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Value of new retail lending contracts little changed

The value of new retail consumer lending contracts signed by Hungarian banks was little changed in September from August for products denominated both in forints and in foreign currency, fresh data from the National Bank of Hungary (MNB) show.

Banks signed contracts for new forint-based home loans worth HUF 7.0 billion in September, down from HUF 9.8 billion in August and HUF 8.8 billion twelve months earlier. The average cost of borrowing indicator for the loans, weighted by their size, was 14.12%, down from 15.10% in August, but up from 13.52% twelve months earlier.

Households took out HUF 18.3 billion of forint-based consumer loans in September, up slightly from HUF 17.7 billion in August, but down from HUF 19.1 billion in September 2008. The average weighted cost of borrowing indicator for the loans was 29.98%, down from 31.64% in August, but up from 26.54% twelve months earlier.

The value of new Euro-based home loans came to HUF 12.9 billion in September, practically level with the HUF 12.5 billion in August, but up sharply from HUF 300m twelve months earlier. The value of new Euro-based consumer loans was 1.8 billion in September, level with the amount in August and up from HUF 1.0 billion twelve months earlier.

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 Euro-based home loan contracts was just HUF 300 million and the value of new euro consumer loans was a slight HUF 500m. 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.

The average weighted cost of borrowing indicator for Euro-based home loans was 10.10% in September, practically level with the 10.06% in August, but well over the 6.06% rate twelve months earlier. The cost of borrowing indicator for Euro-based consumer loans was 12.89% in September, down from 13.20% in August and 14.24% in September 2008.

The value of new CHF-based home loans was HUF 4.0 billion in September, up from HUF 3.2 billion in August. The value of CHF-based car loans came to HUF 1.6 billion, level with the previous month.

Households placed HUF 881.6 billion into forint fixed deposits in September, down from HUF 1,088.8 billion in August, but up from HUF 777.8 billion twelve months earlier. Banks paid an average rate of 8.35% on the deposits, down from 8.88% in August, but up from 7.60% twelve months earlier.

Households put HUF 1,284.9 billion into sight deposits in September, down from HUF 1,340.7 billion in August and HUF 1,443.9 billion in September 2008. (MTI-ECONEWS)