Today another decree has been published in Magyar Közlöny [Hungarian Gazette] offering further relief measures to debtors. The primary purpose of the regulation is for the government to help customers taking advantage of the debt repayment moratorium not only this year but also next year when their payment obligations resume.

Last week the government adopted one of the robustest and most advantageous packages of measures worldwide suspending the principal and interest payment liabilities of private individuals and businesses on loans taken out before 18 March until the end of the year. In addition to laying down the details and technical rules, the decree now released ensures that customers availing themselves of the moratorium should not find the payments to be resumed later an unbearable burden.

As part of these measures, during the term of the moratorium, banks will not be allowed to charge compound interest which significantly alleviates the burdens of debtors. Another relief measure ensures that from 1 January 2021 the amounts of the original amortisation instalments on such loans cannot be raised. The term is extended in such a way that the amounts of the amortisation instalments should remain unchanged during the term.

The government has extended the range of eligible loans even further to employer loans and the National Asset Management Programme. The payment moratorium also applies to employer loans, meaning that until 31 December 2020 employees will not be required to repay either the principal of the loan or the interest thereon to their employers.

Participants of the National Asset Management Programme – in addition to being granted a moratorium on the payment of purchase price instalments and rentals – also receive a housing guarantee as the asset management company will not be allowed to terminate rental agreements due to non-payment.

(Ministry of Finance)