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ÁKK plans net forint gov’t debt repayments in Q4

Hungary's government debt management agency ÁKK plans net forint securities repayments of HUF 183 billion with gross issues of HUF 1,201 billion against expiries and early bond repayments of a combined HUF 1,383 billion in October-December, the issue plan for the period published on ÁKK's website on Wednesday shows.

ÁKK's previous issue plan, for September- November, showed net issues of HUF 119 billion.

ÁKK plans net forint bond repayments of HUF 33 billion, with two small expiries and one big expiry - of HUF 331 billion in 2010/B bonds on October 12 - due in the fourth quarter. Bond auctions are scheduled to continue with unchanged offers of HUF 50 billion at bi-weekly auctions. They are projected to bring in a conservatively calculated HUF 350 billion combined, and ÁKK plans to buy back HUF 50 billion of bonds early at reverse auctions during the period.

The debt manager plans to auction floating-rate bonds next on October 7 and 15-year bonds on November 4. Except for these, the regular offer is likely to remain a mix of three-, five- and ten-year fixed-rate bonds at the bi-weekly auctions.

ÁKK expects three-month discount T-bill repayments to exceed the weekly auction sales by HUF 120 billion, and a reduced auction offer - under HUF 45 billion on average - compared to the HUF 50 billion offered and HUF 60 billion recently sold of the bills to finance maturities and provide liquidity before the big year-end tax payments arrive in the Treasury in late December.

The issue plan contains HUF 30 billion of net repayment for twelve-month discount T-bills with two large maturities due - HUF 160 billion on October 20 and HUF 170 billion on December 15 - in the fourth quarter. Offers are planned at an unchanged HUF 50 billion per auction for the six auctions during the period.

Under the usual technical assumption, sales of twelve-month interest-bearing T-bills, offered weekly to the general public, are planned to match the HUF 30.7 billion expiries during the period.

The 2010 deficit target will be achieved, based on data for the period until the end of August, National Economy Minister György Matolcsy said on Tuesday. Although the January-August deficit exceeded the full-year target by HUF 218 billion, the overshoot will be offset by the HUF 200 billion bank levy which is due to be paid by the end of September and in December. The January-August deficit is usually around the full-year target, he added. This implies no net government financing requirement in the remainder of the year. (MTI – Econews)