The combined value of loans extended by Hungarian commercial banks in April 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 18 months, falling by 4.2% y/y to HUF 7.23tn (EUR 24.4bn) in April, slightly slower than the 4.3% y/y decrease in March . The drop was mostly due to lower lending in the house purchases segment and consumer credits, which declined by 4.5% y/y and 3.8% y/y, respectively.
The stock of credits to non-financial corporations reached HUF 6.88tn as of end-April, down by 5.1% y/y. The annual decrease deepened from 4.8% y/y in the previous month.
In a positive view, the value of new forint-denominated household loans in April increased 3% both in annual and monthly terms. New consumer loans in domestic currency amounted to HUF 14.4bn in April 2013, up from HUF 12.9bn in the same month of 2012. New housing loans picked up to HUF 10.3bn from HUF 10bn in April 2012. In monthly terms, however, the two categories witnessed an increase. In monthly comparison, new consumer loans grew by 3% and housing loans advanced by 11% in April. Loans for other purposes increase by 14% m/m but declined 20% y/y in April 2013.
Related Articles
Glass wool production restarts in Hungary after 16-year hiatus
Glass wool manufacturing has resumed in Hungary after a 16-year break, as the first trial products rolled off the production line at a new thermal insulation plant built in northeastern Hungary ... more
Referendum finds 95% of Hungarians oppose Ukraine's EU accession - Orban
Hungarian Prime Minister Viktor Orban has declared that an overwhelming majority of Hungarians oppose Ukraine’s accession to the European Union, citing the results of a national referendum ahead of ... more