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Budget debt up 14.4% in January-September

Foreign currency- and forint-denominated debt of the central government rose a combined Ft 1,841.5 billion (14.4%) in January-September, compared to a Ft 1,229.9 billion (10.6%) increase in the same period a year earlier, fresh figures published by the Finance Ministry and the Government Debt Management Center (ÁKK) reveal.

At the end of September, gross debt of the central budget stood at Ft 14,607.1 billion, 62.4% of projected GDP, including Ft 10,106.8 billion of forint-denominated and Ft 4.493.7 billion of foreign currency-denominated debt.
Foreign currency-denominated debt accounted for 30.8% of the total. Foreign currency denominated budget debt increased Ft 903.1 billion (25.2%) in January-September, roughly in line with the Ft 814.1 billion (27.3%) rise in the same period a year earlier. Exchange rate losses, however, accounted for Ft 325.9 billion of this year's increase, as opposed to Ft 56.4 billion in the same period last year. Forex debt of the central budget in government securities grew by Ft 750.1 billion to Ft 3,620.2 billion in January-September as the result of Ft 675.8 billion in fresh borrowing, Ft 186.7 billion in redemptions and Ft 261.1 billion of exchange rate losses.
Forint-denominated government debt rose Ft 953.3 billion (10.4%) in January-September 2006 compared to a Ft 415.7 billion (4.8%) increase in the same period a year earlier. Within this, the stock of government bonds with maturities over a year rose Ft 454 billion to Ft 6,753.5 billion, and the stock of discount treasury bills increased Ft 614.2 billion to Ft 2,145.2 billion. Foreign investors held Ft 2,697.5 billion of forint-denominated government securities (94.4% in bonds and the rest in T-bills) at the end of September, Ft 95.2 billion more than at the end of last year, the ÁKK said.