrument for fostering developments, investments and large projects. The MFB is called upon to play a role in this situation by offering widely available tools and being highly risk tolerant, which is evident in the financing products of this package.”

The purpose of the MFB’s loan programmes and guarantee products is to offer sufficient funds for the micro, small and mid-size as well as the large company segments to satisfy the short, mid- and long-term financing needs of businesses. To this end, the MFB offers funds to businesses through Hungarian and European loan programmes in a total of HUF 439 billion. The programmes, both in terms of the available credit limit and the credit objectives, offer a wide range of solutions for the challenges that businesses face.

Among the loan programmes financed from the MFB’s funds, the MFB Crisis Loan, which is available through financial companies, assists primarily micro and small enterprises. In the framework of the loan programme, businesses can take out a loan at a 2.5% annual interest in an amount of between HUF 1 million and HUF 150 million for general investment purposes and working capital financing, including liquidity financing. The MFB Competitiveness Loan Programme is an effective tool primarily for large companies and mid-size companies that are planning to implement major investments. The loan programme may be used for financing investments and working capital, loan refinancing, and acquisitions, i.e. purchasing a shareholding, as well as liquidity financing. Both programmes come with an 80% state guarantee, with an annual 0.1% guarantee fee payable in addition to the interest. The programmes financed from the MFB’s own funds will be available from 30 April 2020.

The MNB is launching the Micro- and Small Enterprise Technological Modernisation Loan Programme (GINOP-8.3.5-18) under modified terms and conditions by reallocating the majority of funds that are still available in the framework of the GINOP credit products, financed from EU funds. The SME Technology Loan Programme that has been known to businesses under this name will be available for financing investments and liquidity at the MFB Points network – with zero percent interest just as before. The Operative Programme is currently undergoing modification. The MFB will provide information at a later stage about the product launch date.

In addition to lending, a HUF 500 billion credit guarantee programme, which is larger than ever before, will be launched under the Crisis Guarantee Programme, administered by Garantiqa Hitelgarancia Zrt., a member of the MFB Group. In the framework of the programme that will continue until the end of the year, businesses can take advantage of a 90% government guarantee for overdraft facilities, working capital and investment loans. In addition, a HUF 130 billion increase in the budgetary guarantee limit will help expand the activities of Garantiqa Hitelgarancia Zrt. Moreover, the MFB – to supplement the guarantee programmes of Garantiqa Zrt. – has created the MFB Force Majeure Guarantee Programme offering loan guarantees starting from HUF 5 billion.

As part of the package, the MFB Group is announcing four new capital programmes that also involve private capital, in a framework amount of HUF 371 billion. The programmes may give a lifeline to struggling SMEs with low capital (SME Rescue Capital Programme), or may give rapid assistance to successful start-ups that have stalled as a result of the crisis, with the purpose of strengthening Hungarian innovation potential (Startup Rescue Capital Programme). In addition, they provide help to distressed strategic companies, they offer funds for company and real estate acquisition in Hungary and abroad, and provide capital financing for economic recovery (Crisis Capital Programme I-II). The programmes will be managed partly by Hiventures Zrt., a member of the MFB Group, and partly by private capital fund managers from the private market. The capital programmes managed by Hiventures will be available from 30 April 2020.

Additional information about the specific loan programmes is available on the MFB website, and about the guarantee and capital programmes for companies on the Garantiqa Hitelgarancia Zrt. and the Hiventures Zrt. websites. The loan application starting date for the EU funds-based SME Technology Loan Programme launched under modified terms and conditions will be posted shortly on the Széchenyi 2020 website and the mfb.hu website.

In order to counteract the economic impact of the COVID-19 pandemic, the MFB Group is closely co-operating with the Working Group for the Recovery of the Economy created by the Government, as well as the ministries and background institutions involved in the financial system.

For further information please contact:
Levente Milassin
Director of Marketing and Communication
milassin.levente@mfb.hu
+36 1 428 1542