The government also provides a loan moratorium to farmers affected by foot-and-mouth disease

By: STA Date: 2025. 04. 06. 09:00

The government has decided on further assistance for farmers affected by the extremely rapidly spreading foot-and-mouth disease. Thus, those affected can temporarily use the payment moratorium after their loan agreements in order to stabilize their financial situation.

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According to the decree published in the Hungarian Gazette, the government provides the possibility of a loan moratorium to debtors operating livestock farms – including the farm operator, the farm owner and the owner of the animals – that were subject to official epidemiological measures (e.g. elimination of susceptible animals, quarantine or restriction) in 2025 in order to prevent or control foot-and-mouth disease. The Ministry of Agriculture draws the attention of those concerned that the moratorium is not automatic, debtors must notify the creditor by sending the decision ordering this measure. The debtor may decide to use the payment moratorium at any time during the payment moratorium period. The payment moratorium will last for loans and financial leasing that have already been disbursed until April 30, 2026.

The deadline for fulfilling the contractual obligation and the duration of the commitment – including contracts that expire during the payment moratorium – will be extended by the duration of the payment moratorium. The creditor may not terminate the contract by notice due to the debtor’s failure to fulfill his/her obligation to pay capital, interest or fees until April 30, 2026.

The principal debt may not be increased by the amount of interest not paid during the payment moratorium, either during the payment moratorium or after the expiry of the payment moratorium. The interest accumulated during the moratorium, together with the instalments due during the remaining term, must be paid in equal annual instalments during the term after the expiry of the payment moratorium. After the expiry of the payment moratorium, the term is extended so that the sum of the instalment due and the interest payable in the instalments arising during the payment moratorium does not exceed the sum of the instalments under the original contract. The rules on interest shall also apply accordingly to fees.