As about 40-45 percent of Hungary’s general government debt has been denominated in foreign currencies. The duration became shorter with the IMF loan, which was unavoidable in 2008, so that the refinancing is due relatively soon, the country required further foreign currency resources. Thanks to the improving confidence in the fundamentals of Hungary and positive international investment climate and sentiment, the Government Debt Management Agency (AKK) mandated large investments banks last week to manage USD-denominated benchmark government bond issuance, after a highly successful investor roadshow. As a result altogether 3.25bn USD bonds were sold with yields slightly below the indicative levels.
For more details please check the attached document on the right side of the page!
(Ministry for National Economy)