{"id":1882,"date":"2022-11-28T10:59:45","date_gmt":"2022-11-28T10:59:45","guid":{"rendered":"http:\/\/gerey.hu\/EU\/?p=1882"},"modified":"2022-11-28T11:00:43","modified_gmt":"2022-11-28T11:00:43","slug":"the-new-hungarian-regulation-on-late-payment-interest-applicable-during-the-period-of-state-of-danger","status":"publish","type":"post","link":"http:\/\/gerey.hu\/EU\/the-new-hungarian-regulation-on-late-payment-interest-applicable-during-the-period-of-state-of-danger\/","title":{"rendered":"The new Hungarian regulation on late payment interest applicable during the period of state of danger"},"content":{"rendered":"\n<p>The Hungarian government has introduced a new regulation on the rate of late payment interest, which entered into force on 10th November, 2022.<\/p>\n\n\n\n<p>The\npayment on default interest is regulated in the Hungarian Civil Code (Act). Pursuant\nto the rules applicable in the absence of the parties\u2019 deviating agreement, the\nrate of the late payment interest, depending on the currency of the debt, shall\nbe calculated as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>the base rate of\nthe Central Bank of Hungary applicable on the first day of the calendar half\nyear affected by the default increased by 8%;<\/li><li>if the debt is in foreign currency, the base rate set for the relevant currency by the\nissuing central bank increased by 8%;<\/li><li>if the bank issuing the foreign\ncurrency has no base interest rate, then the interest rate of the financial\nmarket increased by 8%.<\/li><\/ol>\n\n\n\n<p>It\nis very usual that the parties agree on a different default interest\u2019s rate,\neg. we often see stipulated the double of the base rate applied by the Central\nBank of Hungary.<\/p>\n\n\n\n<p>The\nobligor shall be required to pay default interest, even if the pecuniary debt\nwas otherwise interest. When calculating the late payment interest, the central\nbank\u2019s base rate applicable on the first day of the calendar half-year in which\nthe first day of the delay falls shall be taken into account as a starting\npoint, and thus, if the default lasts for a longer period, the rate of the late\npayment interest may change each calendar half-year, depending on the actual\napplicable central base rate.<\/p>\n\n\n\n<p>Compared to the rules mentioned above, from 10th November the late payment interest rate is maximised at 25%. The government decree states that <strong>the late payment interest \u2013 irrespective of whether it was based on the law or the agreement of the parties \u2013 may only be 25% at maximum, and all the exceeding rate above the 25% should be seen as if the parties had not agreed upon it at all.<\/strong><\/p>\n\n\n\n<p>We would like to emphasize that this regulation has only a temporary effect, during the period of state of danger determined by the Hungarian parliament. Currently the end of the state of danger period shall be 1st <span style=\"font-size: 13.3333px; background-color: rgb(232, 234, 235);\">of December 2022, if it will not be extended.<\/p>\n\n\n\n<p style=\"text-align:center\"><em>*<\/em><\/p>\n\n\n\n<p style=\"text-align:center\"><strong><em>This summary is intended to\nraise awareness and does not constitute legal advice.<\/em><\/strong><\/p>\n\n\n\n<p style=\"text-align:center\"><strong><em>If you have any questions or\nneed further information, please do not hesitate to contact us.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the beginning of November 2022, the Hungarian government issued new, temporary rules on the rate of late payment interest. In this newsletter we summarise the merits of this temporary legislation.<\/p>\n","protected":false},"author":1,"featured_media":1883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1882"}],"collection":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/comments?post=1882"}],"version-history":[{"count":2,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1882\/revisions"}],"predecessor-version":[{"id":1885,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1882\/revisions\/1885"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/media\/1883"}],"wp:attachment":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/media?parent=1882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/categories?post=1882"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/tags?post=1882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}