Hungarian government plans to issue foreign currency bonds

The Hungarian government plans to issue foreign currency denominated bonds. – stated in a written response from the Ministry of National Economy to Reuters.

Matolcsi György | Financial Minister of Hungary

Matolcsi György | Financial Minister of Hungary

The fact that the government plans to issue foreign currency bonds, is just another sign that it does not really seek EU / IMF help. The NGM wrote: the foreign currency bond issuance depends on the EU / IMF negotiations.

The foreign currency bond issuance plan for official recognition and its timing seems interesting in several ways:

  • Leading politicians, decision-makers over the past half a year, repeatedly stressed that prior to/during the EU / IMF agreement, it appears, this will happen
  • The state has missed the last few months, when the foreign market was under relatively good conditions, they could have issued these bonds
  • Regardless of the EU-IMF ‘negotiations’ progress from this year probably can not be conducted in such a bond issue, because the time-consuming process (in order to be successful road show before foreign markets should be kept In essence, three weeks to go until Christmas)
  • It could be pushed to early next year, by which time it is possible that one or two more downgrades too will be made against the Hungarian government

http://index.hu/gazdasag/2012/11/28/devizaban_adosodik_ujra_az_allam/

2,496 total views, 2 views today

About the Author: Chris Kovacs

Technical Consultant, Traveller, Filmmaker & Photographer
Much like most people, I like to be all sorts of things.

__________________________________
P.S.: some of articles are edited and co-written by a mysterious person called Tatjana. But I take all the credit.