World Economy

Hungary Household Savings at 16-Year High

Hungary Household Savings at 16-Year HighHungary Household Savings at 16-Year High

Thanks to borrowers’ relief payments that banks made to customers with foreign-exchange based mortgages under the so-called FX law, household debt dropped and household savings hit a 16-year high in the period from September 2014-September 2015, the National Bank of Hungary reported. In the 12 months ending in September, net household financial savings were at HUF 2.659 trillion ($9.17 billion), or 8% of the GDP, the bank said, according to state news agency MTI. This represented an increase in household savings from 7.8% of GDP in the second quarter of last year and 6.2% of GDP in the same period of the previous year. While the impact of FX loan compensation was strongest in the first quarter last year, savings in the third quarter of last year were boosted by government compensation payments made to investors in the failed Quaestor brokerage, which went under early last year, according to reports. Households made net loan repayments of HUF 96 billion in the third quarter, according to the report.