Economy
Hungary's Orbán announces five new measures to prop up economy
Due to an overload on his page, Orbán started his live feed with a 20-minute delay at 3:20 P.M., and even then viewers were not the wiser, for the video had no sound.
A corrected recording was uploaded about an hour later. Orbán's key announcements are as follows;
Today's government meeting addressed the economic consequenes of the coronavirus (COVID-19) pandemic. It was time to deal with these after the health-related issues, he said.
Today's decisions will help protect jobs, but these are only the initial steps, more will follow.
- The cabinet has adopted a repayment moratorium on all existing loans, corporate and retail, until the end of this year. The MNB recommended the suspension of the repayment obligation for corporations on Tuesday and a repayment moratorium on retail loans today. It left it up to commercial banks to decide, but essentially threatened them that if they do not go along, the MNB will ask the government to create legislation that would enforce the moratorium.
- Short-term loans extended to businesses will be extended to 30 June.
- The average annual percentage rate (APR or THM in Hungarian) on consumer credit to be taken out from tomorrow will be maximised at the central bank base rate (0.9%) +5%.
- A few sectors of the Hungarian economy are in a difficult position, including tourism, catering, the entertainment industry and passenger transport. Employers' contributions will be lifted in these sectors. The health care contribution will be lowered by 30 June. Taxi drivers paying 'kata' ((itemised tax for small taxpayers) will be exempted from paying this tax. Rental fees may not be charged in these sectors. The tourism development contribution will be temporarily cancelled.
- Employment regulations will be softened in a bid to facilitate agreements between employers and would-be employees. The basic decree comprising these decisions will be published today.
Cover photo by: Krisztian Bocsi/Bloomberg via Getty Images
