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ÁKK to buy back USD 1 bln of government bonds, says Varga

The Government Debt Management Agency (ÁKK) will be buying back USD 1 billion of high-interest rate government bonds, Finance Minister Mihály Varga told state news wire MTI on Tuesday.

The measure will decrease the debt financing costs of the government, the FX share of government debt and improve Hungaryʼs stability, the minister said.

A successful economic policy, a favorable market environment and low financing demand in 2020 are making it possible to switch out the expensive FX loan to cheaper financing with a significantly longer maturity, Varga added.

ÁKK said that it has called a reverse auction for the USD-denominated bonds on Tuesday for which it will accept offers until January 27 and announce a result on the following day.

Varga said the state will not need to issues new FX bonds to cover the costs of the reverse auction.