After a number of years of anticipation, 2016 saw a number of large non-performing loan sales in the Hungarian market.
Following an early and rapid adoption of market economics in the late 1980s and early 1990s, Hungary became highly integrated into the global economy and suffered badly during the global economic crisis. Levels of private debt denominated in foreign currencies were particularly high. The Hungarian government’s response to the crisis involved a bank levy and a number of measures designed to protect local borrowers. These measures exacerbated the constraints on borrowers to access new finance for their existing indebtedness and left many commercial banks holding large portfolios of distressed debt.
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