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Hungary’s budget debt rises Ft 380 bln in H1

Hungary's budget debt stood at Ft 15,966 billion at the end of June, up Ft 380 billion from the end of last year, including the effect of Ft 311 billion in exchange-rate gains resulting from the strengthening of the forint.

Most of the debt increase stemmed from Ft 350 billion net issue of government bonds and T-bills.

Hungary's foreign currency-denominated budget debt rose just Ft 33.9 billion in January-June to Ft 4,507 billion as a result of Ft 426 billion in bond issue and Ft 131 billion in borrowing, while Ft 212 billion in debt repayment and the exchange-rate gain reduced the value calculated in forint terms. Budget funds were raised from the issue of CHF 150 million in 5-year bonds, CHF 200 million in 8-year bonds and €1.5 billion in 10-year bonds. The total stock of outstanding bonds amounted to Ft 3,801 billion, Ft 174 billion more than at the end of last year including the effect of Ft 252 billion in exchange-rate gains. Budget debt from foreign loans decreased by Ft 140 billion in H1 to Ft 706 billion as the result of Ft 140 billion in borrowing, Ft 212 billion in repayment and exchange-rate gains of Ft 59 billion, finance ministry figures show.

Forint-denominated budget debt rose to Ft 11,454 billion from the issue of Ft 261 billion in government bonds and a Ft 114 billion rise in the stock of treasury bills, while the outstanding amount of treasury provident bills fell Ft 4.7 billion in the first six months of the year.

Foreign investors held government bonds and T-bills of a total value of Ft 3,070 billion at the end of last month, down Ft 62 billion from the end of May and Ft 171 billion less than at the end of last year. Within this, 93.8% of the total holdings, Ft 2,881 billion, were in bonds and the rest in T-bills with a maturity of less than one year. The average duration until expiration was 4.3 years. (MTI – Econews)