Billions of euros are waiting in Brussels to be invested in the Hungarian economy to boost its growth. However, the Orbán government has no intention of fulfilling the conditions required to access these funds, nor will it take advantage of favourable loans. Instead, it may resort to a tough market-rate loan from an American consortium and could potentially seek help from the US Treasury, according to information from Válasz Online.
The government has launched a massive giveaway campaign
Last week, Márton Nagy, the Minister of National Economy, made it clear at a press conference that winning the elections is the government’s top priority. Despite economic difficulties, they will continue the giveaways. Pensioners can expect a weekly bonus in addition to the 13th monthly pension, civil servants—including mayors—will receive housing support, mothers with two or three children will be exempt from income tax, family tax credits will be doubled, and a 3% discounted home purchase scheme called Otthon Start has been introduced.
These are just a few of the announced measures, and more are expected before April. This week, Viktor Orbán announced a programme aimed at small and medium enterprises. According to G7’s calculations, the already declared and priceable expenses could drain between HUF 1.625 billion and 1.729 billion from the budget.
Where will the money come from?
Contrary to forecasts of a rapid economic takeoff, Hungary’s economy is barely growing this year, and EU funds are not arriving, so there is no visible financial foundation for the giveaways. Válasz Online suggests that this is partly why the American agreements are necessary. Politically, Trump and Orbán reached an agreement two weeks ago. The political messaging talks about a protective shield and expanded room for manoeuvre, but the basic idea is relatively simple.
Americans coming
The government wants to prevent investor confidence from shaking in Hungary—so it can keep borrowing—and also to access liquid funds instead of waiting on EU money. Orbán’s announcement that “if trouble arises, the Americans will step in” was intended to reassure investors. The prime minister dismissed worries about economic problems, saying Hungary is not struggling but defending itself against attacks. For example, the forint’s exchange rate could be targeted, which would immediately drive price rises in shops, just before the elections.
According to Válasz Online, there is talk of a credit line provided by Citigroup as the leader of an American consortium. Jane Fraser, the CEO of Citigroup and the head of the group negotiating with Trump, visited Budapest in mid-October to hold talks with Varga Mihály, governor of the central bank, the prime minister, and the foreign minister. Details are unknown, but Válasz Online states that such a loan will certainly be more expensive than one from the IMF or the EU. On the other hand, there are no attached conditions.
Orbán could borrow a huge loan to win the elections if trouble hits.
Both strategies serve to keep investor confidence steady despite giveaways and frozen EU funds, ensuring continued financing for the government even amid increased bank taxes. If successful, there will be no need for loans or swap line funds. Earlier, we reported on the swap line possibility based on Válasz Online’s reporting, which was the first in Hungary to cover it. According to Magyari, Hungary could have access to HUF 6,600 billion of additional American “extra cash” (over 12% of the entire state budget) if trouble strikes. However, this comes with a heavy price, as these are market-rate loans.
The government’s aim is to avoid any shocks before the elections, and an important step is to prevent Fitch from downgrading Hungary to junk status on 7 December.
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A normal country borrows money on open financial markets by issuing bonds. Hungary has reached the point where it can no longer borrow because of the poor state of finances Fidesz has brought Hungary to. Orban is in effect seeking an alternative lender to financial markets which is almost the same as having to beg from the IMF.
I do not know if Fidesz can be given sole credit for Hungary’s current financial position, Dear Larry, because, after having listened to many of Borvendég Zsuzsanna’s incredibly detailed lectures on how Hungary had been financially ransacked and pilloried in the 20th century, I have to feel that Hungary was financially sunken long before Orban Viktor served the first day of his first term.
I do not think that it is a mental leap to think what Hungary is currently dealing with is the cumulative effect of the horrific reverses of WWI, Trianon, and WWII.
So, I do not think Fidesz has ‘brought Hungary to this’, if I may loosely quote you.
That said, Fidesz, for whatever set of reasons you might prefer to list, has not succeeded in planting those seeds which would have kept Orban out of the current situation he is in.
The situation seems desperate to me.
I cannot understand why our president, Donald Trump, is unwilling to just give Orban money, when A : He claims to like Orban so much … and B : he just gave Argentina a ridiculous amount of money.
Sadly, I am afraid that this current Western Elite regime change effort to replace Orban with Magyar has a good chance of succeeding, and, when that happens Hungary will effectively lose what limited sovereignty it currently has and then go down the proverbial crapper.
Sad to me personally, for, in my view, Hungary and Slovakia are the last holdouts in Europe, even Poland now sinking to the Western Elite.
Hungary under the EU will be pilloried like it has never been pilloried before.
How do I know that?
Because my country has been pilloried and is now a failed state – it failed in every way that, just 5 decades back, it was not.
People in Hungary complain about Orban having sold them out economically, but, what they do not comprehend is that the coming regime will not only sell out the country financially, it will also sell out their culture, their faith, and, yes, their very race.
People in Hungary do not realize that, in having been behind the Iron Curtain, they were protected from the total devastation that my people, White-Southerners, have undergone in the U.S.
It’s so bad here that my own people no longer know who they are and never mention themselves by name, much less dare to assert our own interests.
All of our schools have been taken from us, our monuments and heroes all having been treated like the Leftists of Budapest would like to treat the 12th District Turul.
Quickly we are being outnumbered on our own lands by those who have little or no connection to us.
Constant propaganda, in every media medium, and academic brainwashing killed us, and it did so without even firing a shot.
Orban, whatever failures he has, is the only thing blocking the oncoming apocalypse which will weaponize Hungarian children to hate their kith, kin, and culture.
Orban in 2025, not the Siege of Budapest in 1944-45, is Hungary’s last stand.
I could not have worded a response better than this myself, and i am in full agreement of what you have said in reply to Larry.
Thank you for your very kind words, Dear László!
I am sad that the situation is this way.
Be well!
All what you said Mouton is nonesenese. You are yourself a migrant from some EU country!
so don’t be silly trying to convince us that you are indigenous !!!
Ahhh … The Liberal Western Elites. I am missing “Soros!”?
Hungary’s GDP growth since 2010 has been significantly augmented by EU structural and cohesion funds. On average, domestic-only growth would likely have been under 1 percent annually. With EU funds the growth picture is far stronger (~2 percent+). Our Politicians position re the EU is a jeopardy to our growth and thus future.
The “White Southerners” would explain your avatar – the Confederate battle flag? Not uncontroversial.
‘Western Elites’, Dear Norbert, is a very polite term for a transnational force of which George Soros is but one member.
Sadly, Svárc György could disappear tomorrow, and this transnational force would not skip a beat.
Yes, you understand my avatar perfectly. I appreciate greatly how wide your knowledge is. Thank you for that.
Yes, it is controversial to consider that you have a people an value that. I have a people I value above all others, though, that said, I do have a high respect for the rest of humanity, most particularly our European cousins.
Concerning your statement about your politicians (Fidesz & Mi Hazank) regarding the EU as a jeopardy to your future, I agree.
This view of your conservative politicians is not a ‘position’ or a ‘view’ about the EU, as you might like to say, but, obvious objective truth.
When you organize an invasion of foreigners; make impossible the economies of numerous countries, above all the most important EU country – Germany, not to mention, try to coerce EU members to adopt institutions that would render it’s citizens mentally ill, there is no way to regard it as a kind of jeopardy.
In fact, I think ‘jeopardy’ as a word so polite that it barely suffices.
I do not think The West has faced a threat, such as the current EU – the legal front for the Transational Forces – since the Moorish and Ottoman invasions.
Survival, in every sense of the word, is what is at stake.
Thank you for your thoughtful and polite interaction!
Thank you, Dear Rádzs, for having taken the time to read my comment and reply.
If you wish to regard me as a Martian, I will be okay with that.
My wife often does say that she thinks I’m from a different world or, at least, a different time in history!
The rambling incoherent rant of someone who can’t face reality.
Anyone who can’t acknowledge a government’s responsibility for the state a country is in after 15 years of uninterrupted power with power of decree for five years with total control of media, courts, educational institutions, every possible lever of power the state could have is TOTALLY SEPARATED FROM REALITY. Fewer and fewer Hungarians are buying the Fidesz bullsht about “Western Elites”, George Soros, etc. As my son’s teacher told a class of eight year olds NO EXCUSES!
NEVER, never, never forget Hungarians the name Mihaly Varga.
Varga, a “founding” Father as was Orban of the Fidesz Political Party, the former Minister of Finance of the Orban led Fidesz Government of Hungary.
Varga, the wrongfulness of his Policies approved by Orban and his Fidesz Government are totally RESPONSIBLE – have OWNERSHIP that is the cataclysmic MESS economically & financially of Hungary.
Varga, the “dud” he was as Finance Minister moved by Victor Mihaly. Orban to the position he presently holds being the Governor of the Central Bank of Hungary.
Orban – his Fidesz Government – its DEBT in borrowings and DEBT to the European Union through fines against Hungary through non-compliance to Laws of the European Union are Gargantuan attracting HUGH interest rate charges and in the European Union DEBT that are of compound in structure being daily interest charge for remaining outstanding – un-paid.
Mihaly Varga – his name, the position he held in the Orban led Fidesz Government must not escape being IDENTIFIED as a major reason the Economy of Hungary is in the “place” of on-going decline.
Mihaly Varga – the humongous embarrassing FAILURE his “legacy” was – the MESS he left Hungary as Finance Minister – Appalling.
The Viktator admits that his top priority is winning the Elections. In order to do that he is giving bribes to the voters. The avarage Hungarian does not understand that the bribes he is getting are coming from the tax-payers money and after the election he will have to pay for it.
Wat een ontzettende onzin schrijf die Mouton!
Conveniently, all Russian talking points under a Southern US umbrella.
Well, Dear Norbert – I could easily say that your talking points are all Bruxelles under a Hungarian umbrella.
I do not say it, however, because, unlike you, I respect that people can have opinions with which I do not agree and I am not suspicious.
I did not agree with Russia during the Soviet times, but, the modern Russia is like the old Tsarist Russia, and I find a lot to respect about that.
Since 1989, their behavior has been better than ours – far better.
I cannot see it any other way.
I cannot see it as good that, in 1989, our Secretary of State, James Baker, gave then Soviet Foreign Minister, Eduard Shevardnadze our promise that, if we allowed Germany to reunite, NATO would not go forward 1 foot to The East.
Russia allowed Germany to reunite, so it kept it’s part of the bargain; and we?
We are now fighting in the eastern part of the Ukraine, after having 3 times overthrown the government of The Ukraine, since 1991.
The Ukraine has been destroyed, and what has not been destroyed has been bought by Blackrock – it now owning 50% of the land in The Ukraine.
It’s bad behavior – very bad behavior.
At least Stalin and Hitler were3 honest about who they were.
We say we are good but, we are not. We say we are in favour of rule of law and democracy, but, we are not.
This is all very very bad behavior – the very worst.
There is not way to see it any other way.
If Tisza wins in 2026 just imagine the money that will flow into Hungary. Billions of euro’s! The only problem is with that money comes hundreds of thousands of migrants who will not integrate nor even try to find employment. The crime rate will skyrocket which will have to be combatted by increased spending on police. Online hate crimes will need to be prosecuted which will tie up the courts unless violent criminals are released to ease up the courts. Energy prices will skyrocket as Hungary rejects cheap Russian energy. Foreign investment will dry up as energy prices rise which lead to sweeping unemployment. The remaining corporations and employed citizens will be taxed even higher to maintain the living standards for the non integrating foreigners. In a matter of years Hungary will turn into a third world country governed by Brussels. In a few decades it will be illegal to recognize as Magyar as that will be a hate crime. In short time, the muslims will succeed in taking over Hungary completely something they failed to do 500 years ago. ~~~~~ Hate Magyarorszag? Vote Tisza! ~~~~~~~~~
What a bulls#it man!!
undelievable.
Did you find this out by your own intelligence???!!