Published by Global Banking and Finance Review
Posted on December 10, 2025
3 min readLast updated: January 20, 2026
Hungary plans to sell $4.5 billion in foreign currency bonds by 2026, with the first issue likely in early 2026. The country seeks international investors amid a negative credit rating outlook.
By Krisztina Than and Gergely Szakacs
BUDAPEST, Dec 10 (Reuters) - Hungary plans to sell foreign currency bonds worth 1.482 trillion forints ($4.50 billion) next year, below 2025 sales, with its first bond issue probably in the first half of 2026, the government debt agency AKK said on Wednesday.
Hungary also plans to take up 781 billion forints worth of foreign currency loans from SAFE, the European Union's rearmament fund in 2026.
However, as Brussels blocked Hungary's access to most EU funds because of rule-of-law disputes with nationalist Prime Minister Viktor Orban, these loans might also come under scrutiny according to media reports.
The debt agency said it was counting on the SAFE loans as a base case, but could raise the funds from international or local markets if needed.
BOND IN DOLLARS OR EUROS POSSIBLE IN EARLY 2026
Chief Executive Mihaly Hoffmann told a press conference that Hungary, possibly in early 2026, could issue a bond in dollars or euros.
Hoffmann said the share of foreign currency debt within total debt would be 29.9% at the end of this year, and the AKK would introduce a tolerance range to ensure greater flexibility around its 30% target for foreign currency debt.
"If we reduce the share of FX too much that does not take into account the advantages (of foreign currency issuance), he said.
Last week, Fitch Ratings cut Hungary's credit rating outlook to negative, citing a worse trajectory for public finances in the light of fiscal loosening in the run-up to a 2026 national election, when Orban faces a tough contest to retain power.
Orban, who met President Donald Trump at the White House on November 7, secured a one-year waiver from U.S. sanctions for using Russian energy. Afterwards, Orban said Hungary might be able to access a currency swap line or a flexible credit line, subject to Trump's approval.
In an interview with Politico published on Tuesday Trump denied offering any financial lifeline. In reaction to this interview, Hungary's foreign minister said Budapest and Washington committed to start talks on a new form of financial cooperation.
When asked about these negotiations, Hoffmann declined to comment. Economy Ministry state secretary Kornel Kisgergely told the same briefing that the U.S. talks would be about a swapline.
The debt agency said total net debt issuance would decline to 5.445 trillion forints next year, largely due to a 376 billion forint fall in net forint debt issuance to 2.903 trillion.
($1 = 329.5200 forints)
(Reporting by Krisztina Than and Gergely Szakacs; editing by Barbara Lewis)
A foreign currency bond is a bond issued in a currency other than the domestic currency of the issuer. It allows investors to gain exposure to foreign currencies and potentially benefit from currency fluctuations.
A credit rating is an assessment of the creditworthiness of a borrower, indicating the likelihood of default. It is typically expressed as a letter grade, with higher grades indicating lower risk.
Debt instruments are financial assets that represent a loan made by an investor to a borrower. They include bonds, loans, and mortgages, and are used by entities to raise capital.
The European Union provides funding to member states for various projects and initiatives, often contingent on compliance with specific regulations and standards, including rule-of-law principles.
Bond issuance is the process by which an entity raises funds by selling bonds to investors. The issuer agrees to pay back the principal amount along with interest at specified intervals.
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