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Transparency International blames law for high rate of displaced assets in liquidation procedures

Tourism

About 60% of corporate assets are displaced in Hungarian companies undergoing liquidation, well over the 40% average for Europe as a whole, a study by Transparency International (TI) shows.

Displaced assets of Hungarian companies under liquidation come to HUF 300bn-500bn a year, an amount accompanied by the loss of 50,000-80,000 jobs, research Judit Dietz-Blasko said on Monday, presenting the study. She blamed the discrepancy first of all on Hungary’s much amended law on bankruptcy and liquidations, arguing that it allows assets of troubled companies to be displaced into friendly partners.

The number of mandatory and liquidation procedures in Hungary dwarfs the number of bankruptcy protection procedures.

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