MNB: Corporate lending stock rises on net borrowing
Corporate lending stock of Hungarian banks rose to HUF 6,715.5 bln at the end of October from a month earlier as net borrowing by businesses outpaced the effect of the stronger forint on foreign currency-denominated loans, a monthly report by the National Bank of Hungary shows.
Companies borrowed more than repaid now for the third month in a row, according to both unadjusted and seasonally adjusted figures. About three-fourth of the net borrowing was in forints.
Companies took out net HUF 53.6 bln of credit during the month, borrowing HUF 40.3 bln in forints and the remainder in FX. Revaluations and other changes subtracted HUF 43.2 bln from the overall stock.
Their stock of forint loans, at HUF 3,385.4 bln at the end of October, exceeded their FX loan stock by HUF 85 bln.
The forint firmed about 1% against the euro between the end of September and the end of October.
Corporate deposits stood at 5,007.3 bln at the end of October. Businesses withdrew HUF 23.5 bln from their forint deposits and placed HUF 112.2 bln on FX deposits. The stronger forint reduced the forint value of the FX deposits by HUF 14.3 bln.
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