Hungary issued USD 4.25 bln of dollar bonds with 10- and 30-year maturities earlier this week

The issues were also necessary to help cover a delay in European Union COVID recovery funds so that the recovery program can be started this year, Varga said. 

He confirmed that the government still calculates with a 7.5% budget deficit target this year and will also continue reducing the government debt. 

Answering a question, Varga said a GDP growth of around 7% seems realistic this year unless the fourth wave of the pandemic has a profound impact on economic trends.

The Government Debt Management Agency (ÁKK) said the EUR 1 bln of seven-year bonds carry fixed interest of 0.125% with a yield of 0.326%. The coupon of the bonds is the lowest ever achieved by Hungary in euro bond issues.

The issue was lead managed by BNP Paribas, Citi, Goldman Sachs Bank Europe SE, and J.P. Morgan.

ÁKK said it will use the funds raised on general financing, including partial pre-financing of the 2022 budget deficit.