KDNP submits family bankruptcy draft bill
Junior governing alliance partner KDNP has submitted a draft bill to the Justice Ministry that would introduce family bankruptcy in Hungary as of 2016, Deputy Head of KDNP and State Secretary Bence Rétvári said on public television today.
The legislation would help Hungarians who owe several million forints and are at a level of debt that exceed their assets and expected income, Rétvári said. In line with the party’s plans, these troubled families would be paired with financial experts, who would establish a financial plan for the families and reach an agreement with creditors on “forgiving part of the loan”, Rétvári added.
Rétvári noted that lenders often sell their “bad loans” to factoring companies at 30-40% of book value, while the factors try to collect on 100% of the loans.
The bill was drafted after Parliament approved borrowers' relief legislation last year, making the country's retail lending stock — much of it denominated in foreign currency — manageable, according to the state secretary.
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.