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Coronavirus – FinMin Official: Suspension of Loan Repayments Helping Households, Businesses

MTI-Hungary Today 2020.05.01.

The option of suspending loan repayments is providing relief for many Hungarian households and businesses alike, but 40 percent of individuals and 30 percent of businesses are still paying off their loans, indicating that their finances are much stronger than during the 2008 crisis, a finance ministry official said on Friday.

Gábor Gion, state secretary for finance, told an online press conference that even though the moratorium also covers overdrafts and credit cards, clients should do their best to pay off these loans due to high interest rates.

Hungarian Press Roundup: Gov’t Announces Loan Repayment Moratorium

He noted that the savings rate of Hungarians is 12 percent of annual income, the highest rate among European Union member states.

The government-backed moratorium on loan repayments, he said, was unique in the world. It exempts repayments until the end of the year, while in neighbouring countries a similar measure only applies for three months, he added.

Featured photo by Attila Kovács/MTI