Hungary Secures €1 Billion Loan from Chinese Banks in April, Largest Ever for High-Tech and Infrastructure Investments

Jul 25, 2024, 05:47 PM

Hungary borrowed €1 billion from Chinese banks in April, according to debt agency data. The three-year floating-rate loan is intended to finance high-tech investments, transport infrastructure, and energy-related expenditure. This loan, the largest ever taken out by Budapest, comes as Hungary's public debt reaches a record high of €140 billion, or 73.5 percent of GDP. Hungarian authorities indicated that such financing is likely to become more widespread as economic ties with China grow. The loan was taken in secret, possibly to avoid bankruptcy.