MNB: Households make net repayments in September
Retail lending stock of Hungarian banks fell by HUF 21.2 bln to HUF 6.03 trillion in September from the previous month mainly on continued net repayments, fresh data from the National Bank of Hungary (MNB) reveal, according to Hungarian news agency MTI.
Households have been net repayers of loans practically every month since the end of 2009 as borrowing in forint, if any, failed to compensate FX-denominated loan repayments which had started with the weakening of the forint.
Households made HUF 10 bln of repayments on forint loans and HUF 11.2 bln of repayments on FX-denominated loans.
The stock of Hungarian householdsʼ FX loans fell by more than HUF 3.4 bln in March as Hungary implemented a conversion of householdsʼ foreign currency mortgages to the tune of close to HUF 3 trillion. At the same time, the stock of forint loans rose, but the rise was nearly HUF 700 bln less: Only HUF 2.7 trillion due to the refunds banks had to make to clients in compensation of past practices under legislation passed in 2014. Most of the remaining FX loans will also disappear after Parliament passed legislation on their conversion in September.
Retail deposits fell to HUF 6.755 trillion in September as households made net withdrawals of HUF 62.7 bln from forint deposits and HUF 31.1 bln from FX deposits. Revaluations and other changes reduced the overall stock by HUF 5.3 bln.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.