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Household borrowing down, corporate borrowing up in July

MNB

As in the previous month, forint-denominated borrowing by households exceeded repayment in July, while repayment in foreign currency exceeded borrowing, so the sector remained a net re-payer, unadjusted data published by the National Bank of Hungary (MNB) showed on Wednesday.

As a result, the stock of lending to households fell in July, the MNB said.

Forint deposits rose due to transactions, while foreign currency deposits fell, so the sector’s total deposits increased. Non-financial corporations were net borrowers in the forint and net re-payers in foreign currency.

In addition, they increased their forint deposits relative to the previous month and withdrew more from their foreign currency deposits than they placed. As a result, the sector’s total deposits fell relative to the previous month.

In July, the stock of outstanding household debt fell by HUF 22.6 billion due to transactions. Within this, forint borrowing exceeded repayments by HUF 14.4 billion and outstanding foreign currency borrowing fell by HUF 37.0 billion. The sector’s deposits rose by HUF 47.4 billion due to transactions, reflecting net inflows into forint deposits of HUF 54 billion and net withdrawals from foreign currency deposits of HUF 6.6 billion.

Outstanding forint debt of non-financial corporations rose by HUF 26.7 billion and their foreign currency debt fell by HUF 11.5 billion due to transactions. As a result, the sector’s outstanding borrowing rose by HUF 15.7 billion.

Non-financial corporations’ deposits fell by HUF 37.7 billion due to transactions: net inflows into forint deposits amounted to HUF 59.5 billion and withdrawals from foreign currency deposits amounted to HUF 97.2 billion.

In July, foreign liabilities of credit institutions accounted for 28% of the sector’s balance sheet total.

The seasonally adjusted data are subject to more uncertainty than usual, due to fluctuations caused by the financial crisis, the MNB warned.

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