Hungary’s COVID19 Protection in March 2020

By Quinnipiac University Economics Research Team, Kyle Del Balso and Tyler Brierly (ed.)

Photo by Seth Fogelman on Unsplash

Earlier efforts

25 March 2020


Six new measures added to first economy protection plan (Mar 19)

  • Step 1: more than 81,000 businesses and sole proprietorships registered to pay the Itemized Tax for Small Businesses will be exempt from monthly payments until June 30th. This is aimed at the service sector.

  • Step 2: Media service providers will have losses in advertising revenue covered.

  • Step 3: evictions and property forfeiture are suspended until end of emergency period.

  • Step 4: tax enforcement suspended; remaining tax debts can be paid at the end of the emergency.

  • Step 5: Mothers currently on leave to care for children may remain home until the end of the emergency.

  • Step 6: halt on payment of principal, int, and fees for individual and business loans until end of year, sector specific aid for businesses being hit the hardest. (this is a restatement of some of the previous week’s plan but the article referenced it again and only made five other points)

19 March 2020


Economy protection action plan

  • Step 1: halt on all loan repayments for individuals and companies until the end of 2020.

  • Step 2: Short-term business loans will be extended until June 30th.

  • Step 3: Interest rate on new consumer loans are capped at the base rate plus a maximum of 5 percent. (current central bank base rate at time of writing was 0.9%)

  • Step 4: support sectors like tourism, hospitality, entertainment, culture, sports, and transportation. Employers in these sectors won’t have to pay payroll tax until June 30th. Employees will have required contributions reduced and a limit set on health insurance premiums. Taxi drivers get tax exemption for fixed-rate taxes until June 30th. Termination of rental contracts and rental price increases are halted. Contributions to tourism development suspended until June 30th.

  • Step 5: new regulations to make employment laws more flexible.