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Hungary general govt financing requirement 2.9% of GDP in Q3

Hungary’s general government had a net financing requirement of HUF 209bn or 2.9% of the period’s GDP in the third quarter of 2011, the National Bank of Hungary (MNB) said based on preliminary financial accounts data on Wednesday. Gross state debt rose in the quarter to 82% of GDP.

Hungary had a net general government financing capacity of HUF 1,499bn or 5.4% of GDP in the four quarters ending Q3 this year, the preliminary figures show.

Excluding the transfer of private pension fund assets to the state, Hungary’s general government had a net financing requirement of HUF 1,179bn or 4.2% of GDP in the four quarters ending Q3 2011.

General government consolidated gross debt at nominal value - debt according to Maastricht calculations - amounted to HUF 22,929bn or 82.0% of GDP at the end of September.

Gross debt was up HUF 1.693bn from the end of June when it stood at 76.8% of GDP.

Gross debt was boosted in the third quarter in a 65:35 proportion by revaluation, including exchange rate changes, and by transactions, the report noted, in a likely reference to the state purchase of a 21% stake in MOL in July among others.

In Q2 gross debt fell in Q2 mainly because of the withdrawal of government securities that were part of pension fund assets transfer.