Hungary's new government has announced it will review its application for a €16 billion defense loan from the European Commission due to corruption risks, Euronews reported, citing sources in the newly elected prime minister's party.
"We will critically examine the list presented by the outgoing government and make decisions based on real needs and an assessment of corruption risks," a source within the Tisza Party told Euronews on condition of anonymity.
According to Euronews, the corruption risks mentioned are understood to be related to Hungarian industrial interests with ties to the outgoing government of Viktor Orbán. And the main company representing these interests is 4iG, which in Hungary is considered one of the pillars of corruption of the Orbán government.
Loan
Last year, the European Commission launched a hundreds of billions of euros scheme to support member states' defense spending. The financing package was based on soft loans and the former government of Viktor Orban applied for 16 billion euros.
But after the scheme was launched, a large part of the Hungarian defense industry was privatized by 4iG, through several procedures that are now under investigation for corruption. According to Hungarian media, the bulk of these funds would benefit 4iG.
The credit freeze by the Magyar government is suspected to be mainly related to 4iG, considered to be Orban's court company. Due to these developments, kontrol.hu, a media outlet close to the party of the Magyar prime minister, writes that 4iG could be heading towards bankruptcy.
Risks for ONE Albania
4iG is the parent company that owns One Albania, one of the two players in the mobile oligopoly in Albania. 4iG's financial woes are expected to have serious consequences for One.
Data from the mobile company's balance sheet shows a high dependence on its parent company 4iG for financing. According to the balance sheet, at the end of 2024, One Albania had about 9.1 billion lek or over 96 million euros in loans from the parent group.
One Albania is currently negotiating a large loan from a second-tier bank in Albania. However, recent developments within the 4iG group have significantly increased the financial risks for One, which could be passed on to the domestic banking sector in the event of reckless financing.
One Albania and the entire 4iG group are now classified as a corporation with a tarnished reputation due to the company's political connections and high financial risks, not only due to the blocking of funds that the group benefited from by the former Orban government, but also due to the possible legal consequences from the corruption investigations announced by the government of Peter Magyar.
Editorial
