news letterOur mobile application

Weekly newsletter

Gov’t Suspends Repayment of Baby Bonds, Student Loans

MTI-Hungary Today 2020.03.19.

The government is forgiving certain loan repayments this year, including those on baby bonds and student loans, due to the novel coronavirus epidemic, the head of the Prime Minister’s Office said on Thursday.

Gergely Gulyás said at a regular government news briefing that demand for consumer loans was expected to be high in the current situation, so APR would be capped to 5 percent above the central bank base rate.

Coronavirus & Suspended Loan Payments: Banks Prepared to Work Together with Gov’t

On the topic of employment rules, he said the employment relationship may change as part of a free agreement between the employer and employee, and “creative solutions” would be needed that may entail a loss of income in this extraordinary situation, but the most important aspect of any agreement would be job retention.

He said special rules now apply in the tourism, hospitality, entertainment and film industries, as well as in the gambling, performing arts, events and sports services sectors.

Coronavirus – Orbán: Gov’t Suspends Debt Service for Businesses, Individuals

Accordingly, leases of non-residential premises cannot be terminated before June 30. Also, up until the end of June, employers are exempt from paying taxes on salaries, and the health insurance contribution is being capped at 7,710 forints and will be the only employment contribution during this period.

Certain other contributions related to tourist operators will also be forgiven, and taxis will have a general tax amnesty until June 30 to be extended if needed.

Featured photo by Szilárd Koszticsák/MTI