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Value of new corporate loan contracts grows in March

The value of new loan contracts signed by Hungarian banks with their corporate clients grew in March, the National Bank of Hungary's fresh monthly rates report shows.

Non-financial companies signed for HUF 227.2 billion of forint-based loans in March, up from HUF 169.8 billion in February and HUF 141.1 billion in the same month a year earlier. The average rate for HUF-based loans, weighted for the size of contracts, was 8.51% in March, down from 8.71% in February and 11.63% twelve months earlier.

The National Bank of Hungary cut the base rate about four percentage points during the period.

Forint overdrafts on corporate accounts came to HUF 747.0 billion in March, down from HUF 752.8 billion in February and HUF 793.1 billion a year earlier.

Companies put HUF 1,505.5 billion into fixed deposits in March, up from HUF 1,375.8 billion in February, but down from HUF 1,986.8 billion a year earlier. The average rate on the deposits was 5.32% in March, down from 5.50% in February and 8.98% twelve months earlier.

Companies put HUF 1,116.9 billion into sight deposits, down from HUF 1,132.1 billion in February and HUF 1,237.5 billion a year earlier.

The value of new corporate EUR-based loans reached HUF 112.5 billion in March, up from HUF 64.9 billion in February, but down from HUF 192.2 billion twelve months earlier. The average weighted rate for the loans was 3.20% in March, nearly level with the rate in February, but down from 3.76% a year earlier. Rates were still well under those for HUF-based loans, although the margin between the two products narrowed.

Overdrafts on euro accounts came to HUF 166.1 billion in March, down slightly from HUF 167.4 billion in February, but well under the HUF 227.7 billion a year earlier.

  Companies put the equivalent of HUF 822.2 billion into fixed euro deposits in March, up from HUF 596.4 billion in February, but down from HUF 904.0 billion twelve months earlier. Banks paid an average 1.44% on the deposits in March, down from 1.53% in February and 2.20% in March 2009.

Companies put the equivalent of HUF 579.2 billion into euro sight deposits in March, up from HUF 571.5 billion in February and HUF 564.5 billion twelve months earlier. (MTI-Econews)