Hungary’s debt to China skyrockets, raising financial concerns
This spring, the Hungarian government secretly borrowed a EUR 1 billion loan from China, with the lump sum being withdrawn on 19 April, a fact only revealed at the end of July. This loan adds up to a debt of around EUR 1 billion, and when combined with other loans, Hungary’s total debt to China could be significantly higher.
Hungary in significant debt to China
444 has compiled a list of the outstanding debts, primarily using data from the Public Debt Management Centre (ÁKK). Their findings show that in just three years, the Hungarian government has accumulated considerable debt to China. By the end of the second quarter of this year, Hungary owed HUF 71.79 billion (EUR 182 million) to the Asian Infrastructure Investment Bank, a debt first incurred in the last quarter of 2022.
Earlier, in the second quarter of 2022, Hungary secured a loan for the construction of the Budapest-Belgrade railway line. So far, they have drawn down HUF 341.6 billion (EUR 866 million) for this project. The total investment for the railway amounts to HUF 750 billion (EUR 1.9 billion), of which 85% is being financed by loans and 15% by co-financing. Additionally, in the spring of this year, Hungary requested a loan of EUR 1 billion in complete secrecy by the end of the second quarter, according to the ÁKK’s accounts.
On top of these loans, Hungary also has CNY 3 billion worth of foreign currency bonds due for repayment to Chinese investors this year and next, which equates to around EUR 380 million at the current exchange rates. In total, 444 estimates Hungary’s debt to China now exceeds HUF 1,000 billion (EUR 2.536 billion), although they caution it could be even higher.
Hungary deepens strategic ties with China amid EU concerns
Xi Jinping. Photo: depositphotos.com
While the European Union views China’s foreign economic policy as increasingly challenging, the Hungarian government seems unfazed by the growing vulnerability to China. In fact, Prime Minister Orbán’s administration has been steadily facilitating China’s presence in Hungary, beginning with the high-profile joint Hungarian-Chinese Budapest-Belgrade railway project.
In pursuit of diversification, Hungary then opened up to Chinese investors by issuing yuan-denominated government bonds, followed by the idea of establishing Fudan University in Hungary. Chinese investments, particularly in the battery industry, were also encouraged, culminating in the deployment of Chinese police officers in Budapest and the acceptance of a large Chinese loan. The government has kept the details of this loan under tight wraps.
18 joint investment agreements signed in May
During Chinese President Xi Jinping’s visit to Hungary in May, the two nations’ leaders signed 18 joint investment agreements as part of a strategic partnership.
Among these agreements, they planned to expand Hungarian-Chinese cooperation across the entire nuclear industry spectrum, begin preparations for constructing a railway ring around Budapest (previously known as the V0 ring), and initiate work on a high-speed railway project connecting Budapest city centre with Ferihegy airport.
Additionally, they are working on jointly developing an electric car charging network, starting construction on Europe’s “most modern, largest, safest, and fastest transit” border crossing between Hungary and Serbia, and exploring the possibility of an oil pipeline between Hungary and Serbia, involving Serbian participation.
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12 Comments
This will all end e tears.
You need to be very worried. Hungary will no longer belong to the Hungarians but to the chinese. Get them the hell out of your country.
I have written this before, but let me do it again. This government has sold the country to china. But yes, very safe of immigrants, of gays and of war. Right?
Hungary – Economically and Financially – Decimated.
Orban and his Minister of Finance – Mihaly Varga, the 15 years of being the architects of our near Insolvency as a Government, have gone UNDERGROUND.
The European Union Debt, which is a DEBT of the citizens tax payers of Hungary – which daily interest charges are HORRENDOUS and payment in full by the Orban/Varga “plan” of repayment, if they have a PLAN, would be a BIGGER burden on the citizens, the tax payers of Hungary, than it already is.
Orban / Varga – the Fidesz Government, the DEBT of Hungary, on the citizens tax payers of Hungary, there BORROWINGS from China – the interest rate charges – CRIPPLING.
Orban, with his Minister of Finance – Mihaly Varga – what have THEY delivered us and the Fidesz Government ?
Its an ABOMINATION what they have DELIVERED and it WORSENS.
Not great but at least the ChinComs are only interested in money. Unlike the West, they do not want to erase our history and our nationhood. They’re not demanding we fling open our borders to millions of hostile, violent young men, nor are they demanding we teach our kids that a man is a woman, a woman is a dog, and a dog is a child.
I’ll take being China’s b… over being America’s or Europe’s or W.E.F.’s or I.M.F.’s any day of the week. That said, this is bad and we need to place much greater emphases on self-reliance.
Whoever controls your debt controls you. Fidesz has put Hungary under long-term Russian and Chinese control. That is what Hungarians get for their “Eastern Opening.” Vote for them again in 2026 if you like being under Russian and Chinese control.
Steiner Michael – you have been an outspoken ADVOCATE for over (2) plus two years – that your Victor Mihaly Orban – your MEMBERSHIP Political Party – Fidesz – stand alone, get out of the European Union, of N.A.T.O. – “stuff” the United States of America what they say.
Steiner Michael – you have GLEED at the Distillation of DEMOCRACY in Hungary, by the current Prime Minister – Victor Mihaly. Orban and his Fidesz Government.
Steiner Michael – your Demigod – your Political Hero – your Political Party – NEVER, never, never – were they or will they SURVIVE as an independent COUNTRY.
It’s IDIOTIC – it’s OBVIOUS growing in FACTUALITY as the Economic & Financial “base” of Hungary daily being sent into a nadir deepening perilous BLACK Hole, by your Fidesz Political Party led by Victor Mihaly. Orban, his Fidesz Government, that any THOUGHT of “Self Reliance” is IMPOSSIBLE.
Hungary can never be an Austria nor a Switzerland – Never, never, never.
We visit Pompei in the near future.
Vesuvius CERTAINLY will not erupt AGAIN before our visit, which SAME can’t be said, over the course of the next (2) two months, what is GOING to occur in Hungary.
@michaelsteiner “ChinComs are only interested in money” – been to Hongkong, recently? If you speak like we do here … There will be a swift reaction. Visited any of the countries where they exert significant influence, mainly through financing “deals”?
China´s ambitions are strategic, “China First” if you will. Money just makes the wheels spin!
This “Clown” calls himself Michael Steiner, claims it’s lived in lived 42 cities, claims married to a Hungarian, comes out with opinions as he does in this article, that memory re-calls from a “supposed” Educators background claiming Managerial – Head of Department status, and a member of the Fidesz – Orban “mob” – got to ask the question, in regards to his “outlook” on life, because it continues to exhibit that’s its an individual that appears in ZOMBIE or La La land – right out of touch with REALITY.
Mr. Steiner is a fool. So Hungary thinks it will be okay out of nato and china- good. You want the benefits but to pick and choose rules. Then piss of. Remember 1956. Didn’t see you able to resist on your own. You think China doesn’t have terms- ask Hong-Kong, remember tianaman square?? Yes, that’s it. Europe doesn’t need your trade. And why should nato protect you? Be careful what you wish for.
Michael Steiner – remember as you are “sympathetic” to Communism
Communism produces neither dignity nor prosperity.
It takes all power away from the people and places it in the hands of a self-appointed elite.
And because it distorts and manipulates the distinctive talents of individuals rather than letting those talents flourish, it prevents progress and prosperity.
Fidesz – Victor Mihaly. Orban, the Oligarchy, and the entire Fidesz Government that is “infested” throughout ALL it’s membership base and supporters of the Fidesz Party – is what the previous paragraph refers.
Communism is a threat.
It’s an enemy of Democracy, powerful, unrelenting and implacable, that seeks to Dominate the world by subversion and conspiracy.
Orban, the Fidesz Government follow these facts.
Over the course of 15 years in Government, it’s practice by the Orban – Fidesz Government, has unfolded in Hungary, that has meet no Opposition, and now is a “Fait Accompli”.
Hungary – gives every indication, they “support” the Orban – Fidesz style or form of Government, and see it as there future.
What if Hungary continues to support the Orban style of Government, the end result for Hungary will be ?
Answer : Ruinous.
I disagree. I appreciate @michaelsteiner´s input. As I do @mariavontheresa´s. So, again, a big thank you to them and everyone else, posting their reactions and opinions.
It makes me think and challenges my preconceived notions. It forces me to find facts and data to either confirm or refute. This is also what I share, here, online.
I know I have biases – however, before engaging in a knee jerk reaction or launching myself into an echo chamber, I do enjoy reading and considering their thoughts – regardless of what my (preconceived) notions may be.
Does this make sense?