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Hungary plans no intʼl FX bond issues in 2019

Hungary plans no FX bond issues on international markets in 2019, the Government Debt Management Agency (ÁKK) said in a presentation on the last Friday of 2018, as reported by state news agency MTI.   

The ÁKKʼs 2019 issue plan shows the equivalent of EUR 2.1 billion of FX debt maturing in 2019, slightly less than in 2018. The amount includes EUR 1.3 bln in FX bonds issued on international markets, EUR 700 million of FX bonds issued on the domestic market, and EUR 100 mln of maturing FX credit. 

The ÁKK plans to issue a gross EUR 100 mln of Premium Euro Hungarian Government Securities (P€MÁPs) targeted at domestic investors during the year. However, as it plans no FX issues on international markets, net FX issues will come to a negative EUR 2.0 bln, according to MTI.

The ÁKK expects the share of FX debt in total state debt to decline to 17%. It plans gross issuance of HUF 9,249 bln and redemptions of HUF 7,989 bln in 2019. The resulting net issuance of HUF 1,260 bln will comprise net domestic issuance of HUF 1,894 bln and net FX issuance of negative HUF 634 bln.

The ÁKK targets an HUF 800 bln increase in the stock of securities targeted at retail investors, supported by the introduction of a new bond designed for Hungarians who want to make pension savings.    The agency also targets an increase in the average tenor of debt.