PART **IH** Details by Country

# HUNGARY

<!-- Start of picture text --> Figure 18: Huncery - Reletive Exuosure bY<br>Creditor - 1991<br>21 .56X % _ - 19.60%<br>6.87%<br>. l ~<br>I M cwflaC a I<br>Fliurcel a- s<br>Institutom |<br>S~S~atf bMWW. IIF C.." RW.%<br><!-- End of picture text -->

Hungary's total extemal debt increased to US$21.5 billion at theendof 1990 from US$205 billionayearearlier. A positive valuation effect of US$1.7 billion more than offset netrepaymentsamountingtoaboutUS$600million. Of total debt at the end of 1990, about 85% or US$185 billion was medium and long term. Short term commercial debt decreased US$0.4 billion from the end of 1989 to US$2.9 billion in 1990 mostly as a consequence of outflows to comrnercial banks. Total debt tocommercial banks at the endcommercialbanks.~~~~~ Toa.etoomrilbnsth n of 1990 amounted to US$12.2 billion, a decline of about US$1 billion from the previous year. Debt to other private creditors increased to US$4.4 billion, probably reflecting trade credits and joint venture working baLances. Commercial banks have clearly been Hungary's major source of finance in the pasL Their exposure is many times that of all other creditors put together.

Total external debt fell to US$19.8 billion at the end of Julyl99 1, of which US$2billion was shortterm and US$17.8 billion was long term debt. The fall in debt resulted from running down short term liabilities and a strong appreciation of the dollar, reducing nondollar liabilities in dollar terms. External reserves **are** reported to have been US$2.1 billion at the end of August 1991 compared with US$ 1.1 billion at the end of December 1990. Preliminary figures showed an increase to US$2.7 billion at the end of September, representingthreemonthsof imports. Forallofl991,commercial banks are likely to be repaid US$0.8 billion, while other private creditors provide US$0.6 billion. On this basis, total debt at the end of 1991 would be US$22.1 billion. Debt to commercial banks, however, would decline to US$11.6 billion at the end of 1991 from US$12.6 billion at the end of 1990. The share held by commercial banks would fall to 52 percentcomparedto59percentattheendof 1990.Inaddition to net credit inflows of US$1.3 billion, the assumption of a weaker dolLar accounts for the rise in debt from its mid-year level of US$19.8 billion. Since a large share of this debt is in non-dollar currencies, its dollar equivalent rises and falls with the exchange rate.

In 1990 the pattern of external financing changed from the paSt several years. Access to private international _Table_ 6: **Breakdown of** External **Financing** (in US$ **million)**

|Convertible Currency<br>|17,106|19,752|19,681|20,537|21,481|22,145|21,649|
|---|---|---|---|---|---|---|---|
|Extemal Debt of which<br>||||||||
|MLT<br>|13,612<br>|16,649<br>|16,318<br>|17,230<br>|18,541<br>|19,090<br>|18,267<br>|
|ST<br>|3,494|3,103|3,363|3,307|2,940|3,055|3,382|
|By Creditor<br>||||||||
|IFIs<br>|1,682<br>|1,822<br>|2,09S<br>|2,108<br>|2,833<br>|4,340<br>|5,200|
|Bilateral<br>|1,684<br>|2,145<br>|1,864<br>|1,767<br>|1,656<br>|1,522|1,281|
|Commercial Banks of which<br>|12,095<br>|13,625<br>|13,086<br>|13,269<br>|12,642<br>|11,510<br>|10,146<br>|
|MLT<br>|9,059<br>|11,031<br>|10,264<br>|10,574<br>|10,981<br>|9,893<br>|8,419|
|ST|3,036|2,594|2,822|2,695|1,661|1,618|1,727|
|Other Private Creditors<br>|1,645<br>|2,161<br>|2,633<br>|3,393<br>|4,350<br>|4,774<br>|5,021|
|Reserves Excluding Gold<br>|2,302<br>|1,634<br>|1,467<br>|1,246<br>|1,069<br>|2,945|3,902|
|Depositsin BIS Banks|2,141|1,504|1,379|1,165|1,764|-|-|

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