ÁKK: Hungary to borrow USD 25 billion in 2015

December 19, 2014


At a joint press conference held yesterday by the Ministry for National Economics and the State Debt Management Company (ÁKK), Deputy CEO László András Borbély presented Hungary’s national debt management plans for 2015.

The main points of his presentation were the following:

  • The 2015 budget projects a deficit of HUF 877 billion (USD 3.44 billion), from which HUF 192 billion (USD 753 million) is going to be covered by the net amount of EU grants.
  • HUF 5,099 billion (USD 20 billion) worth of debt comes due in 2015
  • ÁKK plans to issue HUF 5,989 billion (USD 23.5 billion) in state paper, of which
  • HUF 160 billion is to be raised through the sale of Premium euro Hungarian State Bonds
  • HUF 5,829 billion is to be raised through the sale of state paper denominated in forints, of which
    • HUF 2125 billion is to take the form of treasury bonds
    • HUF 1954 billion is to take the form of state securities to be sold to individuals
    • HUF 1527 billion is to take the form of state bills.
  • ÁKK also plans to borrow HUF 223 billion (USD 875 million) from the European Investment Bank (EIB).
  • EUR 5 billion worth of bonds come due in 2016 which ÁKK hopes to refinance in forints
  • ÁKK hopes to reduce from 55 percent to 50 percent the amount of debt in foreign hands.

Borbély claims Hungary’s foreign debt is booked in euros and thanks to swaps and other exchange rate management tools.  This is good news in light of the forint’s continued weakening against the US dollar.