Hungary Declares Agreement with China on Construction of Budapest-Belgrade Railway Confidential

The Hungarian parliament has decided to keep the details of the financial agreement with China on the construction of the Budapest-Belgrade railway confidential, as the agreement is considered the largest infrastructural investment in the country.

The details of the agreement must remain confidential for a period of ten years, as their “publication could prevent Hungary in carrying out its foreign policy and its commercial interests”, says the draft law.

It is added that Hungary wants to protect itself “against unwanted foreign influences”, as it pertains to “a greater national interest.”

The high-speed railway will enable the modernization of the existing railway between Budapest and Belgrade.

According to the agreement, the Chinese state Exim bank will finance 85% of the investment, estimated at around EUR 2 billion. The remaining 15% will be financed by Hungary with its own funds.

The Hungarian government announced earlier that making the details of the agreement confidential was necessary in order to get the loan from the Exim bank.

According to the law, Hungary can disclose the details of the planning document, but should consult with the Chinese authorities beforehand.

The investment has been criticized, as some believe that it enables China to meddle with Hungarian affairs and that it is a great burden on taxpayers.

There are also doubts about that profitability of the project and the risk of corruption related to the construction of the Hungarian section of the 350-km railway.

Hungarian parliament

Exim

confidentiality

confidentiality of details of financial agreement

construction of Budapest Belgrade railway

high speed railway

railway modernization

corruption