ÁKK to buy back USD 1 bln of government bonds, says Varga

MNB

The Government Debt Management Agency (ÁKK) will be buying back USD 1 billion of high-interest rate government bonds, Finance Minister Mihály Varga told state news wire MTI on Tuesday.

The measure will decrease the debt financing costs of the government, the FX share of government debt and improve Hungaryʼs stability, the minister said.

A successful economic policy, a favorable market environment and low financing demand in 2020 are making it possible to switch out the expensive FX loan to cheaper financing with a significantly longer maturity, Varga added.

ÁKK said that it has called a reverse auction for the USD-denominated bonds on Tuesday for which it will accept offers until January 27 and announce a result on the following day.

Varga said the state will not need to issues new FX bonds to cover the costs of the reverse auction.

ADVERTISEMENT

Industries lose billions on counterfeit products Analysis

Industries lose billions on counterfeit products

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.