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ÁKK CEO Gergely Tardos told journalists on Monday that the agency had increased its net forint issuance plan to HUF 5.397 tln from HUF 2.903 tln, while raising its net foreign currency issuance target to HUF 3.32 tln from HUF 2.541 tln.
Despite an unfavorable external environment, demand for Hungarian government securities remained strong among institutional investors in both forint and foreign currency markets, as well as among retail buyers, he said.
The revised plan increases net forint bond issuance to HUF 3.381 tln from HUF 1.723 tln, according to an ÁKK statement.
The agency lowered its net retail issuance target to HUF 798 bln from HUF 1 tln, although the original target had already been reached by early July.
ÁKK attributed the adjustment to purchases of previously issued retail securities held in distributors’ own accounts, aimed at reducing debt servicing costs. Between July and September, the agency bought back approximately HUF 400 bln of retail securities yielding at least 6%.
The net foreign currency bond issuance target was raised to HUF 2.253 tln from HUF 1.482 tln. ÁKK said issuance had already exceeded the earlier target and that it planned no further foreign currency bond issues this year.
Pre-financing for Hungary’s Recovery and Resilience Facility (RRF) programs stood at HUF 2.187 tln in August, the agency said.
ÁKK expects up to EUR 10 bln in RRF funding, less pre-financing transferred in 2023, to arrive in December.
The agency retained its benchmark target for foreign currency debt at 30% of the total, with a tolerance band of three percentage points in either direction. The share is projected to reach 28.1% at the end of 2026.
Households are expected to hold 21.5% of government debt by year-end, within the agency’s target range of 20-25%.
The average time to maturity of the debt is projected at 5.4 years at the end of 2026, slightly below the target of more than 5.5 years.
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