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Varga: Government to assess residency bonds in H1

Debt

The Hungarian government will review its experience with residency bonds in the first half of this year and adjust the program accordingly, Hungaryʼs National Economy Minister Mihály Varga told the press yesterday, Hungarian news agency MTI reported.

Speaking on the occasion of Hungaryʼs offshore yuan bond issue, Varga said they will review the volume and conditions at which these special government bonds were subscribed and may initiate legislative amendments if necessary.

He noted that residency bonds had other goals beyond other bonds.

Under the scheme approved by Parliament in 2012 and launched in 2013, participating foreign nationals buying €300,000 worth of bonds from approved agents are able to obtain a residency permit in an accelerated procedure. The limit was raised from €250,000 as of January 1, 2015. 

The five-year residency bonds are non-tradeable discount government bonds which are bought by agents approved by parliamentary committee. The foreign nationals seeking residence in Hungary buy at least five-year bonds issued by these agents and not the Hungarian government bonds. Only one agent can act in any one country.

Bonds valued at a total of €110 million were issued under the scheme in 2013, about €480 mln in 2014, earlier data suggested, assuming no foreign national invested more than the minimum amount. 

About 85% of all residency bonds are subscribed by Chinese nationals, MTI reported earlier.

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