Hungary net gov’t financing requirement 4.8% of GDP in four quarters ending Q1


Hungary's general government net financing requirement reached 3.1% in the first quarter of 2011 and reached 4.8% of GDP in the four quarters ending Q1, the National Bank of Hungary said in a second reading of financial account data on Monday.

The financing requirement as a percentage of the quarter's GDP fell from an upward revised 6.3% in Q4 last year.

 Seasonally adjusted financing requirement was 5.3% of GDP in Q1, slightly down from 5.5% in Q4 2011.

Gross state debt, under the Maastricht definition, fell from 80.6% of GDP, at the end of Q4 2011 to 79.0% at the end of March 2012.

In nominal terms, Maastricht debt dropped HUF 294 billion in Q1 to HUF 22,399 billion at the end of March. Transactions raised the debt by HUF 300 billion while the weakening of the forint reduced it by HUF 594 billion in the period.

The MNB noted that early fx mortgage repayments at a preferential rate under a government scheme affected the general government (as well as household's) net capacity both in Q4 last year and Q1 this year. The general government gave a capital transfer worth HUF 49 billion in Q4 and HUF 55 billion in Q1 to households through footing part of the losses – of HUF 174 billion in Q4 and HUF 196 billion in Q1 – banks suffered on the scheme.

Hungary's general government had net financing requirement of 5.3% of GDP for the full last year, excluding the effect of transfers of private pension fund assets to the state, NBH figures show. Including the pension assets transfer – a capital transfer from households to the government, worth 9.5% of GDP – Hungary had a general government net financing capacity of 4.2% of GDP in 2011.

The 2011 financing requirement was revised up 0.1 percentage-point and the financing surplus was revised 0.1 percentage point down from the ratio reported on April 2.

MET Group Wins TXF 'Commodity Financing Deal of the Year' Energy Trade

MET Group Wins TXF 'Commodity Financing Deal of the Year'

Polish Unemployment Falls in April World

Polish Unemployment Falls in April

Gov't Aims to Increase Employment Rate to 85% HR

Gov't Aims to Increase Employment Rate to 85%

Tourism Nights Spent in Hungary Down Slightly in April Tourism

Tourism Nights Spent in Hungary Down Slightly in April


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.