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May 07, 2020

Coronavirus Update: Government earmark HUF 420 billion for economy protection scheme

The Hungarian government has earmarked over HUF 420 billion (EUR 1.2bn) in development funding for its economy protection scheme.

The Hungarian government has earmarked over HUF 420 billion (EUR 1.2bn) in development funding for its economy protection scheme aimed at offsetting the economic fallout of the novel coronavirus epidemic.

Mihály Varga, Minister of Finance, said modifications made to the amount of funding available for the GINOP economic and innovation program will leave more money for the government’s wage support scheme, supporting business investments and capacity expansions as well as preferential business loans.

According to MTI, Minister Varga said the government on Wednesday approved a HUF 310 billion non-refundable grant scheme and a HUF 110 billion zero-interest loan scheme for the economy protection action plan.

Minister Varga said the GINOP will provide coverage for measures such as the government’s takeover of 70 percent of wage costs of businesses affected by the epidemic. The government will invite bids to disburse HUF 74 billion in support of boosting the productivity and technological rejuvenation of businesses, he said. A HUF 7 billion digital skill development scheme is also set to be launched.

Finally, the minister noted that the government’s room for maneuver had been increased by changes in the exchange rate of the forint rather than extra funding from the European Union.

A call center set up for advice on the coronavirus can be reached on +36-80-277-455 and +36-80-277-456 or by email koronavirus@bm.gov.hu