Access to bank loans in a transition economy: The case of Hungary

This paper examines the access of small private-sector firms in Hungary to bank credit in 1991. Firms whose owners had business experience or who were past members of the nomenklatura obtained bank loans more easily than did other firms. Firms that leased their plant had more difficulty in getting loans than other firms, while firms that faced limited competition had an easier time obtaining loans. J. Comp Econom., February 1997, 24(1), pp. 79-89. Wichita State University, Wichita, Kansas 67260; University of Memphis, Memphis, Tennessee 38152; and University of Georgia, Athens, Georgia 30602. © 1997 Academic Press