ADVERTISEMENT

MNB issues recommendation on corporate NPLs

MNB

Image by Jessica Fejos

The National Bank of Hungary (MNB) said on Friday it has issued a recommendation for financial institutions on managing corporate debtors struggling with loan repayments, to prevent the future build-up of non-performing corporate loans, according to state news wire MTI.

The MNB is urging banks to seek compromises with corporate borrowers and offer opportunities to restructure loans to ensure the continuous operation of said companies and a reduction in NPL volumes.

The central bank said the volume of non-performing corporate loans currently stands at around HUF 600 billion.

The MNB recommendation sets out the minimum requirements for banks on communication, setting payment deadlines, providing bridge funding and seeking cooperation with borrowers, the MTI report adds.

The central bank expects financial institutions to start applying its recommendations from November 27. The MNB held consultations on the recommendation with advocacy groups and the European Bank for Reconstruction and Development (EBRD), MTI noted.

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.