Finance Ministry: loan moratorium extension affects more than 750,000 people in Hungary

English2020. okt. 24.Növekedé

Next year, families and businesses will be left with 400-450 billion forints due to the fact that on the proposal of the government Parliament passed a bill on extending the loan moratorium for six months. The measure could apply to more than 750,000 people, the Ministry of Finance said.

The proposal submitted by the Finance Minister was approved with 166 votes in favour, no votes against and no abstentions.

The statement recalls that Prime Minister Viktor Orbán announced after the extraordinary meeting of the Economy Protection Operative Board on 19 September that

the government will extend the moratorium due to expire at the end of the year, by half a year until June 30, 2021. All families raising children, all pensioners, the unemployed and those in public works programmes, as well as businesses who suffered a significant loss of revenue will be entitled to the extension,

the statement points out.

The details specifying the criteria for businesses to be able to take advantage of the extension will be determined in a separate government decree. The businesses concerned must apply for the extension, stating that they are struggling economically and supporting their claim with company data.

47 percent of individuals who have benefited from the moratorium so far are entitled to the extension, amounting to a total of more than 750,000 people.

The largest group taking advantage of the opportunity are families raising children, with an estimated number of more than half a million, the statement reveals. It is also made clear that due to the repayment moratorium, debtors must not be negatively affected: the new law states that no compound interest can be charged on the deferred debt, instead, the even distribution of payment burdens must be ensured by extending the repayment term.

 In addition, there is a termination ban on all corporate and retail loan contracts until June 30, 2021. This will help those who face repayment problems but are not entitled to the repayment moratorium.

The statement also notes that those who can and want to continue to repay have the opportunity to do so; however, if they do face a repayment problem in the meantime, they can once again take advantage of the opportunity provided by the extension.