MNB: Households make net repayments in August
Retail lending stock of Hungarian banks fell by HUF 33.1 bln to HUF 6.06 trillion in August from the previous month, mainly due to continued net repayments, fresh data from the National Bank of Hungary show.
Households made net repayments of HUF 27.1 bln in August, and the larger part of these repayments – HUF 17.4 bln – was in forints.
Repayments on FX loans also continued, and together with revaluation effects, the stock of FX retail loans fell further, to HUF 201.1 trillion at the end of August.
The stock of Hungarian householdsʼ FX loans fell by more than HUF 3.4 trillion in March as Hungary implemented a conversion of householdsʼ foreign currency mortgages to the tune of nearly HUF 3 trillion. The stock of forint loans rose at the same time, but the rise was nearly HUF 700 bln less: Only HUF 2.7 trillion due to the refunds banks were required to pay to clients to compensate for past practices, under legislation passed in 2014. Most of the remaining FX loans will also disappear following Parliamentʼs passing of legislation on conversions made earlier in September.
Retail deposits edged up by just HUF 5.6 bln to HUF 6.822 trillion in August. Households made net withdrawals of HUF 3.5 bln, withdrawing HUF 13 bln from forint deposits and raising FX deposits by HUF 9.6 bln. But the weakening of the forint and revaluations still raised the overall stock by HUF 9.1 bln.
The forint weakened about 1.7% to the euro between the end of July and the end of August, based on MNBʼs official fixing.
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