Loan Moratorium Rules Amended by Hungary

  • 20 Sep 2021 6:43 AM
  • Hungary Around the Clock
Loan Moratorium Rules Amended by Hungary
The amendment of moratorium rules on credit card debt affects 400,000 contracts, worth some Ft 95 billion, MNB spokesman István Binder said on Thursday, after the government issued decrees on the loan repayment moratorium on Wednesday.

One decree clarifies the eligibility for taking advantage of the moratorium, the other contains amendments to the rules of the repayment moratorium on credit card and overdraft debt.

In the case of the latter, banks must apply lower interest rates retroactively. This means a Ft 20-25 billion shortfall for banks and the same amount of reimbursements to clients.

The Banking Association criticised the move, saying it is unfair that credit card loans and overdrafts should be given preferential treatment.

The decree on extending the eligibility of the loan moratorium includes those corporate borrowers who suffered at least a 25% decline in revenue over the previous 18 months.

Fostered workers, jobseekers, pensioners and people raising children under the age of 25 or those expecting a baby will also be allowed to remain in the scheme.

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