news letter

Weekly newsletter

Central Bank's Growth Scheme Boosts Corporate Lending In Hungary

2015.03.02.

The stock of corporate loans in Hungary rose by 2.4% in 2014, reflecting forint loans granted by Hungary’s central bank as part of its funding for growth scheme. Last year was the first since the financial crisis started when corporate lending increased in Hungary, and economic growth in the fourth quarter was enhanced by 0.1% as a result.

Excluding the central bank’s preferential lending, however, the stock of corporate loans fell by 4% last year and loan conditions were very tight, according to the National Bank of Hungary’s lending survey. Base effects also contributed to the overall 2.4% increase. The overall corporate loan stock rose in the fourth quarter for the third quarter in a row. Two-thirds of the 637 billion forints of gross lending in the fourth quarter was in long-term loans. Fully 404 billion forints of the new outlays was denominated in forint and the remaining 231 billion was in euro.

Overall 47% of new forint loans in Q4 was lent as part of the central bank’s cheap loans programme, in which disbursed stock reached 472 billion forints by year-end. The survey indicated a continued rise in demand for loans, especially for short-term ones.

via hungarymatters.hu photo: