Ministry for National Economy updates expected 2025 cash-flow based budget deficit

The Ministry for National Economy has changed the expected 2025 cash-flow based budget deficit to HUF 4,774 billion. In line with that announcement the Government Debt Management Agency Pte Ltd. (ÁKK) has modified its financing plan for 2025.

ÁKK plans to cover the resulting HUF 651 billion increase of funding needs for 2025 with FX bond issuance. The amended plan contemplates FX bond issuance in the amount of EUR 3 billion which exceeds the additional financing need which will facilitate the accumulation of intra-year liquid reserves and enhance the flexibility of debt management. Timing, currency, and maturity of any issuance will be determined by ÁKK based on market conditions.

FX bond issuance will also allow ÁKK to reduce slightly the net issuance target for the institutional HUF market by HUF 344 billion. The planned net increase of retail government securities and institutional securities owned by households remains unchanged. Benchmark targets also remain unchanged.