The MNB expects financial institutions not to charge a fee if their customers fully or partially prepay their interest and fee debt accumulated during the repayment moratorium. A free contract amendment is necessary even if debtors would voluntarily undertake higher monthly repayments in order to shorten the term, the central bank told MTI on Friday.
Financial institutions must also take into account the provisions of the debt brake rule regarding the income-related repayment ratio when accepting higher repayments - for retail customers.
The MNB expects financial institutions to provide their clients with these free contract amendment options at least until December 31, 2022. It is also expected that financial institutions provide their customers with information about this on their websites.
According to data from the central bank, in April 2021, 1.2 million retail customers and around 30,000-35,000 businesses took advantage of the moratorium.
The MNB has indicated several times in the past period that those who can afford it should resume repayment as soon as possible and exit the moratorium. With the end of the third wave of the coronavirus epidemic, the rising vaccination coverage and the rapid reopening of the economy, for customers with adequate income and repayment resources, the benefits of staying in the payment freeze may be outweighed by the risks in the longer term, they warned again. The term of these customers' loans and the total amount to be repaid needlessly increases towards their financial institution, since interest and fees continue to accrue on the unpaid capital during the moratorium period. According to the MNB's survey, the majority of household debtors in the moratorium have the appropriate financial means to continue repayment. The central bank's current regulatory initiative also supports this decision, they wrote.
MTI
Photo: MTI
