Hungary's state debt has fallen to 74 percent of GDP

The EU’s expected debt level of 60 percent can be reached in six or seven years if economic growth accelerates

Hungary’s state debt will fall to 74 percent of GDP this year despite a slightly weaker-than-expected currency, it has been reported.

“There will be no tricks, just as there were none last year, and we will manage to reduce debt,” György Barcza, the chief executive of the state debt management center AKK, told Világgazdaság.

According to MTI, the EU’s expected debt level of 60 percent can be reached in 10-15 years, but if economic growth accelerates, this period can be reduced to just six or seven years, he added.

To ease the burden on the market of forint bonds, Barcza said, next year Chinese yuan or Japanese yen-based forex bond issues will be considered.

On the subject of Hungary’s residency bonds, Barcza said that the issuance of euro bonds is now more favourable with Hungary receiving credit upgrades, and hence the residency bond program should be revisited.

Plans for introducing new types of state instruments are also on the table, he said, adding as an example that in the UK there are stamp bonds and in Sweden lottery bonds. “Only something that can survive in the long run will be considered,” he said.