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