FACTBOX-Hungary’s debts and obligations

BUDAPEST, Feb 11 (BestGrowthStock) – Hungary, the first European
Union (EU) member forced to turn to the International Monetary
Fund for aid in 2008, has since stabilised its finances and has
successfully tapped international markets in 2009 and this year.

Its public debt as a percentage of gross domestic product is
seen at about 80 percent this year compared with 52 percent in
2001, mostly due to heavy overspending between 2002-2006.

Hungary’s current financing deal with the IMF/EU will expire
in Oct. 2010 and the next government will have to decide whether
to sign a new agreement with international lenders.

Although the country does not plan to draw on fresh funds
from the IMF/EU package this year as it finances itself from the
market again, it may need a new financing deal as a safety
buffer in case global risk appetite drops and difficulties arise
in selling its debt.

Hungary’s annual state debt expiry will jump to well over
2,000 billion forints ($10.30 billion) in 2011-2014, compared
with about 1,500 billion in 2010, excluding short term forint
debt – Treasury bills and papers sold to Hungarian households.

PUBLIC DEBT IN CEE AND SOUTHERN EURO ZONE STATES

(2009 estimated, pct of GDP, rounded)

CEE

Czech Republic: 35 pct

Hungary: 78 pct

Poland: 50 pct

Romania: 14 pct (2008)

SOUTHERN EURO pls see debt factbox [ID:nLDE5BE1KA]

Greece: 113 pct

Italy: 115 pct

Portugal: 77 pct

CENTRAL STATE BUDGET’S DEBT STOCK AND EXPIRY

(in billion forints)

Stock 2010 2011 2012 2013 2014
*Forint debt 10,476 3,190 1,103 1,030 1,083 544
-Government bonds
sold publicly 7,552 1,137 1,082 1,025 875 416
-Other govt bonds 424 7 5 5 208 50
-Treasury bills 1,647 1,647 N/A N/A N/A N/A
-Papers sold
to households 414 398 16 N/A N/A N/A
-Forint loans 439 0 0 0 0 79
*Foreign ccy debt 8,467 355 1,149 1,241 1,340 1,528
-Loans from abroad 4,086 37 582 878 953 784
-Syndicated loans 27 0 27 N/A N/A N/A
-Bonds 4,354 318 540 363 388 744
TOTAL 18,943 3,545 2,252 2,271 2,424 2,072

NOTE – As of Dec 31. 2009, rounded preliminary figures from
the Debt Management Agency AKK.
(http://www.akk.hu/kepek/upload/lejaratiszerkezet/lejarszerkHU20091231.xls). Treasury bills expire within a year.

Repayments to IMF/EU belong under “loans from abroad”.

Stock Analysis

(Reporting by Sandor Peto)

FACTBOX-Hungary’s debts and obligations