MNB launches FGS Green Home program

MNB

MNB headquarters in Budapest

Photo by Andocs / Shutterstock.com

The National Bank of Hungary (MNB) on Tuesday announced the launch of the Funding for Growth Scheme (FGS) Green Home Program to support purchases of energy-efficient homes, according to a report by state news wire MTI.

In the framework of the FGS Green Home Program, the central bank will provide 0% refinancing to lenders for retail loans for new homes with a primary energy consumption threshold of 90 kWh/sqm per year. Interest rates on the loans will be capped at 2.5%.

The program was launched on Monday with a HUF 200 billion allocation.

Fielding questions at a press conference, MNB deputy governor Mihály Patai said the scale of the appetite for the scheme, which is "a novelty", "can't be estimated", but added that there is a "very good chance" that MNB policymakers will continue the program if the initial allocation is used up.

The preferential credit is limited to borrowers who plan to reside in the homes they purchase, excluding property investors.

The maturity of the loans is capped at 25 years.

Hungary Account Deficit at EUR 561 mln in Q4 Debt

Hungary Account Deficit at EUR 561 mln in Q4

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.