Main characteristics:

Amount:   EUR 1 billion
Tenor:     7 years
Maturity:  October 28, 2011
Coupon:  3.625% p.a.
Issue price:  99.454%
Spread: July 2011 Bund + 27.3 bps (equalling to  € mid swap + 12 bps)

The new transaction, which is the second euro denominated bond issue for the Republic in 2004, is an important step to widen investor base in Europe, and its terms and conditions reflect Hungary’s new status as a member of the European Union.

The proceeds will be used to re-finance public debt maturing in 2004.

Budapest, October 25, 2004