ÁKK has HUF 300 bln buffer against Brexit risk


Hungaryʼs Government Debt Management Agency (ÁKK) has a financing buffer of approximately HUF 300 billion, or 1% of GDP, against market turbulence that could result from Britainʼs exit from the EU, ÁKK chief György Barcza told Reuters in an interview today, according to Hungarian news agency MTI.

“Yields have been fairly stable so far, and we saw strong demand at last weekʼs auction,” he told Reuters, when asked about possible Brexit risks. 

“The forintʼs exchange rate has been fairly stable as well, so we think the Hungarian market has been resilient to global market turbulence and ... this is expected to remain the case,” he added.

Barcza said ÁKK had built up a financing buffer of around HUF 300 bln from forint-denominated issuances this year.

He said another foreign issue this year was “a possibility but not a priority”, according to MTI.

Hungary issued a CNY 1 bln dim sum bond in April, covering a little more than one-tenth of the €1 bln in international FX bond issues it tentatively plans for the full year.

Barcza said Hungary planned to slowly build up its presence in Chinese debt markets over the next five to ten years, so it could issue there on a regular basis, and that another yuan-denominated bond this year was possible.

This could be a “Panda” bond, issued on the onshore Chinese market, he said.

“I would not rule out this possibility, but a lot will depend on regulatory authorities as the onshore bond market in China is a strongly regulated market,” he reportedly told Reuters.


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