The Hungarian government's net borrowing stood at HUF 228.7bn (EUR 757mn) in Q4 2012, equalling to 3% of the quarterly GDP, the central bank said. In cumulative terms, the government’s net borrowing amounted to HUF 584bn, or 2.1% of the GDP in 2012. The central government had a net borrowing of HUF 308.9bn in Q4. Transactions in financial liabilities stood at minus HUF 182bn, which was due to significant decline in loans and other accounts payable. By contrast, transactions in securities raised the stock, which was mainly on account of purchases of government bonds. On the assets side, transactions were worth minus HUF 490.9bn reflecting a decrease in deposits. The local governments had a positive balance, as net lending stood at HUF 70.2bn. Similarly, the social security funds had a net financing capacity of HUF 10bn in Q4.
Hungary’s consolidated gross debt at nominal value, or the so-called Maastricht debt, stood at HUF 22,381bn, accounting for 79.2% of the GDP at end-2012, up from 78.4% at end-September 2012. The rise was mainly due to the weakening of the forint as revaluation amounted to HUF 278bn.
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