UPDATE 1-Hungary to provide subsidized loans for first-time home buyers, PM says

Hungary is going to provide subsidized loans with a 3% interest rate for all first-time home buyers regardless of where they are buying property, Prime Minister Viktor Orban wrote on his Facebook page on Wednesday after a government meeting.

The scheme was announced as nationalist Orban's Fidesz party is gearing up for a tightly contested election next year while also facing unusually strong economic challenges, with the economy barely growing. Orban said the loans could be used for both houses and apartments but did not provide any more details, promising to elaborate on the program later.

His government is targeting 2.5% growth

this year, although a state secretary at the Economy Ministry said last month that projection was under review

. Most economists say that number is far too optimistic, while the Central Bank projects

economic growth at a mere 0.8% this year. However, some investors are concerned that the weak economy could trigger the kind of fiscal largesse that helped Orban get re-elected in 2022.

Orban said in February that the government will offer free grants

to hundreds of thousands of pensioners in rural areas to renovate their homes, targeting a voter group that has traditionally supported his party.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)