Credit Management magazine October 2017

INTERVIEW
FECMA Country Profile
Sean Feast talks to Péter Szentirmay at the Hungarian
Credit Management Association, in the first in a new
series of profiles on members of the Federation of
European Credit Management Associations (FECMA).
HUNGARY is a unitary
parliamentary republic
in Central Europe that
covers an area of 93,030
square kilometres and is
bordered by Slovakia to
the north, Romania to the east, Serbia to the
south, Croatia to the southwest, Slovenia
to the west, Austria to the northwest, and
Ukraine to the northeast.
With about ten million inhabitants,
Hungary is a medium-sized member state of
the European Union. The official language
is Hungarian, the most widely spoken
Uralic language in the world. Hungary's
capital and largest city and metropolis is
Budapest, a significant economic hub,
classified as a leading global city.
Well-known for its rich cultural history,
Hungary has contributed significantly to
arts, music, literature, sports and science
and technology. Hungary is the 11th most
popular country as a tourist destination in
Europe, attracting 14.3 million international
tourists in 2015.
Hungary has the world's 57th largest
economy by nominal Gross Domestic
Product (GDP), as well as the 58th largest
by Purchasing Power Parity (PPP) out of 191
countries measured by the International
Monetary Fund (IMF). As a significant
player in many industrial and technological
sectors, it is the world's 35th largest exporter
and 34th largest importer of goods.
Hungary is an OECD high-income
economy with a very high standard of
living. It performs well in international
rankings – 20th in terms of quality of life,
24th in the Good Country Index, 28th in
inequality-adjusted human development,
32nd in the Social Progress Index, 33rd in
Global Innovation Index and ranks as the
15th safest country in the world.
Hungary is the 11th most
popular country as a
tourist destination in
Europe, attracting 14.3
million international
tourists in 2015.
Péter Szentirmay
How many members do you have?
We have corporate memberships only
and to date have 60 members.
How is the HCMA run?
Every year we have our annual congress
and, depending on our resources, we
run three or four additional events (such
as workshops, factory visits hosted by
our members, networking and social
events, etc). We also publish a members’
magazine, four times a year, and
organise two prestigious awards: the
CFO of the Year and Credit Management
Team of the Year.
What does your association
do in relation to learning and
development?
We do not deliver qualifications or
accreditations as such, but we do
organise various workshops and round
tables to appeal to different sectors and
different audience.
Describe your country’s cultural
attitudes to late payment.
Late payment is unfortunately quite
common although general attitudes
have improved during recent years. Our
average payment terms (contractual)
are currently 31 days, although ‘real’
payment (i.e. Days Sales Outstanding
- DSO) is 37 days according to Atradius
Payment Practices Barometer.
Are there any specific laws/policies
to protect businesses against late
payment?
Legislation is certainly a key tool in
helping to improve payment attitudes,
and so we not only look to the EU
Late Payment Directive but also other
legislation such as maximum 30-day
payment terms within the agrifood
sector and retail sector (Act 2009/XCV),
and implementing a Performance
Certification Export Body in the
construction sector (act 2013/XXXIV).
Contacts for further information:
Péter Szentirmay
Chairman
E: peter.szentirmay@hcma.co.
T: +36 20 480 4000
The Recognised Standard / www.cicm.com / October 2017 / PAGE 34