Fewer lenders plan further loosening for retail borrowers in Q2 and Q3, but they project strengthening demand for both home and consumer loans, driven in part by pre-financing for state-subsidized home renovations.
Households borrowed net HUF 213 billion in Q1. Prenatal baby loans accounted for 60% of that. The government introduced the unsecured, interest-free, general-purpose prenatal baby support loans up to HUF 10 million for families having children in July 2019.
The loans are part of a package of family support measures designed to address the problem of depopulation and are available only until the end of 2022. The annualized growth rate of retail lending stock reached 13.7% at the end of Q1, continuing to climb at the fastest pace in the European Union.
However, adjusting for the impact of a repayment moratorium that has been in place since the spring of 2020, growth was around 5%, the MNB noted. The repayment moratorium is set to expire at the end of August, followed by a transition period that the government and lenders are still hashing out.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
