between may 1 and july 13, 1931 the hungarian national bank paid out 200 million pengős in gold and foreign exchange. at the same time hungary’s foreign debt reached 4,300 million pengos with interests costing 300 million pengos a year. with the gold and foreign exchange reserves virtually depleted, the gold cover of the pengős fell from 40% to 20%. by the summer of 1931 the national bank no longer maintained enough foreign exchange to continue making interest payments. the government suspended the redemption of bonds and ended the payment of interest in foreign exchange on long-term foreign debts. in response to the economic crisis hungary faced, foreign creditors agreed to temporarily suspend debt payments.