Bloomberg: Hungary puts window for possible FX bond issue in H1

Budapest, February 28 (MTI) – Should government decide to sell a forex bond this year it will tap markets by the end of June, the economy ministry told MTI, summarising an interview the minister gave to Bloomberg.

“If it makes any sense to sell Eurobonds this year, it will obviously be in the first half of the year,” Mihály Varga told Bloomberg. “There’s been a change in behaviour by the US Federal Reserve and the European Central Bank. It may no longer make sense to sell Eurobonds in the second half of the year,” he added.

While the cabinet can still opt to skip a sale this year, it shouldn’t limit its opportunities, Varga said.

Late last year Varga said the government planned FX issues of 1.2 billion euros in 2017, but the volume could vary depending on market possibilities. Hungary could tap euro, USD, yuan or yen bond markets, he added.

National Bank of Hungary officials have suggested that Hungary would be better off financing its debt with forint, rather than FX, issues this year.

Source: MTI