Bank of China expansion backed by Hungarian PM

BUDAPEST -- Hungarian Prime Minister Viktor Orban has welcomed Bank of China (BOC) plans to set up its Eastern and Central Europe business development center and yuan clearing center in Hungary, the bank reported in a Sunday news release in Budapest.

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Bank of China Chairman Tian Guoli communicated the news after speaking with Orban after his inauguration ceremony following his re-election as prime minister on Saturday.

Orban vowed to support the BOC expansion in the region and the internationalization of yuan as part of Hungary's policy of Opening to the East, which calls for enhanced bilateral economic, trade, and other ties, the BOC statement announced.

Tian voiced his thanks to Orban for having visited BOC headquarters when in China this past February. He pointed out that Hungary was ideally located geographically to facilitate BOC growth. Tian said he considered building the regional BOC business center here to have been an excellent choice.

Tian also spoke of his appreciation for Orban's awareness of the role an internationalized yuan could play in the global economy.

They also talked about European and Hungarian political situations and on expected European Union development, focusing primarily on the impact this could have on ties with China.

During his visit, Tian also met with National Bank of Hungary Governor Gyorgy Matolcsy. The two bankers discussed BOC participation in major infrastructural projects in Hungary as well as Hungarian central bank support for the BOC in its yuan internationalization.