We hereby inform our Dear Customers that in case of credit contracts identified by the Government Decree 47/2020 (III. 18.) on immediate measures necessary to mitigate the impact of the coronavirus on the national economy (henceforth: Decree), the Decree provides payment moratoria for loan instalment repayment (including the capital, interest and fee payment obligations) for both retail and corporate customers until 31 December 2020. We summarize the related information below:
- Payment moratoria automatically applies to capital, interest and fee obligations arising from credit and loan agreements disbursed under contracts outstanding at midnight on 18 March 2020 by operation of law, which, if the debtor wishes to make use of (i.e. if under the moratorium do not want to pay your loan / loan), he/she has no further action.
- The collection of the installments was stopped by the Bank on 19 March 2020 in accordance with the Decree. If, during the setup of our systems, the items affected by the moratorium, i.e. the installments that expired / are due after March 18, 2020, have been collected, the collected amounts had been credited to the accounts with our Bank.
- If you have previously placed a standing transfer order to settle the installments, you must cancel it, the stop will not be automatic.
- Neither the pledgee, nor the guarantor may be obliged to settle the debtor's debt during the period of the payment moratorium, however, the period of their commitment is also extended.
- The payment moratorium does not apply to loans expired or terminated before midnight on March 18, 2020, nor to loans disbursed after that date. Furthermore, the moratorium on payments does not apply to the premium for property insurance related to credit and loan agreements, i.e. the obligation to pay premiums remains unchanged.
- Notwithstanding the payment moratorium, our Customer has the opportunity to further repay the loan in respect of all or only some of the contracts with the Bank defined by him. If the debtor wishes to continue repaying his / her loan in accordance with the contract, he / she must inform our Bank in certain cases, details of which can be found below.
We recommend that you consider the following factors when making your decision:
- Contracts under payment moratoria are to be extended for at least the duration of the moratorium.
- Debts due under the moratorium do not have to be paid during the moratorium, but the Bank charges interest on the principal debt not paid in this way. Interest and fees accrued during the moratorium shall be paid in equal annual installments together with the installments due during the remaining term following the moratoria.
- After the expiration of the moratorium, the tenor is to be extended so that the sum of the due installment plus the interest and fee of installments arising during the moratorium will not exceed the amount of the instalments were due before the payment moratoria.
- Contracts expiring during the Emergency period will be extended until 31 December 2020. For these contracts, the tenor is extended by at least the number of months remained when the moratorium was imposed, considering the rule set out in the previous sentence.
- The tenor extension depends on the amount of interest and fee arrears accumulated during the period of the payment moratorium, so it can be determined precisely after the end of the moratorium.
- Irrespective of the fact that the Client has informed the Bank of its intention to pay, if the coverage of the due installment is not available during the moratorium, the legal consequences of the delay will not take effect, but the rules of the payment moratorium will automatically apply to the transaction..
- Handling overdue debts:
If our Client had a debt that had already expired before 19 March 2020 and indicates its intention to pay during the moratorium, then his payment obligations - expired before the moratorium came into force - will become due in addition to the amount of the monthly installments.
- Continuation and suspension of repayment during the moratorium period:
- With the statement on the continuation of the repayment, our Client does not lose the right to initiate the use of the payment moratorium permitted by law at any time until 31 December 2020. However, you can later decide that you do not need a deferral of payment, opts out, and continue to pay your installments. If our Client has already made a statement about the continuation of repayment and still wishes to use the suspension of loan repayment at a later date, he / she may withdraw his / her earlier statement during the moratorium.
- You can therefore continue or stop your repayment at any time until 31 December 2020.
- If the loan is repaid through the customer's payment account, including in particular the overdraft, in order to continue or stop the repayment, the Client must always make a statement.
- If our customer settles his loan through a repayment (technical) account that does not qualify as a payment account, by transfer to the Bank’s own account or by cash deposit, he may continue or stop his repayment at any time without making a statement. If no transfer or payment is made, the moratorium will automatically apply to the loan. In case of transfer or payment, please indicate in the notification the loan agreement number - indicated in the upper left part of the monthly payment notice above the table or in the upper right corner of the loan agreement - and that the purpose of the transfer / payment is to repay the loan. Depositing or transferring in favour of the Bank’s own account or the Client’s technical account is considered to be an implicit behaviour, in which case your payment / transfer is interpreted as meaning that you did not want to use the payment moratorium for the given repayment instalment.
- What if you do not want to take advantage of the payment moratorium or want to opt in the moratorium again?
In view of the current extraordinary epidemic situation, we ask our clients to contact our Bank via telephone and electronic channels instead of personal administration, where we provide the opportunity to initiate opt in and later opt out the payment moratorium.
In case of retail financing contracts, the Debtor may make the statement through our electronic channel or via phone:
- if you have KDB NetBank access, by filling in and copying the form in the attached word document in a free-form letter, or
- Via KDB Contact (call center) (+36 473 4440 and +36 1 374 9990) from 7 a.m. to 8 p.m. Monday to Friday.
After the processing of the statement, the Bank provides feedback to the debtor on the same channel - in the form of a message sent to KDB NetBank or by phone.
If you still choose personal administration, the statement can also be made at our bank branches (current information on opening hours and the availability of our branches can be found on our website: https://www.kdbbank.eu/branches).
Please note that the statement to continue or to stop repayment is always applied to installments due in the future and is not retroactive.
- The Bank will send the standard monthly payment notice to the Client even if the transaction is affected by a moratorium. In this case, the Bank shall send the notice for the purpose of informing the Client of the amount of principal, interest and fee payments arising during the period of the payment moratorium but to be paid after the expiry of the moratorium.
We ask our corporate clients to contact your Relationship Manager!
Please visit our website regularly as the content may be updated.
This information has been prepared in accordance with applicable law. If the moratorium is subject to further legislation or legislative or official interpretation of the rules, the Bank will inform its Clients by updating the information provided here.
GDPR related information can be found on the below link: