Companies get prepared: The Baross Gábor reindustrialisation loan programme continues with HUF 200-billion additional funding

EXIM Hungary offers HUF loans at up to 5 percent and euro loans at up to 3 percent interest in 2024 to stimulate investment

EXIM Hungary will continue the highly successful Baross Gábor Reindustrialisation Loan Programme with even more favourable financing conditions. The government has decided to raise the amount of the loan programme by HUF 200 billion, so EXIM Hungary will continue to provide priority support for industries that play a key role in Hungary’s economic growth, as well as for investments in sustainability and energy efficiency through the Baross Gábor Loan Programme in 2024.

The Baross Gábor Re-industrialisation Loan Programme will continue next year, with EXIM Hungary being able to finance the scheme with another HUF 200 billion, following the government’s decision to raise the total budget of the programme, launched in February 2023, to HUF 1,200 billion. With the increased amount, EXIM Hungary aims to help ensure that domestic companies with high growth potential in the automotive, food, pharmaceutical, construction, logistics, tourism and hospitality and telecommunications sectors are financed. In addition to investments related to manufacturing and services, EXIM will support Hungarian companies investing abroad, finance logistics, transport and production equipment, and support investments in sustainability and energy efficiency transition.

The interest rates on investment loans and leases available to operators in these industries are even more favourable than in the 2023 scheme. This means that one of the most successful loan programmes of all times will not only support investment recovery, but also protect jobs and economic growth. EXIM Hungary offers SMEs and large companies 10-year loans and 5-year leases with interest rates of up to 5% in HUF and up to 3% in EUR. Applications can be submitted in the usual way to commercial banks or leasing companies, but companies can also apply for financing directly from EXIM.

It has been almost a year since the launch of the Baross Gábor Reindustrialisation Loan Programme, which has enabled us to actively support hundreds of Hungarian businesses in a targeted manner. At the same time, we still believe that EXIM Hungary’s counter-cyclical activities and additional preferential loan products are necessary to put domestic companies on a new development path. Seeing the high demand and customer satisfaction, we welcome the Government’s decision to continue the Baross Gábor Loan Programme. Thanks to this, EXIM Hungary can contribute to strengthening the long-term growth potential of the Hungarian economy by improving the competitiveness of businesses.

-said Kornél Kisgergely, CEO of EXIM Hungary.

On 1 February 2023, the Government launched the Baross Gábor Reindustrialisation Loan Programme, one of the largest ever government loan programmes in Hungary, worth HUF 700 billion. The aim of the Loan Programme is to support the entire domestic manufacturing and service sector by improving the competitiveness of the enterprises applying for loans. Three schemes were launched: a working capital loan, an investment loan and a green investment loan. In view of the high interest, the Government decided on 10 March to extend the credit line and then increased it to HUF 1 000 billion.

The Baross Gábor Re-industrialisation Loan Programme is a great help to domestic businesses, as higher interest rates are significantly restraining growth, while companies’ demand for credit remains high. As of mid-December, EXIM Hungary had received 3,255 loan applications under the Baross Gábor Loan Programme for a total of HUF 1,563 billion. Of these, HUF 691 billion were applications for working capital, HUF 561 billion for investment loans (including leasing) and HUF 311 billion for real estate loans. Around 73% of the HUF 950 billion contracted so far has been disbursed, for a total of HUF 700 billion. 69% of all contracts were signed with SME customers, while 15% of companies with at least 250 employees in Hungary benefited from the preferential resources of the Baross Gábor Loan Programme. In terms of contract amounts, most of the funds are channelled to the trade, food, construction, transport and storage, agriculture, rubber, metal and chemical and automotive sectors.