MNB instructs lenders on borrowers leaving moratorium

MNB

MNB building in Budapest.

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The National Bank of Hungary (MNB) on Friday said it instructed lenders to give borrowers who leave the repayment moratorium the chance to repay early the interest and fees accumulated during the period free of charge, according to a report by state news wire MTI.

MNB also instructed 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. Lenders must offer borrowers that chance until the end of 2022.

 

MNB is requiring lenders to inform borrowers of the measures on their home pages.

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. Participants who leave the moratorium pay the same installments as before the automatic opt-in, while the runs of their credit are extended to accommodate for the principal and interest that wasn't repaid during the period.

Central bank data from April shows 1.2 million retail clients and 30,000-35,000 corporate borrowers are participating in the moratorium.

The bank reiterated on Friday that participants in the moratorium who have the means should start making their installments again.

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