MNB: FX loan repayments cut retail lending stock in November
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Hungarian households repaid net HUF 23.1 bln of their outstanding loans in November, but a slight weakening of the forint and other volume changes raised the lending stock by just HUF 1 bln from the end of the previous month, a monthly report published by the National Bank of Hungary shows.
Retail lending stock dropped to HUF 6.6 trillion as a result. The forint slipped just 0.4% to the Swiss franc and 0.1% against the euro between the end of October and the end of November. Households repaid net HUF 23.8 bln of their FX loans and the exchange rate changes but other factors, including the weaker forint, raised their FX loan stock by HUF 3.4 bln in the month to HUF 3.5 trillion at the end of November.
In November Parliament passed legislation under which the bulk of the retail FX loan stock will be converted into forints early next year. Households borrowed net HUF 0.7 bln in forints in November while volume and other changes cut their forint loan stock by HUF 4.4 bln. The retail forint loan stock fell to HUF 3.1 trillion.
In the meantime, households placed HUF 16.7 bln into forint deposits. Including a HUF 7.1 bln drop caused by other factors, their forint deposits rose to HUF 5.7 trillion at the end of November. Retail FX deposit stock also rose, by a combined HUF 24.6 bln of which HUF 23.5 bln reflected transactions. Households' FX deposits were worth HUF 918.6 bln at the end of November.
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