Value of euro corporate lending rises in June

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The value of new corporate-lending contracts signed by Hungarian banks rose in June from May as a jump in large euro-contracts more than offset the drop in large forint-contracts, fresh data published by the National Bank of Hungary (MNB) on Friday show.

In May the value of large forint-based corporate-lending contracts rose steeply, while the forint value of euro-denominated new contracts hardly changed.

The MNB figures do not include restructured loans.

Banks signed new forint lending contracts worth HUF 140.9 billion in June, HUF 22.1 billion less than in May, and HUF 33.8 billion less than one year earlier. The new contracts were still well up from January and February, when they dropped below HUF 100 billion, the lowest levels since the start of the statistical series in January 2000.

The drops reflected the movement of new big forint-loan contracts, worth more than €1 million, signed in the month, which fell by a third to HUF 72.3 billion in June after jumping more than 50% in May. Banks and businesses signed HUF 68.5 billion small forint-loan contracts, worth at most €1m, in June ─ HUF 10 billion more than in May. The value of new big forint-loan contracts concluded was down by a third from June 2010 and the new small contracts were only slightly higher than a year earlier.

New euro-based corporate lending contracts came to the equivalent of HUF 148 billion in June, almost doubling from May, and the biggest forint value in eleven months. The forint value of new euro-based corporate loan contracts peaked at HUF 215.2 billion in July last year. The value of new euro-based lending contracts dropped to HUF 43.5 billion in January, the lowest level since the start of the statistical series at the beginning of 2005, and moved between HUF 72 billion and HUF 75 billion between March and May.

Most of the rise of the new euro-based contracts was for big loans worth more than €1 million, the value of these new contracts rose HUF 71 billion from May to HUF 126.3 billion. The forint value of lesser euro-loan contracts rose HUF 5.3 billion to HUF 21.8 billion.

Companies placed HUF 1,700.4 billion into forint fixed deposits in June, HUF 330 billion more than in the in the previous month and HUF 225 billion less than in the same month a year earlier.

New euro corporate fixed deposits came to the equivalent of HUF 954.4 billion at the end of June, up HUF 27.5 billion from May and up HUF 361.1 billion from the same month a year earlier.

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