ÁKK: Reduction in exposure to Templeton good for Hungary

History

A gradual reduction, under normal market conditions, of the holdings of Hungarian government securities by asset manager Franklin Templeton Investments is favorable for Hungary, György Barcza (pictured), the head of the Government Debt Management Agency (ÁKK) said on state-owned news channel M1 this morning.

According to Barcza, Templeton had already sold 20% of its HUF 2 trillion portfolio of Hungarian government securities.

Sales in the first quarter did not produce any bad results, and the reduction in Templetonʼs holdings was expected, he said, adding that it was not in Templetonʼs interest to "dump" the holdings on the market.

Hungary could slowly be freed from the exposure resulting from so much of its debt remaining in the hands of a single investor, he said.

Barcza noted that Templeton had earned a 30% return on the Hungarian securities it bought in 2012, when yields were at 7-9%. The investor took a loss on its Ukrainian portfolio at the same time, he added.

Templeton is the largest single investor in Hungarian forint government securities.

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