Hungarian government seeks Eximbank investigations over EUR 2.74 billion in deals

The Hungarian government has filed criminal complaints over four transactions linked to the state-owned Eximbank, requesting investigations into financing worth more than HUF 1,000 billion – approximately EUR 2.74 billion. The Eximbank investigations will examine whether the high-value transactions were approved with adequate safeguards and in accordance with the relevant rules.

Prime Minister Péter Magyar announced the complaints on Thursday, saying that the Ministry of Economy and Energy had identified the cases while reviewing the activities of institutions previously overseen by other ministries. The complaints were filed against unknown perpetrators, meaning that the authorities will determine whether any criminal offence occurred and who may be responsible.

Eximbank is wholly owned by the Hungarian state and was originally established to support Hungarian exporters and companies seeking to expand abroad. Its financing activities have since grown considerably: the bank reported total assets of HUF 3,967 billion, or roughly EUR 10.9 billion, at the end of 2024.

Eximbank investigations cover four major transactions

According to the government, the four cases share several characteristics, including substantial financial exposure, high-risk classifications and what the ministry considers insufficient collateral or guarantees.

HUF 59 billion loan for Budapest luxury hotel

The first complaint concerns HUF 59 billion, approximately EUR 162 million, approved in June 2025 for the redevelopment of the former Sofitel Budapest Chain Bridge hotel and the neighbouring former MALÉV office building.

The government said Eximbank’s board had only two days to consider a 145-page proposal before approving the financing. The project had reportedly received a high-risk rating under the bank’s own system, while exemptions were granted from several internal requirements.

The ministry also said questions had arisen over the project’s expected revenues and whether they would be sufficient to support the financing. Hungarian media have linked the hotel investment to business interests associated with István Tiborcz, the son-in-law of former prime minister Viktor Orbán.

State-backed financing for an African road project

The second case involves HUF 126 billion, around EUR 346 million, in bond financing provided by Eximbank and the also state-owned Hungarian Development Bank in November 2025.

The money was intended to support a Duna Aszfalt infrastructure project connecting Zambia and the Democratic Republic of the Congo. The development includes a 184-kilometre motorway, a 362-metre border bridge and a border-crossing facility. Duna Group has described it as its largest international investment.

Both countries were placed in Eximbank’s highest risk category, according to the ministry. Nevertheless, the Hungarian state reportedly guaranteed 80 per cent of the financing, equivalent to approximately HUF 101 billion or EUR 277 million.

The government said the Eximbank investigations should establish whether the financing and state guarantee were justified given the country, legal and project-related risks.

Egyptian railway carriage contract faces delays

The largest individual transaction concerns a HUF 576 billion – approximately EUR 1.58 billion – loan to Egyptian National Railways. The financing supported the purchase of railway carriages manufactured under a Hungarian-Russian cooperation involving Ganz-MaVag and Dunakeszi Járműjavító.

The Russian partner withdrew following sanctions introduced after Russia’s invasion of Ukraine, and the project continued under a restructured arrangement from 2022. More than 200 carriages had still not been delivered shortly before the original contractual deadline, the government said.

The ministry added that the Hungarian state bears the risk of non-performance. Liquidation proceedings were launched against the Hungarian rolling-stock companies in 2025.

The government also highlighted dividend payments totalling approximately HUF 10 billion, or EUR 27 million, including HUF 2 billion paid from retained earnings after a year in which the company recorded a HUF 15 billion loss.

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Nearly EUR 1 billion lent to North Macedonia

The fourth complaint concerns two unrestricted loans provided to North Macedonia, worth a combined HUF 360 billion, or approximately EUR 988 million.

The loans have a fixed annual interest rate of 3.25 per cent and a 15-year term, including a three-year grace period. The Hungarian government estimates that interest compensation connected to the arrangement will cost the state budget more than HUF 90 billion, or EUR 247 million.

The full amount is also covered by a Hungarian state guarantee, despite North Macedonia’s reportedly significant risk rating at Eximbank.

Authorities to decide whether further action is justified

The filing of the complaints does not establish criminal responsibility. Police and prosecutors must now assess the documents and determine whether formal investigations should be opened.

However, with the four transactions representing financing of more than EUR 2.7 billion, the outcome of the Eximbank investigations could have significant consequences for the management, oversight and future risk policies of Hungary’s state-owned financial institutions.

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