MNB Issues Statement on Loan Payments After Moratorium Expires
MNB published a statement on loan payments post the announced moratorium, in addition to a set of new questions and answers (Q&A) on supervisory measures and requirements announced amid COVID-19 pandemic. In addition, MNB received proposals on a consultation initiated, at the end of March 2020, with environmental specialists, non-governmental organizations, and institutions, on the ecologically sustainable recovery of the economy after the COVID-19 pandemic. The proposals indicate that wide-ranging opportunities exist for economic recovery while observing green principles. MNB will assess these proposals to develop measures and proposals supporting green investment.
In the statement on loan moratorium, MNB has specified that, due to the moratorium on payment of loans, the loan installment will not increase after the moratorium expires. The amount of the first installment and interest installment after January 01, 2021 cannot be higher than the installment that the contractor would have had to pay under the contract if there had been no payment moratorium. To ensure this, the term of the given loan can be increased, though there may be a case where a particular customer does not want the latter. In this case, on its own initiative, it will be possible to find a suitable solution together with the lender at a later stage (for example, to voluntarily undertake a higher monthly repayment for a shorter term).
Keywords: Europe, Hungary, Banking, COVID-19, Loan Moratorium, Q&A, ESG, Climate Change Risk, Green Economic Recovery, Green Program, Credit Risk, MNB
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