credit energy industry Márton Nagy

Without Government Lending Programs There Would Be Recession, Minister Says

MTI-Hungary Today 2023.05.05.

Government credit programs such as the Széchenyi Card and the Re-industrialization Program to support businesses are expected to add about 1.0-1.2 percent to the country’s GDP this year, keeping the country out of recession, the Minister of Economic Development told a conference, according to MTI.

Avoiding recession and bringing inflation down to single digits by the end of the year remain the main goals of Hungarian economic policy, Márton Nagy said.

The Széchenyi Card program facilitated contracts worth a total of 387 billion forints (EUR 1.0 billion) between January and April, and the re-industrialization program 534 billion, he highlighted.

Fact

For 20 years, the Hungarian government has been providing financial solutions for businesses through the Széchenyi Card Program, tailored to their financing needs. The program offers various loans for investment and operational financing, as well as leasing. Since its launch in 2002, the Széchenyi Card Program has received 559,000 loan applications and has concluded nearly 390,000 loan transactions, providing Hungarian SMEs with access to more than HUF 4,600 billion (EUR 11.2 billion) in preferential financing.

He said

it was a positive development that the energy trap seems to be easing, as the country’s energy bills have fallen. However, the high-interest rate environment will remain this year and next.

The value of energy imports is expected to fall from 17 billion euros in 2022 to 9 billion euros this year, with 70-75 percent of households protected by the cuts, he added.

Economy Minister Shares His Thoughts on Future Adoption of the Euro

In an interview, Márton Nagy talked about the economic challenges of 2023, and the possible purchase of Budapest Airport.Continue reading

Featured photo via MTI/Máthé Zoltán