The total value of the bonds issued amounts to Ft 747 billion.

The grace period for many of the bonds issued in 2006-09 ends in the coming months, the ÁSZ warned, adding that local governments, like households, will take a beating from higher instalments.

The ÁSZ found that only 38% of the proceeds from bond issues went to development, while the remainder was used to repay earlier debts and fund operating expenses."

Source: Hungary Around the Clock.

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