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EU funds continue to boost central govt deposits in September, says MNB

Average deposits of the central government at the National Bank of Hungary (MNB) rose HUF 255bn in September mainly on the inflow of European Commission funding, similar to a HUF 215bn rise in August, the MNB said when publishing its preliminary statistical balance sheet on Monday.

The EU transfers were the main factor behind a HUF 695bn rise in the MNB's average foreign assets, the bank said. The rise followed a HUF 510bn increase in August. The forint value of foreign assets was also boosted by the weakening of the forint.

The increases followed a HUF 529bn drop in the central government's average deposit and a HUF 542bn drop in average central bank's external assets in July, both depleted by the government's purchase of a 21.2pc stake in Hungarian oil and gas company MOL for €1.88bn.

Central government deposits averaged HUF 1,902bn in September 2011, up HUF 903bn from the end of last December, and up HUF 555bn in one year.