Hungary's household, corporate lending declines in April 2013.

By bne IntelliNews June 3, 2013

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

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