Lenders register to sell more than HUF 300 bln of bad assets to MARK
Twenty-three financial institutions registered to sell the Hungarian Reorganisation and Receivables Management Company (MARK) bad assets with a gross value of more than HUF 300 billion by the deadline of June 21, the National Bank of Hungary (MNB) said today, according to Hungarian news agency MTI.
MARK will buy the distressed assets for HUF 90-125 bln, the MNB said.
The MNB established MARK to buy bad commercial real estate loans and properties from banks, improving portfolio quality and boosting business. MARKʼs operation was cleared by the European Commission in February.
The assets will be sold to MARK on a voluntary basis following due diligence, which could take several months.
Cleaning out the assets from banksʼ portfolios will cause the ratio of non-performing loans – those past 90 days due – in the corporate portfolio to drop close to 5% by the end of 2017, the MNB said.
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