MNB: Government debt at 80.2% of GDP
According to figures released by the National Bank of Hungary (MNB) today, the central government’s consolidated gross debt was at 80.2% at the end of third quarter 2013. By comparison, at 2012’s end, the ratio measured 79.8%.
Local business news outlet Portfolio.hu opined that “The figures highlight a number of interesting phenomena,” including “The stock of investment notes, the popularity of which suffered a huge blow during the crisis, has risen to an all-time high” and that “Although [corporations] have taken out a massive volume of loans, their financing capacity leaped to a never-before-seen high.”
The new MNB numbers further showed that the trend of Hungarian households in debt reduction continues. Net lending was stable again, the nearly 1.5 trillion taken in the four quarters through September 2013 representing approximately 5.2% of GDP.
MNB reported last week in preliminary data that households were net borrowers of HUF 3.7 billion in forint loans in November and repaid HUF 26.6 billion of foreign currency-denominated loans. But their outstanding debt to banks still rose by HUF 33.2 billion as revaluations and other changes – mainly the weakening forint – raised lending stock.
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