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Nov 17, 2016

Hungary's state debt drops to 74.2 percent of GDP

The state debt numbers are down from 75.0 percent at the end of Q2, and 74.7 percent at the end of last year

Hungary's state debt has dropped to 74.2 percent of GDP at the end of the third quarter of 2016, it has been revealed.

The numbers are down from 75.0 percent at the end of Q2, and 74.7 percent at the end of last year.

The Budapest Business Journal says the figures reflect consolidated gross general government debt at nominal value, excluding other liabilities, in line with Maastricht rules. 

In absolute terms, state debt stood at 25,883 billion HUF at the end of the quarter, compared to 25,908 billion HUF at the end of June and 25,402 billion HUF at the end of last year.

In Q3, the downward revaluation of foreign currency debt reduced state debt by 178 billion HUF, but this was partially offset by net borrowing of 153 billion HUF, according to data released by the National Bank of Hungary (MNB).

MTI reports that net liabilities of the general government came to 22,589 billion HUF, or 64.7 percent of GDP, at the end of the quarter.

The net general government financing capacity, which is a good approximation of the general government deficit, was 8 billion HUF in the four quarters to Q3, equivalent to 0.02 percent of GDP.

In Q3 alone, the central government was a net lender to the tune of 315 billion HUF. Net lending of local governments came to 64 billion HUF, while the social security funds were net borrowers of 33 billion HUF.