Hungary quietly took out $1 billion in loans from three Chinese banks earlier this year, the largest amount ever borrowed by Budapest, Hungarian news outlet Portfolio reported.
Budapest took out the loans April 19 but didn't announce until Portfolio reported it Thursday, citing statistics from the Hungarian Debt Management Office.
The loans must be paid back in three years. Other than announcing that it's a variable interest rate, Budapest has not revealed any other details, such as repayment schedule, according to Portfolio.
"The loan agreement allows for the financing of investments in infrastructure and the energy sector, among others. The transaction keeps the public debt-to-GDP ratio within the ceiling at 28.9%," the Hungarian agency told Portfolio.
The loans were drawn from the China Development Bank, the Export-Import Bank of China, and the Hungarian branch of the Bank of China, Portfolio reported.
Hungary's public debt is at a record high of $140 billion euros, or 73.5% of its gross domestic product, Politico reported.
Chinese President Xi Jinping visited Budapest in May, weeks after the loans. Hungary Prime Minister Viktor Orban visited Beijing weeks later.
Mark Swanson ✉
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