IMF recommends international professional partnership in MARK
The staff of the International Monetary Fund (IMF) have recommended that Hungary involve one or two international professional partners in the Hungarian Reorganization and Receivables Management Company (MARK), established by the National Bank of Hungary (MNB) last November to buy bad commercial real estate loans and properties from banks, Hungarian news agency MTI reported today.
The IMF staff said attracting "one or two international professional equity partners to bring MARK closer to the preferred private ownership model" was a high, near-term priority, according to a technical assistance report published following a visit by a mission to Hungary in early June. The staff said financing MARKʼs operations with bonds issued by MARK was another high priority.
The staff also recommended restricting the power of MARKʼs owner(s) to write the companyʼs mission statement and to appoint MARKʼs board members. They also said that the majority of MARKʼs board members should be independent of the companyʼs owners and knowledgeable about MARKʼs business.
In the report, the IMF staff acknowledged the progress achieved in adopting recommendations made after a visit to Hungary by the IMF in January, such as formulating a clear mission statement for MARK and the full delegation of asset management functions to MARK by the central bank.
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