Illustration - Photo: pxfuel

Government tops up Baross Gabor credit scheme

The government has decided to raise the allocation for the Baross Gabor Reindustrialisation Programme, a subsidised credit scheme for businesses, by 200 billion forints to 1,200 billion (EUR 3.1bn), the economic development ministry said on Thursday.

With the 200 billion forint top-up, the government aims to support investments in manufacturing and services, FDI abroad and fleet upgrades at logistics companies, the ministry said. The credit targets the food, construction, telecommunications, pharmaceutical, tourism and catering, logistics and green industry sectors, as well as automotive industry suppliers, it added.

The scheme, launched on February 1, offered businesses credit capped at 6.0 percent for forint loans and 3.5 percent for euro loans. Credit will now be available at 5 percent for forint loans and 3 percent for euro loans, the ministry said.

So far, lenders have signed contracts for corporate credit worth of more than 950 billion forints in the framework of the scheme. Outlays have reached 700 billion forints.

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