ÁKK chief: Hungary to refinance maturing FX debt mainly with forint issues
Hungary will refinance its maturing FX debt mainly with forint issues, but will also issue FX debt if necessary, the head of the Government Debt Management Agency (ÁKK) told journalists today, Hungarian news agency MTI reported.
Barcza noted that ÁKKʼs issue plan for this year includes €1 billion in FX bonds to be subscribed by international investors. This can be issued in euros, yuan or dollars, or in all three currencies at once, he added.
ÁKK is in agreement with the National Economy Ministry that the proportion of Hungaryʼs state debt denominated in foreign currency should be reduced under the 32% rate at present, he said.
If Hungaryʼs sovereign rating is upgraded, it will broaden its range of potential investors, Barcza said. Upgrades usually cause yields to fall, but the scale of such a decline depends on the degree to which investors have already priced in the action.
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