Hungary’s Intl Reserves Fall, But Remain Well Over Short-Term Debt In Q3 - NBH
- 6 Jan 2016 8:00 AM
The National Bank of Hungary’s international reserves fell by 2.6 billion euros to 32.1 billion in the third quarter, but were still well over the country’s short-term external debt, a central bank quarterly report shows. As Hungary’s gross short-term debt stood at 21.7 billion euros at the end of Q3, the international reserves well exceed the 1:1 ratio prescribed under the Guidotti-Greenspan rule, the NBH noted in the Balance of Payments report.
The international reserves fell by 7.5% during the quarter on debt repayments by the state and the drawdown of swaps related to a conversion of retail FX loans into forints.
The short-term debt dropped by 2.1 billion euros, or around 10%, as banks’ debt fell some 2.2 billion on the FX conversion to 8.2 billion at the end of September.
Non-financial companies’ short-term debt also dropped by nearly 300 million, to 5.8 billion euros, but the short-term debt of the general government rose by around 633 million to 6.3 billion.
The short-term debt accounted for 26% of Hungary’s total 83.5 billion euros of gross external debt at the end of the period.
Source www.hungarymatters.hu - Visit Hungary Matters to sign-up for MTI’s twice-daily newsletter.
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