January 13th, 2017

Residency bonds scheme to be winded up after HUF 112 billion profit for offshore firms

The Government Debt Management Agency (AKK) on Thursday said it will stop selling residency bonds, citing favourable developments in the country’s financing conditions in the last year. Applications for the purchase of residency bonds can be submitted until March 31, the AKK said. Hungary’s finance minister said last year the residency bonds had been among government debt instruments that needed to be reassessed.

The residency bond scheme was launched in 2013. Foreign nationals who buy securities backed by the bonds with a face value of 300,000 euros enjoy an accelerated application procedure for residence in Hungary. AKK figures from December 31, 2016 show that residency bonds with a total face value of 1.239 billion euros have been sold so far. The scheme has been criticised by opposition parties, and the government said late 2016 it would review or phase it out early this year.

The green LMP party said cancellation of the residency bond scheme does not nullify the stolen hundred billion forints. Group leader Erzsébet Schmuck said in a statement that the government had decided to cancel the scheme only to clear up traces of a scandal that had deprived the treasury of around one hundred billion forints. The cancellation of the scheme indirectly shows that the accusations of corruption were indeed justified, she added.

Visit www.hungarymatters.hu to receive Hungarian news agency MTI’s twice-daily newsletter.
Share
Please note that due to a large volume of trolling and false abuse flags, we are currently only accepting comments from logged-in users.
  • cancellation of the residency bond scheme does not nullify the stolen hundred billion forints
    The cancellation of the scheme indirectly shows that the accusations of corruption were indeed justified

    Hear!, Hear!

    • wolfi

      I’d like to see a realistic calculation that shows what part of the money paid by these people went where, all those percentages etc …
      But I know that will never happen – Fidesz will make the whole sordid affair a state secret for thirty years and that’s it.

      And I’d also like to see a statistic how many people from which countries were involved – that’s also a dream, I know.

      Hungary really is getting like North Korea …

      • Regarding the question on from where do these people come from, I have understood there is some figures and that Chinese are on top.

        Given that it is very hard for any Chinese to take out money from China and the chance that any Chinese person would have this type of money officially, except a few, is rather low, we can safely assume all of them ending up in this system are Chinese criminals.

        Real rich people buy a citizenship instead, like on Cyprus, to get access to the EU.
        http://cypruslaw.org/
        Will just set you off a mere two Million Euros for three years…

  • pantanifan

    My guess is that Fidesz supporters didn’t support this policy either (selling residency bonds to offshore companies) – maybe if the profit had been used to pay off the national debt or improve basic services…

All content © 2004-2015 The All Hungary Media Group. Articles, comments and other information on the All Hungary Media Group's network of sites are provided "as is" without guarantees, warranties, or representations of any kind, and the opinions and views expressed in such articles and columns are not necessarily those of the All Hungary Media Group.