This is how the government would increase the purchasing power of incomes

According to the announcement, the government will provide young workers between the ages of 17 and 25 from January 2025 with HUF 4 million interest-free loans with a 10-year term, which will support their career start with around HUF 500 billion.

Increasing the purchasing power of income is one of the cornerstones of the government’s new economic policy action plan consisting of 21 measures, as part of which the worker’s loan provides special support for young people.

The worker’s loan gives young workers the opportunity to apply for an interest-free loan of up to HUF 4 million, which can be used freely and can be repaid over a 10-year term.

The conditions of the loan include that only those young workers who work as an employee or entrepreneur for at least 20 hours a week are entitled to it.

The applicant undertakes to have a registered address in Hungary and to work for at least 5 years from the date of disbursement of the loan.

The measure may affect around 300,000 young people in the next two years, for whom the employment loan starting next year will provide many opportunities.

Young people entitled to a student loan cannot use the worker’s loan, the government continues to provide them with subsidized student loans – they wrote.

In addition to helping young people start their careers, the program also greatly helps them start a family and have children.

In the case of female borrowers, repayment is suspended for 2 years after the birth of the first child, after the second child another 2-year moratorium comes into effect and half of the debt is forgiven, while in the case of the arrival of the third child, the entire outstanding debt is forgiven – they added.

As part of the new economic policy action plan, the government is mobilizing a total of HUF 4,000 billion to support young peop