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MNB reports negative balance for 2005

Governor Zsigmond Járai put forward the annual accounts of the National Bank of Hungary (MNB) at its AGM on Wednesday, which showed a negative balance.

The balance sheet total of the MNB was Ft 4,711 billion on December 31, 2005, up Ft 812.3 billion on 2004, mainly as a combined result of the upward effect on the balance sheet total of net foreign currency conversion linked to the central budget and the downward effect of repayments of debt by the central budget to the bank as well as repayments of foreign debt by the bank.
Foreign exchange reserves increased by Ft 1,083.6 billion to Ft 3,931.1 billion in 2005.
Net forint-denominated interest expense was Ft 116.8 billion and net foreign currency-denominated interest income Ft 99.2 billion in 2005. The difference decreased relative to the previous year, the reason for which being the reduction in forint interest rates and an increase in foreign currency interest rates.
On December 31, 2005, the central bank had shareholder's equity of Ft 132.9 billion.