Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2021-11/1833 – measures in Hungary
|Country||Hungary , applies nationwide|
|Time period||Temporary, 08 March 2021 – 30 November 2021|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Measures to support a gradual relaunch of work
|Author||Nóra Krokovay (KOPINT-Tárki) and Eurofound|
|Measure added||09 April 2021 (updated 08 June 2022)|
Under government decree 1038/2021 (5 February). The government is opening up a credit scheme for businesses to facilitate the relaunch for companies impacted by the COVID-19 pandemic. Applications for the loan must be submitted to the central bank and evaluation will be fast-tracked. The main criteria are that the company did not make a loss in 2019 as well as its current viability and operability. Funding will come from EU-REACT funds.
The maximum amount of the loan is HUF 10 million (€27,780) and it can be used for paying wages, social contributions, rent, operating costs or stocks with an annual interest rate of 0% for a maximum of 10 years. The loan amount cannot exceed the company’s revenue in 2019. No down payment is needed. Interest repayment begins after a three-year grace period following the transfer of the loan. Only one loan per company is available.
In the first phase the credit is targeted at tourism, restaurants and catering and sports sectors and their suppliers. From March 16 the circle of applicants was widened to include 55 different activities/sectors. These are:
The government has budgeted HUF 100 billion (€277.8 million) for the credit scheme. The sectors in which companies are eligible for the loan were determined by the National Bank of Hungary, in consultation with the Hungarian Chamber of Commerce. The credit line is distributed so that applications from the capital of Budapest and the surrounding Pest county are capped at 40% of the budgeted amount. According to the central bank, more than 5,000 businesses applied for the loan in just the first four days of its launch and the average size of a loan was HUF 9.2 million
|Does not apply to workers||
|Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
Social partners' role in the implementation, monitoring and assessment phase:
The sectors in which companies are eligible for the loan were determined by the National Bank of Hungary, in consultation with the Hungarian Chamber of Commerce.
No known views.
|Economic area||Sector (NACE level 2)|
|G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles||G47 Retail trade, except of motor vehicles and motorcycles|
|H - Transportation And Storage||H49 Land transport and transport via pipelines|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
|J - Information And Communication||J59 Motion picture, video and television programme production, sound recording and music publishing activities|
|N - Administrative And Support Service Activities||N77 Rental and leasing activities|
|N79 Travel agency, tour operator and other reservation service and related activities|
|N82 Office administrative, office support and other business support activities|
|P - Education||P85 Education|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R91 Libraries, archives, museums and other cultural activities|
|R93 Sports activities and amusement and recreation activities|
|S - Other Service Activities||S95 Repair of computers and personal and household goods|
|S96 Other personal service activities|
This case is not occupation-specific.
Eurofound (2021), Restart interest-free fast loan, measure HU-2021-11/1833 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2021-11_1833.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.