MNB: It was a rational decision to use the repayment moratorium, but now it is not


In response to press articles, they also note that

Over the past nearly a year and a half, the MNB has been continuously and consistently proposing the most favorable solution for its customers in terms of their living conditions and finances.

According to the central bank, a rational step was to introduce a moratorium in the first good year of the epidemic – in Hungary and throughout the European Union. The severity of the pandemic, the development of vaccines, the pace of effective domestic health responses, and the development of the income and repayment situation of the population were surrounded by considerable uncertainty, so

By now, however, with the end of the third wave of the epidemic, rising vaccination and rapid reopening of the economy, the benefits to customers with adequate incomes and sources of repayment of remaining in the moratorium may outweigh the risks in the longer term. The fact that the term of their loan and their total amount to be repaid to the bank increases unnecessarily. We can also think of this as an already current health analogy: the use of a drug, if necessary, is useful and necessary for the appropriate period of time, but the use beyond the disease can have harmful side effects that outweigh the benefits.

From the spring of the MNB 2020 in its press releases, published on leading media portals in his professional articles and website Moratorium in the questions and answers menu (Answer 7) kept informed that banks would charge interest and fees on the principal of the outstanding loan under the moratorium; they may increase the total maturity and the amount to be repaid; however, these interest and fees will not be “added” to the principal debt (there will be no interest) and will be paid in equal installments over the period following the moratorium; and that when the repayment is resumed, the customer’s monthly charge will be the same as when the payment stop is ordered (the interest rate on floating-rate loans, so the installment may change).

In this context, the central bank has previously consistently rejected false claims that the total burden on debtors will “increase unexpectedly” when the moratorium expires, and that those who leave the moratorium “jump in their installments”. In the first months of this year, retail debtors also received detailed written information from their bank about the amount of their debts and the characteristics of their loans.

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Source: Portfolio.hu – Bank by www.portfolio.hu.

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