Chain debts that cause 400 billion in annual losses to entrepreneurs will be decreased significantly – said Minister of State László Felkai at a press conference in Budapest. The Minister of State added that the law on the prevention of chain debts was adopted by Parliament this week, and the Government enacted the decree regarding its implementation on Thursday.

The Minister of State explained that the main problem with chain debts was that the long legal processes force many entrepreneurs into bankruptcy.

From January 2014, decisions related to chain debts will be made by the courts within 3 to 4 months instead of several years, meaning entrepreneurs will be able to get their money much sooner. Businesses who do not pay court-enforced debts within 6 months will be heavily sanctioned.

The other new feature of the battle against chain debts will be the electronic construction log. From 1 October, it will be possible to follow the details of construction procedures with the help of the log.

(Ministry of Interior)