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The Role of Primary Dealers in the Financing of the Budget in the First Half of 2004

The Role of Primary Dealers in the Financing of the Budget in the First Half of 2004. MAIN TOPICS:. Financing in 2004 Achievements of primary dealers in H1 2004 presented by : dr. László András Borbély General Deputy CEO Ranking of primary dealers in H1 2004

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The Role of Primary Dealers in the Financing of the Budget in the First Half of 2004

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  1. The Role of Primary Dealers in the Financing of the Budget in the First Half of 2004

  2. MAIN TOPICS: Financing in 2004 Achievements of primary dealers in H1 2004presented by: dr. László András Borbély General Deputy CEO Ranking of primary dealers in H1 2004 presented by: Mr. ZsoltBangó Head of the Treasury Department Prizes

  3. SPEAKER: DR. LÁSZLÓ ANDRÁS BORBÉLY FINANCING OF THE BUDGET IN 2004

  4. DEBT MANAGEMENT ACTIVITY IN H1 2004 Less redemptions Net issuance is HUF 95 billion higher than planned HUF 29 billion loan take over

  5. GROSS REDEMPTIONS IN H1 2004 2 615 2 531 Less liquidity discount TB redemptions -84

  6. GROSS ISSUANCE IN H1 2004 3 579 3 568 Less liquidity discount TBand more FX 12

  7. FINANCING PLAN – PLANS AND REALISATION IN H1 2004 Total net issuance is as planned

  8. NON RESIDENTS’ HOLDINGS OF HUNGARIAN GOVERNMENT SECURITIES IN H1 2004 An increase of HUF 66bn (EUR 261 mn) 282 Annual increase in 2003: HUF 429bn, In 2002:HUF 719bn 178 66

  9. INVESTOR BREAKDOWN IN NET ISSUANCE 1 018 759 48% 44% The same ratio of non-resident investors 14% -10% Increased role of households

  10. FINANCING PLAN IN Y2004 Total net issuance will increase moderately

  11. GROSS AND NET ISSUANCE IN H2 2004 3 548 3 073 Gross and net issuance expected to decrease slightly in H2 Out of the H2 HUF 346 bn (ca. EUR 1.3 bn) FX issuance EUR 1 bn is bond issuance, the rest are loans from int’l financing institutions

  12. SPEAKER: DR. LÁSZLÓ ANDRÁS BORBÉLY ACHIEVEMENTS OF THE PRIMARY DEALER SYSTEM

  13. GROSS ISSUANCE IN THE DOMESTIC MARKET * projection Slight decrease in 2004

  14. BREAKDOWN OF GROSS DOMESTIC MARKET ISSUANCE IN H1 2004 Total gross issuance: HUF 3,001 billion Gross issuance of primary dealers: HUF 2,645 billion

  15. SECONDARY MARKET TURNOVER OF GOVERNMENT SECURITIES Dynamic growth Q2 2004: a turnover of HUF6,009 billion

  16. RANKING OF PRIMARY DEALERS SPEAKER: Mr ZSOLT BANGÓ

  17. CIB Bank Rt. Citibank Rt. Deutsche Bank Rt. Dresdner Bank (Hungaria) Rt. Erste Bank Befektetési (Magyarország) Rt. HVB Bank Hungary Rt. ING Bank (Magyarország) Rt. Kereskedelmi és Hitelbank Rt. Magyar Külkereskedelmi Bank Rt. Magyar Takarékszövetkezeti Bank Rt. OTP Bank Rt. PRIMARY DEALERS IN H1 2004 11 primary dealers in total

  18. Following May 1, 2004, the EU-accession: REQUIREMENTS OF PRIMARY DEALER MEMBERSHIP • Changes in the requirements of primary dealer membership: • investment company registered in any EU member state, • compulsory branch office in Hungary, • official language of communication is Hungarian, • only one dealer from one company group, • price quotation, auctions using the MMTS module of the Budapest Stock Exchange.

  19. HOW IS THE RANKING CALCULATED? Determined by the volume of auctioned Hungarian Government Bonds and Discount Treasury Bills weighted by the tenor of the security. The ranking demonstrates the primary dealers’ participation at auctions and their accomplishment of selling government securities.

  20. GOVERNMENT BONDS: RANKING – H1 2004 1. ING Bank Rt. 2. Dresdner Bank (Hungaria) Rt. 3. ERSTE Bank Befektetési Rt. 4. Deutsche Bank Rt. 5. Kereskedelmi és Hitelbank Rt.

  21. DISCOUNT TREASURY BILLS RANKING – H1 2004 1. OTP Bank Rt. 2. ING Bank Rt. 3. ERSTE Bank Befektetési Rt. 4. HVB Bank Hungary Rt. 5. CIB Bank Rt.

  22. PRIZES 2004

  23. Prizes are awarded in two categories: THE PRIZES I. To the primary dealer, which obtained the highestshare at the auctions of government securities betweenJuly 2003 and June 2004, II. To the primary dealer, whose market share betweenJuly 2003 and June 2004 increased the most dynamically, compared to its share a year before.

  24. The primary dealer with the highest market share in 2003-2004: 1st CATEGORY ING Bank Rt. Dresdner Bank (Hungaria) Rt. ERSTE Bank Befektetési Rt.

  25. The primary dealer whose market share increased themost dynamically in 2003-2004: 2nd CATEGORY Deutsche Bank Rt.

  26. Thank you for your attention! Congratulations to the awardees!

  27. Primary dealer with the highest market share: Primary dealer who increased its market share the most dynamically: AWARDEES IN 2004 ING Bank Rt. Deutsche Bank Rt.

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