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Net household, business sector debt falls in June on exchange rate gains

Hungary's business sector made net savings of HUF 316.2 billion in June, mainly because of exchange rate gains of HUF 164.7 billion on foreign currency-denominated debts and HUF 99.8 billion of net deposit, on top of HUF 44.3 billion in repayments of forex loans, the National Bank of Hungary's (MNB) aggregate balance sheet of credit institutions shows.

Households also made net savings in June, of HUF 162 billion, helped by HUF 171.5 billion in net exchange rate gains.

According to seasonally- and exchange rate-adjusted data, business sector forint borrowing amounted to HUF 9.5 billion in June, well under the HUF 29.1 billion in the previous month, while repayment of foreign currency debts of HUF 53.2 billion was just a hair up from HUF 52.9 billion in May.

Unadjusted figures, however, show HUF 44.3 billion in repayment of corporate forex debt and a further HUF 164.5 billion fall resulting from exchange rate gains. The rise in deposits includes HUF 50.4 billion in exchange rate losses, up from HUF 37.8 billion in May. Forint deposit placement of HUF 67.6 billion in June followed HUF 77.3 billion of withdrawals in May, while forex deposit placement of HUF 82.7 billion was less than half of the HUF 191.3 billion in the previous month.

Net forint borrowing of households was HUF 31.5 billion in June, up from HUF 21.8 billion in the preceding month, while repayment of HUF 9.6 billion of foreign currency- denominated debts was similar to the previous month, seasonally- and exchange rate-adjusted data show.

Unadjusted figures show a HUF 28.8 billion increase in forint-denominated household debt in June after a HUF 20 billion rise in May. Foreign currency-denominated household debt fell HUF 215.5 billion, mainly because of a HUF 209.7 billion revaluation due to exchange rate movements, while net repayment came to just HUF 5.9 billion. (In May, HUF 138.4 billion of forint revaluation and HUF 9.4 billion of repayments resulted in a HUF 147.8 billion fall in foreign currency-denominated household debt.

Household deposits fell HUF 24.7 billion in June after a HUF 16.4 billion decrease in May as exchange rate losses on forex deposits rose to HUF 38.2 billion from HUF 30.3 billion; forint deposit withdrawal dropped to HUF 16 billion from HUF 45.6 billion; and forex deposit placement decreased to HUF 29.6 billion from HUF 59.4 billion. (MTI – Econews)