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Value of new retail lending contracts changed little

The value of new retail lending contracts signed by Hungarian banks changed little in May compared to April but was still just a fraction of the amount before the worsening of the global financial and economic crisis in the autumn, fresh figures published by the National Bank of Hungary on Tuesday show.

The value of new Euro-based home loans rose to HUF 12.7 billion in May from HUF 11.7 billion in April. The value of new EUR-based consumer loans dropped to HUF 12.2 billion from HUF 12.7 billion.

The popularity of Euro loans grew markedly in the autumn when many banks stopped signing new contracts for Swiss franc-denominated loans, long the most popular loan construction for Hungarian retail borrowers, because of increased forex risk as markets grew more volatile. In September, the value of new EUR-based home loan contracts was just HUF 300 million and the value of new Euro consumer loans was a slight HUF 500 million. In the same month the value of new CHF-denominated home loans was HUF 72.0 billion and the value of new CHF-based consumer loans was HUF 72.5 billion.

The value of new forint-based lending contracts has changed little since the crisis.

Average APR - which reflects the total cost of borrowing - for EUR-based home loans was 9.85% in May, down from 10.06% in April, but up from 7.895 twelve months earlier. APR for EUR-based consumer loans was 12.35% in May, little changed from April but up about two percentage points from twelve months earlier.

The value of new CHF-based home loans was HUF 3.9 billion in May, down from HUF 4.6 billion in April. The value of new CHF-based, mortgage-backed consumer loans fell to HUF 3.9 billion from HUF 4.7 billion. The value of new CHF-based vehicle loans was flat at HUF 1.7 billion.

Average APR for CHF-based home loans was 7.19% in May, down from 7.47% in April. Average APR for CHF-based consumer loans was 8.22% in May, up 11bp from April. Average APR for vehicle loans fell to 19.51% from 19.87%.

The value of new forint home loan contracts rose to HUF 10.3 billion in May from HUF 9.4 billion in April. The value of forint consumer loans slipped slightly to HUF 17.2 billion in May from HUF 17.7 billion in April.

Average APR for HUF-based home loans was 15.45% in May, practically unchanged from April, but almost three percentage points over the APR twelve months earlier. Average APR for HUF consumer loans rose to 32.33% from 31.66% in April and 25.92% twelve months earlier.

Households placed HUF 1,022.5 billion in fixed deposits in May, down from HUF 1,077.7 billion in April, but well over the HUF 724.6 billion placed twelve months earlier.

The average rate banks paid on forint fixed deposits was 10.02% in May, practically level with the rate in April, but almost three percentage points over the rate twelve months earlier. (MTI-ECONEWS)