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

By bne IntelliNews September 2, 2013

The combined value of loans extended by Hungarian commercial banks in July 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 21 months, falling by 3.3% y/y to HUF 7.09tn (EUR 23.6bn) in July. Yet, the decline was weaker than the 5.9% y/y decrease in June. The drop was due to lower lending in the house purchases segment and consumer credits, which declined by 3% y/y and 3.5% y/y, respectively.

The stock of credits to non-financial corporations reached HUF 6.76tn as of end-July, down by 3% y/y. The annual decrease eased from 5% y/y in the previous month.

The aggregate value of new forint-denominated household loans in July increased 2% y/y and 5% m/m. New consumer loans in domestic currency amounted to HUF 16.2bn in July 2013, up from HUF 13.1bn in the same month of 2012. New housing loans went up to HUF 14.9bn from HUF 11.8bn in July 2012. In monthly comparison, new consumer loans grew by 3% and housing loans advanced by 5% in July.

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