Hungary's household, corporate lending declines further in August 2013.

By bne IntelliNews October 1, 2013

The combined value of loans extended by Hungarian commercial banks in August 2013 declined on an annual basis 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 22 months, falling by 4.1% y/y to HUF 7.07tn (EUR 23.7bn) in August. The drop was due to lower lending in the house purchase segment and consumer credits, which declined by 4.2% y/y and 3.8% y/y, respectively.

The stock of credits to non-financial corporations reached HUF 6.83tn as of end-August, down by 2.3% y/y. The annual decrease softened from 3% y/y in the previous month.

The aggregate value of new forint-denominated household loans in August increased 15.6% y/y but dropped by 10.6% m/m. New consumer loans in domestic currency amounted to HUF 14.3bn in August 2013, marginally up from the same month of 2012. New housing loans went up to HUF 13.9bn from HUF 10.8bn in August 2012. In monthly comparison, new consumer loans dropped by 8.4% and housing loans were down by 6.6% in August.

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