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Dec 23, 2020

Gulyás: Government is providing extra resources to those in a difficult situation

The government’s economic protection measures serve to ensure that businesses and families survive the difficult months ahead.

 

Gergely Gulyás, Head of the Prime Minister’s Office, said the government’s economic protection measures serve to ensure that businesses and families survive the difficult months ahead, providing extra resources to those in a difficult situation.

According to MTI, Gulyás said that the most important measure was to extend a credit repayment moratorium until June 30, 2021, applying to almost 2.6 million families. He added that nearly 1.5 million families with 54 percent of a total debt portfolio of HUF 3,600 billion were availing themselves of that opportunity. He also said that nearly one million businesses were entitled to take advantage the moratorium, and 48.5 percent had opted to do so. The moratorium will affect 41.7 percent of their total portfolio, an equivalent of HUF 4,300 billion, he said.

The government has also decided to halve the local business tax payable by SMEs, which will leave some HUF 150 billion (EUR 420m) with such businesses, Gulyás said, adding that local governments’ business tax revenues would be comparable to those in 2017 or 2018, “50 percent more than in 2011”. Municipalities with fewer than 25 residents will be automatically compensated for lost revenues, Gulyás said, adding that the government was open to negotiations with larger cities. Helping local councils stay operational is in the interest of both sides, he said.

To help families raising or expecting children, a home renovation loan subsidy has been introduced, offering a maximum 6 million forints with an interest rate of 3 percent, he said. Half of the loans will be non-refundable, he added. Retaining jobs is a top priority for the government, he said, adding that nearly 4.5 million people were currently employed, “almost 900,000 more than in 2010”.

Photo credit: kormany.hu