The Magyar Nemzeti Bank (MNB) has restructured its policy instruments in order to support the refinancing of government debt from domestic forint funding. As a cornerstone of this reform, the main policy instrument of the MNB will be the three-month central bank deposit from the end of September 2015, while the two-week deposit will be auctioned with quantity restrictions. Holdings of the two-week deposit will be reduced in a staggered manner, and will reach the cap set at HUF 1,000 billion at the end of 2015. The restructuring of the policy instruments helps achieve the goal of self-financing, since government securities receive a more favourable treatment from a liquidity perspective than the new three-month central bank deposit. This will encourage banks bound by regulatory requirements to increasingly finance the government instead of the central bank. Due to the adjustment involving stepped-up purchases of government securities, the credit supply to the real economy will not be disrupted.