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Hungary's international reserves rise €434 mln on bond reoffering in March

Hungary's international reserves stood at €36.126 billion at the end of April 2011, rising €434 million from a month earlier to a new peak, preliminary National Bank of Hungary (MNB) figures published on Friday show.

The reserves were boosted by the placement of $500 million in 30-year bonds early April. The State of Hungary reoffered bonds issued first late March in the April transaction, which was worth about €350 million. The late March issue involved ten- and 30-year bonds of a combined $3.75 billion or about €2.65 billion and pushed the reserves to an all-time high of €35.692billion.

The issues, including the most recent issue of €1 billion eight-year bonds, has been designed to refinance this year's foreign currency expiries of a combined €4 billion including two bonds of €1 billion each, due in June and in October, and €2 billion in the first repayment on Hungary's late 2008 IMF-lead international loan package in November.

The reserves at the end of April rose €2.451 billion from the end of December and were up €1.906 billion from the end of April 2010.

In euro terms, the central bank's international reserves reached their earlier peak at €35.272 billion at the end of August 2010 before dropping more than €1.9 billion by the end of October, partly due to the redemption of a €1 billion foreign bond in September. The reserves fluctuated between €33.4bn-33.8 billion between last October and February this year before the bond issues boosted them to nearly €35.6billion.

In dollar terms, Hungary's international reserves rose $2.938 billion in April, and reached $53.671 billion at the end of the month, the NBH figures show. Dollar-term reserves at the end of April were €8.683 billion higher than at the end of 2010 and were up $8.104 billion in one year.