Hungarians still borrowing more than they repay

MNB

In May, people continued to take out several million forints more in loans than the amount they repaid, so that by June Hungarian households had assumed the position of firm net borrowers, Hungarian news agency MTI reported today.

In the sixth month of the year, household borrowing exceeded the amount of repayments by HUF 5.3 billion. At the end of the first half of the year, members of the public owed a total of HUF 5,768 billion – writes Világgazdaság, citing data from the National Bank of Hungary (MNB).

It is no longer only home loans that are selling well, but demand for consumer loans is also showing an upswing.

Almost HUF 230 billion in home loans were issued in the first six months of the year, while consumer loans amounted to some HUF 150 billion. The latter represents a 56% increase compared to 2015. Comparatively expensive overdraft facilities and card loans remain less popular. 

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