Bond subscription boosts corporate lending stock in March

Banking

MNB building in Budapest.

Photo by Andocs / Shutterstock.com

Corporate bond subscriptions by lenders were a big factor behind a HUF 161 billion transaction-based increase in banks' corporate lending stock in March, data released by the National Bank of Hungary (MNB) on Wednesday show, according to a report by state news wire MTI.

Banks subscribed a little over HUF 68 bln of corporate bonds during the month, raising their total holdings of securities issued by companies to HUF 473 bln.

Companies were net borrowers of HUF 97 bln of forint loans but repaid net HUF 5 bln of FX loans in March.

Including bond subscriptions, banks' corporate lending stock stood at HUF 10 trillion at the end of the month.

Companies deposited net HUF 310 bln in their forint accounts but withdrew the equivalent of net HUF 263 bln from FX accounts in March. Corporate deposit stock reached HUF 12.038 tln at the end of the month.

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