Payment moratorium in Hungary

Apr 20, 2020

To mitigate the impact of the corona virus (COVID-19) pandemic on the national economy, the Hungarian Government has introduced a payment moratorium as of 19 March 2020 until 31 December 2020 by way of Government Decree 47/2020. (III. 18.)

It is a payment moratorium for principal, interest and fees under credit facilities, loans and financial leasing provided as part of a financial service business activity.

The payment moratorium applies to loans already drawn under contracts existing at midnight 18 March. The moratorium also amends the accessory and non-accessory secondary obligations.

The debtors continue to have the right (but not the obligation) to make payments under the original terms and the parties can contractually agree not to apply the moratorium to their contract.

Please note that this article is for general information only, legal advice on individual cases can only be given in the context of an individual consultation, taking into account all the circumstances of the case.