Hungary’s ‘Creditless’ Recovery in Peril as Corporate Loans Drop

Hungary’s recovery from its worst recession in 18 years is in peril as the lack of corporate credit may hamper economic growth, the central bank said.

Lending to companies in Hungary has been declining since the fourth quarter of 2008, leading to a “creditless recovery,” Magyar Nemzeti Bank said in a study published today. “Weak corporate lending can’t support economic recovery, and it may even hamper growth.”