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FINMIN OFFICIAL: SUSPENSION OF LOAN REPAYMENTS HELPING HOUSEHOLDS, BUSINESSES

 

The option of suspending loan repayments is providing relief for many Hungarian households and businesses alike, but 40% of individuals and 30% of businesses are still paying off their loans, indicating that their finances are much stronger than during the 2008 crisis, a finance ministry official said. Gábor Gion, state secretary for finance, told an online press conference that even though the moratorium also covers overdrafts and credit cards, clients should do their best to pay off these loans due to high interest rates. He noted that the savings rate of Hungarians is 12% of annual income, the highest rate among European Union member states. The government-backed moratorium on loan repayments, he said, was unique in the world. It exempts repayments until the end of the year, while in neighbouring countries a similar measure only applies for three months, he added.