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03 April 2020
newsletter
hungary

Hungary: Overview of the COVID-19 support measures currently available by the Hungarian public sector

Find an overview of the COVID-19 support measures currently available by the Hungarian public sector here - you can also download this table here.

 

 

Measure

Hungarian National Bank (HNB) and Monetary policies for tackling COVID-19 epidemic

Type of support

The MNB introduced extraordinary measures in order to enhance liquidity of Hungarian banks:

  1. The HNB provides repo financings with a term of 3, 6, 12 months or 3 or 5 years with fixed interest rate and with unlimited maximum amount (keretösszeg). The HNB accepts financing provided to large enterprises as collateral. The first tender for such financing was held on 25 March;
  2. Banks are exempted from their minimum reserve payment obligations (kötelezőtartalék-teljesítés) by suspending the penalty for under-provisioning (alultartalékolás). The measure is applicable with immediate effect.
  3. HNB allowing investment funds (befektetési alapok) to have access to HNB's long-term credit facilities with a term of 3, 6 or 12 months.
  4. Announcement of a 1-week term deposit tender to improve the efficiency of the banking system’s liquidity management and support the reduction of banks’ overnight deposits
  5. Lift of the capital buffers applicable to systematically important credit institutions as of July 1, 2020.

Eligibility for application

  1. Central bank counterparties
  2. Banks having a license in Hungary and Hungarian branch offices
  3. Hungarian open-ended public investment funds
  4. Central bank counterparties (jegybanki monetáris politikai partnerkör)
  5. Hungarian systematically important credit institutions (hazai rendszerszinten jelentős hitelintézetek)

Individual amount

  1. N/A
  2. N/A
  3. N/A
  4. N/A
  5. N/A

Duration

During the COVID-19 crisis

Submission of application

  1. Banks may apply on tenders held by the HNB
  2. N/A
  3. Investment funds may apply through a partner credit institution or on tenders regularly held by the HNB
  4. Banks may apply on tenders held by the HNB every Thursday
  5. N/A

Link

https://www.mnb.hu/en/pressroom/press-releases/press-releases-2020/unlimited-amount-of-long-term-liquidity-available-at-fixed-interest-rates

www.mnb.hu/en/pressroom/press-releases/press-releases-2020/the-total-value-of-available-eligible-assets-for-the-banking-system-rose-to-9600-billion-forint

https://www.mnb.hu/sajtoszoba/sajtokozlemenyek/2020-evi-sajtokozlemenyek/a-magyar-nemzeti-bank-rendszeres-alapkamat-melletti-egyhetes-beteti-tendert-hirdet (only available in Hungarian)

https://www.mnb.hu/sajtoszoba/sajtokozlemenyek/2020-evi-sajtokozlemenyek/az-mnb-a-rendszerszinten-jelentos-bankok-tokepuffereinek-feloldasaval-tamogatja-a-bankrendszer-hitelezesi-aktivitasat (only available in Hungarian)

 

 

Find an overview of public support measures in Czech Republic here, one of public support measures in Austria here.

This article is part of our coronavirus-focused legal updates – visit our coronavirus infocorner to get more info!

Virág
Palguta

Attorney at law

hungary

co-authors