Forint-denominated mortgages down by half in January-June

Deals

Forint-based mortgage lending dropped by an annual 54% in the first half of 2011, even though foreign-exchange housing loans are no longer available, business daily Napi Gazdaság  reported, quoting calculations based on National Bank of Hungary figures.

All the banks polled by the paper confirmed the trend so far, and few expect the situation to change this year.

An Erste Bank analyst, however, saw no signs of recovery, saying that new homes are not being built while the market for established houses is slack and clients are unwilling to assume new debt.

It is no longer possible to obtain new mortgages denominated in foreign currencies, while households with FX-based loans are experiencing serious trouble due to the surging Swiss franc.

Analysts with Budapest Bank were cautiously optimistic, however, reporting a slight increase in mortgage lending in May and June, and hoping for an upswing in the second half of the year.

ADVERTISEMENT

Business confidence falls slightly in June Analysis

Business confidence falls slightly in June

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.