Favorable working capital loans and interest subsidies also help farmers

He recalled that the recent period has presented Hungarian agriculture with significant challenges, and several measures have been adopted to help farmers. In addition, there is a need for resources to help implement the investments of agricultural and food industry enterprises with support – he highlighted. This is served by the call for interest and guarantee fee support published on Thursday, for which those who already have an investment support contract under the CAP can apply from June. In the changed economic circumstances, agricultural and food industry enterprises must also be helped in connection with their current operations. According to József Viski, they worked together with the Ministry of National Economy to address the production and financing problems in agriculture with other tools, which is how the Hungarian Development Bank (MFB) created a three-stage complex program to help agricultural and food industry players. Bence Katona, President and CEO of the Hungarian Development Bank, presented the three-part complex agricultural and food industry program package with a financing framework of approximately 220 billion forints.

As the first stage, the MFB Livestock Current Asset Loan Program 2025 was launched on Thursday with a value of 150 billion forints

Within this, a framework of 100 billion forints is available to replace the existing commercial bank current asset loan, the interest rate of which is 3-month BUBOR plus 2 percent, currently this is 8.5 percent interest. From the 50 billion forints, MFB will provide a bank guarantee for the working capital loan required for the operation of livestock enterprises – Bence Katona detailed. In the second stage, MFB’s three previously proven agricultural products will be relaunched. With a budget of approximately 17 billion forints, the MFB Agricultural Working Capital 2025, the MFB Food Industry Working Capital Loan Program 2025, and the MFB TÉSZ Working Capital Loan Program 2025 will be available from the end of May. The schemes can be used to apply for new working capital loans or to replace existing loans. In the third stage, an investment loan program with a budget of 50 billion forints is planned to be launched from the end of June – Bence Katona said.

MTI