ÁKK to pre-finance €900 mln of maturing FX debt

MNB

Strong sales of government securities to retail investors will allow the Government Debt Management Agency (ÁKK) to make an early repayment of €900 mln in Hungarian FX debt this year, ÁKK said yesterday, according to state news agency MTI. 

ÁKK noted that Hungary is facing €5.5 bln of FX expiries next year. A week earlier, ÁKK Chief Executive György Barcza said Hungary would make early repayments on at least €1.2 bln of its FX debt this year, but it could pre-finance even more if forint issues continue to exceed expiries.

ÁKK has sold HUF 360 bln more in forint government securities than maturing papers, which is approximately €1.2 bln, Barcza said in an interview with Portfolio.hu. "Basically, thatʼs the amount we can use for pre-financing this year," he added.

Outstanding stock of government securities targeted at retail investors rose by about HUF 65 bln to almost HUF 2.992 trillion in July, ÁKK said on Wednesday. The stock accounted for nearly 20% of total forint government securities. Including householdsʼ holdings of Premium Euro Government Bonds, retail securities reached 15.4% of total state debt, ÁKK said.

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