ÁKK modifies financing plan to accommodate bigger 2021 deficit
The Government Debt Management Agency (ÁKK) on Monday said it modified its 2021 issue plan to meet a planned HUF 658 billion increase in this year's budget deficit, according to a report by state news wire MTI.
ÁKK noted that the Finance Ministry had modified the 2021 ESA deficit target - to 7.5% of GDP - which translates as a HUF 3.99 trillion cash flow-based deficit.
Last month, the ministry submitted amendments to the 2021 budget bill that aim to mitigate the economic fallout from the pandemic and jump-start the economy.
To raise the additional HUF 658 bln, ÁKK said it added HUF 100 bln of retail issuance - even though subscription exceeded the pro rata target in January-April, HUF 111 bln of discount T-bill issuance, HUF 312bn of bond issuance for institutional investors, and about HUF 100 bln of FX financing to the annual issue plan.
ÁKK said the FX financing would come "mainly from long-term borrowings (including but not limited to development bank loans, project finance loans)", adding that it would "explore opportunities to issue green bonds in Chinese renminbi and Japanese yen".
The agency noted that the FX financing does not include credit available to Hungary in the framework of the European Union's Recovery and Resilience Facility (RRF), "for the time being".
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