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.