MNB: Net gov’t financing requirement 2.3% of GDP in 4 quarters ending Q3

MNB

Hungary's general government net financing requirement was HUF 692 bln or 2.3% of GDP in the four quarters to Q3 2014, preliminary data on financial accounts published by the National Bank of Hungary (MNB) today reveals.

The net financing requirement was just HUF 13 bln in Q3, equivalent to 0.2% of quarterly GDP. The seasonally adjusted ratio was 1.1pc of GDP, both the lowest in the past ten years. Gross consolidated government sector debt, calculated at nominal value, in line with Maastricht methodology, reached HUF 25,112 bln, or 83% of GDP.

The end-of-September debt ratio fell from 85.0% at the end of June but was up from 79.4% at the end of 2013 and from 80.4% one year earlier.

The MNB noted that it used its own estimate to calculate quarterly GDP, and that the quarterly GDP data were computed under the old methodology, and do not reflect yet the effect of the September 2014 methodological change and revisions.

The 2013-end debt ratio was 77.3%, more than 2 percentage points lower if calculated with the revised, higher nominal annual GDP published by Hungary's Central Statistics Office on September 30.

Loan repayments reduced the debt by HUF 330 bln while the weakening of the forint added to it just HUF 6 bln, the MNB said. Net liabilities of the general government in terms stood at HUF 22,734 bln or 75.2% of the GDP at the end of September, down after jumping to 76.3% at the end of June.  The net liabilities ratio fell for the first time since the end of 2011.

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