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Hungary state debt manager does not expect 2012 financing to pose problem

MNB

Hungary's Government Debt Management Agency (ÁKK) chief Gyula Pleschinger said he sees no problem with government financing in 2012, when €4.7bn in foreign exchange debt and HUF 800bn in forint bonds will expire.

The foreign exchange expiries include the repayments due next year on Hungary's IMF-led international loan package signed at the peak of the international financial crisis, Pleschinger said.

Speaking on public television on Friday morning, Pleschinger said he expected Hungary to refinance the amount on the market without any problem.

Next year's foreign-exchange expiries are €700m over this year's €4bn that had been refinanced through USD- and EUR-denominated bond issues during the spring.

The forint expiries will be HUF 300bn lower than this year, he said.

ÁKK's policy is to smooth out debt repayments, issuing when the market is receptive and repurchasing papers whose expiries are nearing.

Financing will probably be tighter until 2016, when Hungary's IMF-led package will be fully repaid, and easier thereafter.

Pleschinger said the government's plan to cut gross government debt as a percentage of GDP from a projected 73% at the end of this year to 72% by end of 2012 was realistic, noting that exchange-rate changes may affect the actual rates.

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