Hungarian non-financials remain net lenders in Q3 2015

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Hungarian non-financial companies had a net lending capacity of HUF 366 million or 4.2% of the periodʼs GDP, in Q3 2015, financial accounts data published by the National Bank of Hungary (MNB) reveal, Hungarian news agency MTI reported yesterday.

The ratio was down from 6.3% in Q2 but up from 1% in the third quarter of 2014.

The sector turned from net borrower to net lender following the crisis and, apart from a few quarters, it has been a net lender now for the sixth year in a row.

In the four quarters ending in Q3 last year, the net lending or financing capacity of non-financials was HUF 1.076 trillion or 3.2% of GDP, the highest in two years.

In Q3, companies’ financial assets rose just HUF 18 bln while their liabilities fell HUF 348 billion, consolidated transaction-based figures for the sector show.

The sector repaid HUF 510 bln in loans in Q3 after borrowing almost HUF 300 bln in the previous quarter. At the same time, liabilities on non-listed shares and stakes rose HUF 433 bln after a HUF 566 bln drop in Q2.

Loan repayments were dominated by the repayment of HUF 600 bln in foreign exchange loans. The bulk or HUF 400 bln of the liabilities drop was in liabilities abroad, another breakdown of the transactions shows.

Meanwhile companies received HUF 191 bln in repayments on loans they granted. Additionally, the sectorʼs liabilities abroad fell HUF 68 bln in Q3.

Corporates placed HUF 203 bln in deposits in the third quarter of last year, nearly a third of which raised the balance of current accounts.

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