Press release on signing of a EUR 500 million revolving credit facility

On 9 January 2004 a EUR 500 million revolving credit facility has been signed in favour of the Republic of Hungary in Budapest.

On 9 January 2004 a EUR 500 million revolving credit facility has been signed in favour of the Republic of Hungary in Budapest. The maturity of the facility is 364 days which can be prolonged for 2 more years. If drawn down, the interest rate is Euribor plus 0.12%, the standby fee is 0.045% p.a.

Beside the two lead arrangers of the credit facility (HSBC Bank Plc, London and Sumitomo Mitsui Banking Corporation Europe Ltd., London) nine more banks are in the consortium. The syndication had been closed with significant oversubscription but the borrower did not wish to raise the amount of the facility.

The Government Debt Management Agency Ltd. (ÁKK Rt.) will use this credit facility as a new debt and liquidity management tool and to manage the difference in the timing of foreign exchange revenues and outlays within the year. If drawn down for a short period, after paying back the borrowed amount the loan facility is again at the disposal of the borrower until the final maturity.

Budapest, 9 January 2004

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