BREAKING – Hungary took out a gigantic Chinese loan in secret – avoiding bankruptcy?
The Hungarian government did not communicate that they took up a gigantic EUR 1 billion Chinese loan from Chinese banks to spend on fuzzy infrastructure projects. Taking maturing bonds out of the equation, this is the Hungarian state’s highest loan. We do not know the loan interest, and the Hungarian institutions remained silent about its purpose either.
Secret Chinese loan before the 9 June elections
The incredible new loan uptake was spotted by portfolio.hu in the data of the Government Debt Management Agency (ÁKK). The creditors are Chinese banks like the Chinese Development Bank, the Chinese Eximbank and the Bank of China Hungarian Branch. The repayment deadline is 19 April 2027, while the government took it up on 19 April.
Based on the explanation, the Hungarian government would like to spend the money on high-tech developments, infrastructure, transport and energy projects. The interest rate is not fixed, but the numbers remain in secret.
PM Viktor Orbán and Chinese President Xi Jinping in Beijing on 8 July 2024. Did they talk about the loan? Photo: MTI/Miniszterelnöki Sajtóiroda/Benko Vivien Cher
The Hungarian government “forgot” to mention the loan in its official communication before the 9 June European parliamentary and municipal elections. The ÁKK told portfolio.hu that the rate of the Hungarian state debt in foreign currency would remain under 28.9%, below the 30% threshold, which is better than the 50% in 2010. That refers to the pre-Orbán Socialist government.
The biggest loan in Hungary
One billion euros is the biggest Hungarian loan currently, not considering bond issues. It can be compared with the Chinese loan Budapest took up for the Belgrade-Budapest railway development, which was USD 917 million then.
Portfolio could not discover whether the Chinese loan was advantageous or not because all financial institutions keep the interest rate secret. Based on the interest rate of the January bond issue (4%), it has to be lower to be good for the country.
Pixabay
Interestingly, the Hungarian government regularly reported about its loan uptakes, and the process was easy to follow for journalists before. This Chinese loan, however, was an exception. Or will it be an example?
Where is the money?
Nobody knows whether the government already spent that money, even though there are multiple ideas of where they could put it. First, the Hungarian state budget struggles with significant deficits, so the Orbán cabinet raised taxes in July.
Furthermore, the Hungarian government bought 80% of the Budapest Airport shares in June for EUR 2.5 billion, so the Chinese money could cover part of that transaction. Or the government could fill some holes in the state budget with it. Moreover, the Orbán cabinet must pay EUR 200 million to the European Union as a fine following a Court of Justice of the European Union decision.
Friends in the EU. Did they know about the loan uptake? Photo: facebook.com/orbanviktor
Márton Nagy, Hungary’s national economy minister, talked about the increasing rate of Chinese financing in Hungary. For example, he said the Bank of China might cover infrastructure development projects, helping the trade of Chinese companies.
He added that since Western and Eastern FDI are present in Hungary, Chinese banks will show up in monetary financing.
Of course, that does not mean they must finance the Hungarian state with loans.
Read also:
- Russians and Chinese treat Hungary’s property market as an investment platform – Read more HERE
- Budapest-Belgrade railway line: Construction resumes, date of the Hungarian section’s completion out
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9 Comments
The Finance Minister of the Orban – Fidesz Government – his “score card” markings over the time he has been the Minister of Finance and “other” Ministerial Portfolios he has held – given handed by Victor Mihaly. Orban – this “incompetent” Minister of Finance, has been, proven to factually be – a “Recipe” of a continuous DISASTER.
Mihaly Varga – Finance Minister – as recent Tuesday – talks that the Hungarian Economy has “returned” to a GROWTH path.
Varga – the DEPT of this un-truth to Hungarians is ABOMINABLE.
Varga, in Economic & Financial Management, is likened to a “kid” playing in a “Mans” World.
Orban – the “Devils Advocate” – the Polemic, a Bigot / Dogmatist, who is a Menhir, standing out and alone PREACHING a Political Philosophy – Dogma / Ideology, that is a self-abasement of HIMSELF, the growing of self HUMILIATION he “feeds” into his name, that the penultimate will be his ERADICATION from not just his position, as the “current” Prime Minister of the “Crumbling” Hungary, and President of the European Union, but eradicated from the global World of Politics – “crushed” into that position, by the Power & Force under DEMOCRACY.
Biden – 24/07 – said ;
“We have to Decide do we still believe in Honesty, Decency, Respect, Freedom, Justice and DEMOCRACY – does character in Public Office still MATTER ?
The CHOICE is up to YOU.
Nothing, nothing – can COME in the way of Saving our – DEMOCRACY”.
Germany – is “aggressive in it’s move to CRUSH the Right in there Political structure.
France – has CRUSHED the “Right of Right” – le Penn “mob” in French Politics.
Great Britain & Northern Ireland – “smashed” saw rightly to obliviate the Conservative Party in the United Kingdom, that had sent there country into a Economic & Financial – Shambles.
Victor Mihaly. Orban – exposed bought out in the subject of this article is an A plus individual, practicing living a life as a CLANDESTINE.
The CHOICE is UP to us – Hungarians.
ELEVATION of objection in SOLIDARITY – in an orderly conducted procedure MUST must HAPPEN – in an effort for us as a country to enable us be to SALVAGE re-deem, what, if we allow it to continue, the REMAINS of Hungary, that have been DESIMATED destroyed under the Orban – Fidesz Government.
Hungary – we HAVE been FAILED.
Hungary – we have been subjected to repetaive practice of be Lied to, the Falseness and Fabrication – the “veiling” Of Truth replaced by LIES.
Hungary – we have been “Skuttled” sunk over our heads by this Orban – Fidesz Government.
Hungary – we have and are seeing the Orban – Fidesz Government, there process of undertaking to the DISTILLATION – eradication of DEMOCRACY in Hungary.
Hungary – we see the growing Relationship(s) and Partnership(s) – with Russia & China.
Hungary – we see the nadir distanced – of what MUST happen – in the name of and under DEMOCRACY – Hungary – it’s place – it’s “perilous” place in remaining a Member country of the European Union.
Hungary – it’s place in N.A.T.O. – of extreme volatility – through the Orban – Fidesz Governments “attacks” questioning of N.A.T.O.
Hungary – the mounting PRESSURIZATION on the Forint, that “nears” factually a collapse.
Hungary – we have 3 million plus living in POVERTY.
Hungary – we have an “ageing” declining in number population, that has been the TREND in the 15 plus years of the Orban – Fidesz Government.
Hungary – what is our FACTUAL Debt in Government borrowings – that we, as the population, the tax payers – have as a DEBT to SERVICE ?
Hungary – answer to this the REAL factual figure if EVER received from the Minister of Finance – Mihaly Varga – the Orban – Fidesz Government – would be FALSE but more IMPORTANTLY – not be reflective of the TRUE debt monies owed by Hungary – borrowed by the Orban – Fidesz Government – that what they say is Government Debt – would need billions of Forints added to it, bringing it CLOSER to be the FACTUAL horrendous – a gargantuan DEBT on the people of Hungary – on Hungary.
“The choice is up to YOU”.
“Memorare” the beautiful latin word meaning ; REMEMBER – important HUNGARIANS remember and that History it Never Lies.
Secrecy in deals which Fidesz constantly does is the primary ingredient for corruption and foreign influence. Once you are in debt to the Chinese they have influence and will call on you, for example, to do what what they want when it is time to vote in the EU parliament on something important to China. Hungary is on the hook with Russia through its’ energy deals and does Russia’s bidding night and day in the EU making Hungary a defacto Russian satellite.
The Viktator sold the country to China.
Orban, just in his BRIEF time as the European President, his MASQUERADING around Europe then in the United States of America, to “up-date the “infamous” – convicted “felon” – 45th former President of the United States of America – Donald J. Trump – his “veiled” message, that underneath carried bought with him, through DIRECTION’s out of the Kremlin, Russia, his “Friend” – Vladimir Putin, that CAPITULATION of the Ukraine, was the only way forward, to bring an end, to the WAR – instigated – commenced by Russia, on the Ukraine.
We know, these “missions” undertaken by the present Prime Minister of Hungary, and President of the European Union, that Orban, his NORMAL practice of not COMPLYING to Rules and Law – his “gallivants” – have added to his growing CV of personal HUMILIATION.
Victor Mihaly. Orban – same can be said of his Finance Minister – Mihaly Varga, there PRIORITIZATION in there respective Ministry’s that WE know, the ABISEMAL declining state of the Economic & Financial position of Hungary, that the subject of the article, confirms HIDDEN factors of INFORMATION, not being tabled nor disclosed to the citizens of Hungary, the “gofer” roles being played out by Orban, Varga and the Foreign Minister and of Trade – Peter Szijjarto – there “scrips” the roles they are being TOLD to play from the Kremlin – Russia.
The removal of the word Russia, replacing it with China – used in previous paragraphs, there is near lines of parallel “modus operandi” – Orban, Varga and Szijjarto – the “gofer” roles they are playing to Russia and China.
The Orban led Fidesz Government of Hungary, a country, that is rapidly descending into a “Vesuvius” – the explosion, that will be of cataclysmic FORCE – sooner than later – will HAPPEN.
Hungarians have to PREPARE them-selves for WHAT is COMING bought on created by Victor Mihaly. Orban and his Fidesz Government, assisted by – FEED into by HUMONGOUS proportion(s) – by the Finance Minister – Mihaly Varga and the Foreign Affairs Minister & Trade – Peter Szijjarto.
Hungary – continues to IMPLODE – collapse Economically and Financially, our future Infrastructure under immense duress, and the (3) three GOFERS – go on in the roles OUTLINED by the Kremlin and the Chinese Government, whilst we Hungary as a country are in a process of DISINTEGRATION.
Hungary – awake yourself.
In your RESOLVE – the NEED to Do SOMETHING – in SOLIDARITY just DO it, to rid us of this Orban – Fidesz Government that near in there in-glorious achievement(s) – in this time of our History, as a country, a PROUD country, have ALL but DESTROYED us.
Hungary – we have been FAILED.
So Hungary is selling out to the chinese too. Dont feel too bad. Demented joke biden and son did the same here.
Anonymous guy above. Sad but true
why we cant See Mariavontheresa & Michael Steiner commenting on this article? or on releasing 1000 human traffickers? 😀
Dear Dailynewshungary,
If I wanted to read biased financial news followed by novel-sized woke comments by the same individuals under different names, I would read the numerous woke rags disguised as journalism.
Your online new is one of the few optimistic sources reporting Hungarian events while under attack by the war-mongers of the EU. Please keep it so.
1. Reporting on a factual event is not bias, it’s the job of the media. 2. It’s not the job of the media to be optimistic, it’s to report the facts. 3. I commend DNH for displaying no obvious political bias, it’s an oasis of sanity in the Hungarian press. 4. Not kowtowing to the government is de facto viewed as hostile to Hungary these days which is a dangerous position to place the media in.