State debt reaches 75.6% of GDP at end of Q2
Hungaryʼs state debt, calculated according to Maastricht rules, stood at 75.6% of GDP at the end of June, down from 77.2% of GDP at the end of March, the National Bank of Hungary (MNB) said concerning Hungaryʼs financial accounts, Hungarian news agency MTI reported today.
In nominal terms, state debt reached HUF 25,908 billion in the second quarter, down from HUF 26,156 bln at the end of Q1 2016. Debt repayments reduced the nominal figure by HUF 307 bln, but revaluations increased it by HUF 59 bln in Q2.
Net liabilities of the general government amounted to HUF 22,647 bln, or 66.1% of GDP, at the end of Q2.
The net financing requirement of the general government, which is a good approximation of the general government deficit, came to HUF 359 bln, or 1% of GDP, in the four quarters to the end of Q2. The net financing requirement for four quarters was down from HUF 451 bln, or 1.3% of GDP, at the end of Q1.
In Q2 alone, the general government deficit, calculated from the financing side, was HUF 28 bln, or 0.3% of quarterly GDP. In Q1 net repayments were HUF 93 bln, or 1.2% of GDP.
In Q2, net lending of the central government amounted to HUF 37 bln. On the assets side of the sub-sectorʼs balance sheet, there was a decline in deposits with the central bank, mainly reflecting repayments of borrowing abroad. On the liabilities side, there were significant net issues of short-term government securities, although significantly less than in the previous quarter. Liabilities of the central government fell overall in Q2.
Net lending of local governments was HUF 78 bln in Q2. Within the sub-sectorʼs financial assets, local government deposits with credit institutions fell significantly. By contrast, securities held by local governments continued to increase. Within liabilities of local governments, other payables to the corporate sector fell.
Net lending of the social security funds was HUF 13 bln. On the assets side of the sub-sectorʼs balance sheet, deposits held with central government increased. Liabilities of social security funds remained broadly unchanged.
Net lending of households was HUF 2,029 bln, equivalent to 5.9% of GDP in the four quarters to Q2 2016. Within the sectorʼs financial assets, there was a significant increase in currency held by households and a slight rise in deposits.
Net lending of non-financial corporations was HUF 378 bln, or 1.1% of quarterly GDP, in the four quarters to Q2 2016, and HUF 143 bln or 1.7% of quarterly GDP in Q2 2016.
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