Measures against the coronavirus in Hungary: extension of the payment moratorium | Hungary

In March 2020, the coronavirus crisis prompted the Hungarian government to introduce extraordinary measures…

In March 2020, the coronavirus crisis prompted the Hungarian government to introduce extraordinary measures to mitigate the economic consequences. This led to a general moratorium for all personal and corporate financing until the end of 2020. As one of the last measures of 2020, the Hungarian government decided to extend the moratorium due to the second wave of the pandemic.

As part of the first moratorium, principal, interest and fee payment obligations for all loan, credit and leasing contracts have been suspended in the retail and corporate sectors. The moratorium was voluntary for borrowers (opt-out) and mandatory for banks, i.e. debtors can continue to perform their contractual obligations if they wish.

In October, the moratorium was extended until June 30, 2021 for certain people in need (e.g. unemployed, pregnant women or pensioners) and companies in financial difficulty. The extended moratorium remains voluntary for borrowers and mandatory for banks. It has also been clarified that it only applies to lenders with a head office or a branch in Hungary. The moratorium is applicable to contracts concluded before March 18, 2020 and to credits already used.

Unfortunately, the pandemic did not abate in December. The government has therefore decided that the extended moratorium will apply not only to the restricted group above, but to any debtor who has obligations to pay principal, interest or costs arising from a contract entered into on a commercial basis. .

This article was first published here.

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