BUDAPEST – Hungary is investigating two unrestricted loans provided to North Macedonia, worth a combined 988 million euros via the state-owned Eximbank during Viktor Orbán’s previous administration, Prime Minister Péter Magyar announced. According to the media reports, the credit line was extended to the government led by Hristijan Mickoski in two tranches.
The loans have a fixed annual interest rate of 3.25 per cent and a 15-year term, including a three-year grace period. The Hungarian government estimates that interest compensation connected to the arrangement will cost the state budget more than 247 million euros.
The full amount is also covered by a Hungarian state guarantee, despite North Macedonia’s reportedly significant risk rating at Eximbank, Daily News Hungary reported.
The inquiry into the deal with North Macedonia is part of a wider government review targeting four major Eximbank foreign transactions totaling 2.74 billion euros.
Hungarian Prime Minister stressed that the loan granted to North Macedonia, through the state-owned Eximbank, has a much more favorable interest rate than the interest rate at which Hungarian companies and Hungarians receive loans, but also than the rate at which the Hungarian state takes out loans, Vijesti wrote.
“The loan, granted at an interest rate of 3.25 percent, with full risk secured by a 100 percent government guarantee, is among several transactions related to Eximbank that are now being reviewed”, Magyar stated.
