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As a result of the epidemic in the credit market, demand fell in the second quarter, with a tightening of banking supply conditions, according to the Magyar Nemzeti Bank (MNB) aggregation. According to the report, the impact of public loan programs is not yet visible.
Bálint Dancsik, head of the MNB department, added to the central bank report that the state intervention seeks to mitigate the damage caused by the epidemic, such as the aid announced in March. moratorium on repayment. This will leave approximately HUF 2 billion in liquidity for businesses and households by the end of the year.
Both the central bank and government programs support new loans, thus creating a balance between the retail and corporate credit markets.
The corporate loan portfolio decreased by HUF 126 billion, or 1.4 percent, in the second quarter compared to the previous quarter. On a quarterly basis, foreign currency loans decreased significantly. On an annual basis, the shares grew by almost 700 billion HUF in June 2020, corresponding to an annual growth of 8.4 percent. Through the growth loan programs launched in April, companies were supported with nearly 190 billion HUF, which is 60 percent of contracts entered into by small and medium-sized businesses.
The retail loan portfolio grew by HUF 232 billion in the second quarter, roughly 20 percent year-on-year. Credit institutions entered into baby loan agreements worth 142 billion HUF, which at the end of June already accounted for about a tenth of the total retail loan portfolio. Three-quarters of borrowers use the waiting baby loan for housing purposes, according to the MNB statement.
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