Hungary faces no significant short-term risks of fiscal stress but medium risks appear in the medium term, the European Commission has said in an assessment of its 2015 Fiscal Sustainability Report. The report mentions net public debt and the net international investment position as possible short-term challenges. It notes that the share of debt denominated in foreign currency, the share of debt owned by foreign investors and the share of non-performing loans in the banking sector could be sources of short-term vulnerability, although the conversion of FX retail loans into forint loans and the increased role of residents in government financing substantially reduced the exposure to currency fluctuations. Medium risks appear, on the contrary, in the medium term from a debt sustainability aspect due to the still moderately high stock of debt at the end of projections (2026), and the sensitivity to possible shocks to nominal growth, interest rates and the government primary balance, the Commission said. It found no sustainability risks for Hungary over the long run.