Foreigners Sold Hungarian Securities Worth HUF 400 Billion In Jan-Feb.
- 6 Mar 2014 9:30 AM
Foreign investors reduced their holdings of forint-denominated Hungarian government securities by 402 billion forints, or 8%, in the first two months of this year, fresh data from Hungary’s government debt management agency ÁKK shows. After moderate net divestments in January, net sales gathered momentum in February, when foreign investors sold net 318 billion forints of the papers. Foreign investors’ holdings stood at 4.6 trillion forints at the end of February.
An all-time high of 5.2 trillion was hit early last July. After two years of massive net purchases, foreign investors withdrew slightly from Hungarian-forint securities last year, selling 14 billion forints, meaning that all last year’s net financing came from domestic investors.
And this year’s financing strategy aims to increase reliance on forint issues and on domestic investors, whose share in total debt is planned to grow to 46% from 44%.
Buyers could be domestic banks, investment service providers and institutional investors who all were massively buying government papers on the secondary market in January, the latest available figures from ÁKK show.
Source www.hungarymatters.hu
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