The European Commission has approved a
Hungarian government scheme to guarantee loans and leases to
Under the scheme, authorities will grant aid in
the form of subsidised guarantees for financial leases and working
capital loans until December 31, 2010. The guarantee coverage can
amount to 90 percent of the value of the loan or lease, and it is
thought this will increase SMEs’ access to finance.

“By facilitating the access of firms to loans, the notified
measure is an effective way of encouraging business investment and
economic recovery, without unduly distorting competition,” said the
EU’s competition commissioner Neelie Kroes.

Indeed, the scheme complies with Commission rules because it is
limited in time, respects the relevant thresholds and applies only
to companies that were not already in difficulty on July 1, 2008,
said the Commission.