MAKISZ members purchase HUF 320 bln of receivables in 2020
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The 41 members of the Association of Hungarian CMS Companies and Business Information Providers (MAKISZ) purchased almost HUF 320 billion of receivables last year, MAKISZ said, according to a report by state news wire MTI.
About HUF 72 bln of the receivables were bought from financial institutions and were backed by collateral. Receivables without collateral, such as personal loans and credit card debt, accounted for a little over HUF 133 bn of the purchases, and unpaid bills from utilities companies and telecommunications services providers accounted for close to HUF 112 bln of the total.
Association head Kornél Bódizs said members reached agreements on favorable payment conditions on 116,000 occasions.
MAKISZ expects conditions in force from November 1 for participation in a repayment moratorium will raise the number of borrowers in a difficult position. National Bank of Hungary (MNB) data show lenders' NPL ratio stands around 3%, but MAKISZ noted that figure is "misleading" because of the blanket moratorium.
Hungary's government rolled out a blanket repayment moratorium in the spring of 2020 to ease fallout from the coronavirus crisis. From November 1, participation in the moratorium will be limited to retail borrowers whose incomes have fallen, the jobless, pensioners and parents raising children, while corporate borrowers must show a 25% fall in revenue to join.
Bódizs said there is a "burning need" for legislation governing the factoring market. MAKISZ is pressing for rules that will help debtors and ensure market transparency, while squeezing out uncertified factors that operate outside of the scope of state or regulatory oversight.
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