Hungary’s Central Bank Outlines Proposal For Asset Management Agency
- 13 Nov 2014 1:00 AM
The National Bank of Hungary has outlined a proposal to set up an agency to manage distressed assets. The central bank’s Monetary Council approved a financing limit of 300 billion forints for the manager to buy up “a significant part” of a portfolio it estimated to be worth around 800 billion forints at book value.
Building on plans put forward in the spring, the NBH said it would set up Reorganisation and Receivables Management Company, known as MARK, “not for the purpose of rescuing the banks but rather to purchase the commercial real estate problem loans and the related commercial properties – already included in the banks’ balance sheets, and to thus facilitate portfolio cleaning”.
MARK plans to purchase project loans related to commercial properties, including plots, included on banks’ balance sheets during foreclosure.
According to the plans, the loans must be overdue for longer than 90 days or already restructured.
Source www.hungarymatters.hu
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