A discreet loan, which shows the strained ties between the European Union and Viktor Orban. Hungary discreetly borrowed 1 billion euros from China last spring. What is the purpose of this colossal contribution?
Hungary borrows 1 billion euros from China
This is the largest loan ever taken out by Hungary. The Central European country has borrowed a considerable sum from China… in complete secrecy. No official communication has in fact mentioned the billion euros of loan.. However, it was spotted on the Hungarian government website that lists the country's debts, by local media outlet Portfolio.
Budapest has fully used this loan as of April 19th and the repayment is due within the next 3 years. Portfolio note that this is the highest amount among the outstanding loans of the Hungarian stateit is therefore all the more notable that it was not communicated to the population.
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The reasons for the loan are relatively vague on the Hungarian government website. :
“Financing central budget expenditures in the areas of high technology, infrastructure construction, transport and energy.»
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Beijing builds its “new silk road”
Although the reasons are vague, Portfolio recalls that the Hungarian government has “badly in need of money“. This rapprochement with China therefore allows it to finance itself partly beyond Europe.Relations between the European Union (EU) and Hungary have indeed become strained – the rapprochement with Beijing is no stranger to this.
In 2023, China was Hungary's largest investor. The country is investing in Europe as part of its “new silk road”. He plans to create a large-scale network of roads and railways, thereby establishing partnerships with nations.
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Viktor Orban currently holds the rotating presidency of the European Union, but he is criticized on the Old Continent for his controversial alliances.
Beyond China, he has also moved closer to Russian President Vladimir Putin… even if it means putting obstacles in the way of European decision-makers who wanted to apply strong economic sanctions against Russia. This Chinese loan is therefore part of a changing geopolitical context.where Hungary is seen as a “bad pupil” of Europe.
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Source: AKK.hu
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