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Total of eight homes purchased under govt assistance programme by July

Analysis

A total of eight homes were purchased under the government's NET assistance programme for troubled borrowers by July 25, National Economy Minister György Matolcsy said in a written response to a question by an opposition MP posted on the website of Parliament.

Under the programme, the National Asset Manager (NET) is buying foreclosed properties designated by banks and allowing the borrowers to continue to reside in their homes as tenants. Lenders have designated 8,067 foreclosed properties for the programme between the time legislation establishing designation quotas came into force last October and the second quarter, the latest data by market watchdog PSZÁF show. Banks had until April 15 to designate foreclosed properties for the Q2 quota.
Banks may designate up to 2% of homes in their non-performing loan portfolios for sale in Q4 2011. The quota is 3% per quarter in 2012, is 4% per quarter in 2013 and will rise to 5% in 2014. The quota will end from 2015.
Under an agreement between the government and the Hungarian Banking Association signed last December, NET is to buy 25,000 properties by the end of 2014, purchasing 8,000 in 2012, 7,000 in 2013 and 10,000 in 2014.
NET said it in May that it signed the first contracts on the transfer of a property and a lease with a tenant under the programme.

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