Rating agencies optimistic about Hungarian economy
Hungary also traded 1.3 trillion forints of short-term government bonds for long-term bonds with a maturity of between 8 and 20 years, he noted. Last year, Hungary also became the first country in the world to successfully issue a green “panda” bond destined for the Chinese domestic market, he added. Hungary’s repayment of $ 430 million in public debt before maturity, which saved the country 10 billion forints (27 million euros), reinforces this confidence, Varga said in a Facebook post.
The government also saved 755 billion forints by postponing several public investments, allowing it to lower its budget deficit target for 2022 to 4.9% of GDP from 5.9% and to continue reducing public debt, said The Minister.
Another factor that has boosted investor confidence, he said, is that Hungary last month increased its financial reserves by 350 billion forints. Varga added that this would be of great help to the country when it comes to global economic risks.
Why does the Hungarian forint exchange rate continue to decline?
Looking at the drastic change in Hungary’s monetary policy over the past few decades, the weakening seems rather unsurprising.
Hungary’s budget also has the resources to cover measures such as tax breaks for families, the 13-month pension, income tax exemptions for people under 25 and salary increases, did he declare.
featured image via Lajos Soós / MTI
News Business Highlights
- Rating agencies optimistic about Hungarian economy
- Check out all the news and articles for business news updates.