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 on June 21, the National Bank of Hungary (MNB) said yesterday, 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 to improve portfolio quality and boost 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.
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.