Applicants rushing to apply for the Baross Gábor loan scheme

Hungarian companies can use EXIM Hungary’s preferential funds for investments

Another milestone has been reached in the Baross Gábor Reindustrialisation Loan Programme, which was reopened on 15 January. In just over a month, EXIM Hungary has received enough applications from Hungarian companies to exhaust the HUF 200 billion additional credit programme. In total, 150 loan applications have been submitted by the applicant companies in order to achieve their investment objectives. Given the high level of interest, the acceptance of loan applications is suspended and the evaluation of the applications received is in progress.

Interest in preferential loans from Hungarian companies is unabated: the resources of the Baross Gábor Loan Programme, which was increased by HUF 200 billion, have been fully covered by loan applications from interested companies in just one month. This means that the financing envelope is full and the loan applications are now being assessed. A total of 150 applications for loan products with even more favourable financing conditions have been received by EXIM Hungary since the reopening on 15 January 2024. 84% of the applications for the Baross Gábor Loan Programme for investment support are for loans in Euro. Of the applications received to date, 97 transactions worth around HUF 135 billion have been approved by EXIM Hungary, all of which have been registered through EXIM’s refinancing partners. 36% of the approved applications are from SMEs, while in terms of sectoral distribution, 47.4% are from the manufacturing sector, mainly from Budapest, Pest, Bács-Kiskun and Fejér counties.

In order to offset the drastic increase in energy prices and the negative effects of the high interest rate and inflation environment, the Government decided to prolong the popular loan programme in 2024. Through EXIM Hungary, domestic companies can apply for loans with interest rates of up to 5% in HUF and up to 3% in EUR, with a maximum ten-year maturity, on even more favourable terms than before. Companies operating in the food, construction, telecommunications, pharmaceuticals, tourism and hospitality, automotive suppliers and logistics sectors can apply for the loan programme.

The investment incentive loan scheme also aims to increase international competitiveness, improve the technology of suppliers and ensure compliance with international standards through sustainability investments. The loan programme also provides opportunities to support foreign and domestic capital investment to enhance the success of companies in the designated sectors. The envelope of HUF 200 billion can be used to finance investments in manufacturing and service activities, foreign investment, logistics, transport and production assets through low-interest loans in HUF and Euro, and leasing facilities.

We have been working for thirty years to help Hungarian companies achieve their international and domestic business goals. The Baross Gábor Loan Programme is also a huge milestone in the life of EXIM Hungary, as it enables us to contribute to the success of Hungarian companies with a larger volume than ever before, HUF 1200 billion. Although the HUF 200 billion additional funding has already been used up, our long-term goal is to support Hungarian companies in achieving their growth targets with preferential financing instruments, thus supporting the emergence of new nationally prominent companies.

– said Kornél Kisgergely, CEO of EXIM Hungary.

Following the Government’s decision, EXIM Hungary launched the Baross Gábor Reindustrialisation Loan Programme in February 2023, whose schemes have been a great success from the very beginning. In less than 3 months after the launch of the programme, the contracted loan portfolio exceeded HUF 500 billion and reached HUF 1,000 billion in early January 2024. Under the Baross Gábor Loan Programme 2023-2024, 3,410 loan applications were received for a total of nearly HUF 1,854 billion. This makes the Baross Gábor Reindustrialisation Loan Programme, which has now reached HUF 1,200 billion, not only one of the most sought-after financing schemes in EXIM Hungary’s 30-year history, but also one of the most successful loan programmes Hungary has ever implemented.