Sándor Demján Program Boosts SME Lending in Hungary

Minister of National Economy Márton Nagy said the Sándor Demján Program, launched by the government to scale up local SMEs, is “progressing well,” at a press conference in Budapest, on 30th April.

According to a statement on the ministry’s website, Nagy noted that funding for the scheme is expected to be exhausted by the end of the fall.

He highlighted that the government had reduced the rates on the Széchenyi Card to 3% for investment loans and 4.5% for other types of credit within the framework of the program.

Since the rate cuts, applications for HUF 240 billion in credit have been submitted, which could boost investment loan outlays by HUF 150 bln from 2024.

He added that decisions have been made on around HUF 30 bln of the HUF 48 bln in applications for the “1+1” SME investment stimulus program, with the entire allocation likely to be decided by the end of May, supporting between 450 and 500 businesses.

Source: bbj.hu