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Corporate lending growth rate slowed to 8.4%

The corporate lending growth rate in Hungary slowed from double digits to 8.4% in Q2 because of the coronavirus crisis, the National Bank of Hungary (MNB) said in a report released on its website.

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New corporate loan contracts were supported by central bank and government lending programs launched to mitigate the impact of the pandemic on the economy, according to the quarterly "Trends in Lending" report.

While the outlays of HUF 640 billion were down 18% from the same period a year earlier, the MNBʼs Funding for Growth Scheme (FGS) accounted for 30% of the total (and for 60% of SME outlays).

By September 11, 7,658 companies had signed 9,549 loan contracts with a value of HUF 548 bln in the framework of the FGS Go! program. Disbursements reached HUF 459 bln.

The MNB noted that the corporate lending growth rate was still 1.5 percentage points over the eurozone average in Q2, albeit down from a 12-percentage-point edge six months earlier. The corporate credit-to-GDP ratio remains at a relatively low 17%, compared to 35% in the eurozone, the central bank added.