Hungarian non-financials remain net lenders in 2013
Hungarian non-financial companies remained net lenders in 2013, “saving” net HUF 1.052 trillion or 3.6% of GDP, financial accounts data published by the National Bank of Hungary (MNB) reveal. The ratio was up from 2.6% in 2012 (this last figure a late correction supplied by MTI).
The sector turned from net borrower to net lender with the crisis and is a net lender now for the fifth year in a row. The net lending or financing capacity of non-financials was HUF 191 billion or 2.4% of GDP in the fourth quarter alone, down sharply from Q3 and down from 2.7% one year earlier. The Q4 ratio was higher, at 3.3%, and the reduction smaller in both comparison, if seasonal effects were excluded.
The MNB noted that a buyback of government securities by the central government late last year caused companies' deposits swell and their securities stock drop in Q4. Detailed figures show that non-financials placed HUF 292 billion on current account deposits and HUF 241 billion on other deposits in Q4 while sold HUF 240 billion fixed-income securities in the period.
The buyback of government securities as well as reduced issues and financing from central government deposits were designed to keep state debt as a percentage of GDP on a falling trend.
Hungary Gasoline Prices 3% Over Regional Avg
Gov't Wants Sustainable Business Model for Magyar Posta
120,000 Guest Workers Employed in Hungary
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
