MNB urges borrowers to begin repaying loans
Image by Jessica Fejos
The National Bank of Hungary (MNB) warned of the risks involved in maintaining a blanket repayment moratorium and urged borrowers who don't require the backstop to start paying installments again in a release on its website.
"Maintaining the moratorium in the current, wide-ranging form may lead to an increase of consumer protection risks as well as bank credit risks, while a possible narrowing in banks' lending capacity could decelerate the pace of recovery," the central bank and financial market regulator said.
"Accordingly, when extending the payment moratorium, the [MNB] considers it extremely important that the majority of the debtors currently participating in the program restart the repayment of their respective loans, and only those who really need the backstop provided by the moratorium should take the opportunity offered by the extension of the program," it added.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.