The MoU on the issuance of renminbi-denominated government bonds was signed by Prime Minister Viktor Orbán and Bank of China President Tian Guoli. Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó and Minister for National Economy Mihály Varga also participated at the event. Mihály Varga called the signing of the document a major milestone, as Hungary is the first country in the Central and Eastern European region to issue a renminbi bond. The Minister added it was a sign of confidence in the Hungarian economy and stable growth.
The MoU can lay the foundation for Hungarian and Eastern European enterprises and financial institutions to borrow on the RMB market and facilitate investment activities.
Under the MoU, Hungary and the Chinese partner cooperate in jointly preparing the issuance of renminbi bonds.
Following the ceremony, the Minister for National Economy stated that Hungary has been pursuing steady and balanced cooperation with China. As he recalled, the opening of the Bank of China’s Budapest headquarters in October this year was already a key step. The partnership for preparing the issuance of the bonds is serving the same goal, he said. Advantages offered by the internationalization of the Chinese currency will provide additional impetus to Hungary’s economic growth, boost regional cross-border market activity and generate profits in Hungary and the CEE region.
The issuance of bonds by Hungary is also expected to be a catalyst in the country’s objective to widen its investor base in Asia, especially in China.
In this process, Hungary will be represented by the Minister for National Economy. The organisational works of the transaction on the issuer’s side from preparation until completion of the issue will be carried out by the Government Debt Management Agency Pte Ltd („ÁKK”).
(Ministry for National Economy)
