Hungarian Banking System Prepared for Debt Moratorium

The Hungarian banking system is prepared for the extraordinary situation and the attached special measures such as the debt repayment moratorium, the government website quotes Finance Minister Mihály as saying following a meeting with representatives of the Hungarian Banking Association.

The minister said the debt repayment moratorium announced on Wednesday – as part of which the principal and interest payment liabilities of private individuals and businesses on loans taken out before March 17, 2020 will be suspended until the end of the year – will take effect automatically, and there is therefore no need for anyone to inform their bank of their intention to avail themselves of this option. Debtors are required to notify financial institutions if they wish to continue repayment under the original terms and conditions, without disruption, he added.

The term will be extended by the duration of the debt repayment moratorium, meaning that debtors will not need to be concerned about a rise in their installments due to an unchanged term. The Finance Minister also said the government will remain in daily contact with the Banking Association, and will consult with them with respect to the regulations issued in government decrees and related positions.