Gov't Guarantees on Liabilities Climb Over 9% of GDP in 2021

Government

Hungarian government guarantees on liabilities reached HUF 5.024 trillion at the end of 2021, the equivalent of 9.1% of GDP, data released by Eurostat show.

The ratio rose from 8.1% 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 the Czech Republic stood at 0.7% of GDP, while the rate was 3.1% in Poland and 1% in Slovakia. The ratio was as high as 17.3% of GDP in Germany and as low as 0.3% in Ireland.

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 0.9% of GDP in 2021, down from 1.1% a year earlier.

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