Interest-subsidized working capital loan for grain processing enterprises

By: STA Date: 2023. 10. 12. 10:00

State-subsidized working capital loans are also available for enterprises involved in grain processing, among the agricultural loan programs operated by Magyar Fejlsztési Bank (MFB Zrt.), stated Zsolt Feldman, the state secretary responsible for agriculture and rural development. He emphasized that, in addition to the burdens caused by the war and the failed Brussels sanctions, the market disturbances caused by Ukrainian grain also caused extreme difficulties in the sector. That is why the increased participation of the domestic food industry players in grain processing is extremely important.

(Photo: Pixabay)

Zsolt Feldman recalled that MFB Zrt. And the Ministry of Agriculture Current Devices Loan Programs include the MFB Agricultural Current Devices Credit Program 2020, the MFB TÉSZ Current Devices Credit Program 2020 and the MFB Food Industry Current Loan Program 2020. of mill industry products, as well as enterprises producing baked goods or pasta products, can apply for a loan of up to HUF 1 billion, with a term of up to 6 years. He added that this is a HUF loan that charges euro interest, and thanks to the interest subsidy provided by the Ministry of Agriculture, the loan interest to be paid by businesses is expected to be around the currently favorable 8.5-9 percent/year. The conditions of the credit facility allow the affected enterprises to finance the purchase of raw materials cheaper. The loan is available at several financial institutions and at MFB Zrt. – explained the state secretary. Zsolt Feldman emphasized that it is also worth drawing attention to the MFB Agricultural Current Asset Loan Program 2020, within the framework of which agricultural enterprises, regardless of size, can take out a current asset loan with a maximum term of 6 years, with a grace period of up to 3 years. The purpose of this program is to provide resources for agricultural production in a broader sense. Thus, the interest-subsidized loan can be used by enterprises engaged in production activities in the primary production of agricultural products, fish farming, and in the poultry, rabbit, cattle (the latter including milk and meat utilization) and pig breeding sectors. He added that the maximum loan amount for agricultural producers and fish farmers is HUF 500 million, and HUF 1 billion for producers. The interest rate on the loan is also around 8.5-9 percent/year

The state secretary highlighted that companies can apply for HUF 29 billion preferential interest loan programs operated by MFB Zrt., specifically helping the liquidity situation of agriculture and food processing, until the resource limit is exhausted.