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MNB: Hungarian state debt slightly lower in Q3

Hungaryʼs state debt, calculated according to Maastricht rules, stood at 72.4% of GDP at the end of the third quarter of 2017, down from 73.6% at the end of Q2, the National Bank of Hungary (MNB) said in an updated report on financial accounts data.

In nominal terms, state debt rose to HUF 26,956 billion from HUF 26,910 bln during the period. Net redemptions reduced the amount by HUF 8 bln, but revaluations added HUF 54 bln to the total, national news agency MTI reported.

The net financing requirement of the general government, which is a good approximation of the general government deficit, was equivalent to 2.3% of GDP in the four quarters to the end of Q3. In nominal terms, the net financing requirement reached HUF 857 bln. In Q3 alone, the net financing requirement of the general government reached HUF 252 bln, or 2.6% of GDP.

The financial accounts data show net lending of households was equivalent to 4.6% of GDP in the four quarters to the end of Q3. In nominal terms, the amount reached HUF 1.725 trillion.

On the assets side, householdsʼ holdings of long-term government securities rose most in Q3, though their holdings of cash and equities also climbed significantly, MNB said. On the liabilities side, the stock of home loans was up markedly, while the stock of consumer loans rose at a more moderate pace, it added.

Non-financial companies were net borrowers of HUF 229 bln in the four quarters to the end of Q3, equivalent to 0.6% of GDP. On the liabilities side, equities and debt securities were up.