Hungaryʼs state debt 75.5% of GDP in June
Hungaryʼs state debt, calculated according to Maastricht rules, stood at 75.5% of GDP at the end of June, down from 77.2% of GDP at the end of March, preliminary data released today by the National Bank of Hungary (MNB) show, according to news agency MTI.
In nominal terms, state debt reached HUF 25,900 billion in Q2, down from HUF 26,148 bln at the end of Q1 2016. Debt repayments reduced the nominal figure by HUF 306 bln, but revaluations increased it by HUF 58 bln in the second quarter.
Net liabilities of the general government amounted to HUF 23,262 bln, or 67.8% of GDP, at the end of the second quarter.
The net financing requirement of the general government, which is a good approximation of the general government deficit, came to HUF 376 bln, or 1.1% of GDP, in the four quarters to the end of Q2. The net financing requirement for four quarters was down from HUF 419 bln, or 1.2% of GDP, at the end of Q1.
In Q2 alone, the general government deficit, calculated from the financing side, was HUF 89 bln, or 1% of quarterly GDP. In Q1 net repayments were HUF 22 bln, or 0.3% of GDP.
In Q2 net borrowing of the central government amounted to HUF 28 bln. On the assets side of the sub-sectorʼs balance sheet, there was a decline in deposits with the central bank, mainly reflecting repayments of borrowing abroad. On the liabilities side, there were significant net issues of short-term government securities, although less than in the previous quarter. Liabilities of the central government fell overall.
Net borrowing of local governments was HUF 75 bln in the second quarter. Within the sub-sectorʼs financial assets, local government deposits with credit institutions fell significantly, but securities held by local governments continued to increase.
The social security funds closed with a surplus of HUF 13 bln in Q2. On the assets side of the sub-sectorʼs balance sheet, deposits held with the central government increased. Liabilities of social security funds remained broadly unchanged.
Net savings of households were equivalent to 5.8% of quarterly GDP in the four quarters to Q2 2016, and 5.5% of quarterly GDP in April-June 2016. In nominal terms, householdsʼ net savings totaled HUF 1,973 bln in the four quarters to Q2, and HUF 477 bln in the second quarter itself.
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