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Lending Slowdown in Hungary in Line With Int'l Trends

Banking

Photo by Stephen Barnes / Shutterstock.com

A slowdown in lending in Hungary is in line with international trends, but a pickup is anticipated in the second half of the year, National Bank of Hungary (MNB) department head Bálint Dancsik said on Wednesday, according to a report by state news wire MTI.

"Lending dynamics are clearly slow in both the retail and the corporate segments...and this is absolutely in line with the international trends," Dancsik said presenting the central bank's latest report on lending trends.

"Looking ahead, a pickup on the lending market is anticipated. Banks augur a recovery in demand for credit in practically all segments in the coming half year," he added.

He acknowledged that new contract volume had stagnated in the corporate segment and was nearly halved in the retail segment, but said banks had signaled an upswing in demand for consumer credit and short-term corporate loans.

The report shows outlays of credit for the purchase of resale homes fell 49% in the second quarter from the same period a year earlier. Home loan outlays for the purchase of new residential property plunged 89%, and new lending contracts for renovation dropped 73% during the period.

Net lending to non-financial companies came to HUF 158 billion in Q2, lifting corporate lending stock by 11pc from a year earlier. That increase was supported by a number of big transactions, without which the rise would have been a little over 6%. SME lending stock climbed 10% in a year.

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