No issues of Hungarian "permanent residency bonds", yet


Hungary has not yet issued any special government bonds that accelerate applications for permanent residency in the country by foreign nationals, Government Debt Management Agency (ÁKK) deputy-CEO László András Borbély told Econews. Parliament approved amendments to legislation last year that allow foreign nationals who invest at least €250,000 in securities issued by an agent mandated by parliament's economic and IT committee to avail of an accelerated application procedure for permanent residency in Hungary. The securities purchased, either by the foreign national or a company majority-owned by the foreign national, are not government securities, but papers issued by the agents, who buy, in turn, special-purpose five-year discount bonds issued by ÁKK. The "Permanent Residency Hungarian State Bonds" may not be traded. The parliamentary economic and IT committee has mandated four companies to purchase the permanent residency bonds and ÁKK signed framework contracts with two agents, so far, Borbély said. ÁKK said earlier it did not target revenue from the issue of the special-purpose bonds this year. ÁKK does not have the regulatory means to gauge demand for the papers, but is required to issue them if a suitable application for their subscription is made, Borbély said. The securities issued by the agents must have a value of at least €250,000 per foreign national and a maturity of at least five years. Agents may determine other conditions for the papers. The website of one agent shows the €250,000 of securities offered do not pay interest, but a €40,000 "immigration consulting fee" is attached to the purchase. As the securities are not government issued, the buyer bears the risk of non-payment by the agent.


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