At today’s meeting of the Monetary Council, it reviewed the results of the Growth Bond Program so far and concluded that the program effectively serves the achievement of the monetary policy goals set at the beginning, the central bank announced. Given its high utilization rate and continued lively interest, the Monetary Council
decided to increase the budget of the Growth Bond Program from HUF 750 billion to HUF 1,150 billion, while also amending certain terms of the program.
On 1 July 2019, the Magyar Nemzeti Bank launched the Growth Bond Program with the aim of increasing the efficiency of monetary policy transmission by improving the structure of corporate funding and expanding the liquidity of the bond market, and by facilitating also rely on this type of funding. Since the beginning of the program So far, a total of 53 bond series have been issued by 46 companies, during which the companies raised nearly HUF 900 billion in funds.. Thanks to the Growth Bond Program, the liquidity of the corporate bond market has increased significantly in line with the objectives of the Monetary Council, as a result of which companies now see borrowing from the bond market as a real alternative to bank financing, expanding corporate sector borrowing opportunities.
In view of the high utilization rate of the Growth Bond Program and the continuing strong interest in it, the Monetary Council decided to increase the amount available for purchases. it will increase from HUF 750 billion to HUF 1,150 billion with effect from 13 January 2021.
In addition, the Monetary Council can buy corporate bonds from the central bank
20 to 30 years and to increase the maximum exposure of a central bank to a group of companies from HUF 50 billion to HUF 70 billion.
With effect from 13 January 2021, in order to further help increase the liquidity of the corporate bond market, the domestic corporate sector, like its European competitors, will continue to have access to sustainable, stable and long-term financing to finance its growth-enhancing investments.
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