Orban: Govt suspends debt service for businesses, individuals

The government has decided to suspend until the end of the year the capital and interest rate payment obligations of both private individuals and businesses under effective loan agreements, Prime Minister Viktor Orban announced on his Facebook page on Wednesday.

The government has also decided to extend short term business loans until June 30, and maximised the “total cost of borrowing” indicator, known by the acronym “THM”, for new retail loans at the national bank’s base rate plus 5 percent, Orban said.

The government will also waive the employers’ social security tax in full until June 30 in the ailing tourism, catering, entertainment, sports and cultural services, and for taxi drivers, the prime minister said, adding that employee contributions would be significantly reduced, and pension contributions would be suspended.

Taxi drivers paying their tax in the “kata” scheme are exempted until June 30, Orban said.

In the sectors most affected by the new coronavirus epidemic property lease contracts cannot be terminated, nor can owner raise the rent, Orban said, adding that the government was working to make employment rules more flexible.

Source and photo: MTI

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