Banks expect 40,000 borrowers to file for personal bankruptcy
Approximately 25,000 troubled borrowers could take advantage of Hungaryʼs new personal bankruptcy law in the short term, and the legislation could affect some 40,000 families in the long term, according to top officials of the Hungarian Banking Association, Hungarian news agency MTI reported.
Levente Kovács, the associationʼs chief secretary, said the introduction of personal bankruptcy had been "hurried and unduly substantiated", but he added that the banking association was committed to continuing its cooperation with the government and had taken an active role in establishing the framework for personal bankruptcy in Hungary.
Kovács said it could only be hoped that the system would function well considering the tight deadline to prepare for its introduction, and he conceded that changes might have to be made in the future. András Becsei, the associationʼs deputy head, said the body supports the concept of personal bankruptcy, citing several international examples of cooperation between clients and creditors.
Parliament approved legislation introducing personal bankruptcy late in June. The personal bankruptcy rules will come into force from September 1, 2015 for Hungarians whose homes could be repossessed. The rules will become universal from October 1, 2016.
Bamosz Investment Fund NAV Reaches HUF 15.624 tln in March
Hungary Condemns Iranian Attack on Israel
Share of 1st Time Home Buyers Climbs
Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
