Hungary to Tap International Markets as EU Blocks Funds

Hungary is seeking to sell seven-year and 12-year benchmark-sized bonds in dollars and nine-year bonds in euros in the near future, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. BNP Paribas SA, Deutsche Bank AG, Goldman Sachs Group Inc., ING Groep NV and JPMorgan Chase & Co. are to arrange the sale, the person said.

Potential proceeds will help plug holes in Hungary’s budget, strained by lavish social spending in the run-up to elections in April that helped Orban secure a fifth term. Hungary currently can’t access 7.2 billion euros ($7.7 billion) in EU pandemic relief funds due to concerns about the erosion of rule of law and graft.

Financing challenges have led Orban to announce far-reaching budget consolidation plans over the weekend, including about $6 billion in government spending cuts and savings, as well as a sweeping set of windfall taxes on industries ranging from banking to energy.

We are primarily funded by readers. Please subscribe and donate to support us!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.