21.7 C
New York
Friday, July 30, 2021

Hungary extends loan moratorium as economy struggles to recover from pandemic

Must read

Share market update: Most active stocks of the day in terms of total traded value

NEW DELHI: Tech Mahindra (Rs. 1214.64 crore), Tata Steel (Rs. 641.87 crore), Deepak Nitrite (Rs. 517.24 crore), SBI (Rs. 432.65 crore), HCL Tech (Rs....

OKB (OKB): Price Updates, Recent Developments, Community, Future Events

Cryptocurrency13 minutes ago (Jul 30, 2021 12:30AM ET) OKB (OKB): Price Updates, Recent Developments, Community, Future Events OKB, the utility token of OKEx, has had an...

China asks trust firms to clean up non-finance units and businesses

Sign In/Free Sign Up 0 Stock Markets13 minutes ago (Jul 30, 2021 12:30AM ET) (C) Reuters. BEIJING (Reuters) - China's banking and insurance regulator...

Share market update: Most active stocks on D-Street today in terms of volume

NEW DELHI: Suzlon Energy (number of shares traded: 7.48 crore), JP Power (number of shares traded: 5.79 crore), Trident Ltd (number of shares traded:...
imageEconomy38 minutes ago (Sep 19, 2020 07:05AM ET)

(C) Reuters. FILE PHOTO: Hungarian Finance Minister Mihaly Varga speaks during a business conference in Budapest

By Krisztina Than

BUDAPEST (Reuters) – Hungary will extend a moratorium on loan repayments for some households and companies until the middle of 2021, as its finance minister warned the economy could struggle to grow next year unless a coronavirus vaccine is found.

Prime Minister Viktor Orban introduced the moratorium for all companies and private borrowers in March as one of his government’s key measures to help reduce the economic fallout from the pandemic. It was due to expire at the end of the year.

In a video posted on his official Facebook (NASDAQ:FB) page on Saturday, Orban said the moratorium would be extended by six months for families with children, the retired, unemployed and those in public works programmes.

The extension until the middle of 2021 will also apply to companies that have seen revenues drop by at least 25%.

Orban also said loan contracts for all households and companies agreed before the pandemic could not be terminated for six months.

The moves come as the government prepares to announce more steps to try to revive growth, after the economy plunged more than expected in the second quarter and prospects for a recovery next year have worsened.

The weak economic outlook could represent the biggest threat to nationalist Orban’s decade-long rule as he prepares to face parliamentary elections in the first half of 2022.

Finance minister Mihaly Varga said in an interview published earlier on Saturday that if a coronavirus vaccine was not available by the middle of 2021 the economy might struggle to grow next year, based on a pessimistic scenario.

Under an optimistic scenario, the economy could grow by 4-5% if a vaccine was available in the second quarter, he told newspaper Magyar Nemzet.

A third scenario was for a protracted recovery with 3%-4% growth, also conditional on a vaccine being available, he added.

Hungary’s economy is expected to shrink by 5%-6% this year.

Varga said the government was working on new stimulus measures that could include targeted tax cuts for crisis-hit sectors.

After a spike in new cases in recent weeks, Hungary reported 809 new coronavirus infections on Saturday, bringing the total to 16,920, with 675 deaths.

Hungary extends loan moratorium as economy struggles to recover from pandemic

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

- Advertisement -

Latest article

Share market update: Most active stocks of the day in terms of total traded value

NEW DELHI: Tech Mahindra (Rs. 1214.64 crore), Tata Steel (Rs. 641.87 crore), Deepak Nitrite (Rs. 517.24 crore), SBI (Rs. 432.65 crore), HCL Tech (Rs....

OKB (OKB): Price Updates, Recent Developments, Community, Future Events

Cryptocurrency13 minutes ago (Jul 30, 2021 12:30AM ET) OKB (OKB): Price Updates, Recent Developments, Community, Future Events OKB, the utility token of OKEx, has had an...

China asks trust firms to clean up non-finance units and businesses

Sign In/Free Sign Up 0 Stock Markets13 minutes ago (Jul 30, 2021 12:30AM ET) (C) Reuters. BEIJING (Reuters) - China's banking and insurance regulator...

Share market update: Most active stocks on D-Street today in terms of volume

NEW DELHI: Suzlon Energy (number of shares traded: 7.48 crore), JP Power (number of shares traded: 5.79 crore), Trident Ltd (number of shares traded:...

Buy EPL, target price Rs 320: Motilal Oswal

Motilal Oswal has buy call on EPL with a target price of Rs 320. The current market price of EPL is Rs 249.95. Time...