What a shock! The Hungarian wonder Government Security Plus swept the financial sector

In the third quarter, out of a 100 forints, 89 was invested in government security by the Hungarian population, and thus for the first time in history, more household money lies in sovereign bonds than in bank accounts, as the preliminary financial accounts of MNB (Hungarian National Bank) show.

This year, the Hungarian state acquired 74 forints out of a 100 so far while the financial sector’s own products, especially savings of a self-provident kind, have been performing poorly. For now, cash is inexorable as well, reports Portfolio.

The gross financial assets of households will probably reach 60 thousand billion forints by the end of the year since, at the end of September, it was already estimated at 59 253 billion forints. Since meanwhile, the debt reached 9,722 billion forints, the net asset of households reached 49,532 billion forints at the end of the third quarter.

Its growth rate is higher as well: the sum of all household savings increased by 11.1% in the past year after increasing by 10.6% in 2018. Since yearly inflation was under 3%, the growth increased in real terms from 7.7% last year to 8.1% this year.

For the first time in history, the Hungarian population holds more money in sovereign bonds than in bank accounts since the former’s stock surpassed 7,400 billion forints.

The cause behind all of this is definitely the change in the sales strategy of Hungary, including the popularity of MÁP+ (Hungarian Government Security Plus).