Hungary Embraces Chinese Loan Financing After 1 Billion Euro Deal

(Bloomberg) — Hungary said it took a 1-billion-euro 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, without providing details on why a formal announcement hadn’t been made until now. The loan will help finance infrastructure, transport and energy projects, according to the agency. Hungary earlier took a $917 million loan in 2022 from Export-Import Bank of China to finance the Belgrade-Budapest rail project, part of China’s Belt and Road Initiative, data from the agency shows.