MNB: Corporate lending stock drops despite moderate net borrowing
Corporate lending stock of Hungarian banks fell nearly HUF 20 bln to HUF 6.7634 trillion at the end of November, compared with a month earlier, as net borrowing by businesses rose slightly, but evaluation changes cut the stock – despite a slight weakening of the forint – a monthly report by the National Bank of Hungary (MNB) shows.
Companies borrowed more than they repaid for the fourth month in a row, although seasonally adjusted figures show moderate net repayments after three months of borrowing. In a further change, companies repaid more in FX loans in November after borrowing more in the previous three months. They continued to borrow more in forints.
Companies took out just net HUF 7.2 bln of credit during the month, borrowing HUF 81.3 bln in forints and repaying HUF 74.1 bln in FX loans. Revaluations and other changes subtracted HUF 26.8 bln from the overall stock. About a quarter of their forint borrowing and about 40% of their FX repayments reflected seasonal factors. Their stock of forint loans, at HUF 3.4541 trillion at the end of November, exceeded their FX loan stock by HUF 212.4 bln. The forint weakened 0.4% to the Swiss franc and 0.1% against the euro between the end of October and the end of November.
Corporate deposits stood at 5.0763 trillion at the end of November, with forint deposits making up about three quarters of the total. Businesses placed HUF 72.8 bln into forint deposits and withdrew HUF 5.5 bln from FX deposits. Revaluations added HUF 1.6 bln to the stock.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 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.