Public debt, including Eximbank data, was down from 74% at the end of Q2 in 2018. Hungary’s constitution requires the year-end debt-to-GDP ratio to fall each year until it reaches 50%. Excluding Eximbank data, the public debt ratio would have reached 67.0% of GDP at the end of Q2, down from 68.2% at the end of Q1 and down from 72% a year earlier.
The NBH in 2018 started publishing separate public debt ratios, with and without the balance sheet of Magyar Eximbank, in line with a decision by Eurostat. Eurostat has for years maintained that Magyar Eximbank should be reclassified inside the general government sector, raising public debt.
In nominal value public debt was equivalent to 29,519 billion forints (EUR 90.2bn) at the end of Q2. It rose from 29,358 billion forints at the end of Q1 and from 28,821 billion forints from a year earlier.
In the second quarter net borrowing increased the nominal figure by 160 billion forints, as transactions raised the stock by 113 billion forints and revaluations by 47 billion forints.