ADVERTISEMENT

Builders call for govʼt measures to help sector

Initiatives

Construction industry association EVOSZ urges government measures to improve the financing position of companies in the sector, required partly due to late payments of invoices and partly to a slowdown in new projects, EVOSZ told state news wire MTI on Thursday.

EVOSZ sent its proposals to both the Ministry of Innovation and Technology and the Finance Ministry.

The association calculates that new contracts signed by construction companies in March probably reached just 65% of the usual level. Unless the sector receives substantial state or municipal orders, its order stock could decline dramatically, they said.

The governmentʼs latest economic proposals include an investment package "brought forward", to finance transport, infrastructure and hotel construction and reconstruction projects. EVOSZ now asks the government to launch these developments as soon as possible and call the required public procurement tenders. 

The association also calls for an acceleration of the payment of invoices in the case of state and municipal projects and proposes that the limit on advance payments should be raised to 50% from 25% in order to improve companiesʼ liquidity position. 

Because of changes in the forint exchange rate, EVOSZ proposes that companies should be allowed to book the cost of import products at the exchange rate in effect at the time of their purchase in the case of state and municipal contracts signed before March 31, 2020.

ADVERTISEMENT

MKIK: Local business tax should be maintained Analysis

MKIK: Local business tax should be maintained

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.