Hungary’s government decided on Wednesday to suspend until the end of the year the capital and interest rate payment obligations of both private individuals and businesses under effective loan agreements, Hungary Today reported.
Victor Orban’s government also decided to extend the short-term loans granted to the businesses by June 30, and maximized the total cost of borrowing indicator for new loans.
Businesses in the tourism, catering, entertainment, sport and culture sectors, as well as taxi businesses, would not have to pay payroll tax this year.
The National Bank of Hungary called on banks to introduce a moratorium on household loan repayments considering the “extraordinary situation” due to the coronavirus crisis and to temporarily suspend corporate debt payments. Should the banks fail to introduce the moratorium, the National Bank said it would ask the government to implement the measure by decree.
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