Refund moratorium: it became clear to whom and how the government will be extended

The title of the bill is entitled “Transitional measures to stabilize the situation of certain priority social groups and companies in financial difficulties”, the main points of which are summarized below.

Which retail debtors can benefit from the extension?

1. The reason unemployed, who on the effective date of this Law or in the first semester of 2021 are considered job seekers according to the Employment Promotion and Benefits for the Unemployed Law.
2. A expectant and foster children. A fetus is considered to be a child after the 12th week of gestation, as well as anyone who is a dependent or adoptive dependent of the debtor and has not yet reached the age of 25 or a child with altered work capacity and whose condition lasts at least a year or less. it is not expected to cease.
3. The reason pensioners, who on the date of entry into force of this Law receive a pension in their own right or a family pension, or acquire the right to a pension in the first semester of 2021.
4. A Public employees (that is, those who in common parlance are called public workers).

It is important that, in the case of co-debtors, it is sufficient that only one co-debtor belongs to one of the previous categories.

What companies can benefit from the extension and how?

It can be used by companies that a company in financial difficulties under the Government Decree on the definition of the debtor asks the creditor in writing. The government is empowered by the bill to RegulationIf met, the company is considered to be in financial difficulty (according to a previous announcement, this requires a 25% decrease in sales revenue, but is not anticipated on the invoice). The request for a moratorium on loan repayment must contain the information necessary to identify the contract, as well as information on the basis of which it can be established that the debtor is entitled to use the moratorium on loan repayment as defined in the Government Decree defining a company in financial difficulties.

For which loans can the moratorium be extended?

Even after January 1, only the On March 18, 2020 there were already contracts may be subject to a moratorium. The extension also covers loans to financial institutions with registered office and branch in Hungary and student loans. in addition to credits and cash loans, also for financial leasing. In the case of the latter, the extension of the term does not affect the tenant’s right to use the leased object, as well as the right to acquire the property based on the financial lease contract. The provisions on the moratorium on payments should also apply mutatis mutandis to employer credit disbursed through a financial institution that is not accessible to the public.

How and for how long will the moratorium be extended?

Unless the parties provide otherwise, the debtor will receive a payment deferral until June 30, 2021 to fulfill its obligation to pay principal, interest or commissions derived from the contract. This does not affect the debtor’s right to perform under the original terms of the contract. The term for the fulfillment of the contractual obligations and the duration of the commitment are extended for the duration of the payment moratorium (in this case half a year). Contracts that expire during the payment moratorium They will run until June 30, 2021. Complementary and non-complementary obligations are also modified by changes in the terms. It does not need to be notarized, the prior notarial deed is valid within the framework of the modified content of the contract.

How is deferred payment accounted for?

The principal debt may not be increased by the amount of unpaid interest during the payment moratorium, either during the payment moratorium or after the expiration of the payment moratorium. During the payment moratorium

The accrued interest, together with the installments owed for the remaining term, will be paid in equal annual installments during the period after the expiration of the payment moratorium.

After the payment moratorium expires the term is extended so that the sum of the installment owed and the interest payable in installments arising under the payment moratorium does not exceed the amount of installments under the original contract. The rules on interest should apply mutatis mutandis to rates.

What can someone who decides otherwise do later?

The debtor also in the first half of 2021 you can choose to use the payment moratorium at any time, and the execution will be accredited in accordance with the provisions of the contract in force before the imposition of the payment moratorium. Recourse to the moratorium will not yet affect the debtor’s right to: act in accordance with the original terms of the contract, that is, to leave and enter the moratorium.

What about the baby loan guarantee fee?

Expecting baby is paid in loans the guarantee fee will not yet be paid in the first half of 2021.

What will happen to National Asset Manager users and those in private bankruptcy?

Unless the parties provide otherwise, they will also be subject to the extension: “in force, obligation to pay the installment of the purchase price or the payment of the rent arising from the lease of the apartment it is modified so that the installer or the tenant receives a payment deferral until June 30, 2021 in order to comply with the obligation to pay the price of the rental fee or fee derived from the contract ”. THE to those who are in private bankruptcy The moratorium also extends to: para.

Prohibition of credit termination

The creditor has entered into a contract with the debtor due to the breach by the debtor of the obligation to pay principal, interest or fees. Until June 30, 2021, you cannot terminate it by notice. The prohibition applies to loans that are not covered by the extension of the moratorium. During this period, the creditor and the debtor who cannot repay on time must negotiate a renegotiation of the terms established in the contract to restore the debtor’s solvency and modify the credit agreement accordingly. The amended contract does not need to be notarized, and the amendment also affects auxiliary and non-auxiliary obligations.

How many will then have the right to extend the moratorium?

According to a previous announcement by the MNB published in the Portfolio, the retail loans eligible for the moratorium so far 31% in number and 26% in shares can benefit from the extension of the moratorium, in the case of companies this proportion is 16% in number and 13 to 16% in shares.