Márton Nagy, Minister of Economic Development, has slammed the Hungarian Banking Association over what he has called "misleading communication” in connection with the credit repayment moratorium for drought-hit farmers.
The association on Tuesday said borrowers could see their future creditworthiness hurt by a deterioration in their credit risk classification resulting from the moratorium, presenting significant risk. Nagy slammed the association for its “misleading communication”, saying the moratorium had been introduced to assist farmers with “the sudden burden” of facing extreme weather conditions. He said the association was expected to help ailing borrowers manage their difficulties rather than “present misleading communication suggesting negative ramifications”. Banks could elaborate their special risk management procedures to save clients from suddenly increasing instalments, he said.