PRESS RELEASE

 

In reaction to market developments, the Government Debt Management Agency Pte. Ltd. (ÁKK) substantially reduces the HUF government securities issuance. This practically results in only refinancing the maturing debt in the remaining part of the year. At the same time, the structure of issuance will also be modified, in order to support the stabilisation of the market.

ÁKK will reduce the net government securities issuance in 2008 by HUF 200 billion compared to the issuance plans announced earlier. The amounts offered at government bond auctions will decrease by 40-50% compared to the amounts offered at the latest auctions. The 15-year bond auction due in two weeks’ time will not be held, by which decision ÁKK deviates from the pre-announced auction calendar. The auctioned amounts of the 3-month and 12-month discount Treasury bills will decrease by 10-20%.

In consideration of the changes in the demand for government securities, ÁKK at the same time will hold auctions of liquidity Treasury bills more frequently, at which the usual 6-week maturity T-bills may also be complemented by Treasury bills of longer tenor.

 

Government Debt Management Agency Pte. Ltd. (ÁKK)

 

Budapest, 10 October 2008