Details on Hungary's economic emergency measures published

Government decree 47/2020, dated 18 March, on immediate measures to address the economic consequences of the coronavirus (COVID-19) pandemic, orders the following:

I.

During the state of emergency, all borrowers will be granted deferred payment on all principal, interest and fee payment obligations originating from loan or lease agreements. This payment moratorium does not prevent debtors from performing under the original conditions. Amending the deadline of loan contracts will also modify collateral and surety conditions.

The payment moratorium will last until 31 December 2020 but may be extended by government decree.

All deadlines on contractual obligations will be extended by the amount of the moratorium. All loan contracts expiring during the moratorium will be extended until 31 December.

II.

For unsecured consumer loans extended after the decree enters force, the APR amy not exceed the central bank's base rate plus 5 percentage points.

III.

In tourism, catering, entertainment, gambling, movie and theatre, event organisation and sports services, rental agreements on non-residential properties may not be cancelled until 30 June 2020. The government may extend this date by a further decree. Rental fees may not be raised during the state of emergency.

IV.

In the above industries, employers will be exempted from paying public contributions on wages in March, April, May and June and will only have to pay a healthcare contribution, capped at HUF 7,710 a month.

Those obligated to pay the tourism development contribution will be exempted between 1 March and 30 June and will not have to file a return.

V.

Small taxpayers (KATA subjects) active in passenger transportation will be exempted from paying the monthly tax in March, April, May and June.

VI.

In order to enforce bans and limitations ordered by the government during the state of emergency, the Labour Code will be temporarily amended to allow for teleworking, home office, and different or flexible work hours, while also authorising employers to take the necessary measures in order to inspect the health of employees. Employers and employees may separately agree to other conditions.

VII.

Further detailed regulations regarding I.-VI. will be published in government decrees.

VIII.

For the purposes of this decree, the national government, local governments, and businesses defined in Act 139/2013 on the central bank shall not be considered debtors.

IX.

The decree enters force the day after publication.