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Households borrow net HUF 16.5 bln in February

Households borrowed a net HUF 16.5 billion from Hungarian lenders in February, data published by the National Bank of Hungary (MNB) on Wednesday show, according to a report by state news wire MTI.

Hungarian banksʼ retail lending stock reached HUF 6,165.6 bln at the end of the month. Some HUF 3.3 bln in write-downs reduced the increase resulting from net outlays.

Householdsʼ deposits with Hungarian banks stood at HUF 8,890.6 bln at the end of February. Net deposits of HUF 64.9 bln were made on retail accounts during the month, while the weaker forint lifted the stock of FX deposits a further HUF 5.0 bln.

Gross outlays of home loans came to HUF 60.7 bln in February, a little under the HUF 71.3 bln monthly average for the previous 12 months.

Loans for the purchase of resale homes accounted for 70% of the total, while loans for new homes made up 13%. Loans for building or adding on to homes made up 10% of the total.

Just under 59% of home loan outlays in February had interest rates fixed for a period of more than one year, up from about 38% in the same month a year earlier, evidence of the impact of the MNBʼs "certified consumer-friendly home loan" scheme. Such certified loans have runs of five, ten or 15 years.

The annual percentage rate of charge (APRC) on home loan outlays with rates fixed for periods over one year averaged 5.07% in February, down from 5.19% in January, and 5.33% in December.