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Expert calls for stricter rules on corporate payment

The reasons behind the fact that there are twice as many overdue corporate payment claims in Hungary than in other parts of Europe is caused by issues of morality as well as regulation, head of the national association of liquidators FOE, Ferenc Somogyi toldGazdasági Rádió.

There is a huge amount of invoices that have not been settled after the stipulated 60-day deadline and this is down in many cases to lack of will to settle payment and not the actual lack of available funds, Somogyi said.

He found that the business sector needs far sterner regulations, for instance, the executives of companies that are deliberately driven into bankruptcy should not be allowed to immediately found another business and continue their operation the next day leaving behind unsettled bills.

Somogyi also said that the peak of insolvency has not yet arrived, the greatest danger being that bigger companies with an extended network of vendors and suppliers could fold. (Gazdasági Rádió)