Hungary has released previously undisclosed details of a €1 billion ($1.2 billion) loan that outgoing Prime Minister Viktor Orban's government took from China in 2024, news website 444.hu reported Friday.
While authorities had revealed the amount and maturity in 2024 after several months of delay, key details remained unknown. Incoming premier Peter Magyar, who is due to take office on May 9, said after defeating Orban at last month's election that he would examine costly international agreements struck during the outgoing premier's 16-year rule.
The three-year loan was taken in April 2024 from China Development Bank, Export-Import Bank of China and the Hungarian unit of Bank of China Ltd., with the debt agency revealing its existence only four months later.
Authorities have long rejected requests by the press and opposition to release further details, citing banking secrecy rules. The 444.hu news website obtained fresh details after Orban's election defeat.
The loan carries an interest rate of 1.5 percentage points above six-month EURIBOR -- the euro interbank rate -- amounting to 3.916% per year in the current coupon period, the debt agency, known as AKK, told the newspaper.
"The interest and premium paid on the loan was in line with market rates prevalent at the time of signing," the AKK said.
It also paid a total of €8 million in one-off fees at signing, which the agency said also aligned with international norms.
