MNB: Corporate lending stock boosted by forint borrowing, weaker forint in August
Corporate lending stock of Hungarian banks, including lending in the form of bonds, rose by HUF 63 bln to HUF 6.289 trillion in August from the previous month due to borrowing in forints and the weakening of the forint that resulted in the increased value of FX loans, a report by the National Bank of Hungary shows.
Companies have been net borrowers for the second month in a row after being net repayers between March and June.
Companies borrowed net HUF 25.6 bln in August, the bulk of which or HUF 23.6 bln was borrowed in forints. Revaluations and other changes increased the overall lending stock by a further HUF 33.2 bln.
The forint weakened about 1.7% to the euro between the end of July and the end of August, based on the MNBʼs official fixing.
Corporate deposit stock rose by a steep HUF 201.9 bln to HUF 5.356 trillion in August. Companies made net forint deposits of HUF 154.1 bln and net FX deposits of HUF 37.1 bln. Revaluations added a further HUF 10.7 bln to their deposits in August.
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