Report: >25% of Hungarian debt held by European banks

MNB

As of July 1, some 25.3% of Hungary’s €18.489 billion debt was held by 33 banks based outside the country, according to a study compiled by local business news outlet Napi Gazdaság. The leading lender among the group is Belgium-based KBC Bank with €3.3 billion held; the true key player is US-based investment firm Franklin Templeton, which doubled its holdings of Hungarian debt bonds year-on-year and now controls over €16 billion worth.

The total amount of debt held by the European Banking Authority (EBA)-registered financial institutions was HUF 5.5437 trillion.

Hungary-based OTP Bank remains the largest holder of debt securities followed by KBC. Third among bondholders was Erste Bank at €2 billion. After this on Napi Gazdaság’s list came Unicredit, Raiffeisen Bank, Bayerische Landesbank and Intesa Sanpaolo.

The ‘paper further noted the presence in debt bondholding by European banks doing no business in Hungary: Germany-based Norddeutsche Landesbank holds €196 million; Landesbank Berlin, €179 million; UK-based HSBC, approximately €175 million; and Spain-based Banco Bilbao Vizcaya, €63 million.

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