Gov't guarantees on liabilities climb over 8% of GDP in 2020

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Hungarian government guarantees on liabilities reached HUF 3.922 tln at the end of 2020, the equivalent of 8.2% of GDP, state news wire MTI reports, citing data released by Eurostat.

The ratio rose from 6.4% a year earlier, climbing with rates in other European Union member states as governments used guarantees as a stimulus tool during the coronavirus crisis.

In a regional comparison, government guarantees on liabilities in Czechia stood at 0.6% of GDP, while the rate was 2.2% in Poland and just 0.1% in Slovakia.

Government guarantees on liabilities are the most common form of contingent liabilities in EU member states. 

Hungary's off-balance public-private partnerships (PPPs) stood at the equivalent of 1.1% of GDP in 2020.

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