Hungary
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
09/06/2020 |
Tax reliefs |
All sectors |
Social contribution tax is reduced by 2 percentage points |
07/04/2020 |
Direct grants |
All sectors |
Supporting short-time work in order to save jobs by paying up to 70% of salaries for 3 months (kurzarbeit) |
21/04/2020 |
Public guarantees |
Non-financial corporations |
Public garantuees are given in two forms: - provision of a 90% public counter-guarantee to the guarantees provided by Magyar Fejlesztési Bank to companies or banks |
30/04/2020 |
Tax reliefs |
All sectors |
Increase of the investment allowance in corporate income tax |
07/04/2020 |
Direct grants |
All sectors |
A 40-percent wage support will be available for 3 months in relation to persons in research and development jobs |
07/04/2020 |
Tax reliefs |
Households |
Tourist tax reduced to 0% until 31 Dec |
07/05/2020 |
Other measures of fiscal nature |
Banking sector |
On May 7, the government announced it will purchase up to HUF 150 billion (0.3 percent of GDP) of bonds issued by banks qualifying as Tier 2 capital in order to support lending during the crisis and to ensure financial stability. These bonds can only be used for losses caused by the coronavirus epidemic, not to finance previously incurred losses. The measure is a precautionary step, as the capital position of the Hungarian banking system is currently strong. |
09/04/2020 |
Other measures of fiscal nature |
Banking sector |
A one-time tax is being levied on the banking industry equalling a rate of 0.19% of the tax base exceeding HUF 50 billion (~EUR 140 million); the revenue flowing into the budget as a result will be HUF 55 billion (~EUR 157 million), which will have to be paid in three instalments in 2020. This sum will be deductible over the next five years from the bank tax. |
21/04/2020 |
Tax deferrals |
All sectors |
Based on the decision of the Government, it is sufficient to prepare and submit tax reports and the related annual declarations by 30 September, and the tax also must be paid by that date. |
20/07/2020 |
Direct grants |
Non-financial corporations |
Budget of 3,028 billion forints, applications for up to 50 million forints (EUR 142 thousand) per enterprise with relation to foreign brand-building, the preparation of small investment projects and the development of online distribution channels shall be submitted to the Hungarian Export Promotion Agency (HEPA) |
29/04/2020 |
Public loans |
Non-financial corporations |
EXIM provides subsidized loans for investments and working capitals that will be available to companies effected by COVID-19. Interest rates based on the Temporary Framework. EXIM focuses on exporters and its suppliers. |
29/04/2020 |
Public guarantees |
Non-financial corporations |
EXIM provides guarantees to companies effected by COVID-19. Guarantee premiums are set per individual loans based on the Temporary Framework. EXIM focuses on exporters and its suppliers. |
12/06/2020 |
Direct grants |
Non-financial corporations |
The government has approved a scheme to support the investments of exporting companies operating in Hungary with grants worth up to EUR 800,000. The grant may cover up to 50% of the total investment value. |
18/03/2020 |
Public moratoria |
Households |
In accordance with the MNB recommendations, the Government ordered payment moratoria on credit obligations of households |
18/03/2020 |
Public moratoria |
Non-financial corporations |
In accordance with the MNB recommendations, the Government ordered payment moratoria on credit obligations of non-financial corporates |
18/03/2020 |
Public moratoria |
Other |
In accordance with the MNB recommendations, the Government ordered payment moratoria on credit obligations of financial enterprises and investment funds (interbank exposures are not included) |
23/03/2020 |
Tax reliefs |
Non-financial corporations |
In affected sectors SMEs are exempted to pay the lump sum tax of small enterprises (KATA) |
23/03/2020 |
Direct grants |
Households |
Maturing parental supports are extended further due to emergency situation |
21/04/2020 |
Other measures of fiscal nature |
Non-financial corporations |
The govermnent created a fund to incentivise SMEs - those that keep at least 90% of their employees - to invest in technology and innovation. 70% of the subsidies is non-refundable. On 10 June 2020 the increase of state funding for the competitiveness program to HUF 169bn (EUR 490 million) was announced. |
18/03/2020 |
Tax reliefs |
Non-financial corporations |
In affected sectors employers are exempted from paying contributions, employees are exempted from pension contributions and health insurance premiums must not be higher than the minimum that is prescribed by law |
06/07/2020 |
Direct grants |
All sectors |
The government is launching a new program to support Hungarian businesses that commit to investing at least HUF 560 million (EUR 1.6m) to save jobs in view of the coronavirus pandemic. The amount of the support can reach up to 50 percent of the investment amount, that is HUF 280 million in the case of an investment of HUF 560 million. |
14/04/2020 |
Other measures of fiscal nature |
Non-financial corporations |
Introduction of the retail tax |
07/04/2020 |
Tax reliefs |
All sectors |
Social contribution tax on SZÉP cards (a type of employee benefit) decreased to 0 percent up to the end of 2020 and its applicable limit increased |
21/04/2020 |
Public loans |
Non-financial corporations |
7 loan programs were launched with state interest rate and guarantee subsidies to encourage different types of lending to companies of different sizes. 4 loan programs are available through commercial banks, 1 through financial enterprises and 1 through the Magyar Fejlesztési Bank. |
28/03/2020 |
Public support for trade credit insurance |
Non-financial corporations |
Insurance of short-term export receivables. Extent of insurance cover: up to 95% of the value of the trade invoice. |
18/05/2020 |
Direct grants |
All sectors |
The government subsidies 6 month wage for newly created jobs. |
29/10/2020 |
Public moratoria |
Households |
The measure extends the payment moratorium introduced in March by additional six months until 30 June 2021. It covers families with children, pensioners, the jobless, fostered workers. |
29/10/2020 |
Public moratoria |
Non-financial corporations |
The measure extends the payment moratorium introduced in March by additional six months until 30 June 2021. It covers companies struggling financially because of the pandemic |
13/11/2020 |
Tax reliefs |
Non-financial corporations |
The rate of value added tax is reduced to 5% of the tax base in the case of food and beverage sales sold for delivery or home delivery |
10/11/2020 |
Tax reliefs |
Non-financial corporations |
Restaurants and leisure facilities will be exempt from paying contributions after their employees for the month of November |
10/11/2020 |
Direct grants |
Non-financial corporations |
In the 30 days after the implementation of the Decree, the state will reimburse hotels for 80 percent of the bookings registered before November 8. |
10/11/2020 |
Direct grants |
Non-financial corporations |
The government will take over half of the employees’ wage costs for the month of November |
09/12/2020 |
Tax reliefs |
Non-financial corporations |
Expansion of the eligibility conditions took place in additional areas of activity: |
09/12/2020 |
Direct grants |
Non-financial corporations |
The government will take over half of the employees’ wage costs for December and January. |
22/12/2020 |
Public moratoria |
Households |
The moratorium on loan repayments will be extended, in its present opt-out form, for six months, until July 1. |
22/12/2020 |
Public moratoria |
Non-financial corporations |
The moratorium on loan repayments will be extended, in its present opt-out form, for six months, until July 1. |
22/12/2020 |
Tax reliefs |
Non-financial corporations |
Local business tax will be halved for small- and medium-sized enterprises and sole proprietors from January 1. The government will subsidize the resulting municipal revenue shortfall in settlements with fewer than 25,000 residents, while the situations of bigger cities would be weighed on a case-by-case basis. |
29/12/2020 |
Direct grants |
All sectors |
A maximum of HUF 318,920 per employee per month wage support will be available for 3 months in relation to persons in research and development jobs |
17/11/2020 |
Public guarantees |
Non-financial corporations |
Public garantuees are given in two forms: - provision of a 90% public counter-guarantee to the guarantees provided by Magyar Fejlesztési Bank to companies or banks |
13/10/2020 |
Public loans |
Non-financial corporations |
The availability of the loan programs was extended until 30.06.2021 and Szechenyi Turism Card, a new product was introduced within the program. |
13/10/2020 |
Public loans |
Non-financial corporations |
EXIM provides subsidized loans for investments and working capitals that will be available to companies effected by COVID-19. Interest rates based on the Temporary Framework. EXIM focuses on exporters and its suppliers. The availability of the measure was extended until 30.06.2021. |
13/10/2020 |
Public guarantees |
Non-financial corporations |
EXIM provides guarantees to companies effected by COVID-19. Guarantee premiums are set per individual loans based on the Temporary Framework. EXIM focuses on exporters and its suppliers. The availability of the measure was extended until 30.06.2021. |
13/10/2020 |
Public support for trade credit insurance |
Non-financial corporations |
Insurance of short-term export receivables. Extent of insurance cover: up to 95% of the value of the trade invoice. The availability of the measure was extended until 30.06.2021. |
11/12/2020 |
Direct grants |
Households |
New home creation scheme with several measures: reduced VAT for newly built homes, home renovation subsidy, extending the family housing benefit to loft conversions, exemption of stamp duty when buying a home with family housing benefit |
27/10/2020 |
Tax reliefs |
All sectors |
Social contribution tax on SZÉP cards (a type of employee benefit) decreased to 0 percent up to July 2021 and its applicable limit increased |
06/02/2021 |
Public loans |
Non-financial corporations |
SMEs can raise an interest-free loan with ten-year maturity of up to HUF 10 million (EUR 28,000), with repayments deferred for the first three years. |
09/02/2021 |
Other measures of fiscal nature |
Non-financial corporations |
The lessor shall not claim from the lessee the part of the rent for February, March, April, May and June 2021 in respect of premises owned by the State or a local authority or by a company majority-owned by the State or a local authority. |
01/03/2021 |
Public guarantees |
Non-financial corporations |
With the Growth Guarantee Program, Magyar Fejlesztási Bank provides a guarantee / surety of up to 80% for transactions concluded within the framework of the Funding for Growth Program Go! and the Bond Funding for Growth Program announced by the Magyar Nemzeti Bank, as well as for individual loans of commercial credit institutions. In connection with the Guarantee Program, the Hungarian State provides a state guarantee for up to 90% of the amount of the guarantee / surety undertaken by Magyar Fejlesztési Bank. |
08/02/2021 |
Direct grants |
Non-financial corporations |
The wage support is extended until the end of March and companies can get it in every sector that has to close down. |
08/02/2021 |
Tax reliefs |
Non-financial corporations |
Extension of the tax relief until the end of March. |
27/02/2021 |
Public guarantees |
Non-financial corporations |
Increasing the maximum outstanding amount of the payment guarantee of the Garantiqa Credit Guarantee by HUF 300 billion to HUF 2,500 billion and increasing the maximum amount of the guarantee that can be provided in proportion to the total amount of credit. The guarantee programs were also extended until 31.12.2021. |
27/02/2021 |
Direct grants |
Households |
Legislative and related government decree-level regulations, effective since March 2021, provide a modern, flexible, and effective regulatory framework for employment-enhancing services and benefits. |
27/03/2021 |
Direct grants |
Non-financial corporations |
The wage support is extended until the end of April. |
27/03/2021 |
Tax reliefs |
Non-financial corporations |
Extension of the tax relief until the end of April. |
03/03/2021 |
Public loans |
Non-financial corporations |
The availability of the loan programs was extended until 31.12.2021. |
22/02/2021 |
Direct grants |
All sectors |
A 40-percent wage support will be available for 3 months in relation to persons in research and development jobs |
05/03/2021 |
Tax reliefs |
Non-financial corporations |
In affected sectors SMEs are exempted to pay the lump sum tax of small enterprises (KATA) |
22/02/2021 |
Tax reliefs |
Non-financial corporations |
The rate of value added tax is reduced to 5% of the tax base in the case of food and beverage sales sold for delivery or home delivery |
14/10/2020 |
Direct grants |
All sectors |
Wage support for employing registered jobseekers between the ages of 25 and 64, those seeking services and those seeking mediation. The amount of the support in the case of full-time employment is half of the monthly wage cost, but not more than HUF 100,000. |
29/04/2021 |
Direct grants |
Non-financial corporations |
The wage support is extended until the end of May. |
07/06/2021 |
Direct grants |
Non-financial corporations |
Self-employed people effected by the lockdown measures get a one-time grant of HUF 219,000. |
09/06/2021 |
Public moratoria |
Households |
The moratorium on loan repayments will be extended, in its present opt-out form, for three months, until September 30. |
09/06/2021 |
Public moratoria |
Non-financial corporations |
The moratorium on loan repayments will be extended, in its present opt-out form, for three months, until September 30. |
14/06/2021 |
Public loans |
Non-financial corporations |
The government provides interest rate subsidies, management fee subsidies, and guarantee fee subsidies for the loan facility. The net interest on the products thus remains below 1 percent. |
24/06/2021 |
Public guarantees |
Non-financial corporations |
The measure introduces a new state counter-guarantee scheme, available regardless of the size of the companies, under which the state guarantees 85% of loans and borrowings and 100% when issuing bonds. |
28/04/2021 |
Tax reliefs |
Households |
All young people under the age of 25 are exempted from paying personal income tax up to the average gross income determined by the HCSO in July of the previous year. |
17/02/2021 |
Direct grants |
Non-financial corporations |
EXIM provides direct grants to support interest payment for investment loans. The measure is available solely for SME companies effected by COVID-19. EXIM focuses on exporters and its suppliers. |
15/09/2021 |
Public moratoria |
Households |
The repayment moratorium has been extended until 31 October 2021 in its general form. For borrowers whose income has decreased due to the pandemic, for those who are unemployed or public workers, raising children or retired, the moratorium has been extended until 30 June 2022. |
15/09/2021 |
Public moratoria |
Non-financial corporations |
The payment moratorium has been extended for companies whose net income fell by at least 25% in the 18 months preceding the application. |
30/09/2021 |
Tax reliefs |
Households |
Taxpayers raising children will receive back their personal income tax paid during 2020 up to the amount of the tax payed after the average annual gross income. |
16/07/2021 |
Public loans |
Non-financial corporations |
The microenterprises can apply for state-subsidized beneficial loans within the Széchenyi Kártya program |
08/09/2021 |
Direct grants |
Non-financial corporations |
EXIM provides direct grants to support interest payment for investment loans. The measure is available solely for SME companies effected by COVID-19. EXIM focuses on exporters and their suppliers. |
20/10/2021 |
Tax reliefs |
All sectors |
Tax reduction for enterprises to raise the minimum wage. The 1.5 per cent training levy will be abolished from next January, and the social security contribution will be reduced by 2.5 percentage points. |
27/12/2021 |
Public loans |
Non-financial corporations |
The government extended its public loan programme called Széchenyi Kártya Go! until 30.06.2022. |
14/11/2021 |
Tax reliefs |
Non-financial corporations |
Local business tax will be halved for small- and medium-sized enterprises and sole proprietors from January 1. The government will subsidize the resulting municipal revenue shortfall in settlements with fewer than 25,000 residents, while the situations of bigger cities would be weighed on a case-by-case basis. |
17/12/2021 |
Direct grants |
Non-financial corporations |
EXIM provides direct grants to support interest payment for investment loans. The measure is available solely for SME companies effected by COVID-19. EXIM focuses on exporters and its suppliers. |
17/12/2021 |
Public support for trade credit insurance |
Non-financial corporations |
Insurance of short-term export receivables. Extent of insurance cover: up to 95% of the value of the trade invoice. The availability of the measure was extended until 30.06.2021. |
17/06/2022 |
Public moratoria |
Households |
For borrowers still under moratorium the program has been extended until 31 December 2022. |
17/06/2022 |
Public moratoria |
Non-financial corporations |
For borrowers still under moratorium the program has been extended until 31 December 2022. |
01/04/2020 |
O-SII |
Banking sector |
The MNB has decided to release capital buffer requirements set for other systemically important institutions from 1 July 2020. The institutions affected must gradually in three years from 2022 onwards rebuild their capital buffer initially prescribed for 2020. |
16/04/2020 |
CCoB |
Banking sector |
The MNB temporarily tolerates credit institutions breaching the CCoB requirement. |
18/03/2020 |
Other measure |
Banking sector |
Changing the maximum value of the Foreign Exchange Coverage Ratio (FECR): the limit on the FX mismatches between assets and liabilities relative to the balance sheet total is lowered from 15% to 10%. |
18/03/2020 |
Other measure |
Banking sector |
Modification of the calculation of the Foreign Exchange Adequacy Rato (FFAR): before the amendment, the FFAR accepted FX funds with a residual maturity over one year as 100% stable funds, regardless of the funding partner. According to the amendment, FX liabilities from financial companies with a residual maturity of over one year are subdivided into groups with residual maturity of 1-2 years (70% weight), 2-5 years (90% weight) and over 5 years (100% weight). |
18/03/2020 |
Other measure |
Banking sector |
Amendment of the Mortgage Funding Adequacy Ratio (MFAR) requirement: the restriction of cross-ownership of mortgage bonds within the banking sector is cancelled. Before this current revision, the difference between the mortgage bonds owned by a given bank and a predetermined ratio of all accepted funds had to be “netted”, i.e. deducted from the amount of accepted funds, unless the difference was negative. This restriction is withdrawn in order to support the reduction of the cost of long-term HUF funding. |
18/03/2020 |
SyRB |
Banking sector |
Suspension of the general requirements of the SyRB: there will be no revision of buffer rates in 2020, so the current 0-percent SyRB rates will remain in force. |
16/04/2020 |
Dividend distribution policy |
Insurance sector |
The MNB has sent in a recent management circular to market participants: Hungarian insurers should suspend their dividend and share repurchase payments and postpone the payment of variable remuneration in their remuneration policy. |
18/03/2020 |
Other measure |
Banking sector |
Maintaining Pillar 2 capital requirements: Suspension of on-site ICAAP investigations until September 30, 2020, unless the bank decides to allocate resources for review. In these cases, the TSCR rate applied in the previous year will remain in effect until the next examination to be rescheduled. In the case of simplified ICAAP investigations, the reviews will in any case be suspended until 30 September 2020. |
18/03/2020 |
Other measure |
Banking sector |
Cancellation of ILAAP field inspections by 31 December 2020 |
18/03/2020 |
Other measure |
All financial sectors |
As part of the epidemic countermeasures, inspection and investigation activities that are in progress or scheduled within the next 2 months will be rescheduled, cancelled, or terminated. |
18/03/2020 |
Buffer usability |
Banking sector |
The MNB will not take action for violation of the P2G capital requirement in 2020. |
18/03/2020 |
Other measure |
Banking sector |
Compliance with the target level of minimum own funds and write-down and convertible liabilities for 2020 ("MREL requirement") is postponed for 6 months |
18/03/2020 |
Other measure |
Households |
Temporary facilitation of retail lending processes. |
18/03/2020 |
Dividend distribution policy |
Banking sector |
The MNB called on credit institutions to postpone the payment of dividends payable prior 30 September, 2020. |
01/04/2020 |
Credit facilities |
Fund industry |
The MNB has decided to give resident open-ended public mutual funds an opportunity to participate in the Bank’s longer-term collateralised loan tenders. |
07/04/2020 |
Other measure |
Banking sector |
Consistent with the changes to the MNB’s monetary policy instruments, from the second quarter of 2020 the MNB will not set a target amount of banking sector liquidity to be crowded out of the instruments bearing interest at the base rate. |
07/04/2020 |
Asset purchase programme |
Securities and markets |
The MNB decided to launch a government security purchase programme. It involves Hungarian fixed-rate forint government securities. The scope of maturities is not restricted, nevertheless purchases will focus on securities with at least 3 years to maturity. The amount to be purchased of any securities series may not exceed 33 per cent of the outstanding stock. The MNB’s government securities purchases will take place in the secondary market at regular weekly auctions and in transactions outside the auctions. In addition to banks playing a major role in the government securities market, investment funds may also participate in the programme through the leading asset managers. The MNB will perform a technical revision when stock increases reach HUF 1,000 billion in government securities. |
07/04/2020 |
Asset purchase programme |
Securities and markets |
The MNB decided to relaunch its mortgage bond purchase programme. The programme continues to include long-term fixed-rate forint mortgage bonds with its total amount being 50 percent of the issued stock. The MNB will make purchases in both the primary and the secondary markets. The MNB will perform a technical revision when the mortgage bond stock increases reach HUF 300 billion. |
07/04/2020 |
Other measure |
Non-financial corporations |
The MNB will modify the parameters of the Bond Funding for Growth Scheme. Raising the MNB's maximum amount of exposure to a given group of corporations from HUF 20 billion to HUF 50 billion will help the corporate sector rely more on other methods of funding as an alternative to bank loans. |
07/04/2020 |
Credit facilities |
All sectors |
The MNB will launch the Funding for Growth Scheme Go! on 20 April 2020, raising the current allocation amount of the Funding for Growth fix scheme by additional HUF 1,000 billion. Including HUF 500 billion undrawn under the FGS fix, the MNB will make available up to HUF 1,500 billion of cheap and stable source of lending to the SME sector under the FGS Go!. The MNB has decided to expand the purpose of the loans available in the scheme: the scheme will promote foreign investments of domestic enterprises to a greater extent, allow more flexible working capital lending, and may be also used by condominiums and housing associations to finance modernization investments. |
17/03/2020 |
Other measure |
Banking sector |
The MNB decided to accept as collateral loans to large companies in its operations. Monetary policy counterparties may offer or provide as collateral loans to large companies, irrespective of the maturity and denomination of loans. The MNB applies a single 30-percent haircut on such loans accepted as collateral. |
17/03/2020 |
Swap lines |
Banking sector |
In addition to the 1, 3, 6 and 12-month tenders announced every Monday in the same way, the MNB also announces one-week FX swap tenders providing forint liquidity on a daily basis from 17 March 2020 until further notice. |
17/03/2020 |
Swap lines |
Banking sector |
The framework of posting initial margins in swap transactions providing forint liquidity was changed. Accordingly, the MNB does not require counterparties to post a 4-percent initial margin in transactions with the Bank. Furthermore, while counterparty banks will continue to be required to provide collateral in HUF, the MNB will meet its obligation to provide collateral in EUR. |
24/03/2020 |
Credit facilities |
Banking sector |
The MNB introduced a long-term, i.e. three, six and twelve-month and three and five-year, collateralised lending facility of unlimited total amount at fixed interest rates. |
24/03/2020 |
Other measure |
Banking sector |
The MNB made a decision on the exemption from reserve requirements by suspending the sanctions on reserve deficiency. In accordance with past practice, required reserves will continue to be remunerated at base rate. If, however, a bank keeps on its reserve account an amount lower than specified in the relevant central bank regulation, the MNB will no longer charge a penalty interest, i.e. banks will become exempt from the sanctions on reserve deficiency currently in effect. |
30/04/2020 |
Other measure |
Banking sector |
The range of collateral eligible for central bank operations has been extended to shares issued by open-ended, public, forint-denominated money market, liquidity, bond and real estate funds. Depending on the assets of funds, the haircuts applied have been fixed between 5 and 60 per cent. The modified Terms and Conditions will come into effect on 11 May 2020, i.e. after this date credit institutions belonging to monetary policy counterparties may deliver mutual fund shares they hold as collateral. |
18/03/2020 |
Other measure |
Households |
The Government requires banks to temporarily make personal loans available with an interest rate limit. Their total annual percentage rate of charge (APRC) may exceed the central bank base rate by no more than 5 percentage points. |
14/07/2020 |
Direct grants (w/o fin. stab. relevance) |
Households |
13th month pension to be introduced gradually from 2021 |
18/03/2020 |
Other measure |
Households |
The MNB called on credit institutions to apply stricter consumer protection rules involving the opening hours of branches, consumer notification requirements, ATM operation, and complaint handling. |
23/03/2020 |
Other measure |
Households |
Contactless paying limits without PIN raised from HUF 5,000 to HUF 15,000 |
23/03/2020 |
Exemption from penalties/fines |
All non-financial sector |
Suspension of enforcement proceedings |
28/05/2020 |
Other measures of fiscal nature (w/o fin. stab. relevance) |
Non-financial corporations |
New investment program to be launched with a total of 80 bn HUF targeting the high added value segments such as livestock breeding and horticultural sector by the Ministry of Agriculture |
23/06/2020 |
Interest rate change |
All financial sectors |
The Monetary Council reduced the central bank base rate by 15 basis points to 0.75 percent. The Monetary Council left the overnight deposit rate at -0.05 percent, and the overnight and the one-week collateralised lending rates at 1.85 percent unchanged. |
07/09/2020 |
Other measure |
Banking sector |
Modification of the FFAR regulation: Modification of the FECR regulation: |
21/07/2020 |
Interest rate change |
All financial sectors |
The Monetary Council reduced the base rate by 15 basis points to 0.60 percent. The Monetary Council left the overnight deposit rate at -0.05 percent and the overnight and the one-week collateralised lending rates at 1.85 percent unchanged. |
08/09/2020 |
Swap lines |
Banking sector |
Swap tenders providing central bank foreign currency liquidity will be introduced in necessary cases to facilitate monetary policy transmission, in addition to the regular announcement of swap tenders providing HUF liquidity. |
08/09/2020 |
Other measure |
Banking sector |
Due to a significant expansion in interbank liquidity, the Monetary Council decided to restore the sanctions, suspended on 24 March 2020 in response to the effects arising from the coronavirus pandemic, to be applied in the event of credit institutions’ reserve deficiency, with effect from 1 October 2020. The measure provided effective support to banks to manage their liquidity; however, it is no longer warranted in the face of increased banking system liquidity in recent months.The Monetary Council also decided that from 1 October 2020, the interest rate on the portion above the reserve requirement on reserve accounts should be the lower of the current central bank overnight deposit rate and 0 percent. |
08/09/2020 |
Credit facilities |
Banking sector |
As regards the instruments providing liquidity, the MNB decided that it will only announce tenders of its long-term collateralised lending facility with three and five-year maturities. Weekly tenders with maturities of up to one year, including three, six and twelve-month maturities, will not be announced. To achieve technical simplification, investment funds’ indirect access (i.e. through banking sector participants) to the collateralised lending facility will be discontinued. However, direct access will remain available for the investment funds involved. |
07/09/2020 |
Dividend distribution policy |
Banking sector |
In accordance with the recommendations of the European Central Bank and the European Systemic Risk Board, the MNB calls on banks to extend the previous dividend payment or approval restriction currently in effect until 30 September to 1 January 2021. The MNB also expects credit institutions to refrain from repurchasing shares for the purpose of remunerating shareholders until 1 January 2021 and to consider limiting the payments of variable remuneration as part of their remuneration policy until the same date. |
17/11/2020 |
Credit facilities |
All sectors |
The Monetary Council raised the amount available under the Funding for Growth Scheme Go! by HUF 1000 billion. |
28/12/2020 |
Dividend distribution policy |
Banking sector |
In accordance with the recommendations of the the European Systemic Risk Board, the MNB calls on banks to extend the previous dividend payment or approval restriction currently in effect until 1 January 2021 to 30 September 2021. The MNB also expects credit institutions to refrain from repurchasing shares for the purpose of remunerating shareholders until 30 September 2021 and to consider limiting the payments of variable remuneration as part of their remuneration policy until the same date. |
22/09/2020 |
Other measure |
Non-financial corporations |
The Monetary Council raised the amount available under the Bond Funding for Growth Scheme by HUF 300 billion to HUF 750 billion. The MNB will continue to sterilise the resulting surplus liquidity issued under the programmes in full, using the preferential deposit instrument. |
06/10/2020 |
Asset purchase programme |
Securities and markets |
Under the measures, the amount available for purchase of certain series of government securities has been raised from 33 percent to 50 percent. Furthermore, the range of assets available for purchase has been extended to government-guaranteed debt securities issued, using the same strategic parameters as those of government securities purchases. In addition to the introduction of the new fine-tuning measures, the Bank has decided to take a flexible approach to the amount of its weekly purchases, focusing its purchases on longer maturities. Purchases may take place at regular weekly tenders as well as out of tender. The Monetary Council will use the government securities purchase programme through a lasting market presence to the extent required. In accordance with its previous decision, the MNB will carry out a technical review if the purchased amount increases by HUF 1,000 billion from the initial amount set at the start of the programme. |
06/10/2020 |
Dividend distribution policy |
Insurance sector |
In a new executive circular, the MNB reaffirmed its expectations so far and recommends that insurers postpone the payment of any dividend, share repurchase and large variable remuneration payments planned for this year until 2021. These payments should be made next year only if the capital adequacy of the given insurer reaches or exceeds the normal average of international and domestic capital adequacy after the payment. |
21/01/2021 |
Other measure |
Non-financial corporations |
The MNB decided to increase the amount available for purchases within the Bond Funding for Growth Programme from HUF 750 billion to HUF 1,150 billion with effect from 13 January 2021. In addition, the Monetary Council decided to increase the maximum maturity of corporate bonds that can be purchased by the central bank from 20 to 30 years and to increase the central bank's maximum exposure to a group of companies from HUF 50 billion to HUF 70 billion. |
09/03/2021 |
Other measure |
Non-financial corporations |
The MNB makes purchases up to a maximum of 50 per cent of the total nominal value of securities with a credit rating of at least B+, a total nominal value of at least HUF 1 billion and an original maturity of between 3 and 30, issued by domestic-based non-financial public corporations. In compliance with the ban on monetary policy financing, it does so exclusively on the secondary market, while the central bank's exposure to a group of companies may not exceed HUF 70 billion. |
06/04/2021 |
Credit facilities |
All sectors |
The Monetary Council raised the amount available under the Funding for Growth Scheme Go! by HUF 500 billion to HUF 3000 billion. |
27/07/2021 |
Credit facilities |
All sectors |
The Monetary Council phased out the Funding for Growth Scheme Go!. |
12/08/2021 |
Dividend distribution policy |
Banking sector |
In a circular letter, the MNB's expects credit institutions not to pay dividends or assume an irrevocable dividend payment obligation for the financial years 2019 and 2020, or at the expense of the results of previous years, until 31 December 2021. Limited dividends may still be paid if strict conditions are met. The main reason for the further maintenance of the dividend payment restriction is that the moratorium on bank repayments has been extended. |
24/08/2021 |
Other measure |
Non-financial corporations |
The MNB decided to increase the amount available for purchases within the Bond Funding for Growth Programme from HUF 1150 billion to HUF 1550 billion. |
24/08/2021 |
Asset purchase programme |
Securities and markets |
In line with the ongoing monetary policy tightening, the Monetary Council decided to gradually phase-out the government securities purchase program, taking into account aspects of maintaining market stability. As a first step, starting from the week of 23 August 2021, the MNB's purchases will decrease from HUF 60 billion per week to HUF 50 billion, from which the central bank may deviate flexibly depending on supply and other market conditions. Thereafter, the Monetary Council will conduct a comprehensive review of the government bond purchase program at the end of the quarters, for the first time in September 2021. |
21/09/2021 |
Asset purchase programme |
Securities and markets |
The Monetary Council continued to phasing out the government bond purchase program. Accordingly, from 27 September 2021, the weekly target for MNB purchases will decrease from HUF 50 billion to HUF 40 billion. Next, in December 2021, the Monetary Council will set a target for weekly purchases for the next quarter. |
24/12/2021 |
Other measure |
Households |
Hungary's government is freezing retail mortgage interest rates for a six-month period from January. Interest rates on retail mortgages will be frozen at their end-October levels. Altogether the decision could save Hungarian households and cost banks around HUF 20 billion (EUR 54 M). |
14/12/2021 |
Asset purchase programme |
Securities and markets |
The MNB will stop purchasing goverment bonds. The MNB will continue to closely monitor liquidity developments in the government securities market, and it will be ready to intervene in order to maintain the stability of the government securities market with occasional and targeted government securities purchases if necessary. Occasional government securities purchases will not indicate a change in the stance of monetary policy. The MNB will hold securities purchased until maturity. |
14/12/2021 |
Asset purchase programme |
Non-financial corporations |
The Monetary Council decided to close the Bond Funding for Growth Scheme. Following the realisation of negotiations with issuers currently underway up to the maximum amount allocated under the programme, the Bank will not purchase additional corporate bonds. |
17/06/2022 |
Other measure |
Households |
Hungary's government is freezing retail mortgage interest rates from January 2022 at their end-October 2021 levels. The measure has been extended until end-2022. |