MNB's BGS subscription close to threshold

MNB

Image by Jessica Fejos

The National Bank of Hungary (MNB) has bought HUF 1.465 trillion of corporate securities in the framework of its Bond Funding for Growth Scheme (BGS), close to the program's allocation threshold, the latest data posted on the central bank website show.

MNB launched the BGS before the crisis to give impetus to the local corporate bond market. Central bank policymakers announced in December, amid a tightening cycle, that the scheme would end when its HUF 1.55 tln allocation is reached.

Monthly data posted on MNB's website show the central bank subscribed a combined HUF 153.9 billion of BGS bonds issued in January.

The purchases included close to HUF 112 bln of securities issued by a special ESOP of oil and gas company MOL.

The MOL special ESOP used the proceeds to buy MOL treasury shares.

Scope Ratings assigned the MOL special ESOP issue a B+ rating, the threshold for BGS participation.

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