Economy
Hungary plans no Eurobond issue before IMF/EU credit deal - ÁKK Dep.CEO
“We have accepted the stance of the Economy Ministry on this ... which has made a statement (earlier) saying that until the IMF deal there is no foreign currency (bond) issuance," Reuters cited Borbély as telling the radio.
Based on the Deputy CEO’s remark we can say that uncertainties about whether Hungary will go to international capital markets for funds before it can strike a credit deal with the IMF/EU seem to be over.
Hungarian government officials said formal talks with the IMF can hopefully start next month and be concluded realistically in the autumn.
In any case, the success of a Eurobond issuance remains questionable for a number of reasons. One of these is the global investment environment. Another is that such a move may deliver a bad message for market players, i.e. that the cabinet is not committed enough to inking the credit deal. Moreover, an FX bond could be sold at much lower interest after the deal than before.
Based on the Deputy CEO’s remark we can say that uncertainties about whether Hungary will go to international capital markets for funds before it can strike a credit deal with the IMF/EU seem to be over.
Hungarian government officials said formal talks with the IMF can hopefully start next month and be concluded realistically in the autumn.
In any case, the success of a Eurobond issuance remains questionable for a number of reasons. One of these is the global investment environment. Another is that such a move may deliver a bad message for market players, i.e. that the cabinet is not committed enough to inking the credit deal. Moreover, an FX bond could be sold at much lower interest after the deal than before.
