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Rate of restructured home loans jumps in H1

Banking

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The share of restructured home loans in Hungarian banks' portfolios rose sharply in the first half as borrowers anticipated the end of a repayment moratorium, state news wire MTI reports, citing data released by the Central Statistical Office (KSH).

The blanket repayment moratorium, rolled out by the government in the spring of 2020 to ease fallout from the coronavirus crisis, had been set to expire at the end of June 2021. In May, the government said it would push back that date till the end of August, but a decree was issued in June, extending the moratorium until September 30. The blanket moratorium will now end on October 31, although families raising children, pensioners, job-seekers and fostered workers will still have an option to participate until the end of June 2022.

The KSH data released on Monday show many home loans were restructured in the first half as lenders and borrowers anticipated the earlier planned end-June phase-out date for the moratorium.

The rate of restructured loans in lenders' portfolio of performing home loans rose to 9% at the end of the first half from 0.9% at the end of 2020. The restructured rate among NPL home loans climbed to 52% from 33.1% during the same period.

Lenders' non-performing exposure in the home loan portfolio stood at 1.8% at the end of H1, down from 2.1% at the end of 2020 and 2.5% 12 months earlier.

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