Demand for household, corporate loans in Hungary weakens in June 2014

By bne IntelliNews August 1, 2014

The combined value of loans extended by Hungarian commercial banks declined on an annual basis in June 2014 mainly due to lower demand from households and businesses, the central bank's financial statistics showed.

Lending to households extended its downward trend over the past 31 months, falling by 3.5% y/y to HUF 6.81tn (EUR 21.8bn) at end-June. The decrease came as lending in the house purchase segment and consumer credits declined by 2.1% y/y and 5.6% y/y, respectively.

The stock of credits to non-financial corporations stood at HUF 6.69tn as of end-June, down by 1.3% y/y.

The aggregate value of new forint-denominated household loans in June increased by 7.1% y/y but edged down by 0.7% in monthly comparison.

New consumer loans in domestic currency amounted to HUF 18.3bn in June, up from HUF 15.7bn in the same month of 2013 and from HUF 18bn in May 2014. New loans for other purposes totalled HUF 9bn, up from HUF 4.5bn in June 2013 but down from HUF 11.5bn in the previous month.

Related Articles

Hungarian opposition parties seek explanation for secret admission of asylum seekers

Despite its all-out attacks on the EU’s refugee quotas, Viktor Orban's government secretly gave permission for the admission of the same number of asylum seekers to the country in 2017 as ... more

Hungarian president sets date for parliamentary election

President Janos Ader has set April 8 as the date of Hungary's general election, it was announced on January 11. This is the earliest possible Sunday that the ballot can be held under the law. The ... more

Hungarian government backtracks from collecting fines from opposition parties before election

The Economy Ministry on January 10 asked the tax authority to delay collecting fines from opposition parties imposed by the state auditor ASZ to ensure that their pre-election budgets and campaign ... more