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Net borrowing of gen govt reaches 4.7% of GDP in 2010

Net borrowing of the general government reached HUF 1,277 billion in 2010 or 4.7% of GDP, preliminary financial accounts data published by the National Bank of Hungary on Wednesday show.

Excluding the MNB's operating profit, general government net borrowing from the financial accounts came to HUF 1,185 billion or 4.4% of GDP.

Consolidated gross debt of the general government at nominal value came to HUF 21,790 billion or 80.1% of GDP at the end of 2010. General government net debt came to HUF 16,497 billion or 60.6% of GDP.

Net lending – or net financial savings – of households was equivalent to 1,238 billion or 4.5% of GDP in 2010.

In Q4, general government net borrowing came to HUF 208 billion or 2.7% of quarterly GDP. The general government financed its borrowing requirement by reducing both its deposits and loans provided.

Local governments financed their borrowing requirement of HUF 107 billion in Q4 mainly by reducing their deposits and increasing their loan liabilities. Their other liabilities fell significantly in the period, the MNB said.

Net lending of social security funds, also HUF 107 billion in Q4, reflected an increase in other assets and a decline in loans from the central government.

Net lending of households came to HUF 354 billion in Q4 or 4.6% of quarterly GDP.

Redirecting private pension contribution payments to the state pension system in Q4 reduced household net lending by HUF 90 billion and cut general government net borrowing by the same amount, the MNB said. (MTI-Econews)