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Corporate overdraft under the moratorium

On this page, you can find the most important information about how overdraft for corporate clients is affected by the repayment moratorium.

Briefly about the moratorium

 

For contracts specified in Government Decree No. 47/2020 (III. 18.) – that has been repealed upon cessation of the emergency - laying down immediate measures required in order to mitigate the effects on the national economy of the COVID-19 pandemic, and the Act LVIII of 2020 on transitional emergency rules and epidemiological preparedness established in accordance with it, until 31 December 2020, our bank assures payment delays on loan payments (including principal, interests and charges) for both retail and corporate customers. The moratorium applies to overdraft products as well. 

Click here for additional information on the loan repayment moratorium.

Information for corporate customers with overdraft products

The moratorium on loan repayment is applicable to overdraft products as well, but only to the amounts borrowed before 18 March 2020 midnight.

The credit holiday does not apply to:

  • credit not used before 18 March, midnight, and
  • any amounts borrowed after 18 March, midnight.

How the moratorium works in the case of corporate overdraft products

If you did not owe any debt under your overdraft facility on 18 March 2020, your overdraft facility continues to function like before.

If you owed any amount of debt under your overdraft facility on 18 March 2020, you need to know the following:

  1. The amount borrowed under the overdraft facility (to which the moratorium applies) before 18 March 2020, midnight is booked to a separate, special-purpose account. Interest on this amount will also be booked to this account. Interest rate will be equal to that applicable to your overdraft facility.
  2. Any amount credited to your bank account will not automatically reduce the debt covered by the moratorium. You, however, have the option to pay or transfer funds to this special-purpose bank account where the debt covered by the moratorium is held. By doing so, you reduce your debt and we will increase the overdraft facility available to you by the amount paid. 
  3. The balance of the segregated account, minus any prepayment, will be added back to your overdraft facility on 4 January 2021, after the moratorium expires (or at a later date, as appropriate, if the moratorium is extended).
  4. We will inform you of the account number and balance of your special-purpose bank account on a monthly basis, in the same manner as your monthly statements are received, so that you will be able to keep track of your debt.

 

How will the technical settings for the moratorium be made, and what does it mean for me?

After some preparatory work on the bank’s systems, technical settings are expected to be made by the end of April 2020. 

It is important to remember that in order to comply with the relevant legal provisions1, any debt owed under the overdraft facility at 18 March 2020, midnight, will be booked to the special-purpose account, irrespective of any payments made to your bank account in the time since that date (between 19 March 2020 and the making of the technical settings) to reduce your debt. 

Any such payment will therefore credited to your bank account, and you will need to instruct the Bank separately to transfer them to the special-purpose account, or submit a statement on waving the moratorium. Scroll down to find information about submitting a statement.

If you avail yourself of the moratorium, the number of equal monthly instalments to be repaid and therefore the amount of those instalments will be determined by the original due date of the overdraft facility as follows:

  • If the original due date of your overdraft facility was before 31 December 2020, it is extended automatically by the power of the relevant legal provisions1 to the date of expiry of the moratorium (31 December 2020) + 288 days (the length of the moratorium). Example: amounts borrowed under an overdraft facility that originally would have been due on 6 May 2020 or 20 October 2020 would both have a maturity date of 15 October 2021.
  • If the original due date of your overdraft facility was after 31 December 2020, it is extended automatically by the relevant legal provisions1 by the length of the moratorium, i.e. by adding 288 days to the original due date. Example: a contract with an original due date of 18 February 2021 would have a new due date of 3 December 2021, while a contract with an original due date of 1 April 2021 would have a new due date of 14 January 2022.
  • If you have an overdraft taken out on your current account on an indefinite basis, your overdraft facility still does not have a pre-defined maturity date that would be modified. The maturity date continues to be determined by the terms of the contract concluded for an indefinite period. The Bank allows any amount covered by the payment moratorium – i.e. interest accrued up to 31 December 2020, plus any fees – to be paid back in interest-free instalments over 288 days (the period of the payment moratorium), starting from 4 January 2021, without a specific amendment to the contract, as permitted by law. Each monthly instalment is due on the 4th of the month.

Here is how the maturity of your overdraft facility is extended if you opted out of the payment moratorium after 27 April 2020:

The term of the overdraft facility covered by the payment moratorium is extended, by action of the law, by a period equal to the length of time the moratorium applied to it. It should be noted, however, that the length of the term also depends on when the statement on opting out of the moratorium is made:

  • If you make your opt-out statement regarding the payment moratorium prior to the original maturity date of your credit line agreement, your new maturity date will be as follows:
    • a.    original maturity date + the length of time spent under the payment moratorium
  • If you make your opt-out statement regarding the payment moratorium after the original maturity date of your credit line agreement, your new maturity date will be as follows:
    • a.    date of statement + the length of time spent under the payment moratorium 

If you would not like to be included in the moratorium, you can waive it as follows

Submitting a statement on waving the moratorium:

If you have the CIB Bank mobile application or can access CIB Bank Online or CIB Internet Bank, and you are representative of the company with single signatory right, please click here to indicate that you wish to make a payment.

  • Unfortunately this page does not work in Internet Explorer, so please use Google Chrome, Edge or Firefox. 
  • If you already submitted a waiver concerning you’re another loan or leasing product, it will not be displayed on the web page for submitting waivers. It is recorded in our systems, however, and therefore you only need to make a statement about any products that were not included in any of your previous statements.
  • Your statement will result in the restoration of your original overdraft facility, which you will be able to use as before. Additionally, however, you will also need to pay the pro rata interest accrued on the special-purpose account during the moratorium period.
  • Pro rata interest is deducted automatically by the Bank at the time of leaving the moratorium. It does not require your attention other than making sure that sufficient funds are available. 

Other methods for declaration

 

Corporate clients: 

In case of corporate overdraft products, please download and fill out the form named Tájékoztatás – vállalati folyószámlahitel that you can find at the bottom of the page  and send it to kisvallalkozasok_moratorium@cib.hu

Small business clients: 

In case of small business overdraft products, please download and fill out the form named Tájékoztatás – kisvállalati folyószámlahitel that you can find at the bottom  of the page and send it to kisvallalkozasok_moratorium@cib.hu

If the company has representatives with single signatory right, you can indicate your wish to continue paying through CIB24 by calling (+36 1) 4 242 242.

Partial or full prepayment

  • You have the option to prepay your debt segregated under the moratorium in part or even in full. Prepayment needs to be made by cash payment to the segregated account or by transferring funds from an account with the Bank or elsewhere.
  • The prepayment amount will be automatically reduced by the applicable pro rata fees and interest, and your overdraft facility will be increased by the remaining amount, allowing you to use that portion of your overdraft again.
  • By making a prepayment of the full amount owed, you automatically opt out of the moratorium. 
What happens if I opt-out of the moratorium?
  • Your overdraft was previously split based on which part was covered and which was not covered by the moratorium. This split was terminated when you exited from the moratorium. 
  • After opting-out, fees and interest will be due for the full credit line at the end of each month.
  • As we have stated the above, the overdraft product is extended with the time spent under the moratorium.
    • Detailed information on the steps to be taken concerning an overdraft facility provided on an indefinite basis are also presented above, in the section ‘How will the technical settings for the moratorium be made, and what does it mean for me?’.
  • Interest and fees accrued until the end of the moratorium are to be repaid in equal instalments until the new maturity date, starting from the end of the period of time spent under the moratorium. 
    • An exception from this rule is if you, in your statement, request that interest and fees accrued up to the end of the month preceding the statement are debited to your account at the time of processing your statement.  

Should I waive the moratorium or make a partial/full prepayment of the overdraft debt covered by the moratorium?

If your financial situation permits and you are in a position to do so, the opt-out options described above are worth considering for the following reasons:

  • You accrue interest on the overdraft debt covered by the moratorium on an ongoing basis. As a result, you may incur high interest obligations by the end of the moratorium period (31 December 2020), which you will need to prepay in equal monthly instalments after the moratorium ends. 
  • By opting out or by repaying your full debt, you restore your overdraft facility to its former amount and will be able to use it as before. By making a partial prepayment, you increase the overdraft available to you by the amount prepaid and will be able to continue to use it.
What should I do if I again want to benefit from the moratorium?

The moratorium does not apply to credit lines made available after 18 March 2020, and consequently in the case of an overdraft facility you are only entitled to opt-back in to the moratorium if you were continuously using your credit line following your opt-out, meaning that your balance was continuously negative. 

The amount for which you are entitled to opt-back in is decided on the basis of the following cases:

  • After opting-out of the moratorium, you are entitled to opt-back in to the moratorium in respect of the lowest amount used from the overdraft facility. For example:
    • Credit line amount previously covered by the moratorium: HUF 37 million
    • The lowest amount used from the credit line after opting-out of the moratorium: HUF 2 million
    • This means that you are entitled to opt-back in up until the extent of HUF 2 million. 
  • If, following your opt-out of the moratorium, your current account has a negative balance exceeding the credit line that was previously under the moratorium, you are entitled to opt-back in to the moratorium up until the extent of the full credit line that was previously covered by the moratorium. For example:
    • Credit line amount previously covered by the moratorium: HUF 37 million
    • Negative balance exceeding this credit line: HUF 40 million
    • This means that you are entitled to opt-back in up until the extent of HUF 37 million.  
  • As we have stated above, if following your opting-out of the moratorium your current account balance showed a positive value, you are not entitled to opt-back in to the moratorium.
Document

Document

Tájékoztatás moratóriumról - kisvállalati folyószámlahitel
Document

Document

Tájékoztatás moratóriumról – vállalati folyószámlahitel
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