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Value of new corporate loans rises in June

The value of new lending contracts Hungarian banks signed with non-financial companies rose for both forint and euro-based loans in June compared to May, fresh data from the National Bank of Hungary (MNB) shows.

The value of new forint loan contracts, excluding overdrafts, rose to HUF 188.8 billion in June from HUF 175.6 billion in May, but was slightly less than the HUF 191.5 billion in the same month a year earlier.

Forint overdrafts came to HUF 769.9 billion in June, down from HUF 791.0 billion in May and HUF 891.9 billion twelve months earlier.

The average corporate lending rate, excluding overdrafts, was 11.92% in June, practically level with the rate in May, but up from 10.12% twelve months earlier. The average rate for overdrafts was 12.25%.

Companies signed for the equivalent of HUF 138.4 billion in new EUR-based loans in June, up from HUF 110.2 billion in May and HUF 112.8 billion twelve months earlier. New contracts for loans up to EUR 1m came to HUF 25.4 billion and contracts for bigger amounts were worth HUF 113.0 billion.

Euro overdrafts were HUF 181.1 billion in June, down from HUF 185.9 billion in May, but up from HUF 140.3 billion twelve months earlier.

The average lending rate for EUR-based loans with floating rates or fixed up to a year was 4.22% in June, up from 3.36% in May, but well under the 6.09% twelve months earlier. The average rate for EUR overdrafts was 3.74%.

Companies put HUF 1,830.0 billion into forint fixed deposits in June, up from HUF 1,565.9 billion in May and HUF 1,659.1 billion twelve months earlier. They placed HUF 1,222.9 billion into sight deposits, up from HUF 1,189.6 billion in May, but under the HUF 1,283.2 billion deposited in June 2008.

The average rate banks paid on forint fixed deposits was 9.11% in June, little changed from May, but up from 7.70% twelve months earlier. The MNB's base rate was 9.50% in June.

Banks' corporate clients put the equivalent of HUF 874.7 billion into fixed euro deposits in June, down from HUF 960.0 billion in May and HUF 1,151.1 billion twelve months earlier. They put HUF 543.6 billion into euro sight deposits in June, up from HUF 518.5 billion in May and HUF 509.5 billion twelve months earlier.

The average rate banks paid on fixed euro deposits was 1.80% in June, up from 1.69% in May, but well under the 4.15% rate twelve months earlier. The average rate for EUR sight deposits was 0.40%. (MTI – Econews)