ADVERTISEMENT

MNB Bond Funding for Growth Scheme purchases climb over HUF 215 bln

Debt

Photo by Adriana Iacob/Shutterstock.com

The National Bank of Hungary (MNB) has so far purchased HUF 215.2 billion of corporate bonds in the framework of its Bond Funding for Growth Scheme (BGS), state news wire MTI reports citing data published by MNB.

Image by Adriana Iacob/Shutterstock.com

The purchases, made between September of last year and April 2020, include HUF 176.1 bln on the primary market and HUF 39.1 bln on the secondary market.

The data for April show the MNB bought HUF 0.5 bln of a bond issued by Aranynektar and HUF 1.5 bln of a bond issued by Autowallis on the primary market. MNB bought a further HUF 0.2 bln of the Aranynektár bond and HUF 0.55 bln of the AutoWallis bond on the secondary market, too.

MNB launched the BGS on July 1, 2019 with the aim of beefing up Hungaryʼs relatively small corporate bond market. The program limits the MNBʼs purchases to 70% of a series and caps its exposure to any corporate group at HUF 20 bln.

Central bank policymakers decided in December to raise the allocation for the program from HUF 300 bln to HUF 450 bln. In April this year, MNB raised the per corporate group cap to HUF 50 bln and raised the limit on the maturity of bonds issued in the scheme from 10 years to 20 years. The changes were part of a series of MNB measures to mitigate the effect of the pandemic on funding conditions in April.

In a further change, MNB added the 10 biggest locally based investment fund managers to its regular money market partners as the entities from whom it may buy BGS bonds on the secondary market. 

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.