The database holding credit agreement data on businesses contains full records of both positive and negative data on all open agreements for business loans and similar schemes (as well as on agreements closed within the past 5 years) with credit institutions in Hungary. One business customer may be associated with any number of agreements.
Agreement data on record
The KHR records a number of entries on each agreement. These include:
- Main type of loan product/financing (short-term or long-term, on-balance-sheet or off-balance-sheet from the bank’s perspective)
- Subtype of loan product (loan, credit facility, factoring, lease, various guarantees and other product types)
- Date of the agreement
- Expiry date of the agreement
- Amount and currency of the agreement
- Current status of the agreement (open, closed)
- Amount and currency of principal debt outstanding
- Information on regular repayments (amount and currency of instalments, method of repayment)
- Information on early repayments (dates and amounts of early repayments, amount and currency of principal debt outstanding)
- Late performance status (any current late payments on the agreement)
- Status of the agreement (options: normal status, closed under normal procedures, expired, forced expiry, cancelled, bank guarantee drawn)
- Total amount and currency of non-performing claim (principal, interest and charges)
- Termination date
- Method of termination (options: regular termination, new credit agreement, arrangement, subsequent repayment, successful collection, charge-off)
- Information on whether the bank currently managing the agreement has acquired it from another bank (as part of the sale of receivables, sale of a business or fusion).
Information on the amount and currency of principal debt outstanding and regular repayments is updated in the KHR by all financial institutions on a monthly basis (by the 5th business day of the month following the month concerned), enabling credit assessment to rely on an accurate measure of the customer’s creditworthiness in the light of up-to-date levels of indebtedness.
In addition to the above, the KHR records the bank (and branch) managing each agreement; however, this information serves only to identify the credit institution authorised for maintenance and is not accessible by other banks.
Register of late payments
In addition to credit agreement data, the system records data on late payments without limitation to amounts. In the KHR, an agreement may be associated with any number of late payments. During the term of a given credit agreement, a company may default on its payment obligations up to several times. Obviously, only one of the late payments registered can be outstanding.
The system retains data on late payments related to the agreement for 5 years after closure.
The KHR records the following information on each late payment:
- Date of late payment occurring (due date of overdue debt outstanding)
- Amount and currency of the late payment
- Settlement date
Method by which the late payment was settled (options: by customer, by another person, amended agreement/prolongation, enforcement against collateral)