“Bad Bank” To Be Set Up In Hungary By Autumn

  • 24 Jul 2014 4:00 AM
“Bad Bank” To Be Set Up In Hungary By Autumn
Hungary plans to set up a “bad bank” to isolate lenders’ non-performing loans in the autumn, National Bank of Hungary managing director Márton Nagy told Reuters in an interview published on Thursday.

“The bad bank will be formed by the autumn, in September or October. It will primarily buy commercial real estate loans and the foreclosed real estate behind them,” Nagy told Reuters.

He told Reuters that about 510 billion forints of banks’ commercial real estate portfolio was non-performing, but some 300 billion forints more was restructured and “mask a large number of problematic deals”.

Source www.hungarymatters.hu

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