Delegates attend a panel discussion during the Budapest Renminbi (RMB) Initiative Conference 2024 in Budapest, Hungary on Sept. 23, 2024. [Photo/Xinhua]

Hungary and China have agreed to strengthen financial cooperation and promote green finance at the Budapest Renminbi (RMB) Initiative Conference 2024 in Budapest on Monday.

At the conference, co-hosted by the National Bank of Hungary (MNB) and the Bank of China, Barnabas Virag, deputy governor of MNB highlighted the importance of the initiative in fostering Hungary-China relations and supporting sustainable investments.

"The Budapest Renminbi Initiative, launched in 2015, has been instrumental in deepening financial and economic ties between China and Hungary," he said, adding that "this year, our focus is on green finance and the internalization of the RMB, two crucial areas for the future of our economies."

Virag spoke highly of China's strides in developing its green finance market, citing the issuance of green bonds and the financing of environmentally sustainable projects, a trend that Hungary is also embracing.

He also underscored the role of the Belt and Road Initiative (BRI) in promoting sustainable development. "As the BRI evolves, its potential to promote sustainable future-proof investment is becoming increasingly clear. By aligning BRI projects with green finance principles, we can ensure that economic growth driven by the initiative is both inclusive and responsible," Virag noted.

The BRI, which Hungary joined in 2015, has bolstered infrastructure projects and increased trade between the two countries, said Virag at the conference, which is also part of celebrations marking the 75th anniversary of diplomatic relations between the two nations.

Yang Chao, minister counselor of the Chinese Embassy in Hungary, said the conference is a significant step toward expanding RMB cooperation and promoting green finance.

"China and Hungary share similar development concepts and policy goals. We hope to expand the breadth and depth of RMB cooperation and elevate financial cooperation to new heights under the Belt and Road framework," Yang added.

The first half of 2024 saw robust growth in cross-border RMB settlements between China and Hungary. The Bank of China processed a total of 26.4 billion yuan in settlements through its domestic and Hungarian branches.

Lin Jingzhen, executive director and vice president of the Bank of China, said that after more than a decade of development, the global influence of the RMB has continued to expand.

"The Bank of China will continue to improve its green financial products and services, fully supporting Hungary and Central and Eastern European customers in implementing green strategies," Lin noted.

Li Kexin, chief executive officer of the Bank of China (Central and Eastern Europe) Ltd., also reaffirmed the bank's commitment to green finance, saying that the Bank of China helped Hungary issue 1 billion yuan in green sovereign panda bonds in 2021 and 2 billion yuan in 2022.

This year, the Hungarian branch also issued 500 million U.S. dollars in sustainable development bonds as part of the Belt and Road Initiative, Li said.