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Gov't to begin breaking chain of debt

The government accepted a proposal to take steps to break the chain of debt among contractors and subcontractors in some of Hungary's business sectors, Economy and Transport Minister János Kóka said after the cabinet session on Tuesday.

Kóka said the State Treasury would start publishing on its website the date of payments on public procurement contracts worth more than Ft 100 million, ensuring that subcontractors for these orders know when to expect payment. The government will also introduce guarantees, insurance and factoring services to assist subcontractors when contractors fail to pay up on time. Market analysts' estimates of the value of the chain of debt among Hungary's businesses vary widely between Ft 100 billion and Ft 800 billion.