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tag: financing

Are holding companies really out of luck this time?

Gergely Czoboly | 7 February 2022
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Gergely Czoboly

Holding companies and other so-called "letterbox companies", which mainly collect passive income without a real economic presence, have been in the crosshairs of the European Union for quite some time. The draft directive published by the European Commission on 22 December as a kind of Christmas present could complete this process.

The big, beautiful member’s loan…

Anilla Gondi | 20 October 2021
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Anilla Gondi

The most common form of corporate financing among owners is still the member’s loan. But many forget that while granting a member’s loan is relatively easy, it hides several ticking time bombs – as a recent Supreme Court decision confirmed. Fortunately, there’s already a risk-free capital contribution option. 

Not even loan contracts are set in stone

Boglárka Zsibrita | 16 July 2021
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Boglárka Zsibrita

A common stereotype prevails that banking contracts are non-negotiable, and borrowers hardly have a say in the terms of their contracts. However, this is not the case: like any economic operator, banks are also willing to compromise. Banks’ flexibility varies depending on who and when is seeking preferential treatment and on the contractual terms subject to negotiations.

Investment funds … for all

Ákos Baráti | 2 March 2020
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Ákos Baráti

Investment funds are generally considered a complex, collective, highly specialised form of investment. However, an amendment that came into force from January this year, will allow a much wider range of participants to set up investment funds and fund management companies. And these funds can present very favourable opportunities, whether for acquisition purposes or for holding private assets.

TOP 5 collaterals used by Hungarian banks in financing deals

Boglárka Zsibrita | 27 November 2019
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Boglárka Zsibrita

If you decide to apply for bank financing, you will need to consider not only the financial terms of the loan but also whether you are ready to allow the bank to access your assets as collateral. It will probably ask for the following guarantees.  

All that is solar is not gold

Boglárka Zsibrita | 22 February 2019
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Boglárka Zsibrita

A trendy investment product of recent years has been solar energy projects: under the feed-in tariff (FIT) scheme, the government guarantees what looks like a cash cow for all those who choose to seek their fortune in this sector. But as is usually the case, this money won’t just fall into your lap. Without the necessary professional expertise or the proper legal groundwork, solar power projects can easily run out of steam too.

A favourable tightening of the rules? The rules on thin capitalisation are changing

Ákos Baráti | 10 January 2019
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Ákos Baráti

Due to an EU directive adopted last year, certain rules on corporate tax are changing with effect from 2019 – including the provisions on interest deduction due to “thin capitalisation.” Although the purpose of the directive was to defeat tax avoidance and tighten up the tax regulations, the new rules on interest deduction are actually becoming more of a blessing than a curse for businesses in Hungary.

You only need to ask – security-related bankruptcy rules are to change

Boglárka Zsibrita | 30 June 2017
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Boglárka Zsibrita

Although the new Civil Code that took effect in 2014 made it impossible to use a good few commonly used types of loan security, since then the legislature has gradually restored them to their rightful place. Indeed, the amendments to the Bankruptcy Act coming into effect on 1 July will go further than the previous rules, giving security options and security assignments, the same priority status as mortgages. This case is a good example of the effective cooperation between the legislature and the banking industry in Hungary.

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Who is this blog addressed to?

The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.

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