Hungary has issued euro bonds with the lowest rate of interest so far.

The Hungarian Government Debt Management Agency has issued one billion euros worth of seven-year maturity government bonds at an interest rate of 1.25 percent”, Minister of Finance Mihály Varga announced. The Minister highlighted the fact that “The bond’s low rate of interest and the high level of investor interest clearly indicates that investors have confidence in Hungary.

Thanks to the correct scheduling of the bonds entering the market and the high level of investor interest, a higher than expected, quadruple level of demand arose, the Minister emphasised. As he explained, the fact that the lowest ever euro bond issue has occurred just a week after the Sargentini Report reveals a lot. It is evident, therefore, that the foreign slander campaign against Hungary is unsuccessful and is based on untruths, since the outstanding level of demand has proven that investors are continuing to stand on the side of Hungary.

In addition to the decreasing rate of sovereign debt, the stable and rapid growth, the increasing wages, the low level of inflation and the calculable budget policy are all contributing to enabling Hungary to issue government bonds at increasingly low interest rates year after year. In addition to the fact that the extremely low level of interest reduces the long-term interest expenditure of the national treasury, today’s successful euro bond issue further increases our expectations of receiving a higher credit rating, Mr. Varga declared.

(Ministry of Finance)