Debt financing plans show stability

The CEO of ÁKK Zrt, Zoltán Kurali, stated these targets when presenting the financing plan for 2025 on Friday. The budget plan envisages a deficit target of 4,123 billion forints, which is to be covered by 1,850 billion forints net from forint bonds issued to institutional investors (with an average maturity of 7.5 years).

Private households are to contribute HUF 1,323 billion net, while foreign currency financing is to be limited to HUF 838 billion net. The issuance of new foreign currency bonds is to be kept below EUR 2.5 billion in any case. The gross issuance of discount treasury bills is to fall from the recent average of 13,600 to a value of around 12,850 billion forints, while the portfolio of treasury bills is to increase by 100 billion forints.

The State Secretary of the Ministry of Finance responsible for budget planning predicts stable financing for 2025, which will be underpinned by dynamic economic growth. Péter Benő Banai pointed out that the Orbán government will be able to reduce the deficit by two points in 2024, even though growth will only reach 0.5-1%.