Forecast - Hungarian Economy (2011-12)

If one quarter of the foreign currency loans (HUF 5200bn) are affected by the government?s plan, banks would suffer a 20-25% loss (HUF 250 bn). The Hungarian banks had only HUF 10-12bn profits last year (mostly the Hungarian OTP).

GDP 2008=100%

The move will further deteriorate their lending position.

(Between 2010-2011the decrease of corporate lending was HUF 700 bn, private lending decreased by HUF 450 bn.)