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ÁAK bond proceeds will not be converted on market

Despite expectations, Hungary's National Motorway Rt (ÁAK) will not be a big buyer of forint against foreign currency on the interbank market in the autumn, central bank president Zsigmond Járai told Reuters on Monday.
Járai said after a surprise 50-bps rate cut that state motorway management company ÁAK would convert the proceeds of a big bond issue planned for the autumn through the central bank rather than on the market. He said expectations that the conversions would be made on the market had been one factor behind the forint's recent firming.
ÁAK plans to issue bonds worth Ft 690 billion (Euro 2.83 billion) by the end of September, according to an announcement by the Economy Ministry in April. Járai said ÁAK would convert some Euro 1.7 billion borrowed abroad into forints through the central bank, and not on the market.