The majority of businesses are viable, and the end of the current loan repayment moratorium is not expected to cause a wave of bankruptcies, economic research institute Századvég said citing a recent survey.
Századvég said that some companies, however, may experience difficulties if the moratorium were to end fully and with immediate effect. The survey conducted in February showed that only 6% of companies had made use of the optional loan repayment moratorium and the majority did not expect that loan repayments would cause problems, even in the second half of the year, the think tank said. Among those that did take advantage of the moratorium, the majority (74%) spent the money to finance operations and 16% invested it. More than 55% of the companies surveyed said their revenues shrunk in the recent period, Századvég added. Századvég said that, according to official statistics, two-thirds of Hungarian companies finance their operations without taking out loans, and among the businesses surveyed, 71.2% said they had no loans on their books during the moratorium period.
hungarymatters.hu
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