BUDAPEST, Nov 3 (Reuters) - Hungary’s central bank will extend its funding for growth programme into 2016 with 600 billion forints ($2.10 billion) and will also launch measures to boost market-based lending to small and medium-sized businesses, the bank said on Tuesday.
Under its new pro-growth programme, the National Bank of Hungary, led by a close ally of Prime Minister Viktor Orban, wants to encourage banks to gradually return to market-based financing as it phases out its Funding for Growth programme. Banks participating in the programme will have to undertake to boost their loan stock to small and medium businesses.
“As a result of the above programmes, the stocks of corporate and targeted SME loans are expected to increase by HUF 250-400 billion in 2016, which is equal to an annual growth rate of 5-10 per cent,” the bank said in a statement. ($1 = 286.01 forints) (Reporting by Krisztina Than and Gergely Szakacs)