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Hungary has €418m c/a surplus, €806m external financing capacity in Q2

Hungary's current account surplus and external financing capacity narrowed in Q2 from Q1 2010 but the surpluses recorded were still the second largest ones since the country started to post surpluses with the crisis in Q2 last year, a report published by the National Bank of Hungary (NBH) on Thursday shows.

The Q1 financing capacity was just equal to the net inflow of transfers from the European Union, the report noted. The surplus on trade of goods and services continued to exceed the shortfall on income transfers, and the seasonally adjusted surplus on trade of goods has been growing each quarter since the start of 2009.

Hungary had a current account surplus of EUR 418m in Q2 2010, down from EUR 448m in Q1 but up from EUR 616m a year earlier, unadjusted figures in a first reading revealed.

The c/a surplus fell more, by almost EUR 100m according to seasonally adjusted figures: from EUR 491m in Q1 to EUR 398m in Q2, still the second largest surplus since the seasonally adjusted c/a balance started to show a surplus in Q3 2009.

The country's net external financing capacity -- a positive combined balance of the current account and the capital account -- dropped to EUR 806m in Q2 from EUR 867m in Q1, and from a EUR 577m financing capacity a year earlier.

After adjusting for seasonal effects, the country’s external financing capacity was EUR 688m or 2.8pc of GDP in Q2, down from EUR 743m in the previous quarter. Hungary shifted from a net external financing requirement into a financing ability in Q2 2009, seasonally adjusted figures show.

Hungary's unadjusted current account and external financing capacity turned into a surplus -- the first such surpluses posted since 1995 -- in Q2 2009 as the crisis resulted in a widening surplus on trade and services, profits of foreign-owned companies shrank and net transfers from the EU increased.

The NBH revised Q1 c/a surplus and financing capacity figures upward in the report.

The bank noted that it has carried out several retroactive revisions starting 2004. A change in the border parity resulted in higher values of import of goods in the balance of payment (as well as in GDP). Based on new information, the bank also revised households' foreign deposits and loans, unpaid dividend and trade credit figures. (MTI-Econews)