Hungary Fulfilled Its Prepayment Obligation To The IMF Before Deadline

  • 26 Jan 2013 8:00 AM
Hungary Fulfilled Its Prepayment Obligation To The IMF Before Deadline
On Friday Hungary has transferred 607 million EUR as loan prepayment to the International Monetary Fund due on 12 February 2013. By paying more than two weeks prior to maturity, market risks associated with repaying the IMF loan are eliminated.

The prepayment became possible as more than 1bn EUR worth of Premium Euro Hungarian Government Securities (P€MÁK) launched in November 2012 were sold, exceeding all expectations, as the issuance had been originally projected to be 400 million EUR worth.

Impressive sales of P€MÁK which signal the confidence of domestic retail investors and institutional investors in the Hungarian economy boosted the foreign currency holdings of the Government to such extent which enabled prepayment of the next IMF loan instalment without having to obtain external resources and which also facilitated higher Government reserves. Sales results of the new series of P€MÁK launched on 17 January 2013 are also very promising, as sales already exceed 275 million EUR.

Source: kormany.hu

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