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Legal changes result in less blacklisted retail borrowers

An amendment to the credit institutions act reducing the time retail borrowers who fall behind on payments must remain on a "blacklist" after they settle their debts from five years to one caused the number of people inscribed on the list to fall almost 10%, fresh data published on the website of BISZ, which compiles the list, shows.

The number of retail borrowers on the list who had settled their debts fell 58% to HUF 64,000 between January and March, when the amendment came into force, the data show. The number of retail loans on the list that had been settled dropped 63% to 143,000.

The total number of borrowers on the list -- including those still behind on payments -- fell 9.7% to 848,000 during the period. The number still edged up about 3% from a twelve months earlier.

Retail borrowers who fall more than the monthly minimum wage - HUF 78,000 in 2011 - behind on loan payments for more than 90 days are inscribed on the list.