2024-07-27 10:13:26
Relevant information can be found on the website of the Government Debt Agency.
The loan, provided by the China Development Bank, the Export-Import Bank of China and the Hungarian branch of the Bank of China, was received in full on April 19 and is to be repaid within three years.
Budapest itself did not report this transaction. It was first reported by Hungarian business publication Portfolio on Thursday and later confirmed by a government agency.
The sizeable loan comes as Budapest deepens ties with Beijing.
According to Hungarian Foreign Minister Péter Szijártó, Chinese companies – such as the car manufacturer BYD and the technology giant Huawei – have invested a total of around 16 billion euros in the country so far.
“The loan agreement provides an opportunity to finance investments in infrastructure and the energy sector. The agreement allows maintaining the ratio of national debt to GDP within 28.9%,” the government agency explained to “Portfolio” on Thursday.
The new Chinese loan is the largest part of the country’s debt, the second largest being a loan from China’s Eximbank for the Budapest-Belgrade railway project of USD 917 million (EUR 877 million at the time of receipt).
While Portfolio says the interest rate is variable, the government has not disclosed any details about the interest rate, repayment schedule or other information.
2024-07-27 10:13:26