Bloomberg News

Hungary Doesn’t Rule Out Eurobond Sale in 2011, Varga Says

September 29, 2011

(Updates with Varga comment from second paragraph.)

Sept. 29 (Bloomberg) -- Hungary may sell foreign-currency denominated bonds this year to prefinance 2012, Mihaly Varga, chief of staff to Prime Minister Viktor Orban, told reporters today.

“It depends on the international situation,” Varga said. “There is always a risk that if it doesn’t turn out as planned, then that hurts confidence. We have to wait with this and watch the market.”

The country completed its 4 billion-euro ($5.5 billion) 2011 foreign-currency financing plan with the sale of euro- and dollar-denominated bonds in the first half of the year. Gyula Pleschinger, chief executive officer of the state Debt Management Agency, said in an interview last month that he wasn’t planning any further foreign debt sales this year.

Hungary, which was the first European Union member to receive an International Monetary Fund-led emergency loan in 2008 to avert a default, isn’t considering obtaining a new loan from the IMF, Varga said today.

The country will repay 3.2 billion euros to the IMF and the European Union next year, pushing the amount of maturing foreign debt to 4.5 billion euros, Pleschinger said in the August interview.

--Editors: Linda Shen, Peter Branton

To contact the reporters on this story: Zoltan Simon in Budapest at; Andras Gergely in Budapest at

To contact the editor responsible for this story: Gavin Serkin at

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