The Hungarian Development Bank (MFB), not the Hungarian state, could issue bonds in China, the National Development Ministry said in a statement on Friday.
A bond issue would be a source of financing in the course of cooperating on investments, the ministry said.
The statement did not reveal any further details of a bond issue, other than that one could be organized by a leading bank in China.
National Development Minister Tamás Fellegi on Thursday said a Hungarian delegation he led to China held talks on getting project financing through public issues of debt in the Asian country.
“We did not come to persuade the Chinese to finance Hungarian debt, because we have no need for that. But we could use [financing from China] to make up for shortfalls in the development budget resulting from financing state debt and reducing debt,” Fellegi said on the last day of the visit. “We do not want a private placement, because that is not the right message for the market,” he added.
The Hungarian delegation me with the governor of China’s central bank, its development bank and its export-import bank during the visit to talk about financing for specific projects.
“The talks were not theoretical and not political, but very real and concrete,” Fellegi said.
Hungarian Development Bank (MFB) deputy-CEO Zoltán Urban and Government Debt Management Agency (AKK) chief Gyula Pleschinger were members of the delegation, as was CEO of state-owned railway company MAV Ferenc Szarvas.
Representatives of MFB and China’s Eximbank held talks on how project financing is to take place within a framework cooperation agreement established between MAV and the China Railway Construction Corporation, Fellegi said. The value of financing under the agreement could reach several hundred billion forints, he added.
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