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Hungarian households net borrowers in forint, net repayers in FX in Sept

Hungarian households were net borrowers in forints but net repayers in foreign currency in September, just as in August, the National Bank of Hungary's aggregated balance sheet of credit institutions published Friday shows.

Banks' stock of retail loans, excluding revaluations and other changes, fell by HUF 26.1bn. Within this, forint borrowing exceeded repayments by HUF 10.9bn and outstanding foreign currency borrowing fell by HUF 37.0bn. The sector's deposits rose by HUF 35.6bn due to transactions, reflecting net inflows into forint deposits of HUF 126.5bn and net withdrawals from foreign currency deposits of HUF 90.8bn.

The sector's deposits rose by HUF 35.6bn due to transactions, reflecting net inflows into forint deposits of HUF 126.5bn and net withdrawals from foreign currency deposits of HUF 90.8bn. 

The weakening of the forint's exchange rate to the euro from 271.28 in August to 292.12 in September strongly contributed to the increase in deposits of households, the MNB noted.