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Fellegi denies report that China would buy Hungarian debt

National Economy Minister Tamás Fellegi told the European edition of the online China Daily that reports late last year indicating that he said China is preparing to purchase Hungarian debt are false.

“I had never said that China would buy Hungarian debt,” Fellegi told China Daily, though noted that that Hungary's government is “negotiating with Chinese banks and the Chinese government about future financial cooperation.”

The reports suggested that China's purchase of Hungarian debt could range from China's central bank participating in Hungarian debt auctions to state-owned Chinese companies financing of specific projects, notably of railway development, China Daily wrote.

Fellegi said that Hungary is interested in acquiring high-speed trains from China, noting that “Last time we were in China, in Beijing, we were shown several projects that would include high-speed trains in Hungary, for instance between the airport and downtown Budapest.”

“We also have ideas about logistics centers in Hungary with China's participation and building a cargo airport which would be a very important development in the country and Eastern Europe, because that would be an excellent location to have a logistics center for Chinese goods and products to be distributed in Europe,” Fellegi added.

Hungary's national economy minister told China Daily that the Hungarian government also hopes to cooperate with China in the fields of informatics and IT infrastructure.

Citing Chinese Customs data, China Daily said that trade volume between China and Hungary rose 28% yr/yr to $8.72 billion in 2010.