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Businesses remain net loan repayers in February

Hungarian non-financial companies were net repayers of bank loans for the fifth month in a row in February, the Central Bank (MNB) reported.

At the same time they increased their deposits more than they did in January, increasing their forint deposits more and cutting their foreign currency sharper than a month earlier.

Businesses repaid domestic banks net 28.5 billion in forint loans and net 2 billion worth foreign currency denominated loans, MNB figures show.

Including the effect of stock revaluation and other changes or, in the case of foreign currency loans, exchange rate changes, the stock of corporate forint loans fell HUF 32.4 billion in a month to HUF 3,356 billion, and the stock of businesses' foreign currency loans rose HUF 27 billion to the equivalent of HUF 5,290 billion at the end of February.

Seasonally and exchange rate adjusted MNB figures show a slight net forint borrowing - after five months net forint loan repayments -, and net HUF 7.5 billion repayment on foreign currency loans - again in a change from the previous six months.

Banks also subscribed corporate bonds of HUF 2.2 billion in the month, bringing the stock of such funding to HUF 54.1 billion at the end of February, the figures reveal.

Companies deposited net HUF 45.4 billion forints in February, increasing their forint deposits to HUF 2,811 billion at the end of the month. They withdrew HUF 9.1 billion worth of foreign currency deposits, but due to a HUF 8.7 billion exchange rate gain, the value of their foreign currency deposits fell only slightly, to HUF 1,184 billion.

Forint deposit placements rose to HUF 14.2 billion and withdrawal from foreign currency deposits increased to HUF 149.7 billion according to figures adjusted for seasonal factors and exchange rate changes, the bank said. (MTI – Econews)