The interest rate on Széchenyi Card investment loans, agricultural investment loans and leasing facilities will be reduced to 3%, and on Széchenyi Card overdrafts, tourism loans and liquidity facilities to 4.5%, in the spirit of burden sharing between the banking sector and KAVOSZ for new contracts signed after 1 March 2025. This will give businesses access to new loans at half the interbank reference rates. This measure can provide the funds required for further growth.
One of the banking sector's best-known core task is to finance sustainable economic development, which it can best ensure in a pure competitive market environment.
In order to be able to invest in operational efficiency and produce higher-quality or less energy-intensive products, businesses typically need substantial amounts of bank credit at prices matching their profit-generation capabilities. In the business sector, micro, small and medium-sized enterprises stand out for the way they span all areas of the economy, playing an essential role in innovation, the employment of a large workforce, flexibility, and in filling market gaps. With this in mind, the various Széchenyi Card credit schemes have become successful and popular among Hungarian micro, small and medium-sized enterprises, with significant Government support. Banks participating in the programme sell these products pursuant to the conditions set out in the KAVOSZ regulations, subject to its pre-screening and intermediation, with the guarantee of Garantiqa Hitelgarancia Zrt. and AVHGA.
In order to ensure that the growth of newly disbursed Széchenyi Card overdrafts, tourism loans, investment loans, agricultural investment loans, liquidity facilities and leasing transactions continues, participating banks and KAVOSZ - in line with the Government's previous measures, i.e. the Demján Sándor Programme, which, since 1 November 2024, has been offering investment-type Széchenyi card loans at a rate starting from 3.5% - will ensure the reduction of interest rates on the above loan products by a uniform 0.5% from 1 March 2025. This reduction can be ensured by participating banks and KAVOSZ by paying 0.4% and 0.1% of the fees, respectively. They are doing this in order to ensure that the credit volumes of relevant businesses can grow. The more favourable pricing offers another opportunity for Hungarian micro, small and medium-sized enterprises to start new investments, boost their efficiency and competitiveness, increase and improve their production and/or reduce their energy consumption.
3 February 2025 Hungarian Banking Association