Hungary’s government has launched an investigation into a €1 billion loan extended to North Macedonia, which the previous administration provided on preferential terms through the state-owned Eximbank, according to the North Macedonian news portal 360 Stepeni following an announcement by PM Péter Magyar.

According to the report, the Hungarian government is reviewing four transactions linked to the state Eximbank, one of which concerns the loan granted to North Macedonia on favourable terms by the previous cabinet. The prime minister is said to believe that the conditions of the loan — a 3.25 per cent fixed interest rate and unrestricted use — were significantly more advantageous than those under which the Hungarian state itself can borrow, or those available to Hungarian businesses. As a result, suspicions have arisen that the previous government may have used financial instruments intended to support domestic enterprises for foreign political purposes.

The North Macedonian loan agreement was concluded in mid-July 2024 by Prime Minister Hristijan Mickoski shortly after taking office, during a meeting with his then Hungarian counterpart Viktor Orbán on the sidelines of the NATO summit in Washington, the Hungarian news agency wrote.

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North Macedonia subsequently entered into two €500 million agreements with Eximbank: the first was signed on 8 October, with a 15-year maturity, a three-year grace period and a fixed interest rate of 3.25 per cent. The second €500 million loan was signed in December 2024. According to 360 Stepeni, North Macedonia used part of the Hungarian loan to support businesses, with the remainder allocated to municipal investment projects.

Mr Magyar said the interest equalisation linked to the transaction, which is backed by a full state guarantee, imposes a burden of more than 90 billion forints on Hungary’s budget.

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