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Late payment rate in construction industry reaches 8%

Construction

Payments are now late on about 8% of construction industry invoices, up from 4% at the end of 2020, professional association ÉVOSZ said on Monday, according to a report by state news wire MTI.

The association put the value of late invoices around HUF 360 billion and warned that HUF 180 bln-200 bln of that amount could become part of a "chain of debt" if the situation doesn't improve.

ÉVOSZ chairman László Koji told MTI that around HUF 100 bln of unpaid invoices was in a chain of debt at the end of last year, a scale still manageable. If that amount reaches HUF 180 bln-200 bln this year, it could cause "serious difficulties" for construction companies, he added.

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