Kavosz: the Agricultural Enterprise Credit Guarantee Foundation reduces its guarantee fees

By: STA Date: 2024. 01. 30. 10:00

The Agrár-Vállalkozasi Hitelgarancia Alapítvány (AVHGA) will significantly reduce the guarantee fees for agricultural loans in the Széchenyi Card Program, so that agricultural enterprises will also get cheaper loans from the program – announced László Krisán, CEO of Kavosz Zrt., in a statement sent to MTI on Tuesday.

He pointed out that, according to the agreement between Kavosz and the AVHGA, from February 2024, the amount of the guarantee fee to be paid by businesses in the Agrár Széchenyi Kártya Konstrukció will be reduced by two-thirds – to 0.2 percent net per year, which means significant savings for agricultural businesses. According to the CEO of Kavosz, such reductions in interest and other loan fees in the corporate lending market can further encourage entrepreneurial borrowing, and active bank lending is essential for the growth of the economy. Interest and fee reductions are important for this, and this is also why steps such as the agreement between the government and the banking association are important, according to which, for loans with market interest rates, banks undertake for 3 months to waive the interest margin above BUBOR for 6 months, which results in a significant reduction in the cost of funds in – emphasized László Krisán.

The CEO highlighted that the state-supported Széchenyi Card Program currently provides the cheapest business loans, with a fixed interest rate of between 1.5 percent and 5 percent per year, and provides preferential financing for a term of 1-10 years in the amount of up to HUF 1.4 billion.

In a statement, Kavosz emphasized that the Széchenyi Card Program provides assistance to tens of thousands of businesses every year. In 2023, more than 46,000 contracts were signed in the amount of nearly HUF 1,700 billion. Since the creation of the program, more than 480,000 transactions in the amount of HUF 7,800 billion have been completed. Currently, they receive loan applications from 300 customers on average per day, amounting to more than HUF 11 billion, Kavosz Zrt announced.


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