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Hungary has prelim €344m c/a surplus, €793m financing capacity in Q1

Hungary posted a current account surplus of €344m in Q1 2010, smaller than the €446 million in Q4 last year. The foreign financing capacity - a positive combined balance of the current account and the capital account - grew to €793 million in Q1 from €645 million in Q4 last year, the National Bank of Hungary (MNB) said in its preliminary current account report on Wednesday.

After adjusting for seasonal effects, the country’s external financing capacity was 2.7% of GDP in Q1. The balance of EU transfers, recorded as current and capital transfers, contributed €660 million to Hungary’s financing capacity.

Hungary's 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 annual current account surplus was €153 million last year, with net external financing capacity reaching €1.414 billion, the MNB said in its latest update on Wednesday. (MTI-Econews)