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Households remain net borrowers in HUF, repayers of FX loans in July

Hungarian households again borrowed more than they repaid in forints and repayed more than they borrowed in foreign currencies in July, a pattern unbroken since late spring of 2009, data from the National Bank of Hungary published on Tuesday showed. Excluding exchange-rate and seasonal effects, households have been net borrowers each month since last September except for January.

Households took out net HUF 27.9 billion of new forint loans in July, increasing their total debt on forint loans to HUF 2,735 billion, while they repaid a net HUF 41.3 billion on foreign-currency-denominated loans, which, including another HUF 183 billion decline in revaluation (mostly exchange rate) changes, decreased the outstanding stock of such loans to HUF 5,712 billion.

Transactions cut the household loan stock by a combined HUF 13.3% in July, and, including exchange-rate and other effects, the overall debt of households to Hungary-based banks on loans fell HUF 201 billion to HUF 8,447 billion at the end of the month. In June the stock rose a sharp 585 billion, mainly due to the weakening of the forint.

Seasonally and exchange-rate adjusted figures show net forint-borrowing transactions of HUF 45.9 billion and net forex repayment of HUF 26.3 billion in July.

Transactions reduced households' overall deposits again, this time by HUF 37.2 billion as households withdrew HUF 13.8 billion from forint deposits in July (after placing net HUF 63.4 billion in June) and withdrew HUF 23.4 billion from foreign-currency deposits after withdrawing HUF 76.9 billion worth in June. The overall stock fell HUF 57 billion in July to HUF 7,253 billion due to the weaker forint after a HUF 41.4 billion rise in June. Forint deposits fell to HUF 6,078 billion and foreign-currency deposits, including a HUF 19.6 billion revaluation effect, fell to HUF 1,175 billion.

Based on seasonally and exchange-rate adjusted figures, households placed HUF 8.5 billion more in forint deposits than they withdrew in July and withdrew net HUF 46.7 billion worth from their foreign-currency deposits. (MTI-Econews)