Hungary intends to sell citizenship to foreigners

1 November 2012 12:00  88723777 024323
Hungary intends to sell citizenship to foreigners

Hungary intends to grant residence permits and in the future citizenship to foreigners who buy Hungarian government bonds worth 250 thousand euros. As the British newspaper "Daily Telegraph" reported today, the draft law prepared by the ruling party "Fidesz", has been submitted to the parliament of the country.

By using such measures Hungarian authorities intend to raise additional funds for the payment of bonds worth billions of euros, the maturity of which ends in a few years.

"The goal of changes to the legislation is to create in Hungary an institution of residence permits for investors - stated the authors of the bill. - We propose to link the issue of citizenship with buying of bonds to help the state attract funding."

Budapest is negotiating loans with the IMF. However, this organization requires from the Hungarian government to take austerity measures for budget savings, which the government does not want to take. In this regard, analysts believe that the chances of receiving IMF loans do not exceed 50%.
The authors of the bill are hoping that such a privilege would be attractive to many residents of countries with booming economies, especially China.

"The Chinese have repeatedly made it clear that we need to create incentives for their investment in Hungary - said one of the authors of the bill, a parliamentary deputy from the party Fidesz Mihai Babak. - If a person becomes a Hungarian citizen, he ot she will have more opportunities to invest. The condition to be eligible for preferential consideration (of application for citizenship) is buying bonds for 250 thousand euros with five years maturity. Thus we can attract capital from the so-called "third world" and help the state to reduce its debt," - says the deputy.

Hungary is an EU Member State therefore its citizens not only can travel without a visa to Europe and the U.S., but can also work and do business without restrictions in EU countries.


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