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Orbán cabinet would like to take up a gigantic, EUR 10bn loan from the USA, Japan, China or Qatar
The 2026 general elections are approaching, and PM Viktor Orbán and his Fidesz party are no longer leading the polls published by non-governmental pollsters. This is partly because of the struggling Hungarian economy and the frozen EU funds. To bypass those difficulties, according to insider information, the Orbán cabinet is prepared to take up a gigantic, EUR 10 billion loan. The decision, in principle, has been made. Now, they are trying to find sources from the USA, Qatar, China, and Japan.
EUR billions frozen and inaccessible for Hungary
Szabad Európa’s András Kósa wrote about the gigantic Hungarian governmental loan that the Orbán cabinet would like to take up to boost the struggling Hungarian economy. Although government members retained optimism concerning the country’s development prospects, reality shows the opposite.
The Hungarian GDP growth is slow, and economic development indices are poor, which can open the gate for a potent opposition force to win the elections in 2026—Péter Magyar and his Tisza Party regularly top recent polls done by non-governmental pollsters.
The Hungarian economy would badly need the frozen EU funds, a total sum of EUR 30 billion, almost all non-repayable grants. EUR 21.7 billion is the development fund, of which 7% we lost due to breaking the EC migration rules.
EUR 6.3 billion is frozen due to rule of law concerns, and we will lose EUR 1 billion forever this year. There is a non-repayable EUR 5.8 billion in the RRF bag, an additional EUR 3.9 billion EU soft loan, and EUR 700 million in the REPowerEU financial framework.
The deadline to use that money is 31 August 2026, which means there is a real chance we will lose those amounts as well, since there are several open issues between the Orbán cabinet and the European Commission regarding the fulfilment conditions.
Michael McGrath, the EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said during a Budapest visit that the only way to gain those monies is to carry out the needed reforms.
Orbán cabinet may take up a gigantic loan
After the 2022 landslide victory, the Hungarian government chose another path: they crossed multiple state developments and, in some cases, continued projects using Hungarian taxpayers’ money. According to Szabad Európa, however, all the possible investment sources have been dried out, and some government-close business circles no longer get nearly enough projects.
Feeding them is important for the Orbán regime, and they would also like to boost the Hungarian economy. Therefore, independent sources confirmed to the media outlet that the Orbán cabinet would like to take up a EUR 10 billion loan from either China, the USA, Japan, Qatar or the European Investment Bank.
An informant said China would give money for specific investments (like they did in the case of e.g. the Belgrade-Budapest railway line upgrade), and EIB would have strict conditions. Meanwhile, Japan would also be strict from a financial point of view. Thus, the most probable partners are Qatar and the Trump administration, which Orbán began to support back in 2015.
Serious consequences
Both MP Tamás Mellár, the former chairman of the Central Statistical Office (KSH) and Péter Virovácz, a senior analyst of the ING, said that EUR 10 billion would increase the inflation but would not solve the structural problems of the Hungarian economy and would not put Hungary on the path of sustainable development. Furthermore, such a loan would increase the Hungarian state debt’s foreign currency composition to 35-40%, which would result in an immediate downgrading of the country’s credit rating.
Before the 2022 elections, the Orbán cabinet distributed billions of euros to pensioners (13th month pension), families raising children (PIT refund), etc. The result was Europe’s highest inflation, which they could not defeat for years and the halt of Hungary’s GDP growth and economic development.
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but the Hungarian golden age is coming… sooner or later it will arrive. LOL
The 5XL clown needs money to feed his gang and for the briberies of nexr year’s elections ( which, at the moment, he is very likely to lose )
The Hungarian Economy is non PERFORMING.
Sustainability of the Economic &nFinancial position, we have been placed in as a country by the Orban led fidesz Government, the “picture” can only WORSEN.
Orban and his Fidesz Government have NOTHING, absolutely NOTHING to Invest in Hungary at this point in time nor into the FUTURE as theyfactually are a Government, on the CUSP of being an INSOLENT / Bankrupt Government.
Orban and his Fidesz Government – the Debts of Borrowings and Fines to the European Union – these are DEBTS of ALL Hungarians – through the incompetency DISPLAYED by the former Finance Minister – Mihaly Varga now the Govenor of the Central Bank of Hungary.
Varga – will STUFF that role up like he did the Hungarian Economy, in partnership with Victor Orban and the rest of his Fidesz Government, that have DELIVERED us as a country Hungary, to the Mess & Chaotic position we find ourselves to-day, and a FUTURE that is a deeper DARKER black hole.
To go looking at and proceeding to increase the already near out of control Government Debt, the DOUBT of serviceability of the present GROWING Government Debt – CRAZY and IRROSPONSIBLE.
PRESSURIZATION on Orban – his Fidesz Government – the thought of EXTRA debt on Hungarians – REPLUSIVE & WRONG.
Borrowing from the U.S. ? That’s rich considering your amateurish moves regarding residency visas for Americans who own property here, spend their money here & follow Hungarian laws.
Whether it’s from my Country or anywhere else, it is important to bear in mind direct but also indirect costs.
Gróf Széchenyi István, in Hítel- no, I haven’t read it, much less know it exhaustively, but I’m familiar in a general sense with the author I think and get the feeling that the Kossuth/Széchenyi “rivalry” and era might be particularly salient now, maybe even from the perspective of a U.S. American with regards to his own current elected government.
From the Wikipedia article on Hítel through Google Translate- the theme doesn’t get lost in translation if my understanding is to be considered and I don’t want to meddle it with my own opinion.
It could also be that it is in Hungary’s interest to go in new directions, but again, the argument is a historical one and can be evaluated in the context one chooses.
As translated: “…the faulty arrangement of our financial connections and the natural consequence of this is the complete lack of all credit. I see this lack as the cause of all physical unnaturalness, when, p. o. >sic<, the owner of 100 thousand or more acres of land cannot give a certain loan for even a single forint, and is short of money; the capital financier, on the other hand, can hardly find a place from which he could expect a certain interest or, in time, the regular repayment of the capital as he pleases. And I see the lack of credit as one of the main causes of all moral corruption and spiritual degradation. For if someone lends his money for 20, 50, 100, 100-plus or even more usury, he certainly has to do with the devil, and whoever signs more than 20, 50, 100-plus, never acts bona fide, but wants to cheat. Among such bargainers, one of whom flays his fellow man and the other deceives him, and where Mephistopheles plays the leading role, how can humanity and civic virtue be cultivated? And if this beautiful social custom has been passed down through several generations, and this beautiful old arrangement is already absorbed with mother's milk – does it really take more to rot an entire nation? Has not our old monetary system, built on this musty mold, brought many of our fellow patriots into such a bitter dilemma in matters of debt that it was almost impossible for them to choose a third role between a foolish actor and a villain?”
Ooohhh! What is a debt doom loop?
https://www.youtube.com/watch?v=GCBnovI1ecw
Why doesn’t the EU just send Hungary “our” money? So unfair! Someone needs to relieve those stupid Contributing Members of their cash, as our Politicians have been doing since 2010. And taking all the credit. Think of our “Growth!” without the EU contributions?
I guess this is what a ‘flying start’ in 2025 looks like. Flying to Washington/Beijing/Doha with a begging bowl.