ENP Newswire - 03 September 2014
Release date- 02092014 - Press release on the loans granted in the second phase of the Funding for Growth Scheme.
On the first business Tuesday of each calendar month, the Magyar Nemzeti Bank (MNB) publishes information on the utilisation of the overall amount made available under the Funding for Growth Scheme (hereinafter: Scheme), based on the total amount of SME loans submitted to the MNB by the last working day of the previous week. Up to 29 August 2014, credit institutions participating in the second phase of the Scheme concluded contracts for a total amount of HUF 337.4 billion, in 11189 transactions with 8295 enterprises. Of this amount, credit institutions have so far disbursed HUF 272.5 billion1 to small and medium-sized enterprises participating in the Scheme. New loans account for approximately 98 per cent of the contracted HUF 337.4 billion (loan redemptions cannot exceed 10 per cent of the overall amount). Within new loans, the share of new investment loans (and new leasing transactions) is 60 per cent, while the share of new working capital loans is 24 per cent and the share of loans granted to pre-finance EU funds (hereinafter: EU loans) is 16 per cent. In Pillar II (redemption of forint and foreign currency loans), the share of loans disbursed for the redemption of outstanding investment loans is 71 per cent, while 29 per cent has been provided for the redemption of outstanding working capital loans. 79 per cent of the loans under Pillar II was used to redeem forint-denominated loans, while 21 per cent served for the redemption of foreign currency loans. Within the contracts concluded under Pillar I, the average amount of new investment loans is HUF 24 million, that of new working capital loans is HUF 57 million, while in case of EU loans the average size is HUF 37 million. In Pillar I, weighted by loan size, the average maturity of new investment loans is 6,9 years, compared to 1.5 years for new working capital loans and 1.4 years for EU loans, while in Pillar II it is 6.5 years for loans granted for the redemption of outstanding investment loans and 1.9 years for the redemption of outstanding working capital loans. New investment loans account for nearly half of the lending by large banks, whereas new investment loans constitute the vast majority of loans granted by small and medium-sized banks and cooperative credit institutions. EU loans are mainly granted by large banks under the Scheme. In terms of company size, nearly 80 per cent of loans to micro enterprises are new investment loans, while this share is around 50 per cent in the case of small and medium-sized enterprises. Regarding sectoral distribution, the agriculture, manufacturing, and trade and repair sectors are overrepresented, as they account for nearly three quarters of the loans.
Loan outstanding reduced by instalments.2/3
Table 1.: Distribution of loans provided in the second phase of the Scheme, by purpose
Chart 1: Distribution of loans provided under Pillar I, by purpose and banking group2
Chart 2: Distribution of loans provided under Pillar I, by purpose and company size
Disbursements by financial enterprises are included in the group corresponding to the size of the banks refinancing them.3/3
Chart 3: Sectoral distribution of loans3
Chart 4: Regional distribution of loans
The sectoral distribution of loans does not include sole proprietors.