Early repayment

UniCredit Bank Hungary Zrt.
Fri, 04/09/2015

Hungary plans to prepay EUR 900 million of the EUR 5.5 billion foreign currency debt expiring in 2016 already this year.

Due to the large-scale retail purchases, the Hungarian Debt Agency (ÁKK) plans to already prepay EUR 900 million this year of the EUR 5.5 billion foreign currency market debt due in 2016. Among others this debt consists of EUR 1.5 billion debt due to the European Commission, a EUR 1 billion Eurobond due in July, a GBP 500 million bond due in March and securities in the amount of CHF 200 million to be paid in May.

The government securities held by domestic households grew by HUF 65 billion in the month of July, which resulted in a total volume of HUF 2,992 billion in HUF instruments owned by retail investors.

The portion of government securities that are held by retail investors in Hungary was about 20% of the total HUF denominated issuances and the share of the total debt in securities held by households (including EUR denominated issuances, such as the Premium Euro Hungarian Government Bond) increased to 15.4%.

Among retail investors, the most popular instrument remained the Interest-bearing Treasury Bill (KKJ); its volume rose by 39.8% in July compared to the previous month. The amount of Premium Hungarian Government Bond (PMÁK) sold rose by HUF 19.1 billion in July in comparison to June and increased by HUF 149.7 billion over the period of January-July. The volume of foreign currency-denominated Premium Euro Hungarian Government Bond declined by HUF 15.4 billion in July, however, in the first seven months of 2015 there was a HUF 74.2 billion growth in the stock of this paper.

Beáta Szőnyi
Senior Relationship Manager
Global Security Services Hungary