MNB estimates moratorium end is risk for over 10% of loans


Photo by Adriana Iacob/

The end of a repayment moratorium presents risk for 12% of corporate lending stock and 10% of the retail loan book, an executive director at the National Bank of Hungary (MNB) said at a conference organized by on Thursday.

Gergely Fábián told the conference that the quality of Hungarian lenders' credit portfolios is "much better" than before the 2008 crisis, thanks to policy intervention. Regulations introduced in 2015 limiting the amount households may borrow depending on income apply to about 70% of the retail lending stock, he added.

He said over half of participants in the repayment moratorium, which expires at the end of June, saw their incomes rise last year, databases reviewed by MNB show. The incomes of around 44% of borrowers fell, and one-third of those saw "significant" declines, he added.

Fábián said borrowers spent most of their savings from the moratorium on everyday expenses, adding that the ratio of borrowers able to set that money aside or invest it was low.

He suggested repayments for some troubled borrowers could be restarted gradually when the moratorium ends, but said extending the moratorium, considering its participation rate at present, would pose a serious moral hazard.

He said the MNB expects lenders' NPL ratios to remain "in the single digits" after the moratorium ends.


Minister Asks Banks to Introduce Voluntary Rate Caps Banking

Minister Asks Banks to Introduce Voluntary Rate Caps

Hungary, Poland Diverging in Views of Russia Int’l Relations

Hungary, Poland Diverging in Views of Russia

Norbert Schőmer Appointed Atenor Hungary Country Director Appointments

Norbert Schőmer Appointed Atenor Hungary Country Director

Celebrating Music Music

Celebrating Music


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.