In Q2 2022 corporate lending stock of credit institutions expanded by 344 billion forints (EUR 857.0m), as a result of increases of 240 billion forints and 104 billion forints in forint loans and FX loans, respectively, the National Bank of Hungary said in a report on lending on Friday.
The loans outstanding of nonfinancial corporations increased by 15%, a total 1,404 billion forints, between July 2021 and June 2022. Taking account of corporate bonds subscribed and purchased by banks, credit institutions’ loans and bonds outstanding to the non-financial corporations sector expanded by 22.1% in total during the same period. The loans outstanding of the SME sector increased by an annual 12.9%, with a significant contribution from the Széchenyi Card Programme Go! in Q2. Lending stock to large corporations rose 16.5%.
The NBH noted that the contribution of the loan repayment moratorium to the growth is no longer significant: a mere 2% of the stock used the opportunity of the payment moratorium. Loan outlays in Q2 amounted to 998 billion forints, exceeding the volumes of the previous quarter and the prior-year period by 14% and 7%, respectively. The share of SME loans in outlays rose to 70%. Market-based lending represented 60% within the loans issued in the period, which is much lower than the share of 85% recorded in the quarter prior to the appearance of the coronavirus or the 79% ratio observed in 2022 Q1. The average interest rate level, excluding money market transactions, on forint loans below one million euros with variable rate or with up to 1-year initial rate fixation increased by 173 basis points to 8.6% compared with the previous quarter. Terms of lending did not change substantively in the corporate segment, but tightening is expected in the future.
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