Varga says FX bond issuance possible, depending on market developments

Budapest, June 24 (MTI) – It is conceivable that Hungary may issue foreign currency bonds if developments on the market warrant such a move, though the government is focusing on financing mainly using forint-denominated securities, the economy minister said.

In an interview to Wednesday’s Napi Gazdasag daily, Mihaly Varga also said that it was possible the state would acquire more shares in the banking sector.

Talking about the budget, Varga said experts were continually monitoring budgetary trends and there was no sign the government would miss its deficit target. In fact, growth is expected to be more positive than initially forecast, and a decline in yields since means there is more fiscal room for manoeuvre, he added.

On the topic of loans in foreign currency, the minister said the central bank and the banking association were examining the possibility of forint conversions of the remaining, negligible amount of retail FX debt.

Photo: MTI

Source: http://mtva.hu/hu/hungary-matters