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Briefing notes

Credit rating agencies upgrade Hungary

Finance minister Mihály Varga pointed out that all three major credit rating agencies placed Hungary in “the recommended for investment” category.

The minister recalled some factors from the past month that explain the confidence the major credit rating agencies have in the Hungarian economy. 

He pointed out that Hungary has repaid USD 430 million in debt, saving HUF 10 billion and significantly improving the maturity of its outstanding notes. They have swapped HUF 1.3 trillion of short-term government bonds for long-term ones of between 8 and 20 years, further increasing the security of the country’s debt financing, he added.

Varga emphasized that Hungary was the first country in the world to issue Green Panda Bonds on the Chinese bond market. The near doubling of demand shows that Chinese investors also expect good results from the Hungarian economy.

He further noted that the government increased Hungary’s financial reserves by HUF 350 billion in December 2021, making Hungary better prepared to face global economic risks.

The government will also save HUF 755 billion with the rescheduled investments, improving the deficit target from 5.9 percent of GDP to 4.9 percent for 2022 and further reducing the public debt ratio. These savings will also provide the necessary resources for the repayment of PIT for families, the 13th month pension, tax exemptions for under-25s and wage increases.

Finance minister Varga said that strong growth and improving indicators are expected in the coming period. 

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