Hungary has borrowed one billion euros from three Chinese banks, marking the largest loan Budapest has ever taken. The loan must be repaid within three years. This development has raised questions about Hungary's loan to Macedonia, as the source of the money and potential hidden motives behind the loan are being questioned. Hungary's public debt is at a record high of 140 billion euros, with a budget deficit of 6.7 percent of GDP. Additionally, Hungary is still waiting for billions of euros in funds from the EU. The loan from Hungary to Macedonia is for 500 million euros, but it is unclear where the money is secured from [63abddd6].
The loan agreement between Hungary and Macedonia will go through a transparent procedure in the government and parliament. Hungary will lend the Macedonian government 500 million euros with an interest rate of 3.25 percent, a three-year grace period, and a 12-year repayment period. Some of the loan money will be available to the business sector and municipalities for projects. However, the origin of the money and potential hidden motives behind the loan are being questioned by SDSM leader Venko Filipce. Hungary's loan from China raises questions about why it is lending money to Macedonia and whether it is Chinese money [63abddd6].
Hungary's loan from China comes at a time when it is still waiting for funds from the EU. Hungary has become an important trade and investment partner for China, unlike some other EU countries. The loan from Hungary to Macedonia is seen as potentially having hidden motives, and the source of the money is being questioned. Macedonia is seeking additional money from Hungary to pay off a Eurobond of 500 million euros due in 2025 [63abddd6].
In summary, Hungary has borrowed one billion euros from China, raising questions about its loan to Macedonia. The source of the money and potential hidden motives behind the loan are being questioned. Hungary's loan from China comes at a time when it is still waiting for funds from the EU. The loan agreement between Hungary and Macedonia will go through a transparent procedure, but the origin of the money is still unclear [63abddd6].