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Hungary’s net gov’t financing requirement 3.1% of GDP

Hungary's net general government financing requirement - a measure close to the EU-conform ESA95 fiscal deficit - was a preliminary 3.1% of GDP (HUF 809 billion) in nominal terms in 2008, the Central Bank (MNB) reported.

The ratio fell sharply from 5.0% in 2007 while it was slightly up from 2.9% in the preceding four quarters ending last September.

Net government financing requirement reached HUF 584 billion or 8.3% of GDP in the fourth quarter of 2008, according to preliminary financial accounts figures. The MNB noted that the figures include support to Hungarian railways MÁV worth 0.4% of the annual GDP. The support was financed from the sale of MÁV Cargo, MÁV's freight unit.

The seasonally adjusted net general government financing requirement was 2.9% of the quarter's GDP in Q4 2008, slightly up from 2.9pc in the third quarter, and up from 3.3% in Q4 2007.

Gross consolidated debt of the general government, calculated at nominal value using EU (Maastricht) methodology, was HUF 19,318 billion or 73.0% of GDP at the end of 2008, according to the preliminary figures.

Net government debt stood at HUF 13,589 billion or 51.3% of GDP at the end of last year. (MTI – Econews)