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Hungary factors buy HUF 888 bln of receivables in 2011

Members of the Hungarian Factoring Association bought about HUF 888 billion of receivables from about 3,000 clients in 2011, the association said on Friday.

The factoring companies bought 3.3% more receivables than a year earlier, but the market grew at a slower rate than expected. The companies supplied clients with more than HUF 113.3 billion of financing, down 6% from 2010.

The association estimates the financing exceeded 10% of bank outlays with maturities under a year to SMEs.

Factoring companies collected more than 62% of the amount due on the receivables they purchased, up from 60% a year earlier.

The Hungarian Factoring Association has 19 full members and three supporting members. Among the full members are four banks, four units of banks and eleven privately-owned companies. The banks have 45% market share and their units control 36% of the market.