The past few months have witnessed a sudden increase in the number of properties offered to National Asset Management (NAM) Ltd. The Company received approximately 7,300 property offers from the onset to the end of July 2013, which secured accommodation for nearly 32,900 individuals. The legal amendments in May gave a new impetus to the NAM Program.

According to figures as of 30 June 2013, the average market value of properties offered for purchase was HUF 7.1 million on conclusion of the mortgage contracts. This was used to calculate the average purchase price payable by NAM Ltd., which amounted to around HUF 3.3 million.

The figures reflect that the majority of the properties are situated in Eastern Hungary, specifically in the Counties of Borsod-Abaúj-Zemplén and Szabolcs-Szatmár-Bereg, but a significant number of property offers also arrived from the County of Pest. To date, the Transdanubian counties have offered a relatively low number of properties, although more than before, particularly Baranya and Somogy. Six percent of the properties offered are located in Budapest, 16% in cities with county status, 39% in provincial towns, and 39% in villages.

The NAM Program used HUF 6.4 billion of budget funds and exempted credit debtors from paying a total of HUF 13.8 billion of credit institute claims arising from mortgage debts between 1 January 2012 and 30 June 2013. In other words, the Company used every HUF 1 of budget funds to redeem HUF 2.15 of credit institute claims for each property within the NAM Program.

The modified eligibility criteria gave a new impetus to the NAM Program as the Company was offered roughly 1,200 properties in June and nearly 2,200 in July. The market value of eligible properties rose from HUF 15 million to HUF 20 million in Budapest and all cities with county status and from HUF 10 million to HUF 15 million in other towns and villages. The late payment period of 180 days was extended and the term of the repurchase right was increased from 2 to 5 years. In addition to these measures, the scope of beneficiaries came to include the recipients of work disability benefits.

Established within the Home Protection Action Plan to secure long-term accommodation for heavily indebted families, NAM Ltd. is responsible for purchasing the properties of credit debtors facing hardships from public funds, acting on behalf of and for the benefit of the Hungarian State, and by leasing such properties to the previous owners and their families for an indefinite term.

(Ministry of National Development, National Asset Management Ltd.)