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Households borrow less

Households borrowed less both in foreign currency and in forint in October compared with September: the sector made net repayments of its forint and foreign currency debt, National Bank of Hungary (MNB) said, according to exchange rate adjusted data.

Households placed more forint and foreign currency deposits than they withdrew, resulting in net inflows to deposits.

Non-financial corporations (NFC) made net repayments of forint and foreign currency debt. According to seasonally adjusted data, NFCs made net withdrawals from their forint deposits and net additions to their foreign currency deposits in October.

In October, seasonally and exchange rate adjusted net repayments of forint and foreign currency by households amounted to HUF 4.85 billion and HUF 12.0 billion respectively. On balance, households were net depositors: net inflows to forint and foreign currency deposits amounted to HUF 44.4 billion and HUF 14.4 billion respectively. According to not seasonally adjusted data, the stock of households’ forint loans fell by HUF 7.5 billion, and that of their foreign currency loans by HUF 24.1 billion, due to revaluations and other volume changes. Excluding that effect, foreign currency deposits were HUF 8.2 billion lower.

According to seasonally and exchange rate adjusted data, net repayments of forint and foreign currency loans by non-financial corporations amounted to HUF 85.4 billion and HUF 32.7 billion respectively. Net withdrawals from forint deposits amounted to HUF 19.8 billion and net inflow to foreign currency deposits amounted to HUF 59.8 billion in October. According to not seasonally adjusted stock data, forint loans fell by HUF 17.7 billion while foreign currency loans edged down by only HUF 3.2 billion as a result of net repayments of HUF 33.5 billion and revaluations and other changes of HUF 30.3 billion.

Net inflows to forint deposits amounted to HUF 7.6 billion. The HUF 9.1 billion increase in foreign currency deposits was the result of net inflows of HUF 1 billion and revaluations and other changes of HUF 8.2 billion.

In October, foreign liabilities of credit institutions accounted for 31.6% of the balance sheet total. (MTI – Econews)