Household debt stock increases 22% in January-September
Tuesday, October 31, 2006, 17:18
Gross household debt was Ft 4,620 billion at the end of September, 22% more than at the end of 2005, the latest figures from the National Bank of Hungary (MNB) show.
Gross household debt at the end of September was up 29.9% in twelve months. The nine-month increase compared to an 18.7% rise in January-September 2005. Gross household debt rose Ft 53.3 billion in September compared to August.
Debts related to home construction increased Ft 343.1 billion to Ft 2,626 billion in January-September, picking up after a Ft 263.8 billion increase in the same period a year earlier. The rise in home building debt accounted for 41.3% of the total increase in household debt in January-September, down from 47.2% in 2005.
Debts related to consumer loans rose 37.6% or Ft 453.1 billion in January-September, slowing from a 48.6% increase in the same period a year earlier. While forint-denominated home-building debt fell as repayments exceeded new borrowing, foreign currency-denominated home building debt rose Ft 365.8 billion. Most of this debt was more than five years from maturing.
Forex debt accounted for 90% of consumer loan-related debt. This debt rose Ft 403.2 billion in January-September as against Ft 297.4 billion in the same period last year.
Household deposits at banks dropped Ft 28.5 billion in January-September, including a Ft 32.8 billion fall in September alone. Sight deposits declined Ft 165.2 billion, while fixed deposits rose Ft 136.7 billion. Within this, deposits fixed for between one and two years rose Ft 193.2 billion. The big increase was due to savings put into mid-term investments after Hungary's interest tax was raised from 0% to 20% on September 1. Household deposits fixed for more than two years rose Ft 105 billion in August.