"While the strong forint pushed lending to households lower, their deposits rose again in July, the National Bank of Hungary (NBH) has reported on Friday.Loans granted to the household sector fell by HUF 36.1 billion to HUF 6,320.8 billion. Here, forint loans were up HUF 2.7 billion. In contrast, foreign currency loans fell by HUF 38.8 billion to HUF 3,703.7 billion. Exchange rate valuation effects reduced the value of foreign currency loans by HUF 156.2 billion (debt to banks shrink due to the forint strengthening) and transactions (new contracts) increased it by HUF 117.5 billion, central bank data showed.
The shares of foreign currency and forint loans within the total were 58.6% and 41.4%, respectively.
Within loans granted to households, the share of housing loans edged down from 51.8% to 51.7%, with a HUF 23.9 billion fall in their stock. Foreign currency loans remained unchanged at 51.3% as a percentage of housing loans.
The percentage share of consumer credit within the total stock of loans to households rose from 42.8% to 42.9%, with a HUF 9.4 billion fall to HUF 2,713.9 billion in the outstanding amount of loans. Foreign currency loans fell from 70.9% to 70.4% as a percentage of total consumer credit.
Household deposits with monetary financial institutions rose by HUF 28.5 billion to HUF 6,377.9 billion. Forint deposits fell by HUF 14.9 billion and foreign currency deposits increased by HUF 43.7 billion compared with June. Exchange rate changes and transactions, respectively, accounted for HUF 23.4 billion and HUF 67.1 billion for the change in the combined stock of foreign currency deposits.
Foreign currency deposits with an agreed maturity of up to one year rose by HUF 38.9 billion. Overnight deposits fell by HUF 33.1 billion. In contrast, deposits with an agreed maturity rose by HUF 61.7 billion on the previous month."
Source: Portfolio Online Financial Journal
01.09.2008