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

By bne IntelliNews August 1, 2013

The combined value of loans extended by Hungarian commercial banks in June 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 20 months, falling by 5.9% y/y to HUF 7.06tn (EUR 23.5bn) in June. Yet, the decline was weaker than the 8.1% y/y decrease in May. The drop was due to lower lending in the house purchases segment and consumer credits, which declined by 5.9% y/y and 5.8% y/y, respectively.

The stock of credits to non-financial corporations reached HUF 6.78tn as of end-June, down by 5% y/y. The annual decrease deepened from 7.7% y/y in the previous month.

The aggregate value of new forint-denominated household loans in June remained unchanged in monthly comparison but increased by 2.2% on an annual basis. New consumer loans in domestic currency amounted to HUF 15.8bn in June 2013, up from HUF 15bn in the same month of 2012. New housing loans went up to HUF 14.2bn from HUF 11.2bn in June 2012. In monthly terms, consumer loans edged down by 1.4% but housing loans increased by 3.9% y/y.

Related Articles

Hungarian unions in full gear for first country-wide strike at Tesco stores

Union leaders are preparing for the first country-wide strike at Tesco stores in Hungary, which has unanimous support from workers, local media reported on September 4. This is just the latest in ... more

Russian development bank IIB signs off on debut Hungarian credit facility

The Moscow-based International Investment Bank (IIB) announced on August 9 that it has signed off on its debut credit facility in Hungary. The Russian-led IIB decided around five years ... more

Central Europe’s factories remain busy despite a summer lull in PMIs

Manufacturers in Central Europe reported a step back in activity and confidence in July, purchasing managers’ indices (PMI) released by IHS Markit on August 1 showed. While, the indicators still ... more

Dismiss