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China says to buy Hungarian bonds

China is ready to buy a "certain amount" of Hungarian bonds and the Chinese state development bank will ensure a €1 billion credit line to advance mutual investments with Hungarian partners, Chinese Prime Minister Wen Jiabao said at a joint press conference with Prime Minister Viktor Orbán in Budapest on Saturday.

Hungary has formed a new and very significant alliance with China; the two countries have signed twelve agreements on substantive programs, investments and finance frameworks, Orbán said. China wants to establish a Central European logistics and transport base in Hungary, and it will ensure the financial conditions for doubling bilateral trade with Hungary, he added.

Wen said a goal was set to more than double Chinese-Hungarian bilateral trade to $20 billion by 2015.

"I regard today as an exceptionally important milestone and success in terms of Hungary's renewal," Orbán said.

Chinese and Hungarian companies signed an agreement on $1 billion in chemical industry investments, he said.

Orbán said Hungary was capable of financing itself from financial markets, but China's readiness to buy Hungarian bonds eliminates any uncertainty about financing the country in the mid-term. Hungary needs certainty to bravely complete the path of economic restructuring; Hungary's economic restructuring program cannot falter because of financial uncertainty, he added.

Wen is in Hungary with a delegation of about a hundred business leaders for an official two-day visit before he travels to the UK and Germany.