Hungarian Conservative

As a result of a series of government initiatives, both households and institutional players have significantly increased their holdings of government bonds. In an unprecedented manner, households now hold a larger amount of government bonds than bank deposits.

The Ministry of Economic Development said in a statement that the increased demand for government bonds has both directly and indirectly improved the government’s self-financing capability, reduced government interest expenditures, and managed to preserve the real value of citizens’ savings. Additionally, government measures have contributed to the fact that individuals are making more conscious decisions about their savings, turning towards higher-yielding assets in a high yield environment.

He also stated that next year the country will have sufficient resources, for the first time since the regime change, to meet the NATO obligation of allocating 2 per cent of GDP to defence spending.