Are you sure?

ÁKK to raise interest premium on Bonus bonds

Hungaryʼs Government Debt Management Agency (ÁKK) yesterday said it had decided to raise the interest premium on Bonus Hungarian Government Bonds (BMAK) by 25-75 bps in a bid to make them more competitive with the inflation-linked Premium Hungarian Government Bonds (PMAK), Hungarian news agency MTI reported.

ÁKK will raise the premium on the four-year BMAK by 75 bps to 2%. The premium on the six-year BMAK will rise by 50 bps to 2.5% and the premium on the ten-year bond will increase by 25 bps to 2.75%.

The premium is paid over a base linked to the weighted average yield at twelve-month discount T-bill auctions.

ÁKK noted that although stock of BMAK securities rose by HUF 82 billion last year, the increase fell more than HUF 100 bln behind the rise in the stock of the PMAK papers.

The new BMAK papers will be available at dealers from March 1.