Hungary Embraces China Loan Financing After €1 Billion Deal

Government says it took €1 billion Chinese loan in April
Economy minister says Chinese financing to be more widespread

The latest loan came just before Chinese President Xi Jinping visited Budapest in May to sign deals with Hungarian Prime Minister Viktor Orban on new rail and energy projects. — The latest loan came just before Chinese President Xi Jinping visited Budapest in May to sign deals with Hungarian Prime Minister Viktor Orban on new rail and energy projects.
Photographer: Vivien Cher Benko/AFP/Getty Images

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By Andras Gergely

July 25, 2024 at 5:49 PM UTC

Updated on

July 26, 2024 at 9:45 AM UTC

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Hungary said it took a €1 billion ($1.1 billion) loan in April from China, adding that such financing is likely to become more widespread in the future as economic links with the Asian nation grow.

The government received a 3-year loan from China Development Bank, Export-Import Bank of China and Bank of China Ltd.’s Hungarian unit, the Debt Management Agency said Thursday. Gergely Gulyas, the minister in charge of the prime minister’s office, declined to explain Friday why the deal hadn’t been formally announced until this week, in response to repeated questions from reporters.