Cash-strapped Hungary borrows €1 billion from China

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Hungary borrowed one billion euros ($1.1 billion) from Chinese banks earlier this year, its debt management agency said on Thursday (25 July), as the EU member state faces a difficult financial situation.

The Hungarian government did not announce the deal, which was first reported by the local financial news site Portfolio based on publicly available data.

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Budapest took out a three-year, floating-rate loan from Chinese banks on 19 April, data on the Hungarian Government Debt Management Agency’s website showed.

“The one-billion-euro loan agreement with the China Development Bank, the Export-Import Bank of China and the Hungarian branch of the Bank of China Limited will finance infrastructure and energy development, among other projects,” the agency told AFP in a statement.
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