Builders call for govʼt measures to help sector

Initiatives

Construction industry association EVOSZ urges government measures to improve the financing position of companies in the sector, required partly due to late payments of invoices and partly to a slowdown in new projects, EVOSZ told state news wire MTI on Thursday.

EVOSZ sent its proposals to both the Ministry of Innovation and Technology and the Finance Ministry.

The association calculates that new contracts signed by construction companies in March probably reached just 65% of the usual level. Unless the sector receives substantial state or municipal orders, its order stock could decline dramatically, they said.

The governmentʼs latest economic proposals include an investment package "brought forward", to finance transport, infrastructure and hotel construction and reconstruction projects. EVOSZ now asks the government to launch these developments as soon as possible and call the required public procurement tenders. 

The association also calls for an acceleration of the payment of invoices in the case of state and municipal projects and proposes that the limit on advance payments should be raised to 50% from 25% in order to improve companiesʼ liquidity position. 

Because of changes in the forint exchange rate, EVOSZ proposes that companies should be allowed to book the cost of import products at the exchange rate in effect at the time of their purchase in the case of state and municipal contracts signed before March 31, 2020.

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