"Type of Product":"Marmalade....................................................."
"Tax Rate":"HUF500 per kilogram"
__________________
Source: Act No. CIII of 2011 on Public Health Product Tax Note:
(1) According to the alcohol content of the beverages
The following table sets forth the tax rates applicable as of 1 January 2019:
Table 15: Revised Surtax Rates on High Sugar or Salt Products


"":"Energy drinks (containing methyl xanthine and taurine) ........"
"HUF/liter or HUF/kilogram":"HUF300"


"":"Energy drinks (containing methyl xanthine)..........................."
"HUF/liter or HUF/kilogram":"HUF50"


"":"Pre-packed products (with high level of sugar)......................."
"HUF/liter or HUF/kilogram":"HUF160"


...............................................	HUF15
Energy drinks (containing methyl xanthine and taurine) ........	HUF300
Energy drinks (containing methyl xant


"Type of Product":"Alcoholic drinks (1) ..................................................................."
"":""
"Tax Rate":"HUF25-1,100"
__________________
Source: National Tax and Customs Administration Note:
(1) According to the alcohol content of the beverages
(i) Financial Transaction Duty


After several amendments adopted by Parliament, the Act on Financial Transaction Duty went into effect as of 1 January 2013. The rate of duty was originally set at 0.2% of the transferred amount and 0.3% for cash withdrawals. The duty is payable by the entity providing the relevant payment service. The amount of the duty is capped at HUF6,000 per transaction.


This cap is not applicable when the taxpayer is the Settlement Center of the Hungarian Post or the Hungarian Treasury, except that the duty payable with respect to each transaction at the Treasury involving the sale of government securities is also capped at HUF6,000. In accordance with the recommendation of the European Commission, the transactions of the NBH are not subject to this duty.


Certain Treasury transactions are not subject to the duty (such as payments related to social security contribution funds, payments and transfers related to EU subsidies and initiated from accounts held at the Treasury, transactions involving accounts of the National Tax and Customs Administration held at the Treasury). Certain intra-group financing-related and investment service provision-related payment transactions are also exempt.


As of 1 August 2013, the financial transaction duty was increased. For cash withdrawals, the duty was increased from 0.3% to 0.6% and the cap was eliminated; for other transactions, the duty was increased from 0.2% to 0.3% and the cap remained at HUF6,000.
As of 1 February 2014, cash withdrawals from ATMs may be free of charge up to twice a month, up to a total of HUF150,000.


As of 1 January 2015, the Financial Transaction Duty became a lump-sum duty on electronic payment instruments. For contactless payment instruments, the duty is HUF500 per year and for other electronic payment instruments the duty is HUF800 per year. The duty is payable by the payment service provider upon every payment instrument used by an account holder.


On 1 December 2016, the MNE announced that banks expanding their total amount of loans by at least 20% between the end of the year 2015 and the end of the year 2017 were entitled to reduce the financial transaction duty levied on the bank. The reduction was set at 0.6% of the increase of their total amount of loans. The maximum amount of reduction was set at HUF300 million and could not exceed 80% of the financial transaction duty levied on the bank.


As of 1 January 2019, the Financial Transaction Duty was abolished in case for transactions of natural persons under HUF20,000.
(j) Public Utility Tax


As of 1 January 2013, public utilities, such as cables (electricity, phone, television, internet) and pipelines (gas, water, conduit) laid above or underneath municipal areas were subject to an additional tax. The entity owning the cable or pipeline pays this tax, except if the owner is the state or a local government, in which case the tax will be paid by the service provider.


The tax base of this tax is the total length of cables and pipelines, and the payable tax is HUF125 per meter of cable or pipeline.
Since 2014, the public utility tax rate applies to telecommunication cables according to the following three-tier system:
Table 16: Telecommunication Public Utility Tax Rates


"Length of Telecommunication Cables":"500,000 meters and"
"Public Utility Tax Rate":"above................................................................................................... 100% of the standard tax is payable"
__________________ Source: Act No. CLXVIII of 2012
(k) Low Tax-Bracket Enterprises and Small Enterprises Tax


As of 1 January 2013, new tax options were introduced as part of the Job Protection Action Plan for low tax-bracket enterprises and small enterprises. One of these new options for small enterprises is a tax of 16% of a tax base, including a cash-flow based profit plus wages and salaries. Businesses opting for such tax are exempt from certain taxes applicable to wages and salaries.


Low tax-bracket enterprises choosing the monthly flat rate tax are exempt from the payment of the main central taxes, such as corporate and dividend tax, personal income tax and social contributions. As of 1 January 2018, the tax rate was reduced from 14% to 13%. As of 1 January 2020, the tax rate was reduced again to 12%.
(l) Other Central Government Revenues


Customs duties are imposed on goods imported from outside the European Union in accordance with the EU customs code. The central government levies duties on the acquisition of real estate, cars and certain other products and also on certain administrative procedures.


On 26 June 2013, Parliament adopted an Act on the amendment of certain acts related to organizing “remote” gambling. The Act provides for remote gambling (including online gambling and sports bets) services within the framework of a state regulated and supervised scheme.


The national gambling organizer is entitled, by virtue of law, to organize remote gambling, while other organizers are entitled upon a concession agreement concluded as a result of a concession tender, and upon paying the concession fee stipulated by the annual budget act for the relevant year, to organize remote gambling. Since 2013, the yearly concession fee has been HUF100 million per each type of remote gambling. The Act went into effect on 19 July 2013.


As of 15 November 2013, rules related to the compulsory tendering of gambling concessions were modified. As a result of the modification, if there is an offer from a reliable gambling organizer, the responsible minister may execute a concession agreement without a concession tender, provided that the reliable gambling organizer undertakes to pay the double amount of the statutory concession fee.


On 14 April 2015, Parliament approved a bill amending the act regulating food chain safety. According to the bill, the food chain inspection fee amounts to 0.1% of total net revenues from food production including animal husbandry, plant cultivation and distribution.
(m) Simplified Business Tax


Certain SMEs are entitled to pay a tax levied on the total revenues of the enterprise instead of paying corporate income tax. Enterprises with a total revenue of up to HUF30 million are entitled to choose to pay this tax. These enterprises are not subject to VAT.
(n) Local Taxes


Local taxes vary among municipalities. Local governments are permitted to assess local business tax and various property taxes. Municipalities are entitled to introduce any type of community taxes beside local taxes, with the exception of tax types prohibited by law or which are already subject to an act.
(6) Social Security and Extra-Budgetary Funds
The social security funds consist of two funds: the pension fund and the health fund.


The contribution of the central government to the social security funds was HUF591.6 billion in 2018, HUF467.6 billion in 2019, and HUF652.0 billion in 2020. The contribution of the central government to the social security funds was planned to be HUF1,159.9 billion in 2021 according to the approved budget. The contribution of the central government to the social security funds is expected to be
HUF1,293.6 billion in 2021 according to the modified budget.
(a) Social Security System


Before 1989, social security in Hungary was based on the principle of solidarity and risk sharing. The provision of social, health and pension benefits through collection and reallocation was carried out by the Government. Since the change of the political and economic system, self-provision (individual private savings) has been playing an increasingly important role in Hungary’s social security system.


Currently, Hungarian citizens may affect the amount of the social security benefits they receive in the future by making voluntary payments into a private investment account or joining a voluntary pension fund. The Government provides social security benefits for those incapable of self-provision.
(7) Health Care System


The Hungarian health care system is accessible to persons who have a Hungarian social security card and make mandatory contributions to the social security system. Three levels of health care are available and are expected to be utilized in the order of basic care to more extensive care. However, treatments may begin at a higher level of care if it would be more efficient.


The first level of care is the basic health care provided by the family doctor, the second level consists of specialized consulting services in out-patient care and the third level consists of in-patient care at a health care facility (e.g., hospital, clinic or sanatorium). However, disabled individuals are entitled to use ambulant services, receive sickness benefits and/or qualify for disability pensions.


In addition to such disability benefits, disabled persons are entitled to additional financial and in-kind benefits, including, for instance, the right to use designated parking lots and receive financial assistance for travel.
A social contribution tax is payable by employers. The social contribution tax rate was reduced from 19.5% to 17.5% as of 1 July 2019. Subsequently the employer social contribution tax rate was reduced to 15.5% as of 1 July 2020.


An 8.5% health care contribution and employment market contribution is payable by employees. Health fund contributions are similar to those for the pension fund; an employee contributes 7% of his or her income.


On 1 August 2013, a health care contribution was levied on interest income. The contribution was 6% of the interest income paid on bank deposits and securities, excluding government debt securities denominated in forint and issued by a member state of the European Economic Area. The health care contribution on interest income from bank deposits and securities was abolished effective 1 January 2017.
(8) Pension System


In the course of the reform of the social security system, the pension system has undergone a fundamental transformation over the last decade. The single-tier pension system was replaced by a three-tier system in 1998, pursuant to which, in addition to the pension contribution deducted from wages on a mandatory basis, private pension funds offered the possibility of self-provision. Furthermore, an employee had the possibility of joining a voluntary pension fund as well.


The three pillars of this system were: compulsory state pensions; compulsory private pension funds; and voluntary private pension funds.
In November 2010, Parliament approved pension reform legislation with the ultimate goal of transforming the “three-pillar” system into a “two-pillar” system, which is closer to European practices. The “two-pillar” system would consist of the state-run compulsory pension and the voluntary private pension.


Until 31 January 2011, individuals who were participants in the compulsory private pension system could opt to transfer their private pension to the state-run pension system or opt to remain in the private pension system, although the former option is encouraged through significant incentives.


The individuals remaining in the private pension system did not receive further entitlement in the state-run pension system and, therefore, with the exception of employees who already had the minimum service time of at least 20 years of employment in the state-run pension system, those individuals will receive their pensions solely from their private pension funds. Further, if the individuals opted to remain


solely in a private pension fund, as of 1 January 2012, their 10% contribution was transferred to their selected private pension fund. For employees solely participating in the state pension system, the entire 10% contribution would be applied to the state pension fund.


The objective of the pension reform was to address concerns with the three-pillar system. Under such system, pension liabilities had been increasingly affecting the budget, and low net real returns on the compulsory private pensions posed a threat to future pension payments. The pension reform aimed to generate public revenue from two sources. First, the accumulated funds of individuals opting into the state pension system would contribute to a significant decrease in the explicit public debt.


Second, revenues received from future pension contributions would help balance the state pension system in the long term.
The employer’s contribution (“social contribution tax”), which was reduced to 15.5% as of 1 July 2020, is paid into the state pension fund.


Effective 1 January 2010, the retirement age for both women and men was raised to 62.5 years. Until 2022, the retirement age will be gradually increased to 65 years. See “Public Finance – Budget Trends.” However, the positive effects of the pension reform on the general budget will not be apparent for at least 30 years because of delayed effectiveness.
(a) Sustainability of the Social Security System
(i) Health Care System


Since 2002, the in-kind benefits of the health insurance system have generally increased faster than GDP. This was the result of the rapid dissemination of innovative drugs, wage adjustments for health care employees and the rapid increase of services.


Due to strict budgetary requirements in 2004, numerous short-term measures were adopted (including the freezing of pharmaceutical drug prices, digressive financing techniques and the introduction of cost-volume agreements) in order to help control the expenditures relating to the health care system.


In order to ease the burden of the state in the long-term in the financing of the health care system, the Government has reformed the health care system. The reform efforts are aimed at curbing the expenditure growth and introducing cost-effective services by changing the financing and incentive mechanisms.
(ii) Pension System


According to demographic projections, the proportion of the population over the retirement age compared to the population of the working age will increase significantly in the next decades. The increase in the retirement age (see “Pension System”) and the increase in the employment rate may result in a temporary improvement, but will not be sufficient to overturn the long-term trend.


In response to these adverse demographic trends, the Government has taken certain steps to reform the pension system. Most importantly, these steps, in addition to raising the retirement age, included the introduction of mixed financing and the application of the so-called “Swiss indexation” (the pension will increase by the simple average of wage increases and inflation) prior to 2009. After 2009, the pensions were indexed to the inflation rate.
(9) Local Government Finance


The municipalities are to a large extent autonomous, according to the Hungarian Constitution and the Local Government Act. However, the Government must take the local government deficit into account when preparing and implementing the central government budget and other parts of the public budget, over which the Government and Parliament have more direct control.


Parliament can, nevertheless, influence the financial situation of local governments through the volume of budget grants (transfers) and the tax-sharing system. The debt management and debt financing of municipalities was restricted as of 1 January 2012. See “Overview of Hungary – Political System – Local Government.” During 2020, the revenues of the local governments amounted to HUF2,959.1 billion, and the expenditures amounted to HUF3,070.


3 billion, and the fiscal balance of the local governments, excluding proceeds from privatizations, amounted to a deficit of HUF125.1 billion for 2020.
(10)EU Net Position
Certain EU funds are only available for certain projects if Hungary contributes a specified percentage amount towards such project. In addition, EU funds that are not used for their designated purpose in a given year are lost and cannot be carried over to a subsequent year.


The Commission has criticized Hungary’s high budget deficit several times in the past following Hungary’s failure to reach its targets for reducing its budget deficit. In December 2004, the Commission stated that Hungary was the only country among the 10 new EU Member States at such time not to take effective action to curb its large budget deficit. In 2004, the Commission initiated a so-called “excessive deficit procedure” against Hungary for failing to achieve these targets.


Since Hungary is not yet a member of the Eurozone, the last two steps of the Excessive Deficit Procedure that would impose penalty payments on Hungary do not apply. However, the non-compliance with the recommendations could result in the freezing of some EU subsidies, although there is no precedent for such penalties being levied by the EU in the past. Hungary has reached its budget deficit targets in recent years. See “Table 45: General Budget Balance, consolidated” in Section 7.


(11)Medium-Term Fiscal Program and the Convergence Program
Hungary’s economic policy targets are set out in a Convergence Report submitted annually to the European Commission. The report discusses Hungary’s policy goals for achieving the criteria set by the European Commission to attain membership in the Eurozone. The European Commission regularly evaluates the Convergence Reports, including the economic targets and the achievement of such targets.


Under the EU legislation, prior to adopting the Euro, Hungary is required to have fulfilled the following convergence criteria (the “Maastricht Criteria”):
 price stability – maintain a sustainable price performance and achieve an average rate of
inflation (measured over a period of one year before the examination) that does not exceed by more than 1.5% the average rate of inflation of the three EU Member States which perform the best in terms of price stability;


 long-term interest rates – achieve an average nominal long-term interest rate (measured over a period of one year before the examination) that does not exceed by more than 2% that of the
three best-performing EU Member States in terms of price stability;
 the Government budgetary position – achieve a ratio of planned or actual government deficit


to GDP that does not exceed 3%, unless either (i) the ratio has declined substantially and continuously and reached a level that comes close to the reference value or (ii) the excess of the reference value is only exceptional and temporary and the ratio remains close to the reference value;
 government debt – achieve a ratio of government debt to GDP that does not exceed 60%, unless the ratio is sufficiently diminishing and approaching the reference value at a satisfactory pace; and


 exchange rate – participate for at least two years in the Exchange Rate Mechanism (“ERM II”)
and observe the normal fluctuation margins close to central parity provided for by the mechanism for at least two years.
The convergence required for entering the Eurozone is formally assessed annually and the final decision is subsequently made by a summit of EU Member States acting on the recommendation of the ECOFIN Council.


The Ministry of Finance compiled the latest version of Hungary’s Convergence Program with information as of 30 April 2021. According to the Program, the Government expected the budget deficit to GDP ratio (according to Excessive Deficit Procedure methodology) to reach 7.5% in 2021, 5.9% in 2022, 3.9% in 2023, 3.0% in 2024, and 2.0% in 2025. The general government debt to GDP ratio (according to ESA methodology) was projected to reach 79.9% in 2021, 79.3% in 2022, 77.5% in 2023, 75.


7% in 2024, and 73.1% in 2025. The Government plans to reduce the total revenue-to-GDP
ratio from 42.1% in 2021 to 41.3% in 2022, 40.6% in 2023, 38.7% in 2024 and 37.7% in 2025. The Government plans to reduce the total expenditures-to-GDP ratio from 49.6% in 2021 to 47.2% in 2022, 44.5% in 2023, 41.7% in 2024 and 39.7% in 2025.
(12)Future Economic Plan


On 30 April 2021, the Government also compiled the 2021 National Reform Program to the Commission. This document outlines major programs and investments that support European objectives and the long-term future of Hungary, such as measures fostering competitiveness, business environment and digitalization; measures fostering social cohesion, family policy, education and job creation; and environmental sustainability measures. The National Reform Program describes nine areas of importance:


1) Growth-supporting policies
2) Business environment and regulations
3) Employment
4) Family policy measures
5) Poverty and social cohesion
6) Education
7) Health care
8) Sustainable economy
9) Rural development
(13)Recent Developments in Public Finance
On 9 January 2020, the Ministry of Finance announced that general government balance according to GFS methodology (excluding local governments) posted a HUF1,219.0 billion deficit during 2019.


On 21 January 2020, the Hungarian Debt Management Agency announced the repurchase of certain amount of its high interest rate USD bonds. The transaction was settled on 31 January 2020.


On 28 April 2020, Minister of Finance Mihály Varga announced that the credit agreement relating to the Belgrade-Budapest railway line had been signed. According to the agreement, concluded with China Eximbank, the Hungarian state would be financing 85% of the investment using credit, and the remaining 15% from its own resources.


On 25 June 2020, Minister of Finance Mihály Varga announced that the government had allocated HUF923 billion forints for the Economy Protection Fund at that time and earmarked HUF2,550 billion for the fund for next year.


On 29 June 2020, the Ministry of Finance announced that the government intended to make the regulations relating to the itemized small business tax (KATA) fairer. The level of the KATA tax would not change, but changes were made with the goal of lowering the possibility of system abuse. The most important change was a requirement of additional tax payments in certain instances.


If the total value of transactions between a KATA entrepreneur and one of their business partners exceeds HUF 3 million within a given year, then a 40% tax must be paid on the sum exceeding HUF 3 million.
On 25 August 2020, the Ministry of Finance announced that Hungary’s budget was expected to post a shortfall of 7-9% of GDP in 2020. In the spring, the Government had estimated the 2020 general government deficit would reach 3.8-4.0% of GDP.


On 29 April 2021, the Parliament approved legislation exempting the income of Hungarians under the age of 25 from personal income tax. Under the law, people under 25 would not have to pay personal income tax for wages below the gross average wage. The measure is expected to cost the Government HUF130-150 billion annually.
On 1 October 2021 the Ministry of Finance announced that a government decree entered into force


according to which taxpayers raising children are exempt from paying personal income tax for the year 2021 up to the tax level of the average wage calculated on the basis of December 2020 data. Personal income tax advance paid during the year of 2021 will be paid back in 2022; in most cases the settlement will take place automatically until 15 February 2022. According to the estimate of the Ministry of Finance, the measure will affect approximately 1.


9 million taxpayers and will cost HUF600 billion.
(a) Developments Related to EU Funding and the Rule of Law


On 17 July 2020, the Government announced that Hungary would reject any conditions attached to the European Union’s COVID-19 rescue package at the EU summit taking place on 17 July 2020 and 18 July 2020. On 22 July 2020, after the EU Summit, Prime Minister Viktor Orbán announced that Hungary’s standpoint, that funding and rule of law issues should be handled separately, had prevailed at the Summit.


According to the Prime Minister Viktor Orbán, talks on the definition of rule of law were tabled until a later date.


On 17 August 2020, Justice Minister Judit Varga stated her view that the rule of law is too conceptually vague to be used as a measurement for sanctioning EU Member States. According to the Minister, the conclusions approved by the EU summit on 21 July 2020, made it clear that a system of sanctions cannot be based on such difficult-to-define notions. Hungary has always maintained the position that Article 7 procedures are only justified if the State concerned neglects the rulings of the ECJ.


On 9 November 2020, Prime Minister Viktor Orbán announced that he was prepared to veto the EU budget and the recovery fund if the payment of funds to Member States would be tied to the rule of law.
On 17 November 2020, the Government announced that Hungary and Poland vetoed the European Union’s next multi-year budget and post-pandemic recovery package, in line with its position communicated during the EU summit in July 2020, and in accordance with the power of veto laid down in the EU treaties.


On 18 November 2020, the Government announced its view that new rules making the receipt of EU funding contingent on upholding the rule of law breached the EU’s founding treaty as well as a deal in July not to tie funding to “political conditions”.
On 11 December 2020, the Government announced that a deal was struck on the EU budget and recovery fund at the EU summit.


On 12 May 2021, the Government requested a total of EUR7.2 billion from the EU as part of Hungary’s Recovery and Resilience Facility.
On 27 May 2021, the Parliament approved legislation ratifying the European Union’s 2021-2027 budget framework and post-pandemic recovery package.
(b) Developments in Public Finance during the COVID-19 Pandemic


On 16 March 2020, Minister of Finance Mihály Varga announced that the reserves of the general government budget amounted to 1% of GDP, and HUF8.8 billion was redirected to the health care system in light of the COVID-19 pandemic.
On 18 March 2020, Prime Minister Viktor Orbán announced several measures to combat the effects of the global COVID-19 pandemic:
1) The principal and interest payment liabilities on loans taken out by private individuals and


businesses up to 18 March 2020 were suspended until the end of 2020.
2) Short-term business loans were extended until 30 June 2020.
3) The maximum annual percentage rate for new consumer loans was set at the central bank prime rate plus 5%.
4) In sectors already struggling with grave difficulties, such as tourism, catering, entertainment,


sports, cultural services and passenger transportation, the contribution payment liabilities of employers were cancelled until 30 June 2020. At the same time, contributions by employees were reduced significantly. Employees would not be required to pay pension contributions, and the health insurance contribution will be reduced to the statutory minimum.
5) Taxi drivers paying their taxes under the regime designed for small businesses (KATA)


likewise would not be required to pay their flat-rate tax liabilities.
6) In the aforementioned struggling sectors, the termination of rental agreements and the raising of rentals would not be allowed.
7) The tourism development contribution was cancelled until 30 June 2020.
8) Rules of employment were made more flexible to make it easier for employers and employees to come to an agreement.


On 25 March 2020, the Ministry of Finance announced a new decree offering further relief measures to debtors. The primary purpose of the regulation was to help customers take advantage of the debt repayment moratorium not only in 2020, but also in 2021, when payment obligations resumed. The new decree provided that, during the term of the moratorium, banks would not be allowed to charge compound interest, which significantly alleviated the burdens of debtors.


From 1 January 2021, the amounts of the original amortization installments on such loans could not be raised. The term was extended in such a way that the amounts of the amortization installments should remain unchanged during the term. The range of eligible loans was extended even further to employer loans and the National Asset Management Program.


The payment moratorium also applied to employer loans, meaning that until 31 December 2020, employees were not required to repay either the principal of the loan or the interest thereon to their employers.


Participants in the National Asset Management Program – in addition to being granted a moratorium on the payment of purchase price installments and rentals – also receive a housing guarantee, as the asset management company would not be allowed to terminate rental agreements due to non-payment.


On 26 March 2020, Minister of Finance Mihály Varga announced that the re-planning of the budget for 2020 was underway because the economic impact of the fight against the spread of COVID-19 altered the entire budget. The economy protection measures, including the postponement of the tax payment liabilities of businesses, the suspension of executions and auctions, and the debt repayment moratorium, required a budget that provided the necessary financial coverage.


At that time, the goal remained to keep the deficit of the budget below 3%.
On 27 March 2020, Minister of Finance Mihály Varga announced that the Government had spent HUF245 billion to date defending against the COVID-19 pandemic, of which around HUF90 billion had remained within the Hungarian economy due to economy protection measures, and HUF157 billion was made available for the procurement of epidemiological equipment.


On 2 April 2020, the NBH announced that it would pay a dividend of HUF250 billion to the general government.


On 4 April 2020, the Government announced that it would reallocate HUF1,345 billion to the fund set up to protect and restart the economy from the effects of the COVID-19 pandemic (the “Economy Protection Fund”). Funds reallocated from government ministries amounted to HUF922 billion, and funds reallocated from the National Employment Fund amounted to HUF423 billion, totaling HUF1,345 billion expected to be available in the Economy Protection Fund.


As part of these efforts, the Government guaranteed the 20% pay raise for health visitors and health care specialists scheduled for November 2020, in addition to the extra bonus of HUF500,000 expected to be paid at the beginning of the summer. The cost of this measure was approximately HUF70 billion.


Further, the Government transferred HUF663 billion to the fund used to contain the COVID-19 pandemic, which funding came from 50% of party grants in 2020, the trade tax payable by multinational companies, the contribution of the financial sector and the automobile tax due to local governments. According to the estimate of the Government, party grants amounted to HUF1.2 billion, the tax payable by multinational companies amounted to HUF36 billion, the tax payable by banks amounted to HUF55 billion, and the automobile tax redirected from local governments to the central budget amounted to


HUF34 billion. These tax revenues, along with the HUF378 billion set aside from the central reserves, allowed the Government to make HUF663 billion available for the fund in total.


On 6 April 2020, Prime Minister Viktor Orbán announced a wage support program, the reintroduction of the “13th month pension,” the restarting of the national economy’s priority sectors, and the provision of subsidized credit facilities with a value of more than HUF2,000 billion for the funding of businesses. According to the announcement, the economy protection action plan would be implemented in three stages.


The first phase was already introduced by the time of the announcement, including social security contribution reductions, the help provided for small businesses paying their taxes in the KATA regime, and the suspension of credit debt repayments. The three phases of the action plan were expected to amount to approximately 18% to 20% of GDP, including programs launched by the NBH. The deficit of the budget was raised from 1.0% to 2.7% of GDP.


Phase two of the economy protection action plan started on 6 April 2020, and consisted of five programs:
1) The first program was aimed at the preservation of jobs. In the case of shortened working
hours, the Government was ready to foot part of the wage costs of employers as a form of wage support.
2) The second program, called Family and Pensioner Protection, consisted of the reintroduction


of the “13th month pension” in four installments. As a result, in February 2021, in addition to the January pension, pensioners received an extra week’s pension, with the same arrangement to be repeated in 2022, 2023 and 2024.
3) The third program supported priority sectors of the national economy which needed to be


restarted. These sectors included tourism, the health industry, the food industry, agriculture, the construction industry, logistics, transport, the film industry and the creative industry.
4) In the interest of providing funding for businesses, the Government offered interestand
guarantee-subsidized credit facilities to Hungarian businesses with a total value of more than HUF2,000 billion.
5) In the interest of creating jobs, the Government supported projects in the amount of HUF450 billion.


On 7 April 2020, the Government announced the Economy Protection Action Plan. The most important measures were as follows:
 The release of 75,000 persons currently working in jobs requiring secondary qualifications
because of the absence of language certificates from the obligation of taking foreign language examinations. This exemption applied to all students who will have successfully completed their higher education studies by 31 August 2020.


 For the duration of the suspension of work, the state agreed to pay 70% of wages for a period
of three months; however, the Government wanted employees to perform useful jobs in the interest of their employers during this period.
 A 40% wage support available was available for three months for persons in research and development jobs.
 Administrative burdens and taxes were reduced.


 With a view to facilitating communication between economic actors and the government, a business information portal was set up online.
 As of 1 July 2020, the social contribution tax was be reduced by 2 percentage points.
 The deadline for the submission of tax returns was postponed to 30 September 2020.
 In the Electronic Trade and Transport Control System, the Government introduced exemptions from the provision of security.


 VAT refunds were accelerated, reducing the time limit in the case of normal taxpayers from
75 days to 30 days, while in the case of reliable taxpayers from 30 days to 20 days.
 Special payment facilities, payment by installments, deferred payment and tax reduction options were introduced, while forms were simplified.
 Taxpayers were exempt from penalties due to any omissions occurring during the state of danger.
 The documents required for sick leave could be submitted electronically.


 The social insurance of workers sent on unpaid leave was not be terminated.
 Calls for proposals with an allocation of hundreds of billions of forints were released for
companies retaining their work force for the purposes of technological developments, environmental protection and energy efficiency projects.
 In response to company shutdowns, online training was organized for workers.


 The state covered 95% of training fees while job-seekers were entitled to interest-free adult training student loans.
 University students were able to apply for a one-time, any-purpose, interest-free student loan in the amount of HUF500,000.
 Sectors most affected by the COVID-19 pandemic and industries with extensive traditions in


Hungary received extra funding. Accordingly, the construction industry, transport, logistics, tourism, the creative industry, the health industry and the food industry were given access to development grants and tax cuts, in addition to the availability of preferential loans and capital programs.
 In order to support tourism, the tourism tax was suspended up to the end of the year 2020. The


social contribution tax on SZÉP cards (recreational benefits) was reduced to 4% until the end of June 2020, and the applicable limit was also increased. Refurbishment and development programs were likewise available in this field.
 The health industry received support. Both university and corporate research institutes
received funding, and an Agency for Health Industry Innovation was set up.
 In the interest of protecting employers, credit guarantee and capital programs were launched to


boost corporate liquidity. Corporate credit facilities offered at preferential interest rates amounted to almost HUF2,000 billion in total, with state guarantees amounting to HUF500 billion.
 The deadlines attached to the home care fees for children were extended, as was the eligibility
of parents raising children with permanent illnesses for higher family allowances.


 Instead of the end of the school year, the eligibility for family allowance for 2020 was adjusted to the end of the state of danger.
 The rules and deadlines relating to pensions and pension-like benefits were also changed favorably.


On 9 April 2020, the Ministry of Finance announced that a one-time tax was levied on the banking industry equating to a rate of 0.19% of the tax base exceeding HUF50 billion (EUR 139.3 million), which was to be paid in three installments by 10 June 2020, 10 September 2020 and 10 December 2020. The resultant revenue flowing into the budget was expected to be HUF55 billion (EUR 153.2 million).


This sum is expected to be returned to the banking system over the next five years as deductions from the bank tax, meaning that it essentially equated to a one-time advance tax payment.
On 23 September 2020, the Government announced an extension of the debt payment moratorium from 31 December 2020 to 30 June 2021 for parents raising children, pensioners, jobseekers, participants in public work schemes and businesses that experienced a revenue decline of at least 25%


because of the COVID-19 pandemic. The extension was approved by Parliament on 21 October 2020.


On 26 October 2020, the Government announced that the Council of the European Union approved a EUR 504 million credit for Hungary, within the framework of the EU’s Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) program to protect jobs in countries hit hard by the COVID-19 pandemic. The Ministry of Finance said that the credit would help finance job protection and job health protection measures introduced after 1 February 2021.


On 10 November 2020 Prime Minister Viktor Orbán announced that in the next 30 days, the Government would reimburse hotels for 80% of the bookings registered before 8 November 2020. Restaurants and leisure facilities would be exempt from paying contributions for their employees for the following 30 days, and the Government would take over half of their employees’ wage costs. Employers were only eligible for those allowances, however, if they commit to keeping and paying their employees.


On 10 December 2020, Minister of Finance Mihály Varga announced that the Government was lengthening the ongoing subsidy program for the tourism and hospitality industry until the end of January 2021. The subsidy program, which started in November 2020, was intended to aid the tourism sector that was struggling during the pandemic.


The program gave 50% wage subsidies and waived payroll taxes for companies in the restaurant, hotel, arts, entertainment and recreation industry who maintained their employees, with the aim of preserving 140,000 jobs. The subsidy program was conditional on businesses maintaining headcount. Minister of Finance Mihány Varga also noted that these measures might continue after January.


On 21 December 2020, Prime Minister Viktor Orbán announced that the moratorium on loan repayments would be extended until 1 July 2021. There would be an automatic opt-in for participation. The Government subsidized two-thirds of payroll costs in December 2020 and January 2021 for businesses forced to close temporarily because of the COVID-19 pandemic. The local business tax was halved for SMEs and sole proprietors as of 1 January 2021.


The Government also subsidized the revenue shortfall in municipalities with fewer than 25,000 residents, while the situations of bigger cities would be weighed on a case-by-case basis. Families with one or more children or with a baby on the way were made eligible for a HUF6 million preferential loan, capped at 3% interest, for home renovation. The principal on such loans is expected to be reduced with a HUF3 million government grant when the renovation is completed.


On 5 February 2021, the Government announced the introduction of a ten-year, interest-free loan instrument of up to HUF10 million, with repayments deferred by three years, for SMEs.


On 5 February 2021, Prime Minister Viktor Orbán announced that the action plan to relaunch the economy would have three phases. The first phase, running from 1 January 2021 to 1 April 2021, included the reduction of the VAT on new home constructions to 5%, a HUF6 million loan for home renovations (half of which is non-refundable), and the phasing in of the 13th month pension. The second phase, running from 1 April 2021 to 1 July 2021, focused on higher education.


The third phase, running from 1 July 2021 to 1 October 2021 focused on green energy, developing a circular economy and full digitalization.


On 8 March 2021, Prime Minister Viktor Orbán announced that the Government would pay half the wages of workers in service jobs that remained suspended, such as hairdressers, beauticians, and shop assistants. Employer contributions in the relevant sectors, income taxes of companies affected by the lockdown, and business taxes for small firms were waived for March 2021.


On 16 April 2021, the Government announced that wage subsidies for businesses running bars and eateries were expanded to cover the month of May 2021.
7. National Debt
(1) General Information
Traditionally, the NBH was the primary entity through which Hungary borrowed money in foreign currencies. Pursuant to the 1997 amendment to the National Bank Act, the NBH may now only incur foreign currency debt for its own purposes, and all foreign currency borrowings and debt security


issuances for the central budget must be made directly by Hungary. In such respect, as of 29 May 2010, the MNE acts on behalf of Hungary. In turn, the MNE has delegated these debt management functions to the GDMA Pte Ltd., which was part of the Treasury until 2001, but thereafter became a separate legal entity. Since 1 January 1999, foreign currency debt issuances have been arranged by the GDMA Pte Ltd.


See “Public Finance – Central Government Budget – Roles of the Ministry for National Economy, the Hungarian State Treasury and the Government Debt Management Agency.”


The NBH has remained the legal or named obligor on the outstanding foreign currency debt incurred prior to 1 January 1999. The majority of the interest rate and exchange rate risks associated with these debts and any related swaps, however, have been effectively transferred to Hungary pursuant to a series of transfer agreements, whereby Hungary has essentially agreed to pay the NBH sufficient funds to cover these obligations.


Following this transfer of risk, Hungary entered into a number of swap agreements to match the currency profile of this debt portfolio to that of the currency basket (100% euro since January 2000) upon which the forint was pegged. Since January 1997, the NBH has acted in an agent role on the basis of an agency agreement, which was entered into by the NBH and Hungary, as permitted by the amended National Bank Act.


The NBH was an agent of Hungary for the purposes of obtaining foreign loans and issuing securities abroad until the end of 2005.


Because of this history, all references to public debt include the debt of Hungary and the NBH. Public debt also includes the debt of the social security and other extra-budgetary funds, but does not include local government debt. External public debt refers to public debt that is denominated in a foreign currency and almost always owed to a non-Hungarian party. Internal public debt refers to public debt denominated in forint and typically owed to parties within the country.


Gross external debt refers to all of the foreign currency denominated debt owed by Hungarian persons and both public and private entities to non-resident creditors. Loans between the NBH and Hungary relating to external borrowings originally made by the NBH were not added for the purposes of calculating public debt figures, to avoid double counting.
(2) Public Debt
The government debt to GDP ratio amounted to 66.1% in 2018, 62.4% in 2019 and grew to 76.4% in 2020.


The central government debt totaled HUF36,684.3 billion at the end of December 2020, showing an increase of 23.6% in nominal terms compared to HUF29,682.0 billion at the end of 2019.
The Maastricht measure of general government debt is defined as the sector’s consolidated gross debt at nominal value, excluding other liabilities.


According to data published by the NBH, general government consolidated gross debt at nominal value (Maastricht debt) including Eximbank as of 31 December 2020, amounted to HUF38,417.6 billion, equaling 80.1% of GDP.
According to data compiled by Eurostat, the government debt to GDP ratio in the European Union amounted to 90.7% as of 31 December 2020.


On 1 January 2012, the Act on Economic Stability of Hungary went into effect. The Act contains regulations related to government debt reduction rules and detailed regulation of central government debt limits, rules of governing the central government debt, the legal status of the GDMA Pte Ltd., and the organizational and procedural order of the Budgetary Council.


Moreover, on the same day, the Act on Public Finance went into effect, which divides the Hungarian public finance system into two subsystems: the subsystem of central government and the subsystem of municipalities. The social security funds and the separated state funds became part of the central government budget.


According to the financing plan issued by GDMA Pte Ltd. in December 2020, the net financing need for 2021 was expected to reach HUF3,332 billion. The total amount of government debt redemptions and pre-financing in 2021 was expected to amount to HUF7,053 billion, local currency debt maturities were expected to amount to HUF4,101 billion (equaling EUR 11.2 billion), foreign currency debt redemptions were expected to amount to HUF935 billion (equaling EUR 2.


6 billion), and pre-financing was expected to amount to HUF2,017 billion (EUR 5.5 billion). For 2021, total gross


issuances were expected to amount to HUF8,965 billion (EUR 24.6 billion), and total gross issuances in foreign currency were expected to amount to HUF544 billion (EUR 1.5 billion). HUF2,933 billion (EUR 8.0 billion) worth of government bonds denominated in local currency was expected to be offered at auctions, while another HUF1,500 billion (EUR 4.1 billion) was expected to be sold at switch auctions. Retail securities issuances were expected to amount to HUF3,355 billion (EUR 9.


2 billion), while discount treasury bills in the amount of HUF633 billion (EUR 1.7 billion) were expected to be sold at auctions.
GDMA Pte Ltd.


determined the following benchmark targets for government debt management in 2021: (a) the share of the foreign currency denominated debt within the total central government debt should remain between 10% and 20%, (b) foreign currency obligations after swaps should be 100% denominated in euros, with an allowance for a 5% deviation from this target, (c) within the forint-denominated debt, the share of the fixed rate elements should be between 70% and 90%, and that of floating rate debt, which includes all short-term debt, between 10% and 30%, (d) within the foreign currency denominated debt, the share of the fixed rate elements should be between 70% and 90%, and that of floating rate debt, between 10% and 30%, (e) the average time to refixing of the forint debt portfolio should exceed 4


.0 years, and (f) the average term to maturity of the forint debt portfolio should exceed 4.5 years. A minimum target balance of the Single Treasury Account has been determined and GDMA Pte Ltd.’s objective is to keep the end-of-day actual balance above this level.


On 10 May 2021, GDMA Pte Ltd. issued a revised financing plan for 2021. According to the revised financing plan, the net financing need for 2021 is expected to reach HUF3,990 billion, an increase of HUF658 billion from the financing need contemplated in the prior financing. In order to cover the HUF658 billion higher net financing need, GDMA Pte Ltd.


increased the planned issuances of retail securities by HUF100 billion, that of discount treasury bills by HUF111 billion and that of Hungarian Government Bonds by HUF312 billion. Additionally, GDMA Pte Ltd. plans to raise an additional HUF100 billion through foreign currency financing.


On 13 September 2021, GDMA Pte Ltd. issued a modified financing plan for 2021 in order to establish the possibility for the issuance of benchmark sized international foreign currency denominated bonds to raise up to EUR 4.5 billion equivalent of net proceeds in order to bridge-finance potentially delayed EU Recovery and Resilience Facility transfers and to finance other discretionary government expenditures in 2021 as well as to pre-finance some 2022 budgetary expenditures.


The modified financing plan provides the opportunity increasing HUF bond issuance by HUF230 billion relative to the revised financing plan published on 10 May 2021. In accordance with the modified financing plan, relative to the revised financing plan, the planned retail issuance target was reduced by HUF15 billion.


GDMA Pte Ltd. holds regular domestic bond auctions based on an annual auction calendar. Primary Dealers (currently 14 foreign and local banks) are entitled to enter the primary market. In addition to BSE listing a Mercato dei Titoli di Stato (“MTS”) trading platform is operated by GDMA Pte Ltd. and EuroMTS Limited (otherwise known as MTS Hungary, a division of MTS Cash Domestic Markets).
(a) Hungary’s credit ratings


On 17 August 2018, Standard & Poorʼs affirmed Hungaryʼs “BBB-/A-3” long and short-term foreign and local currency sovereign credit ratings. The outlook for each remained “positive.”
On 31 August 2018, Fitch affirmed Hungary’s long-term foreign and local currency debt at “BBB-”. The outlook for each remained “positive.”


On 15 February 2019, Standard & Poor’s revised the rating assigned to Hungary’s long and short term foreign and local currency sovereign credit ratings from “BBB/A-3-” to “BBB/A-2”. The outlook remained “stable”.
On 22 February 2019, Fitch revised the rating assigned to the government’s long term foreign and local currency from “BBB-” to “BBB” with a “stable” outlook.


On 14 February 2020, Standard & Poor’s revised the outlook assigned to the government debt of Hungary from “stable” to “positive”. The ratings were unchanged at “BBB/A-2”.
On 28 April 2020, Standard & Poor’s revised the outlook assigned to the government debt of Hungary from “positive” to “stable”. The ratings were unchanged at “BBB/A-2”.


On 14 August 2020, Standard & Poorʼs affirmed Hungary’s “BBB/A-2” longand short-term foreign and local currency sovereign credit ratings. The outlook on the long-term rating remained “stable”.
On 14 August 2020, Fitch affirmed Hungary's Long-Term Foreign-Currency and Local-Currency Debt at “BBB”. The outlook on the long-term rating remained “stable”.


On 25 September 2020, Moody’s revised the outlook on Hungary’s ratings from “stable” to “positive”. The agency affirmed Hungary’s long-term and senior unsecured debt ratings at “Baa3”.
On 12 February 2021, Fitch affirmed Hungary's Long-Term Foreign-Currency and Local-Currency Debt at “BBB”. The outlook on the long-term rating remained “stable”.


On 12 February 2021, Standard & Poorʼs affirmed Hungary’s “BBB/A-2” longand short-term foreign and local currency sovereign credit ratings. The outlook remained “stable”.
On 30 July 2021, Fitch affirmed Hungary's Long-Term Foreign-Currency and Local-Currency Debt at “BBB”. The outlook on the long-term rating remained “stable”.


On 24 September 2021, Moody’s revised the rating assigned to the government’s local and foreign currency long-term issuer and senior unsecured bond ratings from “Baa3” to “Baa2” with a “stable” outlook.
(3) Relations with Multilateral Financial Institutions
(a) Asian Infrastructure Investment Bank (“AIIB”)


Hungary joined the AIIB as its 56th member state in June 2017, becoming for the first time, part of a multilateral development bank exclusively devoted to Asia’s development. Beyond its shareholding role, Hungary, through certain competencies, is eager to contribute to success stories in infrastructure and business development in Asia. On 10 September 2021, Hungary and AIIB signed an EUR183.1 million (USD216.


1 million) financing for a project aimed at strengthening the public health emergency response infrastructure in Hungary and to improve pandemic preparedness. The total cost of the project is expected to be USD267.2 million with Hungary providing the remaining USD51.1 million.
(b) European Bank for Reconstruction and Development (“EBRD”)


Since 1991, the EBRD has been involved in a number of state and non-state projects, both in the form of equity participation and loans. The total participation (net business volume) of the EBRD between 1991 and the end of 2020 was approximately EUR 3.2 billion in 189 projects, 100% of which were in the private sector.


According to the latest country strategy for Hungary, adopted in March 2016, the EBRD focuses on strengthening banking sector resilience and its capacity to lend, further improving Hungary’s energy security, enhancing competitiveness and addressing innovation gaps. Due to the effects of the 2008 financial crisis, the EBRD confirmed its commitment to continue to support Hungary’s financial sector.


The EBRD’s engagement and activities in Hungary must also be seen in light of the Memorandum of Understanding (“MoU”) concluded between the Government of Hungary and the EBRD in February 2015. The MoU also confirms the Government’s intention to strengthen its relationship with the banking sector in order to promote a stable and predictable framework to support macroeconomic stability.
(c) Council of Europe Development Bank (“CEB”)


Hungary joined the CEB in 1998. According to the CEB’s social mandate, the focus of the CEB’s projected activity in Hungary is mainly in the field of environmental protection, strengthening social integration and developing human capital. In the past five years (2016-2020), the CEB financed projects by granting loans totaling approximately EUR 607.7 million. In 2020, Hungary and the CEB signed two loan facilities in an aggregate amount of EUR 325 million.
(d) European Investment Bank (“EIB”)


Since 1990, the EIB has been financing different government and non-government projects in Hungary. The EIB finances primarily infrastructure, environmental protection, health care and education projects. In the five-year period between 2016 and 2020 the EIB financed projects by granting loans totaling approximately EUR 3.59 billion in the aggregate.


In 2019, two new loan facility agreements were signed between Hungary and the EIB in an aggregate principal amount of EUR 500 million. Hungary drew a total amount of HUF46.3 billion in 2019.
In 2020, two new loan facility agreements were signed between Hungary and the EIB in an aggregate principal amount of EUR 362.5 million. Hungary drew a total amount of EUR745.5 million in 2020.
(e) International Finance Corporation (“IFC”)


In 2001, the IFC established the Hungary Energy Efficiency Co-financing Program (“HEECP”), whereby the IFC grants guarantees and provides technical assistance to projects aimed at increasing the efficiency of energy consumption in Hungary.
(f) International Investment Bank (“IIB”)


Hungary renewed its membership in the IIB in 2015, after the shareholders and the management of the IIB decided to start a full-fledged modernization of the IIB aimed at setting up a modern development bank in line with international best practices. In December 2018, the Board of Governors of the IIB decided to relocate the headquarters of the Bank to Budapest, Hungary. The relocation took place in 2019.


Between 2016 and 2020, the IIB financed projects by granting loans and issuing guarantees to Hungarian companies totaling approximately EUR 247 million. The Hungarian Government raised its capital share in the IIB by EUR 10 million in September 2019, and by another EUR 10 million in January 2020. In 2019, the IIB successfully issued HUF denominated bonds worth HUF47.5 billion to institutional investors.
(g) The IMF, the EU and the World Bank


In 2008, Hungary received a financial assistance package of up to USD25.1 billion in the aggregate from the IMF, the EU and the World Bank. The IMF agreed to provide a 17-month standby facility of USD15.7 billion (EUR 12.5 billion), while the EU agreed to lend USD8.1 billion (EUR 6.5 billion), and there was a possibility to draw down USD1.3 billion (EUR 1 billion) from the World Bank to assist Hungary in addressing the consequences of the global financial crisis.


Hungary did not draw from the World Bank facility.


In July 2010, the Government suspended the negotiations with the IMF concerning the possible extension of the standby facility. The IMF continues to engage in regular consultations with Hungary to monitor and review economic developments. The last consultation was held in December 2019, with the IMF mission concluding that Hungary achieved further income convergence at an impressive speed and has become less vulnerable to shocks over the last decade.


The following amounts were drawn down under the facilities:
 IMF: SDR6.373 billion by Hungary and SDR1.265 billion by the NBH; and  EU: EUR 5.5 billion by Hungary.
As of 3 August 2013, the NBH repaid all its outstanding debt borrowed from the IMF and as of 12 August 2013, Hungary repaid all outstanding debt borrowed from the IMF. As of 6 April 2016, Hungary has reimbursed all outstanding debt borrowed from the Commission.


The IMF reviews the economic situation in Hungary on a regular basis and issues a statement based on the Article IV consultation each year. According to the latest staff report dated June 2021, the IMF concluded that:
 the authorities’ policy response to the COVID-19 pandemic was appropriately strong;
 fiscal policy needs to flexibly balance supporting the economy and preserving medium-term sustainability;


 minimizing scarring from the COVID-19 pandemic and enabling economic transformation should be priorities going forward;
 the monetary policy response to the COVID-19 pandemic was appropriate;
 prudential policies should continue to focus on mitigating immediate vulnerabilities;
 the structural reform agenda should facilitate the transformation toward a more resilient economy post-pandemic;
 greening the economy, to which the authorities are strongly committed, is necessary for


sustainable growth and should be supported by higher carbon pricing; and
 the EU Recovery and Resilience Funds can help leverage the authorities’ efforts.
SECTION 7: PRINCIPAL ECONOMIC DATA OF HUNGARY


Official data regarding the socio-economic situation as well as the changes in the population of Hungary are collected, analyzed and published by CSO. CSO provides data for the parliament and public administration, social organizations, local authorities, scientific bodies, economic organizations, the general public and the media as well as for international organizations and users abroad. CSO is a professionally independent government office. Its activity is regulated by the Act No.


XLVI of 1993 on Statistics. In consideration of the Hungarian membership in the EU, official statistics are in line with the related basic European regulation No. 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics. CSO operates in line with the basic principles of the European Statistics Code of Practice and facilitates other national organizations of official statistics to apply them.


In the frame of standardized self-assessment, coordinated at European level, HCSO regularly reports on the fulfilment of the code’s principles.
The statistics set forth below are primarily recorded in Forint or Euro. For information on recent exchange rates between (1) Forint and Euro and (2) Forint and Renminbi, see Section 6 “Description of the Issuer – Monetary and Financial System – Exchange Rate Development” of this Offering Circular.
1. The Economy
(1) Recent Economic Performance


The following table sets out certain macroeconomic statistics regarding Hungary for the periods indicated:
Table 17: Selected Macroeconomic Statistics
For the year ended 31 December For the three-month period ended 2018 2019 2020
31 March 2021
30 June 2021
Economic Data (2)


Exports (EUR billions) (9) ........ 113.9 119.4 108.6 29.7 30.7 Imports (EUR billions) (9) ........ 108.1 116.0 106.3 27.9 29.8 NBH’s foreign exchange reserves (EUR billions)......... 27.4 28.4 33.7 32.0 30.8 __________________ Sources: Hungarian Central Statistical Office, NBH, Ministry of Finance
Notes:
(1) n/a: Not available.
(2) Derived from data published by the CSO.
(3) Average data for the first three months of the year.
(4) Average data for the first six months of the year.


(5) Derived from the government budget as published by the Ministry of Finance, according to the GFS methodology.
(6) Non-consolidated data excluding local governments, data for the first six months of 2021.
(7) Derived from data published by the NBH.
(8) Non-consolidated data excluding local governments, data for the first three months of 2021.
(9) Including goods and services.
(a) Gross Domestic Product


The following table presents the nominal GDP at current market prices, as well as real GDP growth rates, per capita GDP and USD equivalents for the periods indicated:
Table 18: Gross Domestic Product
For the year ended
31 December
For the six months ended 30 June 2018 2019 2020 2021 Nominal GDP (HUF billions) ........ 43,392.4 47,530.6 47,988.5 24,825.6 Annual real GDP growth rate (%).. 5.4 4.6 (4.7) 7.6 Per capita GDP (HUF thousands) .. 4,438.9 4,864.4 4,921.8 2,551.3 (1)


GDP (USD billions) ....................... 160.6 163.5 155.8 83.6 (2) Per capita GDP (USD) ................... 16,425 16,736 15,984 8,591 (1)(2) __________________ Source: CSO
Notes:
(1) Calculated according to population as of the beginning of the corresponding year.
(2) Calculated according to the average HUF/USD exchange rate of the corresponding period calculated by the NBH.
The following table shows the sectoral composition of GDP in each of the periods indicated:


Table 19: Sectoral Composition of GDP
For the year ended 31
December For the six months ended 30 June 2018 2019 2020 (1) 2021 (1) (percentage contribution) Agriculture, forestry and fishing ...................... 3.5 3.3 3.4 2.6
Mining and quarrying; manufacturing;


3 Public administration and defense;
compulsory social security; education; human health and social work activities ..... 14.3 14.1 14.8 15.2 Arts, entertainment and recreation, repair of household goods and other services ............. 2.5 2.5 2.2 2.0 Taxes less subsidies on products ..................... 15.5 15.4 15.5 15.0 Gross domestic product, total (at purchaser’s prices) .......................................... 100.0 100.0 100.0 100.0 __________________ Source: CSO Note:


(1) Preliminary data.
The following table shows GDP expenditures at current prices in each of the periods indicated:
Table 20: Composition of GDP by Expenditure
For the year ended
31 December
For the six months ended 30 June 2018 2019 2020 2021 (HUF billions) Household final consumption expenditure ......................................................20,512.5 22,552.9 22,889.2 11,753.1 Social transfers in kind from government .......... 4,040.3 4,306.1 4,773.6 2,493.0


(1) Non-profit institutions serving households.
The following table shows the volume indices of GDP expenditures in each of the periods indicated: Table 21: Volume Indices of GDP
For the year ended
31 December


For the six months ended 30 June 2018 2019 2020 2021 (Corresponding Period of the Previous Year = 100) Household final consumption expenditure ... 104.8 105.1 98.4 100.8 Social transfers in kind from government..... 99.3 101.9 94.7 105.2 Social transfers in kind from NPISHs ............ 112.9 101.9 103.4 107.1 Actual final consumption of households ....... 104.2 104.5 98.0 101.7 Actual final consumption of government...... 104.2 106.4 105.2 103.9 Actual final consumption, total ................


The following table illustrates the year-on-year change and the yearly average change in the Consumer Price Index (the “CPI”) and the Producer Price Index (the “PPI”) for each of the years indicated:
Table 22: Inflation: CPI & PPI


The following table sets forth year-on-year changes in nominal and real wages for the periods indicated:
Table 23: Wages
For the year ended 31
December For the seven months ended 31 July 2018 2019 2020 2021 (%) Nominal net wage index............... 11.3 11.4 9.7 8.4
Real net wage index ..................... 8.3 7.7 6.2 4.0 __________________ Source: CSO
(d) Employment
The following table illustrates the general composition of employment and unemployment for each of the periods indicated:


(1) Based on the international sampling methodology pursuant to the guidelines of the International Labor Organization.
The following table illustrates the general composition of employment in Hungary by major sector for each of the periods indicated:
Table 25: Composition of Employment by Sector
For the year ended 31
December For the three-month period ended
Sector 2018 2019 2020
31 March 2021
30 June 2021 (in thousands of persons)


Not classified..................................................3.3 5.2 4.0 0.0 0.0 Total............................................................... 4,606.4 4,644.6 4,603.2 4,567.6 4,619.2 __________________ Source: CSO
(2) Principal Sectors of the Economy
The following table indicates the volume indices by industry sector for the periods indicated:
Table 26: Volume Indices by Industry (1)
For the year ended For the three-month period ended


31 December 2020 31 March 2021 30 June 2021 (corresponding period of the previous year = 100)
Agriculture, forestry and fishing ................... 91.3 102.6 101.3 Mining and quarrying;


Other service activities .................................. 83.4 n/a (2) n/a (2) Activities of households ................................ 94.2 n/a (2) n/a (2) Taxes less subsidies on products ................... n/a (2) n/a (2) n/a (2) GDP, Total (at purchaser’s prices) .............. 95.3 98.0 117.8 __________________ Source: CSO
Notes:
(1) Data unadjusted for calendar-day effect.
(2) n/a: Not available.
(3) Including administrative and support service activities.


(4) Including repair of household goods and other services.
(a) Energy
The following table provides certain information regarding the composition of consumption of the main energy resources in Hungary for the years 2018 through 2020:
Table 27: Composition of Consumption of Energy Resources
For the year ended 31 December
Source of Energy (1) 2018 2019 2020 (provisional) (%)
Coal and coal products (2) .....................
7.9 6.8 6.4 Crude oil and crude oil products.........


Total ................................................... 100.0 100.0 100.0 Import dependency .............................
57.8 69.1 56.6 __________________
Source: Hungarian Energy and Public Utility Regulatory Authority
Notes:
(1) Electricity and heat produced from tail gas and waste heat are included in these figures.
(2) Coal briquette and coke oven coke included.
(3) Biogas, biomass, municipal waste, industrial waste, biofuel.


(4) Nuclear regarded as inland production (included nuclear electricity and heat).
(5) Geothermal, solar thermal and photovoltaics.
(6) Share of net import in primary energy consumption.
(b) Service Industries
The following table sets forth the composition of the service industry per individual subsector for the periods indicated:
Table 28: Composition of Service Industry per Subsector
For the year ended For the three-month period ended
31 December 2020
31 March 2021
30 June 2021 (percent)


Other service activities.................................. 1.9 n/a (1) n/a (1) Activities of households................................ 0.0 n/a (1) n/a (1) Services, Total .................................................. 100.0 100.0 100.0 __________________ Source: CSO
Notes:
(1) n/a: Not available.
(2) Including administrative and support service activities.
(3) Including repair of household goods and other services.
2. Balance of Payments and Foreign Trade
(1) Balance of Payments


The following tables set out the balance of payments of Hungary for the periods indicated:
Table 29: Balance of Payments
For the year ended 31 December 2018 2019 2020 (EUR millions)
1. Current Account, net (1.A+1.B+1.C)............... 215.9 (1,017.2) (2,166.5)
1.A. Goods and Services, net ................................ Exports ....................................................................


currencies (excl. direct investment debt 51,627.2 51,320.3 56,108.1


__________________ Source: NBH
(2) Foreign Trade
The tables below set forth Hungary’s trade in goods by territory and commodity group for the periods indicated.
Table 30: Exports by Destination
European
Union
countries
Non-EU Countries Total Asian countries American countries (EUR millions) 2018 .................................
84,690
(1)
20,165 (2) 104,855 5,329 4,546 2019 .................................
88,296
(1)
20,799 (2) 109,095 5,037 4,621 2020 .................................
81,066
(2)(3)


"":"Seven-month period ended 31 July 2021 ....."
"Food, beverages, tobacco":"4,847 (1)"
"Crude materials":"1,824 (1)"
"Fuels, electric energy":"1,582 (1)"
"Manufactured goods":"21,671 (1)"
"Machinery and transport equipment":"39,215 (1)"
"Total":"69,140 (1)"
__________________ Source: CSO
Note:
(1) Preliminary data.
Table 32: Imports by Origin


[Table 32: Imports by Origin
__________________ Source: CSO]
 (EUR millions)


"":"Seven-month period ended 31"
"European Union countries":""
"Non-EU Countries":""
"Total":""
"Asian countries":""
"American countries":""


[Table 33: Imports by Commodity Group
__________________ Source: CSO]
 (EUR millions)


"":"Seven-month period ended 31 July 2021 (1)"
"Food, beverages, tobacco":"....................................... 3,346"
"Crude materials":"1,462"
"Fuels, electric energy":"4,169"
"Manufactured goods":"24,739"
"Machinery and transport equipment":"31,963"
"Total":"65,679"
__________________ Source: CSO
Note:
(1) Preliminary data.
(3) Foreign Direct Investment


The following table sets forth historical records of foreign direct investment (“FDI”) in Hungary and Hungarian direct investments abroad during the years indicated:
Table 34: Foreign Direct Investment Flows
For the year ended 31 December 2018 2019 2020 (EUR millions)
3.1. Direct Investment (net assets) .................
(2,611.8) (772.4) (2,189.1)
3.1.k. Abroad (net assets) ..................................
2,811.0 2,840.7 3,670.7
3.1.1.k Equity (net assets) ...............................


3.1.2.1.be Assets ...........................................
673.6 (1,057.4) (2,881.1)
3.1.2.2.be Liabilities .....................................
1,383.3 (3,093.0) 871.1 __________________ Source: NBH
The following table sets forth certain information regarding FDI in Hungary and Hungarian direct investments abroad during the six months ended 30 June 2021 as compared to the same period in 2020:
Table 35: Foreign Direct Investment Flows: First Half of 2020 and 2021


[Table 35: Foreign Direct Investment Flows: First Half of 2020 and 2021
__________________ Source: NBH]
 2020 2021
"":""
"For the six-month period ended 30 June":"(EUR millions)"


Liabilities .......................................................................... 2,248.9 7,041.0
__________________ Source: NBH
(4) Foreign Exchange Reserves
The following table presents the level of Hungary’s gold and foreign exchange reserves as of the dates indicated:
Table 36: Gold and Foreign Exchange Reserves


(2) Consists of foreign currencies, including the counterparts of swapped gold, special drawing rights SDR, reserve position in the IMF and other reserved assets, converted at exchange rates at the dates shown.
3. Monetary and Financial System
(1) Monetary Policy
The following table sets forth the amount of one-week deposits as of the end of the periods indicated:
Table 37: Stock of One-Week Deposits


September 2021.................................................................
5,157.20 __________________
Source: NBH
(a) Interest Rate Policy
The following table sets forth changes of the central bank base rate, the interest rate on the overnight deposit facility and the overnight interest rate on collateralized loans:
Table 38: Selected Interest Rates
Central bank base rate Interest rate on overnight collateralized loan Interest rate on overnight deposit percent
Date


[The following table sets forth indicative interest rates of the NBH as of the dates shown: Table 39: Selected Interest Rates
__________________]

 2018 2019 2020

"":""
"As of 31 December":"(percent)"

Central bank base rate .......... 0.90 0.90 0.60

Real rate (1) ............................ (1.8) (3.0) (2.0)
__________________
Sources: CSO, NBH
Note:


(1) The real rate is calculated as follows: (1 + central bank base rate)/(1 + year-on-year inflation rate as of year-end) – 1, where interest rates are expressed as decimal numbers.
(b) Money Supply
The following table provides information about the composition of the money supply as of the dates indicated:
Table 40: Money Supply
[Table 40: Money Supply
__________________]
 2018 2019 2020 2021
 (HUF billions)


M3 (3) ................................................................. 25,637 27,724 33,548 35,162
__________________
Source: NBH
Notes:
(1) Consists of currency in circulation outside monetary financial institutions plus overnight deposits.
(2) Consists of M1 plus deposits with fixed terms of up to two years.
(3) Consists of M2 plus repos, money market funds and debt securities with maturities of up to two years.
(c) Swaps


During the course of the years 2020 and 2021, the NBH conducted fine-tuning FX swap tenders. The following table sets forth the monthly data of FX swaps used for fine-tuning the liquidity on the interbank market:
Table 41: FX Swaps
Accepted amounts (HUF billions) 2020 January........................................................
173.6
February......................................................
136.0
March..........................................................
541.3


August.........................................................	58.5
September ...................................................	26.4
__________________ Source: NBH
(2) The Hungarian Banking System
(a) Structure of the Hungarian Banking System
The following table illustrates certain trends in the Hungarian banking system for the periods indicated:
Table 42: Banking System — Selected Indicators


[Table 42: Banking System — Selected Indicators
__________________]
 As of 31 December As of 31 August
 2018 2019 2020 2021
"":""
"Banking Survey":"(HUF billions)"


Credits to enterprises (2) ................................ 8,684 9,696 10,971 11,407
Credits to households (3) ............................... 6,168 7,124 8,132 9,016
Broad money (M3)...................................... 25,637 27,724 33,548 35,162
__________________
Source: NBH
Notes:
(1) Including loans to non-financial enterprises, loans to other financial enterprises, loans to general government, loans to households and loans to non-profit institutions serving households.


(2) Including loans to non-financial enterprises and loans to other financial enterprises.
(3) Including loans to households and loans to non-profit institutions serving households.


The following table illustrates certain indicators of the Hungarian banking sector for the periods indicated. The Government introduced a moratorium on housing and corporate loans due to COVID-19, as described in Section 6 “Description of the Issuer – Monetary and Financial System – Recent Developments in Monetary Policy”.
Table 43: Selected Hungarian Banking Sector Indicators


(3) Capital Markets
(a) Stock Exchange
The following table sets forth selected indicators relating to the BSE as at the end of and for the periods indicated:
Table 44: Selected Budapest Stock Exchange Indicators


__________________ Source: Budapest Stock Exchange
Note: *Foreign equities.
4. Public Finance
(1) Budget Trends
The following table sets forth the main fiscal trends in Hungary for the years indicated:
Table 45: General Budget Balance, consolidated (1)


__________________
Sources: CSO and Ministry of Finance
Note:
(1) For methodological remarks on planned, expected, preliminary, fact and final budgets see Section 6 “Description of the Issuer – Public Finance – Methodology.”
(2) Central Government Budget
The following table sets forth information concerning central government revenues and expenditures for the final budget for the years 2018, 2019 the final budget for 2020, and the planned and expected budget for 2021:


Table 46: Central Government Revenues and Expenditures (1)


Total..........................................................	642.8	654.3	658.9	672.0	672.0
Central Budgetary Institutions and
Chapter Administered Appropriations
Expenditures of central budgetary


Total Expenditures ..................................	15,021.2	16,000.8	20,988.9	16,018.2	17,605.0
]

2018 2019 2020 2021 2021

Final Final Preliminary Approved Modified

(HUF billions) Revenues Payments of Economic Units

Corporate taxes (including financial


Own revenues of the institutions ............... 2,228.9 2,002.7 2,354.6 1,451.3 1,452.2

Own revenues of chapter administered

professional appropriations ...................... 122.0 140.8 337.8 38.7 46.9

EU support of chapter administered professional appropriations and central


[	For the Year ended 31 December
2018	2019	2020	2021	2021
Final Final Preliminary Approved Modified
(HUF billions) Revenues Payments of Economic Units

Corporate taxes (including financial


Total (Payments of Households).............	2,425.3	2,698.3	2,827.1	2,997.1	3,006.8
Central Budgetary Institutions and
Chapter Administered Appropriations


Own revenues of the institutions ...............	2,228.9	2,002.7	2,354.6	1,451.3	1,452.2
Own revenues of chapter administered
professional appropriations ......................	122.0	140.8	337.8	38.7	46.9
EU support of chapter administered professional appropriations and central


Total.......................................................... 642.8 654.3 658.9 672.0 672.0

Central Budgetary Institutions and

Chapter Administered Appropriations

Expenditures of central budgetary


Total Expenditures .................................. 15,021.2 16,000.8 20,988.9 16,018.2 17,605.0
__________________ Source: Ministry of Finance Notes:
(1) Excluding interest revenues
(2) Including interest revenues
(3) Social Security and Extra-Budgetary Funds
The following table sets forth the revenues and expenditures for social security and certain extra-budgetary funds:
Table 47: Social Security and Extra-Budgetary Funds, Revenues and Expenditures
(1)


__________________
Source: Ministry of Finance
Notes:
(1) For methodological remarks on planned, expected, preliminary, fact and final budgets, see Section 6 “Description of the Issuer – Public Finance – Methodology.”
(2) Currently, these funds consist of the Nuclear Fund, the National Employment Fund, the Research and Development Fund, the National Cultural Fund, and the Bethlen Gábor Fund.
(4) Local Government Finance


The following table sets forth the revenues and expenditures at the local government level for the years indicated for all the local governments:
Table 48: Local Government Revenues and Expenditures
[Table 48: Local Government Revenues and Expenditures
__________________ Source: Ministry of Finance]
 2018 Final 2019 Final 2020 Preliminary 2021 Approved 2021 Modified
"":""
"For the year ended 31 December":"(HUF billions)"
Revenues


The following table sets forth certain information with respect to the budgetary relations between Hungary and the EU:
Table 49: Budgeted Financial Flows between Hungary and the EU Budget between 2018 and 2020
[Table 49: Budgeted Financial Flows between Hungary and the EU Budget between 2018 and 2020
__________________ Source: Ministry of Finance]
 2018 2019 2020
"":""
"For the year ended 31 December":"(HUF millions, current prices)"


EU resources out of the Hungarian budget (mainly agricultural subsidies) ................ 391,283.9 492,351.0 515,770.8
National contribution to the EU Budget.... 316,469.5 365,306.5 449,764.8
__________________ Source: Ministry of Finance
5. National Debt
(1) Public Debt
The following table sets out certain statistics regarding Hungarian public debt for the years indicated:
Table 50: Public Debt of Hungary (1)


__________________
Source: GDMA Pte Ltd.
Notes:
(1) This table shows the public debt of Hungary from the perspective of the economic obligations of the central government. Financial derivatives and mark-to-market deposits from 2005 are included. In this table, external debt refers to government obligations denominated in foreign currency, while internal debt refers to obligations denominated in local currency.
(2) Data as available as of 6 October 2021.


The following table sets forth the maturity profile of the public debt of Hungary as of 31 December
2020: Table 51: Maturity Profile of the Public Debt of Hungary
[2020: Table 51: Maturity Profile of the Public Debt of Hungary
__________________]
(HUF billions)


"":"2021"
"Forint debt":"4,375.8"
"HUF bonds":"1,710.8"
"Discount Treasury Bills":"658.2"
"Retail securities":"2,002.0"
"HUF loans":"4.8"
"Foreign exchange debt":"908.7"
"Foreign currency loans raised abroad":"119.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"571.2"
"Foreign currency bonds issued in Hungary":"218.0"
"Total":"5,284.5"
"Other debt":"128.8"
"Total central government debt":"5,413.3"


"":"2022"
"Forint debt":"2,491.7"
"HUF bonds":"1,768.3"
"Discount Treasury Bills":"0.0"
"Retail securities":"605.7"
"HUF loans":"117.7"
"Foreign exchange debt":"329.9"
"Foreign currency loans raised abroad":"37.6"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"292.3"
"Total":"2,821.6"
"Other debt":"0.0"
"Total central government debt":"2,821.6"


"":"2023"
"Forint debt":"2,871.3"
"HUF bonds":"2,333.5"
"Discount Treasury Bills":"0.0"
"Retail securities":"515.5"
"HUF loans":"22.4"
"Foreign exchange debt":"1,196.1"
"Foreign currency loans raised abroad":"109.4"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"1,066.6"
"Foreign currency bonds issued in Hungary":"20.1"
"Total":"4,067.4"
"Other debt":"0.0"
"Total central government debt":"4,067.4"


"":"2024"
"Forint debt":"5,384.1"
"HUF bonds":"2,056.7"
"Discount Treasury Bills":"0.0"
"Retail securities":"3,299.9"
"HUF loans":"27.6"
"Foreign exchange debt":"544.2"
"Foreign currency loans raised abroad":"58.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"485.7"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"5,928.4"
"Other debt":"0.0"
"Total central government debt":"5,928.4"


"":"2025"
"Forint debt":"5,335.1"
"HUF bonds":"2,544.3"
"Discount Treasury Bills":"0.0"
"Retail securities":"2,604.5"
"HUF loans":"186.3"
"Foreign exchange debt":"448.8"
"Foreign currency loans raised abroad":"10.2"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"423.1"
"Foreign currency bonds issued in Hungary":"15.5"
"Total":"5,783.9"
"Other debt":"0.0"
"Total central government debt":"5,783.9"


"":"2026"
"Forint debt":"1,985.4"
"HUF bonds":"1,959.2"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"15.0"
"Foreign exchange debt":"467.6"
"Foreign currency loans raised abroad":"102.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"365.1"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"2,453.0"
"Other debt":"0.0"
"Total central government debt":"2,453.0"


"":"2027"
"Forint debt":"1,921.7"
"HUF bonds":"1,834.9"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"86.8"
"Foreign exchange debt":"601.6"
"Foreign currency loans raised abroad":"191.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"410.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"2,523.3"
"Other debt":"0.0"
"Total central government debt":"2,523.3"


"":"2028"
"Forint debt":"739.7"
"HUF bonds":"651.3"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"65.8"
"Foreign exchange debt":"122.1"
"Foreign currency loans raised abroad":"122.1"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"861.9"
"Other debt":"0.0"
"Total central government debt":"861.9"


"":"2029"
"Forint debt":"379.8"
"HUF bonds":"302.9"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"77.0"
"Foreign exchange debt":"105.3"
"Foreign currency loans raised abroad":"105.3"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"485.1"
"Other debt":"0.0"
"Total central government debt":"485.1"


"":"2030"
"Forint debt":"1,354.4"
"HUF bonds":"1,083.1"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"271.2"
"Foreign exchange debt":"599.8"
"Foreign currency loans raised abroad":"130.3"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"469.5"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1,954.2"
"Other debt":"0.0"
"Total central government debt":"1,954.2"


"":"2031"
"Forint debt":"1,528.4"
"HUF bonds":"1,332.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"196.4"
"Foreign exchange debt":"8.4"
"Foreign currency loans raised abroad":"8.4"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1,536.8"
"Other debt":"0.0"
"Total central government debt":"1,536.8"


"":"2032"
"Forint debt":"96.2"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"20.1"
"Foreign exchange debt":"372.2"
"Foreign currency loans raised abroad":"7.1"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"365.1"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"468.4"
"Other debt":"0.0"
"Total central government debt":"468.4"


"":"2033"
"Forint debt":"202.4"
"HUF bonds":"124.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"70.6"
"Foreign exchange debt":"184.8"
"Foreign currency loans raised abroad":"184.8"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"387.2"
"Other debt":"0.0"
"Total central government debt":"387.2"


"":"2034"
"Forint debt":"6.2"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"5.4"
"Foreign currency loans raised abroad":"5.4"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"11.6"
"Other debt":"0.0"
"Total central government debt":"11.6"


"":"2035"
"Forint debt":"6.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"624.8"
"Foreign currency loans raised abroad":"77.1"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"547.7"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"630.7"
"Other debt":"0.0"
"Total central government debt":"630.7"


"":""
"Forint debt":""
"HUF bonds":""
"Discount Treasury Bills":""
"Retail securities":""
"HUF loans":""
"Foreign exchange debt":""
"Foreign currency loans raised abroad":""
"Domestic foreign currency loans":""
"Foreign currency bonds issued abroad":""
"Foreign currency bonds issued in Hungary":""
"Total":""
"Other debt":""
"Total central government debt":""


"":"2036"
"Forint debt":"5.2"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"3.6"
"Foreign currency loans raised abroad":"3.6"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"8.8"
"Other debt":"0.0"
"Total central government debt":"8.8"


"":"2037"
"Forint debt":"4.6"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"3.6"
"Foreign currency loans raised abroad":"3.6"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"8.2"
"Other debt":"0.0"
"Total central government debt":"8.2"


"":"2038"
"Forint debt":"438.9"
"HUF bonds":"435.7"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"2.2"
"Foreign currency loans raised abroad":"2.2"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"441.1"
"Other debt":"0.0"
"Total central government debt":"441.1"


"":"2039"
"Forint debt":"1.2"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.3"
"Foreign currency loans raised abroad":"1.3"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"2.6"
"Other debt":"0.0"
"Total central government debt":"2.6"


"":"2040"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.5"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1.5"
"Other debt":"0.0"
"Total central government debt":"1.5"


"":"2041"
"Forint debt":"109.0"
"HUF bonds":"109.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"322.3"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"320.8"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"431.3"
"Other debt":"0.0"
"Total central government debt":"431.3"


"":"2042"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.5"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1.5"
"Other debt":"0.0"
"Total central government debt":"1.5"


"":"2043"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.5"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1.5"
"Other debt":"0.0"
"Total central government debt":"1.5"


"":"2044"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.5"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1.5"
"Other debt":"0.0"
"Total central government debt":"1.5"


"":"2045"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.5"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1.5"
"Other debt":"0.0"
"Total central government debt":"1.5"


"":"2046"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"1.5"
"Foreign currency loans raised abroad":"1.5"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"1.5"
"Other debt":"0.0"
"Total central government debt":"1.5"


"":"2047"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"0.0"
"Foreign currency loans raised abroad":"0.0"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"0.0"
"Other debt":"0.0"
"Total central government debt":"0.0"


"":"2048"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"0.0"
"Foreign currency loans raised abroad":"0.0"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"0.0"
"Other debt":"0.0"
"Total central government debt":"0.0"


"":"2049"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"0.0"
"Foreign currency loans raised abroad":"0.0"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"0.0"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"0.0"
"Other debt":"0.0"
"Total central government debt":"0.0"


"":"2050"
"Forint debt":"0.0"
"HUF bonds":"0.0"
"Discount Treasury Bills":"0.0"
"Retail securities":""
"HUF loans":"0.0"
"Foreign exchange debt":"456.4"
"Foreign currency loans raised abroad":"0.0"
"Domestic foreign currency loans":"0.0"
"Foreign currency bonds issued abroad":"456.4"
"Foreign currency bonds issued in Hungary":"0.0"
"Total":"456.4"
"Other debt":"0.0"
"Total central government debt":"456.4"
__________________
Source: GDMA Pte Ltd.


The following table sets forth the investor base of Hungarian government securities (including securities denominated in foreign currency, securities denominated in local currency with original maturity over 1 year and securities denominated in local currency with original maturity not exceeding 1 year) for the years indicated:
Table 52: Investor Base of Hungarian Government Securities
As of 31 December As of 31 August 2018 2019 2020 2021 (HUF billions)
Nonfinancial corporations.....


The following table sets forth the investor base of Hungarian government securities denominated in local currency (including securities denominated in local currency with original maturity over 1 year and securities denominated in local currency with original maturity not exceeding 1 year) for the years indicated:
Table 53: Investor Base of Hungarian Local-Currency Government Securities


Total .......................................... 22,780.1 24,916.8 29,161.3 30,967.9
__________________
Source: NBH
The following table sets forth the general government consolidated gross debt at nominal value as a percent of GDP for the years indicated:
Table 54: Maastricht Debt of Hungary (1)


[Table 54: Maastricht Debt of Hungary (1)
__________________ Source: NBH]

 2018 2019 2020

"":""
"As of 31 December":"(Percent of GDP)"

Maastricht debt............................................... 69.1% 65.5% 80.4%
__________________ Source: NBH
Notes:
(1) Gross debt, excluding Eximbank
The following table sets forth the planned distribution of issuance of local currency denominated government bonds for 2021:
Table 55: Planned Issuance of Local Currency Denominated Bonds (1)


"":"Total ............................................................................................................"
"":""
"Planned Issuance (%)":"100"
__________________
Source: GDMA Pte Ltd. Notes:
(1) According to the financing plan issued in December 2020.
(a) External Public Debt
The following table sets forth the external public debt of Hungary as of 31 July 2021, by category and by currency:
Table 56: External Public Debt by Category and Currency


"By Currency (financial derivatives are excluded):":"Total ..............................................................................................."
"Amount (1) before swaps (%)":"100"
__________________
Source: GDMA Pte Ltd.
Note:
(1) Debt liabilities of the government sector that are not HUF-denominated (excluding financial derivatives but including mark-to-market deposits).
(b) External Public Debt Service and Schedule of Payments


Neither Hungary nor the NBH has ever defaulted on the payment of the principal of, or premium or interest on, any debt obligation issued by it.
The following table sets forth the maturity breakdown of Hungary's medium and long-term external debt by sectors (excluding SPEs) as of 31 December 2020: Table 57: Schedule of Payments on External Public Debt as of 31 December 2020