Balance sheet data, there was no strong credit demand

Households continued to net borrowers in July – by HUF 1.5 billion – but placed more deposits with banks and companies increased their savings and debt repayments, the National Bank of Hungary (MNB) reports on Wednesday of your recent data.

Companies repaid several foreign currency loans

Companies repaid several foreign currency loans

HUF 61.8 billion – with the new forint loan of HUF 47.1 billion, resulting in net repayments of HUF 14.6 billion. Transactions were exactly the opposite of the previous month, when they took out a significant HUF 63.4 billion new foreign currency loan and only HUF 3.9 billion of net forint repayments.

Of the first seven months of the year, companies had net debt repayments for the fourth time in July, which resulted in a decrease of $ 118 billion in debt to domestic credit institutions and a reduction of $ 362 billion in debt over the year. Within this, however, their foreign currency debt decreased by 240 billion this year and 482 billion in one year, while forint loans were 120 billion higher than at the end of last year or at the end of July 2015.

In addition to the net repayment of loans

In addition to the net repayment of loans

Companies also placed HUF 62.6 billion – HUF 25.9 billion and HUF 36.7 billion in foreign currency deposits with financial institutions – which further strengthened their financial position. Since April, companies have been increasing their savings every month, while in the first quarter, more money was withdrawn from their deposit accounts, totaling HUF 315 billion. At the end of July, corporate deposits were 173 billion lats lower than at year-end levels, but 654 billion lats higher than a year earlier.
Following an uninterrupted repayment period of two years, households have borrowed more than they had repaid each month since April, and their net borrowing was modest in July at HUF 1.5 billion, following June’s HUF 5.5 billion. Households’ total debt decreased by HUF 126 billion this year and by HUF 333.8 billion in the year-end to July, of which the decline in foreign currency loans was only HUF 4.7 billion this year and a year-on-year decrease of HUF 159.3 billion.

Compared to modest borrowing

Compared to modest borrowing

Households placed much more than HUF 8.4 billion in deposits, with some of the new foreign currency deposits worth HUF 13 billion being withdrawn from deposits with HUF 4.5 billion.

At the end of July, retail deposits were 65 billion lower than at the end of last year, after deducting 120.6 billion in the first quarter from their previous savings, while they were 170.2 billion higher than a year earlier.


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