MNB: Net general government borrowing in Hungary 1.8% of GDP in 2015


jessica fejos

The net general government financing requirement, which is a good approximation of the general government deficit, was HUF 616 billion in 2015, equal to 1.8% of GDP, according to preliminary financial account figures published by the National Bank of Hungary (MNB) today, Hungarian new agency MTI reported.

In Q4 alone, the government had a net general financing requirement of HUF 448 bln, equivalent to 4.9% of the quarterly GDP in 2015 Q4, the preliminary figures show.

Maastricht public debt stood at 75.5% of GDP at the end of December 2015, down from 76.2% at the end of 2014. In nominal terms, Maastricht debt reached HUF 25.393 trillion at the end of December, HUF 879 bln higher than at the end of Q4 2014.

In Q4 2015 net repayments of loans reduced public debt by HUF 606 bln and the depreciation of the forint increased public debt by HUF 88 bln.

General government net liabilities amounted to HUF 23.407 tln or 69.6% of GDP at the end of 2015.

In 2015 Q4, net borrowing of the central government amounted to HUF 335 bln. On the assets side there was a sharp decline in deposits with the central bank and credit institutions, which mainly reflected large amounts of maturing government securities and redemptions. Within other assets, receivables from the European Union rose and short-term loans increased temporarily.

On the liabilities side, there was a significant decline in securities due to transactions. Within loans, repayments of long-term loans continued, but the amount was lower than in previous quarters. Within other liabilities, it was mainly trade payables and wage liabilities, which declined significantly.

Net borrowing of local governments was HUF 100 bln in 2015 Q4. Local government deposits with credit institutions fell significantly, parallel with this tax liabilities also fell. There were no significant changes in local governmentsʼ other financial assets and liabilities in the period, MNB said.

Net borrowing of social security funds was HUF 13 bln in the last quarter of 2015. On the assets side of the sub-sectorʼs balance sheet, deposits with the central government fell, while tax and social contribution claims with regard to the household sector increased. On the liabilities side, the stock of short-term loans granted by the central government increased.

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