Consequently, the total amount of new housing loans fell compared with September. The average APRC (Annual Percentage Rate of Charge) on new forint loans rose slightly, while that on new euro loans remained broadly unchanged. 

The seasonally adjusted amount of new forint-denominated general purpose mortgage loans rose. The value of new euro loans also rose and that of Swiss franc loans remained unchanged the previous month’s level, with an increase in the total amount of new loans. The seasonally adjusted amount of new forint personal loans fell slightly compared with the previous month. The amount of new euro loans also fell, while Swiss franc lending ceased almost completely several months ago in this category. On balance, the total amount of new personal loans fell compared with September. Forint-denominated loans made 38pc of new loans, accounting for 24pc of housing loans, for 8pc of general purpose mortgage loans and for 89pc cent of personal loans. The popularity of euro loans grew markedly in the autumn when many banks stopped signing new contracts for Swiss franc-denominated loans, long the most popular loan construction for Hungarian retail borrowers, because of increased forex risk as markets grew more volatile. The value of new forint-based lending contracts has changed little since the start of the crisis. The total stock of housing loans to individuals amounted to HUF 3,969bn at the end of October for all maturities, up on HUF 3,959bn at the end of September which was, in turn, lower from HUF 3,962bn at the end of August. End-2008 stock was HUF 3,919bn.

The seasonally adjusted value of new loans to the non-financial corporate sector fell significantly, due mainly to a decline in the amount of new forint loans. The average interest rate on new forint loans fell, while that on euro loans up to the equivalent of EUR 1m remained unchanged and that on euro loans over the equivalent of EUR 1m also fell. The seasonally adjusted values of households’ and non-financial corporations’ new deposits fell. Average interest rates on households’ and the corporate sector’s forint deposits fell sharply. The falls in average interest rates on euro deposits were smaller. In October, the average APRC on new forint loans to households for house purchase rose slightly, while those on euro and Swiss franc loans remained unchanged. The APRC on new forint general purpose mortgage loans fell, due to a change in the composition of loans, while that on euro loans and on Swiss franc loans remained unchanged at the previous month’s level. The APRC on forint personal loans remained unchanged and that on euro loans fell, due to a change in interest rates. The APRC on forint loans for purchases of goods fell, due to changes in the composition of loans and in interest rates. The APRC on Swiss franc car loans fell. The average interest rate on forint loans to the non-financial corporate sector fell, irrespective of the upper limit of the amount of loan. The average interest rate on euro loans up to the equivalent of EUR 1m remained unchanged and that on euro loans over to the equivalent of EUR 1 million fell slightly.

In October, the amount of new forint and euro housing loans fell, and that on Swiss franc loans remained unchanged at the previous month’s very low level. The seasonally adjusted value of new forint general purpose mortgage loans rose. The value of new euro loans also rose, while that of and Swiss franc loans remained unchanged. The seasonally adjusted value of new forint personal loans rose slightly compared with September, while the value of new euro loans fell. As in the previous month, few, if any, Swiss franc loan contracts were entered into in October. The seasonally adjusted value of forint loans for purchases of goods fell. The value of new Swiss franc car loans fell slightly. New forint and euro loans to non-financial corporations rose slightly, according to seasonally adjusted data. On the deposit side, monthly average interest rates on households’ forint and euro deposits fell. That on forint deposits of non-financial corporations also fell, with the average interest rate on euro loans showing a smaller fall. The seasonally adjusted amount of households’ new forint time deposits fell in the month under review. By contrast, that of euro deposits rose slightly. The seasonally adjusted values of non-financial corporations’ new forint and euro deposits fell marginally.