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Hungary's international reserves up in July

Hungary's international reserves stood at €29.41 billion at the end of July, up €2.460 billion from a month earlier, preliminary National Bank of Hungary (MNB) figures published on Friday show. The rise presumably include Hungary's €1 billion five-year bond issue and €1.5 billion trench called down from the EU from the €20 billion IMF-EU-World Bank package agreed in last November.

The reserves were up 5.369 billion from the end of December 2008 and rose €12.178 billion from a year earlier.

In dollar terms, Hungary's international reserves stood at $41.441 billion at the end of July, up from $33.874 billion at the end of December and $25.486 billion at the end of July 2008.

Hungary has been financing the bulk of its fiscal deficit as well as expiring debt from a €20 billion international credit line approved by the IMF, EU and the World Bank last November.

Hungary called down €14 billion of the International Monetary Fund's €20 billion loan by the end of June, spent €8 billion of that and placed the remaining €6 billion in reserves.

In June, a €1.43 billion trench of the package was called down by the National Bank of Hungary (MNB), not by the State Debt Management Agency (AKK), and for this reason was not accounted in budget debt but raised international reserves. Hungary's international reserves rose €288 million in June, including redemption of a ¥50 billion five-year Samurai bond, worth about €372 million. (MTI-ECONEWS)