Securitization - Hungarian Prospects

While the securitization market in Europe continues to flourish, its usefulness in Hungary has yet to be fully appreciated. At first glance, the foundation and legal framework appears to be in place, however for a number of reasons, the market is still in its pre-infancy. From a Hungarian law approach it is useful to first look at the issues which are relevant in all markets and then to focus on the specific market-driven obstacles.

As opposed to certain other jurisdictions such as France, Hungary has not enacted any specific legislation covering securitization transactions. While such legislation could serve as a catalyst in the growth of securitization, the main legal issues to be addressed are already dealt with in various laws and regulations.