Coface's Austrian subsidiary, OKV Coface has opened a credit insurance branch in Hungary -Coface Hungary. After successfully setting up operations in Poland in 2003, it is thus continuing its policy of expansion in Eastern Europe.
By creating a credit insurance branch in Hungary, OKV Coface is responding to new needs of Hungarian companies linked to their country's recent European Union accession.
Although EU membership and the resulting elimination of trade barriers will bring them new commercial opportunities, it will also spur stiffer competition that will force them to change the way they do business. The classic payment before delivery or cash payment — even for large transactions — is being gradually supplanted by payment on credit.
