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October 20, 2017 www.intellinews.com I Page 26
bne:Credit
Hungarian retail investors pile into domestic government bonds
The stock of government bonds held by households rose by HUF- 154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. The increase came after a drop in August, the first decline in the holdings of retail investors in six months.
Local bonds represent a growing share in debt financing, as retail investors held 25% of the country’s total debt at the end of Sep- tember, AAK said. The government made it a priority to reduce the share of foreign currency debt within Hungary's total debt to reduce exposure to global market fluctuations and to increase the average maturity of debt instruments.
The stock of investments by retail investors expanded by HUF1.4 trillion in the first nine months of 2017, which is twice the amount targeted by the debt manager for the full-year.
Russia’s Finance Minister Anton Siluanov has suggested that the government can encourage more local banks to make sovereign Eurobond placements, citing the positive experience the govern- ment had from cooperation with VTB.
At the same time the minister downplayed any need for foreign banks to be the lead managers in such issues.
The ministry also alleged it had no plans for a Yuan market debt is- sue for this year. Indeed, the government has already completed its international borrowing programme for 2017 with a $3bn new bond placement and a $4bn Eurobond tap for debt swap operation.
Poland will give up an International Monetary Fund (IMF) special crisis credit line thanks to the robust health of the Polish economy, Finance Minister Mateusz Morawiecki said.
“We are resigning from a $9.2bn credit line from the IMF,” a finance ministry official said on Twitter quoting Morawiecki, Reuters reports. “The Polish economy is in such a good situation that we can do it.”
Poland’s state budget posted a record surplus of PLZ4.9bn ($1.36bn) for the period from January to August, thanks to, among other things, a steep rise in revenue from value added tax (VAT) as economic growth has neared 4%.
Moscow to encourage local banks to offer sovereign Eurobond placements
Warsaw to give up IMF crisis credit line