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The opposition Democratic Coalition has called on the government not to drive the country to indebtedness through a planned forex bond issue.

Klára Dobrev, MEP of the opposition Democratic Coalition (DK) and vice-president of the European Parliament, said on Friday that Prime Minister Viktor Orbán had “instructed his people to take out a forex loan worth 4 billion euros for Hungary” at a time of an “unprecedented weakening of the forint”.

On Thursday, national state debt manager ÁKK announced that it had changed its 2020 financing plan in line with the government’s increasing the country’s deficit target from 1 percent to 2.7 percent of GDP. Under the changes, the ÁKK would increase the cap for its forex bond issue scheme from 1 billion to 4 billion euros.

Dobrev insisted that taking out a “gigantic” loan was not necessary, and argued that the European Union’s crisis management package would be sufficient to ease economic and social ramifications of the novel coronavirus epidemic. She said that the EU had released nearly 2,000 billion forints in community funding for Hungary aimed at providing wage and unemployment benefits as well as health developments.

“The funds, the prime minister says, have been disbursed, but it is not true,” Dobrev said. PM Viktor Orbán “may have pledged” a large part of those funds earlier, but “it is certain that those moneys have not been paid out nor are they tied up”, she said.

Featured photo by Balázs Mohai/MTI