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ÁKK Chief: FX bond issue determined by market factors

Chiefly market factors are expected to determine when and in what FX denomination Hungary will issue bonds while the size of the issues will be determined by demand for forint denominated government bonds, the head of Hungaryʼs Government Debt Management Agency (ÁKK), György Barcza said in an interview released today.

In an interview with Hungarian daily Magyar Idők, Barcza said news that Hungary is putting off its plan to issue yuan-denominated bonds was false as no date was set in the first place, but he did confirm that ÁKK is planning an FX denominated bond issue, Hungarian news agency MTI reported.

Barcza noted that up till now no Central European country has issued a yuan bond, and only a few countries with larger economies have done so, MTI reported.

The goal is to make Hungarian assets known, make investors track Hungary and establish a group of potential investors, said Barcza according to MTI, noting that yuan bonds could become serious competitors to euro- and dollar-denominated bonds in around five yearsʼ time.