Press Release - ÁKK reduces the HUF government securities issuance

In reaction to market developments, the Government Debt Management Agency Pte. Ltd. (ÁKK) substantially reduces the HUF government securities issuance. This practically results in only refinancing the maturing debt in the remaining part of the year. At the same time, the structure of issuance will also be modified, in order to support the stabilisation of the market.

PRESS RELEASE

In reaction to market developments, the Government Debt Management Agency Pte. Ltd. (ÁKK) substantially reduces the HUF government securities issuance. This practically results in only refinancing the maturing debt in the remaining part of the year. At the same time, the structure of issuance will also be modified, in order to support the stabilisation of the market.

ÁKK will reduce the net government securities issuance in 2008 by HUF 200 billion compared to the issuance plans announced earlier. The amounts offered at government bond auctions will decrease by 40-50% compared to the amounts offered at the latest auctions. The 15-year bond auction due in two weeks’ time will not be held, by which decision ÁKK deviates from the pre-announced auction calendar. The auctioned amounts of the 3-month and 12-month discount Treasury bills will decrease by 10-20%.

In consideration of the changes in the demand for government securities, ÁKK at the same time will hold auctions of liquidity Treasury bills more frequently, at which the usual 6-week maturity T-bills may also be complemented by Treasury bills of longer tenor.

Government Debt Management Agency Pte. Ltd. (ÁKK)

Budapest, 10 October 2008

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    HGB and T-bill calculator
    Date: settlement date; minimum value: 01-01-2003; the date on which securities must be delivered and paid for to complete a transaction
    Type: DKJ - discount treasury bills, KTV - treasury bonds
    Convention: calculation method: ISMA (Act/Act) or EHM (Act/365 No Leap)
    Security: T-Bond or T-Bill denominated in HUF
    Yield %: yield to maturity, the percentage rate of return paid if the security is held to its maturity date
    Clean Price %: net present value of selected security, if it is not the input field, then = gross price% - acc. interest%
    Acc. Interest %: the amount of interest accumulated but not paid between the issue date or most recent payment and the settlement date
    Gross Price %: present value of selected security, if it is not the input field, then = clean price% + acc. interest%
    Face Value: optional positive integer value, Net Price, Acc. Ineterst and Gross Price will be recalculated
    Net Price: Clean Price% * face value
    Acc. Interest: Acc. Interest% * face value
    Gross Price: Gross Price% * face value