Hungary Infrastructure U.S. subcontracting opportunities for Chinese-funded projects

In May 2024, Hungary secured a one billion Euro (USD 1.1 billion) loan from Chinese banks. This deal is the largest single loan in Hungary’s debt portfolio, excluding bond issues, and its value exceeds the USD 917 million loan China issued to finance the Budapest-Belgrade rail project

U.S. companies or their Hungarian affiliates will be able to take advantage of these project opportunities in role of subcontractors for construction consulting, innovative design and constructing.

The conditions of the three-year variable loan, including the interest rate and repayment terms, remain unknown. The China Development Bank, the Export-Import Bank of China and the Hungarian branch of the Bank of China provided joint financing.

The loan is expected to be used to finance general infrastructural investments, including transport infrastructure and energy. Loan funds have partially been allocated the purchase of Budapest International Airport and for related infrastructure projects such as the plans outlined by the Hungarian Government to build a high-speed railway connection between Budapest’s city center and the Budapest International Airport.

The loan may also be used as a substitute for EU transfers, or to aid with the payment of a EUR 200 million (USD 216 million) penalty issued by the European Court of Justice for non-compliance with EU asylum rules.

It should be noted that this fine increased by EUR 1 million (USD 1,082 million) daily.

For additional information, please contact: csilla.viragos@trade.gov