Magyar hints at ending Hungary’s block on €90B Ukraine loan

Hungary's government will drop its opposition to the EU's €90 billion loan to Ukraine, incoming Prime Minister Péter Magyar signaled, bringing a four-month standoff to an end.

Speaking at a press conference in Budapest, Magyar said the EU decision on the loan "was already made in December" and that the incoming Tisza administration "would like to be coherent" with previous commitments.

Viktor Orbán, who lost Sunday's general election by a landslide, initially approved the loan at a summit of EU leaders at the end of last year, before going back on the agreement ― a breach of normal protocol. He said he wouldn't allow the funds to be released until Ukraine repaired a pipeline carrying Russian oil through the country to Hungary. He accused Kyiv of slow-walking the repairs.

Ukraine's coffers, depleted after years of war, would see a huge shortfall if the loan isn't approved by May. While capitals hoped to resolve the issue at a summit last month, Orbán — alongside Slovakia's Prime Minister Robert Fico — insisted the money could not be disbursed until the flow of oil was guaranteed.

Leaders won't have to meet again to unblock the loan. Magyar signaled the decision could be taken even before his government assumes office, which should take place within the month.

Even if Hungary allows the loan to go ahead, it still won't contribute.

“I will discuss with European leaders but I personally agree that Hungary should opt out, Hungary is in a very difficult situation," Magyar said. "We cannot take out even more loans, the Hungarian budget deficit has tripled since 2010."

Magyar, a former ally of Orbán's, won a two-thirds parliamentary supermajority in Sunday's vote, bringing an end to his former boss' 16 years in office. He has pledged to crack down on corruption and accused the outgoing government of "treason" in its support for Russia.

While Orbán “still will be a caretaking prime minister,” he “shouldn’t make decisions over my head,” Magyar said.