Hungary24 Apr 2014
Hungary is firmly positioned geographically in the centre of central and eastern Europe (CEE), and is generally classified as a high-income nation in the group of ‘Emerging Europe’ economies. It has commercial links going both west and east, being a member of the EU and also looking to increase trade partnerships with Russia and Belarus.
However, the economy has been underperforming compared to its peer group, having been left particularly exposed to the effects of the financial crisis due to over-borrowing in both the private and public sectors. Private debt had ballooned when what had been favourable Swiss franc-based loans on mortgages and private cars turned sour after the exchange rate went against the Hungarian forint. Banks were, and still are, faced with picking up the cost of defaults.
This Country Survey aims to provide a balanced view of the equipment finance and auto leasing market in Hungary. The survey covers the following areas:
- A summary of leasing activity in Hungary;
- The current economic climate and the incentives for and constraints on doing business in Hungary;
- Insights from key industry figures on the market, its outlook and the challenges and opportunities that face it;
- An outline of the differences between Hungarian accounting standards for leases and IFRS; and
- The latest developments in taxation of leases, especially relating to VAT.