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Hungary to start roadshow for foreign bond

Hungary will begin a roadshow in London next month in preparation for an eventual foreign bond issue, Finance Minister Péter Oszkó told MTI.

The roadshow, which will continue in Frankfurt and Paris and move overseas in the middle of the summer, will offer an opportunity to explain investors the ways in which Hungary is handling the economic crisis, Oszkó said.

As opposed to most countries, “we are not increasing debt (to fight the recession), but we are preserving the low deficit, and carry out the savings measures now that other countries will be forced to take after the crisis,” the finance minister said.

The Hungarian crisis-management model can demonstrate to investors that Hungary's financing involves decreasing risks, Oszkó said, referring to the recent decline of the country's CDS margins. The propensity of investors to take risks is a factor of uncertainty at a global level.

If it develops favorably, however, Hungary can sell increasing volumes on the government securities market and can return to the foreign bond market, Oszkó said. (MTI - Econews)