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Local council payments on muni bond stock set to jump from 2011

Local councils' payments on municipal bonds are set to jump from around HUF 30 billion in 2010 to HUF 50 billion – HUF 60 billion in 2011 and 2013 as grace periods on bonds issued in 2007 and 2008 end, Gulya Bunna, director of the PricewaterhouseCoopers (PwC) office in Hungary, said.

Total municipal bond stock was about HUF 500 billion at the end of 2009. Between 90% and 95% was subscribed by Hungarian banks.

About 81% of the stock was denominated in Swiss francs, 7% in euros and 12% in forints.

Local councils had more than HUF 500 billion in outstanding loans at the end of the year. (MTI – Econews)