MNB: Households make net repayments in August

Telco

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.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.