Hungary—cross border banking and finance guide
Produced in partnership with Schoenherr
Hungary—cross border banking and finance guide

The following Banking & Finance guidance note Produced in partnership with Schoenherr provides comprehensive and up to date legal information covering:

  • Hungary—cross border banking and finance guide
  • Loan market and developments
  • Lending
  • Security and guarantees
  • Enforcement
  • Intercreditor issues
  • Governing law and disputes

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

Hungarian financial institutions have recovered from the credit crunch, and credit availability has significantly increased overall. Pricing has become more borrower-friendly and loan to value ratios have increased significantly due to the increase in market prices.

Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.

The changing regulatory regime (in particular the General Data Protection Regulation (GDPR)) will continue to heavily impact the lending approach and daily processes of financial institutions.

Lending

Is it necessary to obtain any consents or licences in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or licence? Are there any other restrictions on lending that foreign lenders should be aware of?

Providing lending services into or within Hungary requires either:

  1. a banking licence under the Hungarian Banking Act, ie a licence as a credit institution or

  2. a 'passport' under the EEA (European Economic Area) regime. A 'passport' allows cross-border provision of lending services (under the free movement of services) or the