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Conditions for drawing on €1 bln China Development Bank credit line still cloudy

Businesses can access €1 billion in credit from the China Development Bank through the Hungarian Development Bank (MFB), but the detailed conditions for taking out loans are still not known, Eszter Varga, chief advisor for the Hungarian Investment and Trade Agency (HITA), said at a meeting of Chinese and Hungarian business representatives at Budapest's Asia Center on Friday.

The China Development Bank is opening a €1 billion credit line to advance mutual investments with Hungarian partners. The credit was announced a year ago, during a visit to Budapest by Chinese Premier Wen Jiabao. Wen also said China was ready to buy Hungarian bonds during the visit.

Varga said Chinese investments in Hungary reach $2.5 billion. Hungary is encouraging further developments in the IT, food and renewable energy sectors, he added.

Two of MFB's staff said the interest, terms and scale of the loans that would be available to businesses had still not been worked out with MFB's Chinese partner.