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Hungarian businesses net loan repayers in December

Non-financial Hungarian companies were net repayers of both forint and foreign currency-denominated loans in December, and they withdrew more from foreign currency deposits than they placed in forint deposits, the National Bank of Hungary (MNB) said in a monthly report on Tuesday.

Net loan repayments by the companies totalled HUF 148.9bn in December, while their net debt to domestic banks fell HUF 139.3bn due to transactions, including net bond issues worth HUF 9.7bn. Net withdrawals from deposits of HUF 22.6bn financed about 15% of the loan repayments.

The December bond issues, together with a HUF 100m increase from revaluation changes, raised outstanding corporate bond stock subscribed by domestic lenders to HUF 109.1bn at the end of the month.

Companies’ forint loan stock fell HUF 92.1bn to HUF 3,128.9bn in December, as the result of HUF 79.3bn of net repayments and a HUF 12.8bn revaluation reduction.

Corporate foreign exchange loan stock dropped HUF 69.5bn to HUF 4,597.0bn during the period. Except for a HUF 100m revaluation increase, the drop was the result of transactions.

Corporate forint deposits rose HUF 40.3bn to HUF 2,988.5bn in December. Foreign currency deposits fell HUF 60bn to HUF 1,428.9bn on withdrawals of HUF 62.9bn and a HUF 2.9bn revaluation increase.