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.
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