Debt rose Ft 226 billion as a result of new debt issuance, while the forint's appreciation reduced the debt by Ft 315 billion.

Hungary's net debt stood at 62.1% of GDP, at Ft 17.7 trillion.

The early repayment of the IMF loan could further lower Hungary's gross debt in the third quarter, said Istvan Horvath, investment director of fund manager K&H Alapkezelo.

The outlook for Hungarian assets will largely depend on the extent to which the US Federal Reserve tapers its bond buying programme, which will keep emerging market assets under pressure, Horvath added.

The state debt manager AKK plans to issue Ft 300 billion fewer bonds than mature this year, which itself will amount to a one percentage point drop in the state debt, said Takarekbank analyst Gergely Suppan. He projects the state debt to fall to 79% of GDP by year’s end.

Source: Hungary Around the Clock

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