Large foreign bond repayments on behalf of the State Debt Management Agency (AKK) were the largest single factor behind a EUR 1.5 billion drop of the National Bank of Hungary's international reserves in the third quarter, the central bank's recently published report for the period shows.
The reserves stood at EUR 33.7 billion at the end of September.
The redemption of two foreign bonds issued by the state of Hungary and other state-debt related transactions commissioned by AKK reduced the reserves in the quarter by about a combined EUR 1.7 billion. These included the repayment of a JPY 30 billion Samurai bond maturing on July 12, a EUR 1 billion bond on September 27, and other debt-management-related expenditure of almost EUR 400 million.
The largest factor increasing international reserves was the net EUR 615 million transfer arriving from the European Commission. The Q3 monies brought net EU transfers to Hungary in the first nine months to just below EUR 2 billion, the cash flow-based figures in the reserves reports reveal.
Factors cutting the reserves in Q3 included foreign currency payments made on behalf of budget-funded institutions. These lowered the NBH's international reserves by EUR 250 million.
Payments related to the NBH's own debt servicing cut the reserves by a further EUR 20 million in the quarter while the rise in the short-term foreign currency deposits placed with the NBH raised them by EUR 50 million.
The strengthening of the euro against major currencies reduced the reserves by almost EUR 300 million while yields raised them by EUR 140 million. (MTI Econews)