Baross Gábor Loan Program Approaches One Trillion Forints in Budapest

Published: November 20 2023

The Baross Gábor Loan Program, initiated by the Hungarian government, has surpassed 860 billion forints in contracted funds in Budapest. This program aims to provide favorable financing options for businesses in challenging economic conditions.

As of November 8, contracts have been signed for 86% of the 1 trillion forint program. The EXIM Hungary has disbursed 654 billion forints from the contracted amount. The program, with an initial budget of 700 billion forints, was launched in February of this year and later increased to 1 trillion forints due to high demand.

The Baross Gábor Loan Program offers investment, working capital, and green loans. These loans have fixed interest rates until the end of the loan term, with rates capped at 6% for loans in forints and 3.5% for loans in euros.

More than 3,000 loan applications, totaling 1480 billion forints, have been received by the EXIM and partner commercial banks by November 8. Among the loan types, working capital loans are the most popular, accounting for 691 billion forints, followed by investment loans (including leasing) at 510 billion forints and real estate loans at 279 billion forints.

The Baross Gábor Loan Program plays a significant role in revitalizing corporate loans in Hungary. 32.8% of new loans granted by domestic banks from March to September were linked to this program. The largest loan amounts were granted to the manufacturing, trade, and construction industries. Additionally, 51% of green investment loans were allocated to the following sectors: electricity production, starch and starch product manufacturing, lightweight metal packaging manufacturing, and electric motor and generator manufacturing.

In conclusion, the Baross Gábor Loan Program has been successful in providing essential financing options for businesses in Budapest, with a significant impact on the corporate loan market and several key industries.

What is the Baross Gábor Loan Program? The Baross Gábor Loan Program is a financing program initiated by the Hungarian government to provide favorable loans to businesses in order to support economic recovery.

What is the purpose of the Baross Gábor Loan Program? The program aims to provide businesses with discounted financing options during unfavorable economic conditions, particularly to overcome high interest rates.

How much funding has been allocated to the Baross Gábor Loan Program? The program was initially launched with a budget of 700 billion Hungarian forints, but due to high demand, the government increased the total funding to 1 trillion Hungarian forints.

What types of loans can be obtained through the Baross Gábor Loan Program? The program offers investment loans, working capital loans, and green loans to eligible businesses.

What are the interest rates for loans obtained through the program? The interest rates for loans obtained through the Baross Gábor Loan Program are fixed until the end of the loan term. For loans in Hungarian forints, the interest rate is typically up to 6%, while for loans in euros, the interest rate is up to 3.5%.

Who is eligible to apply for loans through the Baross Gábor Loan Program? Businesses of all sizes and sectors are eligible to apply for loans through the program. However, the program is particularly accessible to small and medium-sized enterprises (SMEs), as they can utilize 49% of the funding based on the contracted loan portfolio.

How long does it take to receive funds from the Baross Gábor Loan Program? The program has already disbursed 654 billion Hungarian forints out of the contracted amount of 860 billion Hungarian forints. It is expected that the entire loan budget will be contracted and disbursed by the end of the year.

Which industries have received the highest loan amounts through the Baross Gábor Loan Program? As of early November, the manufacturing industry, the trade sector, and the construction industry have received the highest loan amounts through the program. Additionally, 51% of the green investment loans have been allocated to the following sectors: electricity generation, starch and starch product manufacturing, lightweight metal packaging manufacturing, and electric motor and power generator manufacturing.

How does the Baross Gábor Loan Program contribute to the revival of corporate lending in Hungary? Out of the new loan agreements provided by Hungarian banks from March to September, 32.8% were connected to the Baross Gábor Loan Program. This program has played a significant role in stimulating frozen corporate lending in the country.