ANNOUNCEMENT 10 Feb 2016In February 2016, the government of Hungary announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Letter from the EC to Hungary, 10.02.2016 (SA.38843)
EC press release
On 10 February 2016, the European Commission approved the creation of the MARK, a Hungarian asset management company funded by the Hungarian central bank. It is meant to buy off non-performing loans ("NPLs") from Hungarian banks collateralised by commercial real estate assets.
According to the Commission, the establishment of MARK does not constitute state aid as the company will valuate the NPLs at market prices. However, the necessity to establish such a publicly funded institution points to the case that there is a lack of demand for such loans on the market. The capital of MARK is expected to reach EUR 1 billion.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.