Hungary's household, corporate loans drop in April 2014

By bne IntelliNews June 2, 2014

The combined value of loans extended by Hungarian commercial banks declined on an annual basis in April 2014 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 29 months, falling by 5.9% y/y to HUF 6.8tn (EUR 22.47bn) at end-April. The drop came as lending in the house purchase segment and consumer credits declined by 4.2% y/y and 7.9% y/y, respectively.

The stock of credits to non-financial corporations stood at HUF 6.63tn as of end-April, down by 3.5% y/y.

The aggregate value of new forint-denominated household loans in April increased by 4% y/y but dropped by 2.4% in monthly comparison. New consumer loans in domestic currency amounted to HUF 16.2bn in April, up from HUF 14.4bn in the same month of 2013 and from HUF 15bn in March 2014. New loans for house purchase totalled HUF 18.6bn, up from HUF 14.5bn in the previous month and HUF 10.4bn in April 2013.

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