MNB: Corporate FX borrowing/deposits pick up in October
MNB headquarters in Budapest (Image by Jessica Fejos)
Businessesʼ FX borrowing from Hungarian banks and their deposits in foreign currency picked up in October to levels unseen since 2008, according to figures published today in a monthly report by the National Bank of Hungary (MNB), Hungarian news agency MTI reported.
(Photo: Jessica Fejos)
Including bonds, the corporate lending stock of Hungarian banks rose to HUF 6.405 trillion in October from the previous month due to increased borrowing both in forint and foreign currencies. Hungarian businesses were also big net depositors in October, in forint and foreign currencies.
Businesses borrowed net HUF 225.4 billion last month after making slight repayments in September, according to unadjusted figures on transactions. They repaid HUF 29.2 bln to banks on bonds, almost halving the stock.
Businesses borrowed HUF 93 bln in forint loans and HUF 132.4 bln in foreign exchange loans. Their FX borrowing was the largest since October 2008, unadjusted figures show. Revaluation and other changes cut the forint loan stock by HUF 6.4 bln and the FX loan stock by HUF 38.1 bln in October.
Corporate deposit stock rose 276.3 bln according to unadjusted figures to HUF 5.516 tln in October. Companies placed net HUF 72.6 bln in forint deposits and net HUF 203.7 bln in FX deposits. The unadjusted FX deposit placement was the largest since July 2008. Revaluations reduced deposits by a combined HUF 15.3 bln in October.
Forint lending stock totaled HUF 3.351 tln and forint deposits totaled HUF 3.757 tln at the end of October.
FX lending stock stood at HUF 3.022 tln and FX deposits were worth HUF 1.760 tln.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.