Hungarian farmers can avail of a new interest-subsidised credit facility
According to the statement, the agricultural sector was hit by the historic drought last year, which affected more than 50,000 farmers on 1.4 million hectares (3.4 mn acres), and this year by a thousand-fold increase in Ukrainian grain imports. Rising production costs and falling farmgate prices are causing significant losses, simultaneously destroying the sector's profitability.
The level of support currently available for the 'normal' Agricultural Széchenyi Card Scheme can only marginally reduce the interest burden on agricultural businesses in the current high interest rate environment, the statement reads. For this reason,
the government has developed a "bonus" Agricultural Széchenyi Card Overdraft Facility for farmers in difficulty.
The key characteristics of the credit facility are the following:
- interest is 5% per annum,
- the loan is available to agricultural micro, small and medium-sized enterprises,
- the maximum amount of the overdraft facility is HUF 100 million.
The Programme is available for loan contracts concluded within nine months of the entry into force of the Regulation governing the Programme at credit institutions distributing the Agricultural Széchenyi Card.
