No need to revise Hungary's 2024 financing plan, says debt manager
As Portfolio previously reported, the government has published the deficit figures for this year as part of the Excessive Deficit Procedure (EDP) Report to Eurostat, the EU's statistical office. The report shows that the cabinet expects a cash deficit of HUF 4,790 billion by 2024, which is more than HUF 800 billion higher than the spring projection.
The ÁKK says there is no need to updated the financing plan for this year, as the institutional forint issuances turned out better than expected in the first nine months of the year. As a result of this, the debt manager
has sufficient buffer for a higher cash-flow basis deficit and can even decrease FX issuance compared to plans.
The ÁKK also noted that contrary to previous plans, and with particular regard to the 30% FX debt share benchmark, there will be neither an FX issuance in the Chinese market, nor a private placement in 2024, which
could result in a lower FX debt ratio at the end of the year.
"The prorated fulfilment of the 2024 Financing Plan is favourable in the first three quarters compared to the updated cash-flow basis deficit, because the HUF institutional bond and T-Bill issuances are well above the target. The retail market is on track to meet 2024 targets. Further FX bond issuances cannot be expected for 2024."
By the end of September 2024, 77% of the 2024 annual funding plan was met, exceeding the planned amount pro rata temporis.
Cover photo: Shutterstock
