Hungary’s debt 2000-2011

Gross and net debt of Hungary up to the end of 2011. Source:

In early 2012 the reduction of the debt continued mostly due to the positive shift in the exchange rate, reports. According to index, in 2012 January alone the debt decreased by HUF 429 billion (about 1.6% of GDP). This latest change is not yet reflected in the above graph, so the situation is a bit better than it shows. It seems, the real reduction however occured in the net debt category, over 60% in the late Bajnai era, this debt type is now close to 50%. The net debt takes the value of assets into account, so for example taking out a bank loan and depositing it in the Hungarian Central Bank (MNB), would immideately increase gross debt, but not the net debt. As the debt in foreign currency increases in forints due to exchange rate changes, the foreign exchange reserve of about 38 billion euros changes as well.

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