Azerbaijan is planning to buy between €2bn and €3bn in Hungarian government bonds with 2 to 3 year maturities. The appeal of the deal for the Azeris is the chance to invest cash from their huge oil revenues in a (relatively) safe instrument. Besides fund the country’s debt, the Hungarian government would no doubt like to be able to demonstrate that the country is still attractive to foreign investors in a foreign currency. But the ongoing talks with the International Monetary Fund can’t be ignored either, as the government could be sending a message that it’s able to raise funding from elsewhere in an atempt to strengthen its bargaining position.
