Foreign investorsʼ holdings of forint-denominated government securities stood at HUF 3.4424 trillion at the end of 2016, down from a record high of just over HUF 5.2 tln in the summer of 2013.
The stock dropped for the fourth year in a row, after climbing more than HUF 1.20 tln a year in both 2011 and 2012. Foreign investorsʼ holdings fell by HUF 14 bln in 2013, HUF 107 bln in 2014 and HUF 977 bln in 2015.
The decline reflects the impact of a policy shift in debt financing from foreign investors and FX issues to the domestic market, especially retail investors and local banks, as well as forint issues.