Hungary’s government has earmarked over 420 billion forints (EUR 1.2bn) in development funding for its economy protection scheme aimed at offsetting the economic fallout of the novel coronavirus epidemic, the finance minister said.
Modifications made to the amount of funding available for the GINOP economic and innovation programme will leave more money for the government’s wage support scheme, supporting business investments and capacity expansions as well as preferential business loans, Mihály Varga told MTI. The government on Wednesday approved a 310 billion forint non-refundable grant scheme and a 110 billion forint zero-interest loan scheme for the economy protection action plan, the minister said.
Varga said the GINOP will provide coverage for measures such as the government’s takeover of 70% of wage costs of businesses affected by the epidemic. The government will invite bids to disburse 74 billion forints in support of boosting the productivity and technological rejuvenation of businesses, he said. A 7 billion forint digital skill development scheme is also set to be launched, Varga said.
The minister noted that the government’s room for manoeuvre had been increased by changes in the exchange rate of the forint rather than extra funding from the European Union.