Economic development minister: Government not to extend debt service moratorium

The government will not extend the current moratorium on borrowers' repayments, which is set to expire on December 31, the minister of economic development said on Tuesday.

Marton Nagy said the number of clients taking advantage of the moratorium had significantly declined. In August, only 1 percent of corporate borrowers and 3 percent of retail borrowers remained in the programme, he said, adding that the current cap on interest rates ensures “appropriate protection” to 350,000 families and 60,000 businesses, and “retaining the repayment moratorium is not justified”.

The government has also decided that clients should not pay higher monthly instalments than prior to January, he said, explaining that the decision took into consideration interest and fees amassed during the participation in the scheme, and clients could make a full repayment over the longer term.

The government introduced the repayment moratorium in March 2020, to mitigate the economic effect of the coronavirus pandemic on households and businesses.

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