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MNB advising lenders to allow borrowers to pay interest early

MNB

Image by Jessica Fejos

The National Bank of Hungary (MNB) will advise banks to give borrowers who leave the repayment moratorium the chance to repay early the interest and fees accumulated during the period free of charge or penalty, deputy governor Csaba Kandrács said in a release on the central bank's website after a monthly policy meeting.

The MNB will also advise lenders in an executive circular to allow borrowers leaving the moratorium the opportunity to modify their loan contracts free of charge with the aim of reducing the term of their credit, extended by the moratorium, to the original period.

The blanket repayment moratorium, introduced in the spring of 2020 to ease the economic fallout from the coronavirus crisis, has been extended until the end of September.

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