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Hungary's foreign debt at record low

The latest third quarter 2018 MNB foreign payments balance indicates that Hungary's foreign financing capacity was 3.4 percent of GDP, while its current account balance had a 1.9 percent surplus

The latest third quarter 2018 MNB foreign payments balance indicates that Hungary's foreign financing capacity was 3.4 percent of GDP, while its current account balance had a 1.9 percent surplus.

According to Rmx.news, it also showed that due to the excellent financing capacity - which well exceeds the regional average - foreign debt has continued to decrease while foreign direct investments are on the rise.

The country's current account balance  - consisting of the trade balance plus cash transfers balance - has been positive since 2010.

The overall foreign debt of the economy has been reduced by two percentage points to 58 percent. In the first three quarters of 2018, foreign direct investments (FDI) amounted to EUR 2.3 billion, a significant increase from the same period in 2017.

Short-term international debt - an important measurement of the country's vulnerability to external factors - has dropped to EUR 18.2 billion, while the country's foreign currency reserves of EUR 23.7 billion remain well above safe levels.