Hungary's non-financial companies had a net financing requirement in Q3 2010, but it still had net financing capacity of HUF 449 billion or 0.5% GDP in the four quarters ending Q3 2010 due to large savings made in Q2, the National Bank of Hungary (MNB) said, citing national accounts data.
The Q3 net financing requirement totaled HUF 87 billion or 1.3% of GDP for the quarter. The seasonally-adjusted ratio was lower, at 0.5% of GDP, and came after two quarters with net savings and net borrowing of 1% in Q4 2009.
In terms of four-quarter periods, the 0.5% ratio was the lowest since Hungarian non-financial companies shifted into a net saver position in Q3 2009. After rising to 6.0% in the four quarters ending Q3 2008, the sector's net financing requirement started to narrow because of the crisis.
Excluding revaluation effects and other changes, the sector raised its assets by HUF 18 billion and increased liabilities by HUF 106 billion in Q3 2010.
Among assets, non-financial companies raised bank deposits by a combined HUF 49 billion, including a HUF 42 billion cut in current account deposits. They invested HUF 90 billion in non-listed shares while withdrawing HUF 109 billion from fixed-income securities. An almost HUF 193 billion cut in lending reflected reduced foreign lending, the MNB said.
The rise in liabilities included a HUF 543 billion increase in owners' receivables which came at the same time as a reduction of borrowing from abroad. The companies cut outstanding loans by HUF 577 billion, including a HUF 884 billion reduction of long-term loans and a HUF 308 billion rise of short-term ones. Liabilities on trade financing rose HUF 107 billion. (MTI – Econews)