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Bond issues lift corporate lending stock in December

Banking

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Bond subscription accounted for close to two-thirds of the transaction-based increase in Hungarian banks' corporate lending stock in December, state news wire MTI reports, citing data released by the National Bank of Hungary (MNB).

Bond subscription reached HUF 310 billion during the month, while overall net lending to non-financial companies came to HUF 491 bln. Banks' total corporate lending stock stood at HUF 11.455 trillion at end-December.

A number of big issues took place in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary (MNB) in December, after the central bank announced the stimulus program would end as it tightens monetary policy. They included large-scale issues by listed IT company 4iG, contract electronics maker Flextronics, and special ESOPs of OTP Bank.

The fresh MNB data show companies were net depositors of HUF 815 bln in December, raising corporate deposit stock to HUF 14.515 tln.

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