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Extended eviction moratorium to increase interest rates

According to a Fidesz proposal presented to the parliament yesterday, the government would extend the eviction moratorium of those not redeeming their property loans and would keep the moratorium in effect until an agreement is reached with the banks, business daily Napi Gazdaság reported.

However, negotiations with the Hungarian Bank Association on banks undertaking some burdens of the debtors has come to a halt, the paper learned. The extended eviction moratorium eliminates the risk difference between residential and property loans, the paper said citing MKB analysts.

The increased risks would result in higher interest rates, the experts added. OTP also finds that the extended moratorium would narrow loan opportunities. However, OTP tries to work out some alternatives such as the joint sale of the property, Napi Gazdaság added.