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Corporate overdraft under the moratorium

On this page you will find the most important information about how corporate overdraft facilities are affected by the moratorium.

Brief description of the moratorium

 

Pursuant to Act CVII of 2020 on transitional measures implemented to stabilise the situation of certain priority social groups and enterprises in financial difficulties, will be granted a deferral until 30 June 2021 and Government Decree No 637/2020. (XII. 22.) on the introduction of special rules on loan repayment moratorium in relation to the state of emergency, our retail and corporate customers are granted a moratorium (i.e. an extension to fulfil their obligation to pay principal, interest and bank charges) until 30 June 2021. Accordingly, overdraft facilities are also subject to the moratorium. 

In which cases was this new moratorium, effective from 1 January 2021, automatically set?

The new moratorium, effective from 1 January 2021, was automatically set for contracts subject to the previous moratorium on 31 December 2020. Of course, our customers have the option to opt out of the moratorium; to this end, they must make a statement. The relevant details are set out below.  

In which cases did we not automatically set this new moratorium, effective from 1 January 2021? 

For credit lines already granted and existing on 18 March 2020 that were not subject to the previous moratorium on 31 December 2020, the new moratorium, effective from 1 January 2021, was not automatically set, but where this is the case, you also have the option to opt in for the moratorium. If you wish to opt in, you also need to make a statement. The relevant details are set out below.

You can access additional information on the loan repayment moratorium by  clicking here.

Corporate clients with an overdraft facility

Overdraft facilities are also subject to the moratorium, but only up to the credit amount drawn down by midnight on 18 March 2020.

Accordingly, the loan repayment moratorium does not cover:

  • credit lines not drawn down by midnight on 18 March 2020
  • credit lines drawn down after midnight on 18 March 2020

 

How does the moratorium work in the case of corporate overdraft facilities?

If there was no amount drawn down on your credit line on 18 March 2020, you can continue to use your overdraft facility as before.

If there was an amount drawn down on your credit line on 18 March 2020, there are several things you should know:

  1. The amount drawn down before midnight on 18 March 2020 (which is subject to the moratorium) has been transferred to a separate, limited-purpose account, and any interest accrued on the amount transferred is also recorded in that account. The interest rate corresponds to the interest rate on the overdraft facility.
  2. Amounts credited to your current account with overdraft facility will not automatically reduce your debt subject to the moratorium. However, you can choose to opt out of the moratorium and repay the whole or a part of your debt by depositing or transferring the amount concerned to the limited-purpose account to which your debt subject to the moratorium had been transferred. This will allow you to reduce or eliminate your debt; any amount thus repaid will be added to your available credit line. 
  3. The balance of the above-mentioned limited-purpose current account, less any prepayments, will be added back to your credit line after the expiry of the moratorium (i.e. on 30 June 2021) or after you opt out of the moratorium.

 
How will the term of your overdraft facility agreement be extended once you have opted out of the moratorium?

By law, the expiry date of an overdraft facility agreement covered by the moratorium shall be extended with the same period as the moratorium period, but importantly, the term also depends on when you make your opt-out statement:

  • If you make your opt-out statement regarding the moratorium before the original expiry date of your credit facility agreement, your new expiry date will be as follows:
    • original expiry 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:
    • date of statement + the length of time spent under the payment moratorium

What should I do about my small business overdraft facility?

Situation

What to do

Your overdraft facility is currently not subject to the moratorium and you do not want to opt in for the moratorium.

You have nothing to do, but until 30 June 2021 you can state at any time that you want to opt in for the moratorium as described below.

Your overdraft facility is currently not subject to the moratorium, but you want to opt in for the moratorium.

Our customers who have CIB Internet Bank, CIB Bank Online or CIB Bank Mobile Application can make a declaration about opting in to the moratorium on their personal loan, mortgage loan, overdraft and credit card:

  • Declare online!  (Unfortunately, this page does not work in Internet Explorer, so please use Google Chrome, Edge or Firefox.)

If the company has an independent company registrar, they have the opportunity to indicate their intention to pay via our CIB24 call center at (+36 1) 4 242 242 according to the guidelines provided by our colleagues.

The setting will be made within 3 working days, but you can indicate at any time later that you wish to exit.

Your overdraft facility was covered by the moratorium on 31 December 2020 and you wish to continue to be subject to the moratorium.

You have nothing to do; we automatically extended the moratorium until 30 June 2021. If you later decide that you want to opt out of the moratorium, you can make a statement to this end at any time as follows.

Your overdraft facility is currently subject to the moratorium, but you would like to opt out of the moratorium.

Our small-business customers with independent rights of disposal (including sole traders and smallholders) who use CIB Internet Bank, CIB Bank Online or CIB Bank Mobile Application can make an opt-out statement online at

  • www.cib.hu/nyilatkozom (The web page does not work with Internet Explorer, unfortunately. Please use Google Chrome, Edge or Firefox.)

If you do not have an electronic channel:

Please download the form for small-business customers with overdraft facilities from the related documents at the bottom of the page, and once completed, send it to the kisvallalkozasok_moratorium@cib.hu e-mail address.

If the company has a person authorised to sign on behalf of the company individually, they can declare their intent to pay via the CIB24 call centre by calling (+36 1) 4 242 242, by following the operator’s instructions.

As a result of this statement, the original credit line will be restored, which you will be able to use as before, and the term of the credit line agreement will be extended as detailed above. We provide you with the possibility to pay any bank charges and interest accrued and unpaid during the moratorium in equal monthly instalments by the extended expiry date. These instalments will fall due on the 4th day of each month after the moratorium expires.

Partial or full prepayment of debt

  • You also have the possibility to prepay the whole or a part of your debt the repayment of which was postponed due to the moratorium. Prepayments can be made by cash deposit over the counter at a branch or by wire transfer within the bank or from another bank.
  • In this case, pro rata bank charges and interest accrued will be automatically deducted from the amount prepaid, and your credit line will be increased with the remaining amount, i.e. you will be able to use that portion of your credit line again. 
  • By making a prepayment of the full amount owed, you automatically opt out of the moratorium.

Your overdraft facility is currently subject to the moratorium, you want to continue to be subject to it and you made a statement to this effect in some form before 23 December 2020.

You have nothing more to do. Your statement was taken into account, without an eligibility check, and we set an extension of the moratorium until 30 June 2021.

If you later decide that you want to opt out of the moratorium, you can make a statement to this end at any time as described above.

What should I do about my corporate overdraft facility?

Situation

What to do

Your overdraft facility is currently not subject to the moratorium and you do not want to opt in for the moratorium.

You have nothing to do, but until 30 June 2021 you can state at any time that you want to opt in for the moratorium as described below.

Your overdraft facility is currently not subject to the moratorium, but you want to opt in for the moratorium.

Please download the form for business customers with overdraft facilities from the related documents at the bottom of the page, and once completed, send it to the moratorium.vallalat@cib.hu e-mail address.

Your overdraft facility was covered by the moratorium on 31 December 2020 and you wish to continue to be subject to the moratorium.

You have nothing to do; we automatically extended the moratorium until 30 June 2021. If you later decide that you want to opt out of the moratorium, you can make a statement to this end at any time as follows.

Your overdraft facility is currently subject to the moratorium, but you would like to opt out of the moratorium.

You may also opt out of the moratorium in the case of a corporate overdraft facility. In this case, please download the form for corporate customers with overdraft facilities from the related documents at the bottom of the page, and once completed, send it to the moratorium.vallalat@cib.hu e-mail address.

As a result of this statement, the original credit line will be restored, which you will be able to use as before, and the term of the credit line agreement will be extended as detailed above.  We provide you with the possibility to pay any bank charges and interest accrued and unpaid during the moratorium in equal monthly instalments by the extended expiry date. These instalments will fall due on the 4th day of each month after the moratorium expires.

Partial or full prepayment of debt

  • You also have the possibility to prepay the whole or a part of your debt the repayment of which was postponed due to the moratorium. Prepayments can be made by cash deposit over the counter at a branch or by wire transfer within the bank or from another bank.
  • In this case, pro rata bank charges and interest accrued will be automatically deducted from the amount prepaid, and your credit line will be increased with the remaining amount, i.e. you will be able to use that portion of your credit line again. 
  • By making a prepayment of the full amount owed, you automatically opt out of the moratorium.

Your overdraft was subject to the moratorium ended on 31 December 2020, you want to continue to avail of the moratorium, and you made a statement to this effect in some form before 23 December 2020.

You have nothing to do; you will continue to be subject to the moratorium until 30 June 2021.

What happens if I opt-out of the moratorium?

  • We have previously broken down your overdraft facility based on which part was covered and which part was not covered by the moratorium. This breakdown will be ended once you opt out of the moratorium.
  • After opting out, bank charges and interest payment become due for the full credit line at the end of each month.
  • As we have stated the above, the overdraft facility is extended with the time spent under the moratorium.
  • 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 opt out of the moratorium or prepay, in whole or in part, the amount drawn down from my overdraft facility and subject to the moratorium?

Where your financial situation permits and you are in a position to do so, you should opt out of the moratorium for the following reasons:

  • Interest continuously accrues on the portion of the overdraft facility subject to the moratorium, so by the end of the moratorium period (i.e. by 30 June 2021) a high amount of interest may accrue, which will have to be paid in equal monthly instalments after the expiry of the moratorium. 
  • By opting out or paying your debt in full, your previous credit line will be restored and you will be able to use it as before. With partial prepayment of your debt, your previous credit line will be restored to the extent of the amount prepaid and you will be able to use it again.

If I have an overdraft facility, for what proportion am I eligible to opt back in for the moratorium?

The loan repayment moratorium does not cover credit lines granted after 18 March 2020, so if you have an overdraft facility, you can only opt back in for the moratorium again if you used your credit line continuously after the opt-out, i.e. your balance was negative all the time. 

It is decided based on the following for what portion of your credit line your are eligible to opt bank in for the moratorium:

  • 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. Example:
    • Amount of credit line previously subject to 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’re 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. Example:
    • Amount of credit line previously subject to moratorium: HUF 37 million
    • Negative balance exceeding this credit line: HUF 40 million
    • This means that you’re 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
Document

Document

Tájékoztatás moratóriumról – vállalati folyószámlahitel
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