According to Direkt36\u2019s research, other businessmen linked to Tiborcz were also beneficiaries of the Central Bank\u2019s so-called Loan Program for Growth. The company of G\u00e1bor S\u00e1jer, who was previously the head of Elios, Tiborcz\u2019s company that won several public street lighting tenders, received a 4.7-million-euro loan. M\u00e1rk Cz\u00e9h-T\u00f3th, the business partner of Tiborcz\u2019s close associate, received an almost 2.8-million-euro favorable loan for the renovation of a prominent hotel in P\u00e9cs, in the South-West of the country.<\/p>\n
The program runs with the refinancing of the Central Bank, which means that the Central Bank first provides the loans to commercial banks, which then give them to business companies. In all cases, Tiborcz and his business partners received the loans from state-owned banks – in the case of BDPST, from Budapest Bank. BDPST requested a favorable loan from a state bank despite previous statements by Tiborcz that he wanted to stay away from state or municipal affairs.<\/p>\n
In the framework of the Central Bank\u2019s Loan Program for Growth, 31 thousand companies received loans of different sizes within almost one year. According to the Central Bank\u2019s statistics, more than half of the beneficiaries were micro- and small-sized companies, and the majority of them received loans in the amounts between 20 and 260 thousand euros. At the same time, the size of the loans given to Tiborcz and people linked to him was significantly higher.<\/p>\n
Responding to Direkt36 inquiry, the Central Bank stated that out of 45,500 cases, the amount of the loan exceeded one billion forints (which totals to approximately 2.8 million euros) in 155 cases. Citing bank secrecy reasons, it did not say who their beneficiaries were. Regarding the loan of BDPST, it stated that it was not in the Bank\u2019s purview to decide about the companies\u2019 loans, nevertheless it would be unjustified to exclude firms from the program that have been profitable and efficient for several years. BDPST and Budapest Bank did not respond to our questions.<\/p>\n
Tiborcz switched for a better interest rate<\/strong><\/h2>\nLast spring, the Hungarian government announced measures intended to ease economic difficulties caused by the COVID-19 pandemic. Among others, Hungary\u2019s Central Bank, led by governor Gy\u00f6rgy Matolcsy, also introduced several steps. One of these was the relaunch of an earlier Central Bank program, under the new name Loan Program for Growth, with more preferable conditions.<\/p>\n
The Central Bank gradually released 8.3 billion euros for the program, which was aimed at providing cheap loans for micro-, small- and medium-sized enterprises, with a maximum of 2.5 percent interest rates, in the amounts between 2,800 euros and 56 million euros for up to 20 years. The companies could use the loans for various purposes, such as investments, replacing other loans, but even for tasks related to their daily operations including salaries.<\/p>\n
One of the applicants was BDPST, the company of Istv\u00e1n Tiborcz, which was founded in 2015 and has a significant real estate portfolio. Last year, the Hungarian Forbes magazine assessed that Tiborcz\u2019s real estate company group \u2013 consisting of BDPST and its daughter companies \u2013 was the 60th most valuable Hungarian-owned enterprise. According to Forbes, Tiborcz\u2019s company group was worth 32 million euros and it generated 16 million euros of profit in 2019.<\/p>\n
BDPST has several real estate projects, one of them is the renovation of the Adria-palace located at Szabads\u00e1g square in downtown Budapest. The company announced in March 2019 that it purchased the majority of the building with the help of a 8.3-million-euro from the state-owned Budapest Bank. According to documents from the company court registry, on top of a 2.5 percent interest rate the loan also had a variable interest rate based on a continuously changing amount.<\/p>\n
![\"Forr\u00e1s:](\"http:\/\/direkt36.exot.hu\/wp-content\/uploads\/2015\/02\/tiborcz.jpg\")
Istv\u00e1n Tiborcz and Viktor Orb\u00e1n, Source: Orb\u00e1n Viktor Facebook<\/p><\/div>\n
Last July, BDPST replaced this loan with another loan from Budapest Bank, which it received in the framework of the Central Bank\u2019s program, according to company court registry data. The amount of the loan was somewhat higher, namely 8.4 million euros, however, its interest rate was fixed at 2.5 percent. In addition to a lower interest rate, the switch also allowed Tiborcz\u2019s company to avoid the risk linked to a fluctuating rate.<\/p>\n
Tiborcz\u2019s other companies also received public funds in the past. The firm called Elios won several public lighting tenders, in which the EU\u2019s anti-fraud agency OLAF found irregularities. After officially stepping down from the company, Tiborcz said he understood that, as the Prime Minister\u2019s family member, he had to stay away from state or municipal affairs. Nevertheless, BDPST received state loans multiple times, which, according to Tiborcz, were not grants but loans and therefore had to be repaid.<\/p>\n
Tiborcz\u2019s adviser<\/strong><\/h2>\n
Istv\u00e1n Tiborcz and Viktor Orb\u00e1n, Source: Orb\u00e1n Viktor Facebook<\/p><\/div>\n
Last July, BDPST replaced this loan with another loan from Budapest Bank, which it received in the framework of the Central Bank\u2019s program, according to company court registry data. The amount of the loan was somewhat higher, namely 8.4 million euros, however, its interest rate was fixed at 2.5 percent. In addition to a lower interest rate, the switch also allowed Tiborcz\u2019s company to avoid the risk linked to a fluctuating rate.<\/p>\n
Tiborcz\u2019s other companies also received public funds in the past. The firm called Elios won several public lighting tenders, in which the EU\u2019s anti-fraud agency OLAF found irregularities. After officially stepping down from the company, Tiborcz said he understood that, as the Prime Minister\u2019s family member, he had to stay away from state or municipal affairs. Nevertheless, BDPST received state loans multiple times, which, according to Tiborcz, were not grants but loans and therefore had to be repaid.<\/p>\n