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Repayment moratorium extension to leave HUF 400-450 bln with families, businesses

Thanks to the credit debt repayment moratorium extended to 30 June 2021, next year some HUF 400 to 450 billion could be left with families and businesses, Parliamentary State Secretary of the Cabinet Office of the Prime Minister Csaba Dömötör said, according to a report by government website kormany.hu.

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Dömötör stressed that the recently announced extension means that parents raising children, pensioners, job-seekers and the participants of public works schemes will not be required to pay amortization installments until June 30, 2021. This option also applies to businesses whose revenues have decreased by at least 25%.

The report argues that according to calculations, the extension could benefit as many as 752,000 contracts, meaning that family members included, well above a million people.

Based on August 2020 data, families raising children constitute the largest group – some 512,000 – of those who availed themselves of the moratorium, their credit portfolio amounting to a total HUF 1,178 bln. The loans of 160,000 pensioners amount to HUF 368 bln, while 64,000 job-seekers have availed themselves of the possibility of suspending the repayment of debts worth around HUF 147 bln. Public works scheme participants constitute the smallest group, there are 16,000 of them with loans totaling HUF 37 bln, kormany.hu notes.

The extension of the moratorium for retail debtors could concern almost 47% of those who have participated so far. Their total debts amount to HUF 1.73 trillion, representing 50% of the loans of those currently availing themselves of the moratorium. Around 15 to 20% of businesses, approximately 10,000 to 12,000 of them fall into the vulnerable category; this is how many are expected to request the extension of the moratorium on their payments.

In 2020, with the suspension of credit debt repayments, HUF 2 tln will remain with the customers of banks. 1.6 million of the 2.7 million eligible retail customers have taken advantage of the moratorium with a debt portfolio totaling HUF 3.5 tln. The total portfolio of credit debts eligible for the moratorium amounts to HUF 6.603 tln

. Among corporate customers, the percentage of those taking advantage of the moratorium is even higher as 60,000 of the 96,000 eligible businesses have decided to avail themselves of this option in 2020, the report notes, adding that their corporate loans amount to some HUF 4.264 tln of the total eligible portfolio of HUF 9.692 tln.