Early FX repayment scheme boosts value of new retail loans

MNB

The value of new retail loans Hungarian banks signed in December rose sharply compared to previous months as borrowers availed of an early repayment scheme for foreign currency-denominated mortgages, fresh monthly data published by the National Bank of Hungary on Friday show.

The government scheme allows full early repayment of the forex loans at discounted exchange rates. Lenders must cover the difference between market rates.

The MNB data show the value of new forint home loans came to HUF 39.4bn in December, well over the HUF 22.6bn in November and the HUF 18.8bn monthly average in the twelve months to the end of December.

The value of new forint consumer loans reached HUF 45.6bn in December, also well exceeding the HUF 29.0bn in November and the HUF 22.0bn monthly average in the twelve months to the end of December.

New home and consumer loan outlays also showed a marked increase from October to November.

The early repayment scheme was launched at the end of September and borrowers had until the end of December to declare their intent to participate. Full repayment must be made by the end of February.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.