Banks' retail loan portfolio expanded 15.2%


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Hungarian banks' retail loan portfolio expanded 15.2%, or HUF 1.231 trillion, last year, supported by outlays of credit for homes and prenatal baby support loans, according to a quarterly report by the National Bank of Hungary (MNB).

The MNB estimated that adjusted for the impact of a repayment moratorium, growth reached around 9.9%.

It noted that since the blanket repayment moratorium was replaced with a conditional moratorium from November, just 6% of the retail loan book is participating. Alone in the fourth quarter, the retail lending stock climbed HUF 204 billion.

Home loans accounted for HUF 135 bln of that increase and prenatal baby support loans for HUF 107 bln. Stock of the prenatal baby support loans reached HUF 1.569 tln at year-end and accounted for 17% of the entire retail portfolio.

The government introduced the unsecured, interest-free, general-purpose prenatal baby support loans of up to HUF 10 million for families having children in July 2019. The loans are part of a package of family support measures designed to address the problem of depopulation and are available only until the end of 2022.


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