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Hungary state debt 74.2% of GDP at end of Q1

Hungaryʼs state debt as a percentage of GDP reached 74.2% at the end of the first quarter, fresh data released by the National Bank of Hungary (MNB) on Thursday show. The ratio, which now includes Eximbank, is up from 73.6% at the end of Q4 2017, but down from 76.2% twelve months earlier.  

In absolute terms, Hungaryʼs state debt stood at HUF 28.044 trillion at the end of Q1, up from HUF 27.360 tln at the end of 2017, state news agency MTI reported.

Transactions accounted for HUF 626 bln of the increase during the period, and revaluations for HUF 59 bln.

The MNB recently started publishing separate state debt ratio figures, with and without the balance sheet of Magyar Eximbank, in line with a decision by Eurostat, the EUʼs statistical office, which had maintained for years that Eximbank should be reclassified inside the general government sector, raising state debt.

Excluding Eximbank, Hungaryʼs state debt ratio would have reached 72.3% of GDP at the end of Q1, up from 71.7% at the end of 2017. 

The net general government financing requirement, which MTI notes is a good approximation of the general government deficit, was HUF 939 bln in the four quarters to the end of Q1, equivalent to 2.4% of GDP.

The MNB will publish a full set of financial accounts for the institutional sectors of the national economy in the first quarter on July 2.