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New retail forex loans continue to taper off; forint lending steady

The value of new forint loans Hungarian households signed in September was steady compared to the previous month, but foreign currency-based lending continued to taper off as the result of a government ban on forex mortgage loans, the National Bank of Hungary's monthly rates report shows.

The government decided to ban the loans because of foreign exchange rate risks to borrowers at the very end of June. Although legislation enforcing the ban was not signed until early August, Hungary's biggest banks said they would voluntarily comply from the start of July.

Households signed contracts for HUF 18.9 billion of forint home loans in September, practically level with the HUF 19.1 billion in the previous month but well over the HUF 7.0 billion in September 2009. They took out forint consumer loans of HUF 24.6 billion in September, up slightly from HUF 23.2 billion in August and well over the HUF 16.1 billion in the same month a year earlier.

The value of new euro-based home loans fell to HUF 400m in September from HUF 800m in August and HUF 1.5 billion in July. In September 2009, their value was HUF 12.9 billion. The value of new euro-based consumer loans was HUF 700m, roughly level with the previous month, but down sharply from HUF 12.8 billion twelve months earlier.

Households put HUF 1,007.6 billion into fixed deposits in September, down from HUF 1,102.7 billion in the previous month, but up from HUF 881.6 billion in September 2009.

Banks' retail lending stock fell to HUF 8,358.0 billion at the end of September from HUF 8,746.7 billion a month earlier, the MNB's aggregate balance sheet for the banking sector shows. Revaluation and other changes accounted for HUF 377.8 billion of the drop. Foreign currency-denominated loans accounted for two-thirds of the stock.

Banks' stock of retail deposits came to HUF 7,151.5 billion at the end of September.

Value of new corporate lending contracts falls for fourth month in a row in September

The value of new lending contracts Hungarian banks signed with non-financial companies fell for the fourth month in a row in September, the National Bank of Hungary's fresh rates report shows.

The value of new forint corporate loan contracts signed in September came to HUF 148.7 billion, down from HUF 158.3 billion in August, HUF 170.8 billion in July and HUF 174.7 billion in June. The average monthly value of new corporate loan contracts in the twelve months to September was HUF 169.7 billion.

The value of new euro-based corporate lending contracts was HUF 84.3 billion in September, down from HUF 87.2 billion in August, HUF 196.4 billion in July and HUF 251.2 billion in June. The average monthly value of new EUR-based corporate loan contracts in the twelve months to September was HUF 124.5 billion.

Companies put HUF 2,062.4 billion into fixed forint deposits in September, up from HUF 1,916.6 billion in August and the most since December 2008.

Companies put the equivalent of HUF 593.9 billion into euro fixed deposits in September, up from HUF 467.6 billion in the previous month, but down from HUF 771.3 billion in the same month a year earlier. Companies put a monthly average HUF 644.9 billion into such deposits in the twelve months to September.

Banks' corporate lending stock fell to HUF 7,673.0 billion at the end of September from HUF 7,910.0 billion a month earlier, the MNB's aggregate balance sheet for the banking sector shows. Revaluation and other changes accounted for HUF 207.1 billion of the drop. Foreign currency-denominated loans accounted for 57% of the stock.

Banks' stock of corporate deposits came to HUF 4,009.2 billion at the end of September. (MTI – Econews)