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Hungary central bank offers to buy 12 mortgage bonds at June 9 tender

The National Bank of Hungary (MNB) said it will purchase 12 varying series of mortgage bonds at its fifth secondary-market purchase tender to be held on June 9.

The bonds are the same series it had offered to buy at the previous tender on May 5.

Three of the ten bonds to be purchased by the central bank were issued by Unicredit Jelzálogbank, five of them by FHB Bank and the remaining four by OTP Bank mortgage unit, the announcement on the MNB website shows. The bonds maturity varies between 2011 and 2014.

The MNB accepted all the HUF 185m nominal-value offers it received on May 5 when demand for the facility fell sharply on general market uncertainties from HUF 28.9 billion at the previous April 21 tender when the MNB purchased HUF 9.1 billion bonds.

The MNB does not announce either a tentative volume or a price for the bonds it is ready to purchase at the next tender. Issuers or group-members of issuers are excluded from among potential sellers. With the above limitation, credit institutions who are direct members of the MNB's real-time settlement system Vibor and hold a securities account with Hungary's central depository and clearing house Keler may participate in the tender.

The tenders are part of a HUF 100 billion forint mortgage bond purchase program to prop up market liquidity and thereby forint lending announced by the MNB early in February.

The MNB has purchased HUF 5.25 billion in mortgage bonds on the primary market (all in one five-year FHB bond series) and HUF 10 billion in mortgage bonds on the secondary market and purchased to date under the program. (MTI – Econews)