Hungarian gov't to raise a lot of foreign currency loans in 2023

Next year, the foreign exchange ratio of the budget debt will rise to close to 28%, close to the upper end of the target range raised by the Debt Management Agency

the Fiscal Council writes in its opinion on the 2023 budget amendment. This means that next year's budget foresees significant foreign currency debt issuance.

The Government Debt Management Agency (ÁKK) had previously set a target of a foreign exchange rate below 25%, but has recently raised this to 30% due to a lack of EU funds. In its October statement, the debt manager said the foreign exchange rate was below 24%, but it has since risen slightly and the year could end with a rate above 25%. Further substantial foreign currency bond issuance is expected under the 2023 draft budget.On the 2023 financing plan, Finance Minister Mihály Varga said recently that further foreign currency bond issuances are planned for the first half of next year and that the aim remains to buy back dollar bonds.

We wrote about the Fiscal Council's Opinion in these articles:

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