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.
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