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Coronavirus: Govt to Expand Eligibility for HUF 10 m Interest-free Loan

MTI-Hungary Today 2021.03.11.

Hungary’s government will expand eligibility for the 10 million forint (EUR 27,200) interest-free loan aimed at supporting the economic recovery to any business that has had to close in the ongoing two-week lockdown, the prime minister’s chief of staff said on Thursday.

The government has instructed the Hungarian Development Bank (MFB) to make the necessary arrangements as soon as possible, Gergely Gulyás said. Meanwhile, the innovation and technology ministry will turn to the Hungarian Chamber of Industry and Commerce with a view to notifying companies of the terms and conditions for applying for it, he added.

The lockdown has made things difficult for many businesses, especially those in the service sector, Gulyás said, noting that the government has also expanded its wage support scheme to every business that has had to close.

The government will pay half the wages of people working in the services that have now been suspended, and has scrapped employer contributions in the relevant sectors for March. Also, businesses registered to pay the Itemised Tax for Small Businesses (KATA) are exempt from paying this month’s flat payment, he said. So far, the government has made wage subsidy payments to the tune of 50.6 billion forints, he said, and suggested that payments were being made without delay.

featured image via Zoltán Máthé/MTI