MNB: Corporate lending conditions ease in Q1

MNB

In Q about 30% more lenders, weighed by market share, eased non-price lending conditions for companies, than those which tightened them , according to a fresh survey by the National Bank of Hungary (MNB). About 16% of banks plan further easing in the next six months, while 14% plan to tighten conditions, the MNB said in its "Trends in Lending" report released Friday.

Compared to the end of 2014, the interest rate for new market-based corporate forint loans decreased by 0.7 percentage point to 3.3% at the end of March. The average interest rate on euro loans remained at 2.1% during the quarter. For new corporate loans, the average premium over the BUBOR dropped by 0.7 percentage point to around 1.2%.

The average spread for forint loans over the equivalent of €1 mln was 0.7%. The spread for loans under €1 mln was 3.2%. For euro loans, the spread for loans over €1 mln was 1.8%, while it was 4.3% for those under the €1m threshold.

Gross new corporate outlays amounted to HUF 477 bln in Q1. Around 49% of the new loans were short-term ones. Forint loans made up HUF 261 bln and euro-denominated loans HUF 140 bln of new lending. Cheap financing from the MNBʼs Funding for Growth Scheme (FGS) accounted for HUF 76.2 bln of the total.

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