900 billion HUF may move out of PMÁPs this week

By: Trademagazin Date: 2025. 03. 20. 09:30

PMÁP week starts on March 20, during which the state treasury will pay 541.5 billion forints in interest and capital to PMÁP holders. But it must also be taken into account that many people may redeem their investments after the interest payment, writes Bankmonitor.

Another serious interest payment begins today, in the case of premium government securities, investors will receive more than 540 billion forints in one week due to interest payments and the maturity of the given security.

Based on previous experience – based on previous interest payments – Hungarians can redeem an additional amount exceeding 360 billion forints from the affected investments.

In other words, a total of around 900 billion forints may find its new place in the coming period.

Which securities pay interest or mature?

A significant payout is expected for holders of Premium Hungarian Government Securities (PMÁP) over the next seven days starting March 20. Four government securities are affected:

2025/K PMÁP series affected (maturity + interest payment)
2027/I PMÁP series affected (interest payment)
2029/J PMÁP series affected (interest payment)
2030/J PMÁP series affected (interest payment)

A total of over HUF 540 billion will be returned to investors in the form of interest or principal repayment. With the exception of the 2025/K series maturing, the other securities have an interest premium of 1.5%, so they will pay an annual interest rate of 5.2% in the new interest period. This is a significant decrease compared to the previous 19.1 percent annual interest rate.