Hungary's Government Debt Management Agency (AKK) plans net forint securities repayments of HUF 199 billion in June-August of 2012, as compared to planned net repayments of HUF 162 billion in May-July, AKK's latest three-month forint issue plan, published on its website, shows.
Gross issues, including bonds sold at exchange auctions, are planned to total HUF 1,241 billion in June-August, about HUF 120 billion less than in May-July. Gross repayments will drop about HUF 40 billion from the previous three-month period to HUF 1,441 billion. The figure includes bonds bought back at the reverse and bond exchange auctions.
AKK plans net bond repayments worth little more than HUF 58 billion in the three months, including the early buyback of HUF 40 billion bonds at four reverse auctions and HUF 30 billion bonds to be swapped at three bond exchange auctions in the period. Including the latter, gross bond sales are planned at HUF 320 billion in the period.
HUF 51 billion of the net repayments in the three months will come from twelve-month discount T-bills, with two large expiries in the period. AKK plans to repay net HUF 90 billion of three-month discount T-bills in June-August.
The average per auction offer at the six fixed-rate bond auctions due in the period will probably be slightly over the most recent offer of HUF 42 billion, assuming the sale of HUF 20 billion bonds at the four floating-rate bond auctions planned on June 7, July 5, August 2 and on August 30.
AKK plans to auction its longest, 15-year fixed-rate bond twice during the quarter, on June 28 and on August 23.
There will be one big bond expiry on June 12, when HUF 307 billion of 2012/B bonds plus 7.25% in interest will be due.
Per-auction offers of twelve-month discount T-bills will remain at HUF 45 billion, considering the planned sale of HUF 315 billion bills at seven biweekly auctions in the period. There will be two big expiries of twelve-month bills, of HUF 190 billion on June 27 and HUF 176 billion on August 22.
The average per auction offer of three-month discount T-bills will remain HUF 45 billion, with HUF 585 billion sales planned at the 13 weekly auctions. Expiries are projected at HUF 675 billion in the period.
The tentative target for twelve-month interest-bearing T-bill sales, designed for retail investors, is HUF 21.0 billion, matching, as usual, the expiring volume.
Net forint government securities issues totaled HUF 827 billion in the first four months, or HUF 837 billion excluding non-market issues, AKK figures on its website showed.
Overall central government debt fell, however, HUF 167 billion in the first four months, including foreign exchange repayment worth HUF 175 billion in the period on Hungary's 2008 IMF loan and the effect of a forint strengthening in the period, to HUF 20,366 billion at the end of April.
The central government posted a HUF 228.2 billion deficit – 39.6% of the full-year cash flow-based deficit target of HUF 576.2 billion – in January-April.
The annual issue plan revealed in December 2011 projected the 2012 central government net financing requirement at HUF 674 billion, and put the year's net issues – 95% of it in forints – at HUF 643 billion.