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Ease of Doing Business in

Hungary

Hungary Download Profile (1761.4KB, pdf)
Region OECD high income
Income Category High income
Population 9,844,686
GNI Per Capita (US$) 12,990
City covered Budapest

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 41 40 down
1
73.07 72.74 down
0.33
Starting a Business 75 71 down
4
87.28 87.10 up
0.18
Dealing with Construction Permits 69 66 down
3
71.70 71.69 up
0.01
Getting Electricity 121 118 down
3
60.13 60.11 up
0.02
Registering Property 28 28
-
80.08 80.20 down
0.12
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 77 79 up
2
74.46 73.74 up
0.72
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 8 13 up
5
75.79 73.94 up
1.85
Resolving Insolvency 63 63
-
51.25 50.58 up
0.67

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

63

DB 2016 Rank:

63

Change in Rank:

0

DB 2017 DTF (% points):

51.25

DB 2016 DTF (% points):

50.58

Change in DTF (% points):

up0.67

Indicator Hungary OECD high income Overall Best Performer
Recovery rate (cents on the dollar) info_outline 43.0 73.0 ..
Time (years) info_outline 2.0 1.7 ..
Cost (% of estate) info_outline 14.5 9.1 ..
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0.0 .. ..
Strength of insolvency framework index (0-16) info_outline 9.0 12.1 ..
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 43.0
    Proceeding Banks usually have a standard procedure to initiate liquidation, if a debtor defaults on a loan and remains in default for a certain period of time. Bizbank is not entitled to initiate reorganization, as it can only be filed by the debtor. As the most likely initial procedure is liquidation, it will not convert into any other procedure. liquidation
    Outcome The goal of liquidation proceedings is to provide satisfaction to the creditors of an insolvent debtor upon its winding-up without succession. Mirage has too much credits and, therefore, it will not be able to operate further. piecemeal sale
    Time (in years) The court commences the liquidation proceedings of Mirage within 60 days upon receipt of BizBank's request. Once the order on the liquidation proceedings of Mirage becomes final, the court forthwith appoints the liquidator and orders the disclosure of such order in the Companies' Gazette. The creditors shall announce their claims within 40 days from the date of the above order. The creditors may also announce their claims after the 40 days' deadline but within 180 days, however, such claims will only be satisfied, once every other claim have been satisfied in accordance with the general waterfall rules. The first meeting of the creditors shall be held within 75 days after the disclosure of the liquidation order to form the creditors’ committee or appoint the creditors’ representative. In case the creditors established their committee, such may adopt a decision within 100 days from the publication date of the liquidation order to operate Mirage as a going concern during the insolvency proceedings (in case the creditors' committee has been established at a later stage, the decision on the operation of Mirage as a going concern during the insolvency proceedings may be adopted within 60 days from the establishment of the creditors' committee). The liquidator shall sell Mirage's assets through public sales. If the received amounts is sufficient to cover the claims of the creditors, the liquidator may prepare an interim financial statement following the deadline for the notification of claims and submit such to the competent court. The court may approve such interim financial statements within 30 days. The deadline for the submission of the final balance sheet is 24 months from the date of the publication of the order on liquidation proceedings. 2.0
    Cost (% of estate) The majority of the expenses are comprised of: - registration fee: 1% of the value of the estate; - legal fees: up to 5%; - fees of the insolvency administrator: up to 5%; - fees of other professionals that may be hired by the insolvency administrator: up to 4%. 14.5
    Answer Score
    Strength of insolvency framework index (0-16) 9.0
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 1.0
    Management of debtor's assets index (0-6) 5.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? Yes 1.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 1.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.