2022.11.10. 13:00 – 15:00
Abstract:
Loan payment moratorium was a key measure to mitigate the economic consequences of the COVID-19 shock in most countries. As this measure has been rarely used in the past it is known only a little about the effects of such a program. We analyze the impact of the loan payment moratorium on consumption in Hungary, where the program was exceptionally widely available. Based on individual level spending data we are able to identify the impact of the program on spending: additional spending if moratorium is introduced accounts to 80-100% of the liquidity transfer. We also try to identify the impact of the program on defaults both during and after the program. Moreover, we search for macro spillovers by analyzing activity of sole entrepreneurs and moratorium take-up on the district level. Our results suggest that loan payment moratorium is not only a tool that mitigates creditworthiness problems but can also help in boosting the economy during crisis times.
