Home loan NPL ratio reaches 3.7% after blanket moratorium ends

Banking

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Non-performing loans accounted for 3.7% of Hungarian lenders' stock of home loans at the end of December, two months after a blanket repayment moratorium ended, state news wire MTI reports citing data released by the Central Statistical Office (KSH).

The NPL rate rose from 2.4% at the end of 2020.

Hungary's government rolled out a blanket repayment moratorium in the spring of 2020 to ease fallout from the coronavirus crisis. From November 1, 2021, participation in the moratorium was limited to retail borrowers whose incomes have fallen, the jobless, pensioners, and parents raising children. The conditional moratorium will wind up at the end of June 2022.

The KSH data show the number of NPL contracts climbed to 25,000 at the end of December from 16,000 a year earlier.

KSH noted that the ratio of restructured loans among NPLs rose to 48% from 30% during the period.

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