Hungary plans on offering interest-free loans to small businesses. Imagine how wonderful that would be if our government offered that to our citizens. There would be Mom and Pop stores opening up in every abandoned store front in every neighborhood. It would instantly bring manufacturing back to our towns and cities. You wouldn’t have to search for made in America products because products would be made in America with less costs necessary to operate here and more money would be made available to be given for salaries. We would have entrepreneurs gone wild.
President Obama’s suggestion of raising the minimum wage from it’s current amount of $7.25 per hour to $9.00 per hour is not enough for a family to survive but the opportunity to open a small business leaves hope and spurs ambition for anyone to follow their dream business where good old fashioned competition rules. We do not need the rich few companies gobbling up the small companies in take over’s, laying off employees and keeping all the profits from liquidation.
Hungary’s central bank plans to venture into unconventional territory by saying it plans to offer interest-free money for loans to small and mid size businesses and help them convert burdensome foreign-currency loans into local footprints in an effort to boost the economy. Markets have been watching closely yo see how the National Bank 0f Hungary’s new governor, Gyorgy Matolcsy, would redirect monetary policy in Budapest and other cities in Hungary.
The central bank predicts the program will add as much as 3 percentage points to gross domestic product this year, and a similar amount next year. Under the plan, the central bank will provide as much as 250 billion forints which is equivalent to $1,06 billion dollars to commercial banks at 0% interest if they lend it to small and mid-size companies at rates of 2% or lower. Such loans generally have interest rates above 10%.
Adrea Bartfai-Mager, a member of the bank’s monetary-policy council, said inflation is expected to be at or close to the bank’s 3% target for the next two years. They can figure it out if they want to. Just give hard working people a chance to work hard at being productive.