Banks designate for sale 2,072 foreclosed properties for Q4

Analysis

Financial institutions designated for sale 2,072 foreclosed residential properties for the fourth quarter of this year, data published by the National Bank of Hungary yesterday show. A total of 43,058 foreclosed properties have been designated for sale since October 1, 2011, when legislation establishing designation quotas came into force. 

The government introduced the quotas in the autumn of 2011 after consultations with banks to prevent foreclosures from flooding the home market. Banks could designate a maximum of 2% of homes under foreclosure for mandatory sale when the scheme was launched. The quota rose to 3% in 2012, 4% in 2013 and 5% in 2014.

The programme will be phased out in 2015. Banks used just one third of the quota for Q4. Quota utilisation dropped to 45% for Q3 from about 70% previously. The MNB data show 1,948 of the homes designated earlier were sold in the third quarter of this year, of which 1,392 were sold to national asset manager Nemzeti Eszkozkezelo Zrt.

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