Hungarian government's net borrowing at 1.8% of GDP in Q3 2013.

By bne IntelliNews November 19, 2013

The Hungarian government's net borrowing stood at HUF 137.2bn (EUR 461mn) in Q3 2013 equalling to 1.8% of the quarterly GDP, according to preliminary financial accounts data, published by the central bank. In cumulative terms, net borrowing amounted to HUF 682.6bn, or 2.4% of the GDP in the four quarters to Q3 2013.

The central government had a net financing requirement of HUF 261.8bn in Q3. On the assets side, transactions were worth minus HUF 504.3bn on account of deposits with central bank. The drop in deposits reflected a HUF 642bn decrease in loans on the liabilities side. This was mainly due to the repayment of an IMF loan in Q3 2013. At the same time, there were relatively high positive transaction (HUF 436bn) in government debt securities in the period.

The local governments had a positive balance, as net lending stood at HUF 68.5bn. Similarly, the social security funds had a net lending of HUF 56bn in Q3 2013.

Hungary’s consolidated gross debt at nominal value, or the so-called Maastricht debt, stood at HUF 23,088bn, accounting for 79.7% of the GDP at end-September 2013, down from 81.1% at end-June 2013.

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