Hungary Launches Unusual Credit Campaign For Women

Family planning in a different way: Hungary’s government plans to use the generous loans to exert a positive influence on the planning of young Hungarian families. With state-guaranteed loans, women are to be motivated to make a greater contribution to the birth rate.

By offering favourable conditions for loans, the Prime Minister of Hungary wants to encourage women in the country to bear more children. Hungary has already subsidised the procreation of children in the past. And this has achieved marginal success, after all. In six years the birth rate has risen by 0.3 percent. Now women are to be granted cheap loans to make it easier for them to decide to have more children.

This is how Hungary’s women’s loans are to look

The credit campaign for women plans to grant women under 40 a loan of the equivalent of just under 31,500 euros for marriage. But only if it is the first marriage. New marriages after a divorce are excluded.

If the first child is born into this marriage, repayment of the loan is automatically suspended for 3 years. If the woman gives birth to a further child, she is waived one third of the repayment sum. If she even has a third, she will be given the remaining sum in full.

Hungarian women can also look forward to loans for the purchase of real estate, as well as tax relief. Here, the programme even plans to completely exempt women with at least four children from income tax. And the purchase of a family car is also to be subsidised. The aim of this campaign is to increase the birth rate to 2 children per woman in the next 10 years.

Pros and cons of the Hungarian credit promotion

Whether or not these loans for women will be successful, time will tell in the end. However, to base this on the increase in the birth rate, which has allegedly been brought about by previous monetary gifts, is at least a questionable approach. For even if a mother of three is released from a large part of the wedding loan granted, state subsidies do not ensure that the economic situation in the country will improve – and in the end this will not only affect the mothers who are now in debt, but also the generation that will follow them.

On the contrary, it could even aggravate the situation in the long term if the children born by 2030 reach working age. Ultimately, with this baby premium, Hungary is above all remaining true to its sharp, nationalist policy line.