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Households net borrow in HUF, repay FX loans in June

Hungarian households again borrowed more they they repaid in forints and less in foreign currencies in June, fresh data from the National Bank of Hungary (MNB) showed on Friday. Excluding exchange rate or other effects, their combined loan stock continued to fall slightly.

Households took out net HUF 26.3 billion of new forint loans in June, increasing their total debt on forint loans to HUF 2,712 billion, while they repaid a net HUF 31.6 billion on foreign currency denominated loans, decreasing the total stock outstanding to HUF 5,936 billion.

Although transactions cut the stock by a combined HUF 5.4% in Juen, the overall debt of households on loans to Hungary-based banks still rose a sharp 585 billion last month, mainly due to the weakening of the forint, to HUF 8,648 billion at the end of the month.

Seasonally and exchange-rate adjusted figures show net forint borrowing of HUF 12.8 billion and net forex repayment of HUF 29.2 billion in June.

Transactions reduced households' overall deposits by HUF 13.5 billion in June as households placed net HUF 63.4 billion in forint deposits and withdrew HUF 76.9 billion worth from foreign currency deposits. The overall stock still rose HUF 41.4 billion due to the weaker forint, to HUF 7,309 billion. After a decline in May, forint deposits rose by HUF 63.4 billion to 6,091 billion. Foreign currency deposits fell by HUF 22 billion to HUF 1,218 billion.

Based on seasonally and exchange-rate adjusted figures, households placed HUF 47.3 billion in forint deposits and withdrew HUF 90.7 billion worth from their foreign currency deposits. (MTI-ECONEWS)