The suspension of the repayment of loans ordered for this year due to the coronavirus epidemic also applies to baby expecting and student loans, the Minister heading the Prime Minister’s Office said at a press conference held on Thursday in Budapest, where he also mentioned that a task force would be set up for coordinating voluntary donations, and that it was going to be necessary to extend the state of danger.

Gergely Gulyás said in the case of baby expecting loans, the ten-year term will not be extended.

The moratorium does not apply to loans between private individuals, though this concerns few individuals anyway, he observed.

Regarding consumer loans, he said in the present situation they expect demand for consumer loans to increase. This is why they have decided that in the case of these loans the annual percentage rate (APR) cannot exceed the central bank base rate plus 5 per cent.

In the context of the authorisation of departure from the regulations relating to employment and labour affairs, Mr Gulyás said employers and workers are free to agree on any changes in the terms of employment. They are expecting to see creative solutions which could in certain situations result in a temporary fall in incomes in the present extraordinary situation, but the main priority is to preserve jobs, he highlighted.

He also confirmed that they had introduced special regulations in the sectors in need of immediate help, including tourism, catering, entertainment, the film industry, gaming, performing arts, events and sports services. In their case, rental agreements relating to non-housing properties cannot be terminated until 30 June. In these sectors, employers will be exempt from the payment of contributions on wages for the months of March, April, May and June, while from among the contributions payable by employees in relation to their wages, only the health insurance contribution will remain payable at the maximum rate of HUF 7,710 per month.

The tourism development contribution will also be cancelled during the period between 1 March and 30 June. Additionally, until 30 June taxi drivers will be required to pay virtually zero taxes. If necessary, they are ready to extend these measures, he added.

Mr Gulyás also said as long as the Romanian State guarantees that it will receive Romanian and Bulgarian nationals returning home due to the coronavirus epidemic from the direction of Austria, Hungary will guarantee humanitarian corridors for them.

He stated that compared with other countries, Hungary adopted measures serving to slow down the spread of the virus at an earlier stage of the infection.

Romanian and Bulgarian guest workers will be allowed to return home in convoys via the Hegyeshalom border crossing station between 9.00 p.m. and 5.00 a.m., the Minister said, adding that it is not out of the question that, in extraordinary situations, they might also open humanitarian corridors during the day.

It is also clear, he stressed, that maintaining smooth transit traffic in the interest of the continued supply of goods is in everyone’s best interests in Europe. This was, however, jeopardised by the long line of cars that developed at the border, the politician pointed out.

He said “we managed the situation, and opened new border crossing points” at Rábafüzes and Kópháza.

At the same time, the head of the Prime Minister’s Office indicated that at Hegyeshalom difficulties are expected to persist in the longer term as well.

The difference between confirmed coronavirus patients and those infected could be enormous, as much as ten- to fifteen-fold given that in as much as 80 per cent of the individuals affected, presence of the virus is symptom-free, Mr Gulyás said, adding that while the government will continue to publish the exact numbers, they only serve information purposes worldwide, the same as in Hungary, because there is a ten- to fifteen-fold latency rate.

He stressed that in coming days the number of infected persons was expected to rise dramatically.

He stated that Hungary had adopted measures with a view to slowing down the spread of the virus at an earlier stage of the infection. The measures that Austria adopted at the stage of 500 to 800 patients the Hungarian government already adopted after thirty patients, he stressed.

He added that the government would adjust its communication to the different stages of the spread of the virus, “we will do our best to keep everyone informed about the method of containment via all possible channels”.

Mr Gulyás said it will be essential for Parliament to extend the state of danger declared in connection with the coronavirus.

Mr Gulyás stressed that the government was only able to declare a state of danger for fifteen days. Following this, it must be extended by Parliament. Therefore, they asked the heads of parliamentary groups that their parties do so in legislature.

The House continues to remain in session also at a time of a special legal order, the Minister stressed, observing that in the present situation, however, there is no way of knowing how long Parliament will be able to remain in session, and how long it will be able to maintain a quorum. He added they sincerely hope that the House will be able to remain in session; they are not expecting a worst-case scenario, but they will prepare contingency plans.

Mr Gulyás pointed out that protecting human life continues to remain the top priority; at the same time, the epidemic has a devastating impact both on the Hungarian economy and the world economy. Therefore, all ministers concerned within the cabinet have been tasked in general with devising methods for restarting the engines of the Hungarian economy.

There are sectors which have come to a halt, including tourism which has practically ceased to operate as it has done in several countries around Europe, the Minister said.

Foreign newspapers, too, describe the economy protection measures announced by the Prime Minister on Wednesday as the boldest action plan, he added.

In addition to the ten existing task forces, the Prime Minister will set up another, so-called voluntary task force in connection with the coronavirus epidemic, Mr Gulyás announced. He said the task force will be headed by government commissioner-Member of Parliament Máriusz Révész.

He added that the desire to make a contribution manifests itself in Hungarian society in a number of forms. The government is grateful for any donations, and they entrusted Mr Révész with their coordination. Private hospitals have been made available, while others have offered digital equipment, the Minister added.

He confirmed that the financial resources necessary for the containment effort are available.

In answer to a question, Mr Gulyás said the government also consulted with the National Bank of Hungary, and will make a decision about measures specifically targeting Hungarian small and medium-sized businesses in cooperation with the central bank.

He added that while every effort must be made to slow down the spread of infection, in particular, among those over 60 and even more so among those aged between 65 and 70, the functioning of the economy must be maintained. The government takes the view that all proposals which fail to serve this goal are dangerous because in the long run they will frustrate the swift restarting of the economy. The closure of commercial units imposed so far alone represents a loss of HUF 140 to 160 billion weekly, he said. Wherever possible, employment and work must be maintained, he laid down. He added that he does not recommend anyone to sign a termination notice with mutual agreement. Today we are in a situation where we must rescue every little thing we can, he pointed out. He said they expect unemployment in the hundreds of thousands; the question is how many hundreds of thousands.

Regarding the moratorium on bank loans, Mr Gulyás said anyone can decide to continue their amortisation payments; this is possible. At the same time, they will suspend “the vast majority” of executions, they will conduct consultations regarding this, and the relevant decree will be released in the days ahead, he stated.

In answer to a question regarding the fact that, according to Bruxinfo, the European Commission is providing a sum of 5.6 billion for Hungary towards its efforts to contain the epidemic, he said he is unable to confirm this, but he would be happy if that was the case. At this point in time, this sum is zero, he said. The crisis management tools and measures announced to date are helpful for many states, also allowing the more flexible utilisation of funds, and this could perhaps also apply to Hungary to a lesser extent. At the same time, these mainly help countries which are doing poorly in the absorption of EU funds; Hungary is not one of these, he said.

Regarding reports that the EU would provide EUR 800 million by not requiring that amount to be paid into the common budget, he said the exact sum is not certain yet, but there are payment facilities regarding contributions. These funds must be used for boosting the economy, the Minister pointed out, adding that not since 1990 has the Hungarian budget ever had reserves in the magnitude that it has this year, amounting to HUF 492 billion. This will be more than enough for the fight against the virus; after the containment efforts, funds will have to be used for maintaining jobs, creating new ones and supporting businesses which pledge not to lay off work force.

Concerning the health care consignment expected from Hamburg, he said they are “fighting for it” but it has not arrived yet; when it does they will inform the public. Providing face masks for health care workers is a priority, and they will do everything they can to procure further surgical face masks and half face masks. There is a good chance that within a few days stocks worth millions will arrive from China, he indicated. He added that in the present situation free trade is closer to free highway robbery. Similar to other European countries, Hungary is also present in China, it has a strong representation there, and there is a good chance that they will be able to obtain the supplies and organise transportation. He also said the government tasked the Operational Group with clarifying the situation regarding face masks, as part of which clear rules must be adopted about which individuals fall into beneficiary groups one, two and three.

In answer to a question about whether students will be able to take their final examinations in May, he said they will do everything they can to make the examinations happen.

Regarding the announcement made by Defence Minister Tibor Benkő to the effect that from Friday soldiers will be present in public areas and whether in this context the imposition of a curfew could be expected, he said if such a decision was made, the military, too, would be required to help. At this time, such a decision has not been adopted, he stated. In the present situation, it is necessary to enhance security and the people’s sense of security to the fullest possible degree.

 

 

(MTI)