Are you sure?

National Asset Manager budget sufficient this year, says ministry

The HUF 2 billion allocated to establish and operate the National Asset Manager this year will be sufficient to assist foreign-currency borrowers in the greatest need of help, the National Economy Ministry (NGM) said on Wednesday.

A government resolution published on Monday said HUF 2 billion will be allocated this year to the soon-to-be-established institution so that it will be able to buy at most 5,000 homes from distressed foreign-currency borrowers until the end of 2014.

The NGM said the National Development Ministry (NFM) has been tasked to establish the National Asset Manager and work out the details of its operation.

Considering that the evictions quota system will take effect on October 1, 2011, that is the deadline by which the National Asset Manager will have to be capable of buying properties.

Since only 2% of the properties concerned can be affected by evictions in the last quarter of this year (that is around 2,000 properties), it will probably not be necessary to allocate more funds in 2011 than the HUF 2 billion specified in the relevant government resolution to rescue those most in need among distressed borrowers, the ministry said.