Hungary’s debt to China skyrockets, raising financial concerns - eviltoast
Hungary’s debt to China skyrockets, raising financial concerns - Daily News Hungary
dailynewshungary.com
Hungary has significantly increased its financial and strategic ties with China, borrowing over EUR 1 billion in secret loans and engaging in large-scale infrastructure projects recently.

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Hungarian media outlet 444 has compiled a list of the outstanding debts of the state of Hungary, 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.

  • neidu2@feddit.nlEnglish
    12·
    4 months ago

    Orban shooting himself in the foot as usual. Blaming the rest of Europe in 3… 2…

  • YourPrivatHater@ani.socialEnglish
    7·
    4 months ago

    Hungary doing Hungary things as per usual… Can we article 5 on them because there is obviously a Russian spy in Hungarys top position.

    • Alphane Moon@lemmy.worldEnglish
      7·
      4 months ago

      EU is a bit too passive and cautious when it comes to compliance with internal rules.

      One would think that after they opened up access to Shengen to any russians, they would have been immediately kicked out.

      • Transporter Room 3@startrek.websiteEnglish
        51·
        4 months ago

        At this point I’m convinced Hungary could outright launch a military assault on one of its neighbors and the EU as a whole would just say “no” and wag their fingers at the problem.

        I’m sure the various heads of state would also take the situations into consideration as they are deeply concerned

        Is it just me or does every government all over the world just drag its feet when it comes to opposing blatant fascism and bad-faith actors?