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2020/10/08 / Erste Group Research

Less pressure to issue bonds than during first COVID wave


The newly emerging market volatility and second wave of the COVID-19 pandemic saw CEE governments in a more prepared state than in spring. Issuance activity was very strong in the first half of the year, allowing MinFins to reduce issuance and removing pressure from the markets.

The international front might still provide surprises, depending on the developments of the pandemic and US presidential election. On the other hand, support might also come, as the risks are growing that ECB could potentially provide further stimulus.

There are local factors to deal with, however. Hungary could be in focus, given the relatively small cash buffer, higher redemption amount as a percentage of GDP and continuous news flow about further fiscal easing steps. In Romania, general elections are scheduled for early December, and the winner might embark on fiscal consolidation, due to rating downgrade threats and the pressure of high public financing costs.


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General information

AuthorErste Group Research
Date2020/10/08
Languageen
Product nameCEE Bond Market Report
Topic in focusFX, Macro/ Fixed income
Economy in focusCEE, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia
Currency in focusCroatian Kuna, Czech Koruna, Euro, Hungarian Forint, Polish Zloty, Romanian Leu, Serbian dinar
Sector in focus-
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