The bills will expire on December 23, after the big year-end tax payment deadlines. Thus the issue provides liquidity without raising year-end government debt. ÁKK tends to keep year-end issues low and repayments high to keep the year-end gross state debt ratio on a falling trend.
The (usually) six-week liquidity bills are designed to manage the central government’s short-term liquidity needs. Accordingly, they are usually auctioned on a case-by-case basis.
In the first two-and-half months of 2014 ÁKK auctioned liquidity bills every Monday, however, as part of high net issuance to top up State Treasury deposits. The deposits fell sharply by the end of 2013 as ÁKK reduced issues to ensure Hungary’s year-end state debt remained on a path of decline at the end of last year.
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