EXIM is launching a new, 10-year-maturity, interest-subsidized loan programme of a Euro-denominated, 0.5% fixed interest rate under the name “Spin up” Investment Loan with the aim to promote the kick-start of the economy and to enhance the long-term financing and strengthening of the micro, small and medium enterprise segment representing 99% of the Hungarian business sector.
Enterprises dealing with export activities – including the surrounding supplier system that consist of several thousands of Hungarian companies, primarily SMEs – are especially hit by the international commercial and economic difficulties caused by the pandemic. The Compensation Loan Program of EXIM launched in May 2020 has been and is providing prompt and effective help for companies in stabilising their daily operation and managing their liquidity constraints caused by COVID-19. EXIM developed its Spin Up Investment Loan also to finance companies affected by the economic impact of the pandemic but the product is specifically targeted at strengthening their long-term growth potential. According to its profile, the programme addresses not only exporters but also their suppliers and enterprises planning to enter the foreign markets. The loan is available both in HUF and EUR and it is interest subsidized in both cases with fixed interest rate during the whole – even ten-year – maturity period. It means a 1.5% interest rate in the case of HUF-based and only 0.5% in the case of EUR-based loans. EXIM loans can be requested from commercial banks or directly from EXIM until the end of 2021 to implement developments and investments in real estate, machinery or equipment that are either new projects or projects initiated but later suspended due to the crisis. The credit amount also speaks for itself: the maximum amount of investment funding is HUF 3.5 billion or EUR 10 million.
“The coronavirus pandemic has naturally halted investments, although developments are indispensable for maintaining or achieving the stabile competitiveness of foreign markets, whether it is the satisfaction of the absorption capacity of the export market in volume or quality. However, the global shock or the rearrangements experienced in global chains have even more accentuated the significance of investments in development projects as new opportunities have opened up for Hungarian exporters to obtain unprecedented foreign market positions and contacts. We always bear in mind the whole export chain because when an exporter develops and simultaneously grows, the supply chain also becomes interested in development. The newly launched Spin Up Loan is an investment funding construction that specifically aims at promoting the above objective in the long run. Our strategy was to incorporate the main guidelines and positive experiences of our Compensation Loan Program into the terms and conditions of the Spin Up Loan. At the same time, we constructed our product in a way that it should also promote the relaunch, long-term rehabilitation and strengthening of the Hungarian economy that is significantly exposed to export. The Spin Up Loan should also contribute to the future-oriented and dynamic growth of enterprises and thus make a positive change for export-oriented SMEs – said Gergely Jákli, CEO, Chairman of the Board of Directors at EXIM Hungary about the launch of the new program.