Gov't Won't Extend Repayment Moratoriums - Minister
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The government will not extend repayment moratoriums for retail and corporate borrowers when they expire at year-end, Economic Development Minister Márton Nagy said on Tuesday, according to a report by state news wire MTI.
Nagy noted that just 3% of retail borrowers and 1% of corporate borrowers are still availing of the moratoriums. An interest rate freeze affecting 350,000 retail borrowers and 60,000 businesses is providing "sufficient protection", so maintaining the repayment moratoriums is no longer justified, he said.
He added that the government decided to ensure that rules require borrowers' installments do not rise from January, but accumulated interest and fees is spread out over an extended loan maturity.
The government introduced blanket repayment moratoriums for retail and corporate borrowers in March 2020, at the start of the coronavirus crisis. Participation was later restricted to the most vulnerable borrowers.
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