There is no secret behind what I’ve said today morning since Eurostat regulations prescribe that foreign currency debt needs to be re-calculated to forint based on the end-year EUR/HUF exchange rate therefore “it makes a difference how the forint exchange rate turns out," responded Economy Minister Mihály Varga to Portfolio’s request to elaborate what he said in a radio interview on Friday morning.
Varga said Eurostat rules dictate that the end of the year is the day “when public debt needs to be in its best shape" but the goal is not just to reduce the debt-to-GDP ratio but also to have a more favourable forint exchange rate.
He noted that “current developments are favourable", as the forint is quoted around 310 versus the euro and we trust the new debt ratio at the end of this year will be under 79.4% of GDP recorded at the end of last year. This was what I was referring to in the morning interview today, he explained.
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