Overall lending stock fell HUF 295 billion in the second quarter to HUF 6.597 trillion. Part of the drop resulted from the forint’s strengthening that reduced the forint value of forex-based loans. The stock has been falling steadily except for the first quarter of 2013, when the weakening of the forint offset the contraction that would have occurred otherwise.
New disbursement totaled HUF 172.6 billion in Q2, up HUF 38 billion from the previous quarter, and the largest value since Q1 2012, when the new loan volume was boosted by a government-sponsored early forex-based mortgage repayment scheme. Part of the increase was technical, reflecting the vehicle loans of leasing companies merging into banks, but the disbursement of home loans, mainly state-subsidized one, and free-purpose mortgages were also on the rise, according to the MNB.
Principal repayments rose as well, however, to HUF 249.6 billion, also the highest value since quarter two of 2012. A total of HUF 52.7 billion of the principal repayments made in the quarter were advance repayments, up HUF 4 billion from the first quarter, and posting its highest value since the third quarter of 2012.
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