Are you sure?

Companies make net repayments of HUF 200 billion on bank loans in 2010

With foreign exchange loan repayments far exceeding new forint borrowing, Hungarian companies made net repayments of HUF 200 billion on bank loans last year, while their loan stock outstanding fell just HUF 55 billion in 2009, the National Bank of Hungary's (NBH) fresh monthly report published on Monday shows.

With foreign exchange loan repayments far exceeding new forint borrowing, Hungarian companies made net repayments of HUF 200 billion on bank loans last year, while their loan stock outstanding fell just HUF 55 billion in 2009, the National Bank of Hungary's (NBH) fresh monthly report published on Monday shows.

Cleared of the effect of exchange rate and other revaluation or volume changes, companies borrowed net HUF 79 billion in forints in 2010, slightly less than the HUF 82 billion they repaid in 2009, and they paid back net HUF 275 billion of foreign exchange loans after net forex loan repayments of HUF 339 billion in 2009.

Their forint loan stock stayed practically unchanged in the twelve months to the end of December, while the forint value of their foreign currency loan stock fell HUF 54 billion in the period as revaluation effects, most significantly, the weakening of the forint, offset a large part of the forex loan repayments.

The decline of the loan stock slowed from 2009 when forint loans outstanding fell HUF 124 billion and the stock of foreign exchange loans dropped in forint terms by HUF 237 billion.
In December alone, companies repaid net HUF 23.8 billion in forint loans and borrowed a negligible HUF 2.4 billion in foreign exchange in December 2010, based on unadjusted figures. However, seasonally-adjusted data show HUF 47 billion in net borrowing in forints in December, the highest level of borrowing since January 2010.

Including a HUF 18 billion December decline reflecting reevaluation and volume changes, the corporate forint loan stock fell to HUF 3,216 billion at the end of 2010.

Despite the slight borrowing in foreign currency in December, the forint value of the corporate foreign currency loan stock fell more than HUF 70 billion to HUF 4,379 billion at the end of 2010 as revaluation effects, including exchange rate changes, reduced their forint value by HUF 75 billion in a month.

Companies withdrew HUF 22 billion from their forint deposits and placed HUF 31 billion in foreign currency deposits in December 2010. The forint withdrawal was HUF 30 billion and the foreign currency deposit placement totaled HUF 33 billion, if the figures were adjusted for seasonal effects and exchange rate movements.

Overall, the corporate forint deposit stock fell in December to HUF 2,756 billion, but was still HUF 191 billion higher than at the end of 2009.

The stock of foreign currency deposits were little changed in December as reevaluation offset almost all of the increase stemming from net placements. The year-end stock of HUF 1,375 billion was HUF 120 billion up from a year earlier. (Econews)