Magyar Orders Investigation into €1 Billion Hungarian Loan Granted to North Macedonia

The Hungarian government, led by Péter Magyar, will investigate whether public funds were misused in connection with the €1 billion loan granted to North Macedonia by the state-owned Eximbank.

Magyar announced this yesterday. According to local media reports, the loan received by North Macedonia is among four cases involving Eximbank over which the Ministry of Economy and Energy filed complaints today, Fokus reported.

“On Thursday, the Ministry of Economy and Energy filed four complaints concerning suspected fraud totaling one trillion forints in four separate cases. Each of them is linked to Eximbank’s activities,” Magyar said.

He said the loan was approved on highly favorable terms, with an interest rate of 3.25 percent.

According to Magyar, the interest-rate differential will cost Hungary’s budget 90 billion forints, or approximately €248 million.

“For the Hungarian budget, this represents a burden of 90 billion forints, approximately €248 million, while under Orban’s government, the Hungarian state guaranteed 100 percent of the loan,” Magyar said.

He also noted that the interest rate at which the state-owned Eximbank granted the loan to Macedonia is significantly more favorable than the rates applied to Hungarian companies and citizens when they take out loans./INA/