A memorandum of cooperation concerning EUR 300 million has been signed between MVM Hungarian Electricity Ltd. and the Bank of China Group on Monday, including a EUR 200 million loan agreement.

At the signing ceremony, State Secretary for Foreign Affairs and External Economic Relations Péter Szijjártó said the agreement is a major economic-political achievement enabling one of the most stable Hungarian companies to make important steps towards regional empowerment with the help of Chinese resources.

Concerning the development of Chinese-Hungarian relations, the State Secretary said that commercial turnover with China had grown from USD 2.2 billion to USD 7.2 billion in 10 years, stressing that 6% of domestic imports are currently comprised of Chinese products. Last year, exports from Hungary to China grew by USD 120 million compared to last year, with turnover exceeding USD 1.8 billion, he added.

The agreement provides the Hungarian MVM Group with a new, well-capitalised business partner, which as provider of financing and banking services can contribute to the regional development of the company, the State Secretary emphasised.

The MVM Electricty Ltd. is a dominant operator within the domestic energy industry, also increasingly appearing on the regional market, which requires significant financial resources, CEO of MVM Group Csaba Baji said, adding that the Bank of China is the company’s first significant Asian partner.

The agreement is an important step forward in promoting economic development in Hungary, Chen Si Qing, the bank’s Executive Vice-President said. He underlined that the Bank of China intends to expand its business activities in Hungary and the Eastern-Central European region and they see excellent business opportunities in the financing of state-owned energy infrastructure.

(Prime Minister’s Office)