Hungarian non-financials remain net lenders in 2013

MNB

Hungarian non-financial companies remained net lenders in 2013, “saving” net HUF 1.052 trillion or 3.6% of GDP, financial accounts data published by the National Bank of Hungary (MNB) reveal. The ratio was up from 2.6% in 2012 (this last figure a late correction supplied by MTI).

The sector turned from net borrower to net lender with the crisis and is a net lender now for the fifth year in a row. The net lending or financing capacity of non-financials was HUF 191 billion or 2.4% of GDP in the fourth quarter alone, down sharply from Q3 and down from 2.7% one year earlier. The Q4 ratio was higher, at 3.3%, and the reduction smaller in both comparison, if seasonal effects were excluded.

The MNB noted that a buyback of government securities by the central government late last year caused companies' deposits swell and their securities stock drop in Q4. Detailed figures show that non-financials placed HUF 292 billion on current account deposits and HUF 241 billion on other deposits in Q4 while sold HUF 240 billion fixed-income securities in the period.

The buyback of government securities as well as reduced issues and financing from central government deposits were designed to keep state debt as a percentage of GDP on a falling trend.

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