Hungary plans to cut fx debt ratio, debt agency CEO says

Budapest, September 23 (MTI) – Hungary wants to cut the ratio of foreign currency debt within its state debt to 30-35 percent from 49 percent in a few years, shifting towards safer domestic financing, Gyula Pleschinger, the new CEO of the debt agency AKK told Reuters on Thursday.

International credit rating agencies have been too pessimistic over the country’s prospects in their ratings and government debt auctions this year have indicated investor confidence, he said.

    ”I can imagine that they (rating agencies) could upgrade us within a year, the condition is that 2011 (state budget) figures are credible and the trends pledged by the government start,” Pleschinger said in an interview.

    Pleschinger told the news agency a rating downgrade was unlikely, while a new IMF loan agreement could make long-term financing safer but the country’s economic recovery could be faster without such a deal.

    ”We believe that the year 2011 can be easily financed,” he said. “And we see from bond and bill auctions that we have the investor confidence which can help us through the next months and perhaps years.”

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