Hungary o / n rates end up before Dec 10 tax payment .
BUDAPEST 1996-12-06
Hungarian overnight interest rates closed higher on Friday as market liquidity tightened before the December 10 social security contribution payment deadline , dealers said .
" The banks are already preparing for the December 10 tax payment , " said Budapest Bank 's Sandor Tolonics . "
They expect a larger-than-average payment . "
The overnight market opened at 22.00 / 22.75 percent , then substantial money was taken up at 22.5 percent .
But later , rates dropped and closed at 22.00 / 22.25 as a large bank finished borrowing money .
On Thursday , overnight rates moved between 21.625 and 22.125 .
Dealers said liquidity could tighten further early next week as the social security contribution payments date approaches .
-- Sandor Peto , Budapest newsroom ( 36 1 ) 327 4040