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MNB-Preliminary financial accounts for general government and households 2014 Q2

August 19, 2014



ENP Newswire - 19 August 2014

Release date- 18082014 - According to preliminary financial accounts data, general government net lending was equal to -3.1 per cent of Hungary's GDP in the four quarters to 2014 Q2.

General government consolidated gross debt at nominal value amounted to 85.1 per cent of GDP at the end of 2014 Q2. Transactions and the depreciation of the forint increased the sector's debt by HUF 434 billion and HUF 65 billion, respectively, in 2014 Q2.

According to preliminary financial accounts data, net lending of households was equivalent to 6.1 per cent of GDP in the four quarters to 2014 Q2.

2014 Q2 data are based on the MNB's own GDP estimate.

According to preliminary data, general government net lending amounted to HUF -918 billion or -3.1 per cent of Hungary's GDP in the four quarters to 2014 Q2. General government net lending (HUF -302 billion) was equal to -4.0 per cent of quarterly GDP in 2014 Q2.

At the end of 2014 Q2, general government consolidated gross debt at nominal value (or Maastricht debt) was HUF 25,432 billion, equivalent to 85.1 per cent of GDP. General government debt increased by HUF 434 billion due to transactions and by HUF 65 billion due to the depreciation of the forint. At the end of 2014 Q2, the sector's net liabilities amounted to HUF 22,818 billion or 76.3 per cent of GDP.

The Maastricht measure of general government debt is defined as the sector's consolidated gross debt at nominal value, excluding other liabilities (AF.7). Net liability is equal to net worth (i.e. the difference between the market values of total financial assets and total liabilities) with the opposite sign. 2014 Q2 data are based on the MNB's own GDP estimate.

In 2014 Q2, net borrowing of central government amounted to HUF 264 billion. On the assets side of the sub-sector's balance sheet, deposits with the central bank increased significantly and there were small-value acquisitions of shares. Within other assets of central government, trade and tax receivables from the corporate sector increased, while receivables from the EU fell. On the liabilities side, there were large issues of government bond; the securities were purchased mainly by credit institutions, with a smaller amount being purchased by households. Within other liabilities, liabilities to the EU significantly increased.

Net borrowing of local government authorities was HUF 99 billion in 2014 Q2. Within financial assets, local authority deposits with monetary financial institutions fell sharply. By contrast, other receivables from the corporate sector increased. On the liabilities side, other liabilities to the corporate sector fell significantly.

Net lending of social security funds was HUF 61 billion in 2014 Q2. On the assets side, deposits with the Treasury rose notably and contribution receivables from households increased slightly. On the liabilities side, other liabilities to the corporate sector increased modestly.

2014 Q2 data are based on the MNB's own GDP estimate.

According to preliminary financial accounts data, net lending of households (HUF 1,823 billion) was equivalent to 6.1 per cent of GDP in the four quarters to 2014 Q2. Net lending of the sector (HUF 459 billion) amounted to 6.1 per cent of quarterly GDP in 2014 Q2.

The realignment of portfolios by households observed in previous quarters continued in 2014 Q2. Similar to previous periods, there were strong increases in holdings of currency and current account deposits. In addition, households purchased significant amounts of long-term government securities and their holdings of mutual fund shares continued to increase strongly. Holdings of short-term debt securities, insurance technical reserves, receivables of transfers from the European Union and other receivables form the corporate sector increased slightly. The decline in the sector's liabilities mainly reflected repayments of foreign-currency loans. Household borrowing in the forint started to rise.

Detailed preliminary financial accounts data are available on the MNB's website at: Statistics/Statistical Data and Information/Statistical Time Series/XII. Financial Accounts/Preliminary Financial Accounts of Households and General Government. The full set of financial accounts for the institutional sectors of the national economy for 2014 Q2 will be published on 30 September 2014.

Methodological notes

1 Uncertainties related to general government sector data for 2014 Q2

Fiscal balance sheets for 2014 Q2 were not yet available at the time the preliminary financial accounts of general government were compiled. Therefore, estimates have been used to calculate certain assets and liabilities of the general government sector. Balance sheet reports of the central government units for 2014 Q1 are not yet fully available; therefore, estimates used for certain instruments of central government for 2014 Q1 have been maintained. Data on the following instruments have been calculated using estimates: loans granted, trade credits and advances as well as other assets and other liabilities. These data, and consequently the sector's net lending, may change in later publications.

2 Uncertainties related to 2014 Q2 data for households

In compiling preliminary household data for 2014 Q2, estimates were used to calculate certain assets (primarily wage claims) and liabilities to general government. Foreign financial assets of households are not fully captured by the statistics; therefore, data on financial savings of the household sector contain uncertainties in the financial accounts. The estimated values may change in later publications or may be replaced by actual data as they become available.

MAGYAR NEMZETI BANK

DIRECTORATE STATISTICS

Contact information:

Phone: + 36 (1) 428-2751

Fax: + 36 (1) 429-8000

Email: info@mnb.hu


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Source: ENP Newswire


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