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Margin between corporate deposit, lending rates widens in June

The interest margin between short-term forint corporate deposit and lending rates increased from 1.91 to 2.29 percentage points in June, the National Bank of Hungary (MNB) reported on Friday.

The margin between euro-denominated corporate deposit and lending rates rose from 1.70 to 1.79 percentage points. The average interest rate on corporate loans other than overdrafts increased 44bp to 7.76% in June. Rates on overdrafts fell 27bp to 7.83%. Lending rates were 21bp higher than at the end of last year and fell 72bp from a year earlier. Rates for overdrafts fell 110bp in a year to the end of June, but stood only 8bp down from December 2005.
The average rate for forint loans to non-financial businesses up to the equivalent of €1 million, excluding overdrafts, increased 43bp to 8.27% in June, still 66bp down from a year earlier. The average lending rate for forint loans over the equivalent of €1 million stood at 7.27%, up 38bp from May, but down 72bp from June 2005.
Excluding overdrafts, non-financial businesses took out Ft 165.9 billion of loans in June, Ft 20.3 billion less than in May.