Hungary’s Orbán government reportedly held discussions with China over a financing framework worth up to EUR 5 billion in the weeks before the country’s parliamentary elections, according to investigative outlet Átlátszó, which obtained a draft agreement between the Hungarian Ministry of National Economy and China’s state-owned Export-Import Bank (CEXIM).
Orbán government apparently wanted an even bigger loan from China
The document, prepared in spring 2026, outlines a possible expansion of financial cooperation between Budapest and Beijing. The proposed framework could have supported infrastructure, transport and energy projects across Hungary, including railway developments, geothermal energy, the battery industry and small modular nuclear reactors.
The EUR 5 billion figure, currently equivalent to approximately HUF 1.8 trillion, would have been five times the size of the EUR 1 billion Chinese loan Hungary drew down in 2024, widely described at the time as a major Chinese financing deal.
However, the draft does not represent a signed agreement or a confirmed loan. It contains no final interest rates, repayment periods or specific allocations for individual projects. Átlátszó claimed the inclusion of proposed amendments nevertheless indicated that substantive negotiations may have taken place.
Financing could have included yuan-denominated bonds
The draft reportedly envisaged several potential funding mechanisms, including project-specific loans, investment financing instruments and capital market transactions. It also mentioned the possibility of issuing so-called panda bonds and dim sum bonds, which would allow Hungary to raise funds in Chinese yuan on international markets.
Financing could have been denominated in euros, US dollars or yuan. The document did not establish whether the proposed framework would have resulted in a single borrowing arrangement or several separate transactions.
The Ministry of National Economy’s successor, the Ministry of Economy and Energy, and the Hungarian Government Debt Management Agency (ÁKK) were approached for comment by Átlátszó. The outlet said it had not received responses to its questions at the time of publication. It also remains unclear whether the negotiations led to any subsequent agreement or borrowing.
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China’s expanding financial role in Hungary
CEXIM has already played a significant role in Hungary’s infrastructure financing. The bank provided funding for the Hungarian section of the Budapest–Belgrade railway, a project whose financial terms and costs have attracted sustained scrutiny.
In 2024, Hungary also drew down a EUR 1 billion loan from three Chinese financial institutions, including CEXIM, the China Development Bank and the Hungarian branch of Bank of China. The transaction was not publicly announced by the Orbán government at the time and was identified through debt management data.
Chinese financing has been a key component of the Orbán government’s ‘Eastern Opening’ policy, which sought to strengthen economic ties with Asian countries. Chinese companies have also expanded their presence in Hungary through major industrial investments, particularly in the battery and electric vehicle sectors.
The proposed EUR 5 billion framework could have extended this cooperation into additional areas, including geothermal energy and small modular nuclear reactors. The draft, however, did not identify specific projects or establish the conditions under which Chinese financing might have been provided.
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Long-term costs and transparency concerns
The potential expansion of Chinese lending raises questions about Hungary’s future debt obligations and the transparency of financing arrangements. Foreign-currency borrowing can expose governments to exchange-rate risks, while the economic benefits of funded projects must be weighed against repayment costs.
The draft agreement does not establish that Hungary borrowed EUR 5 billion or that CEXIM committed to providing the funds. It does, however, suggest that the Orbán government was considering a substantial expansion of its financial cooperation with China shortly before the election.
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