Archive · 22 Sep 2025
GTC Seeks to Amend Bond Terms After Hungarian Central Bank Scandal
Imagine a real estate company, GTC, that's partly owned by Hungary's central bank.
The bank is under scrutiny for financial problems.
Because of this, GTC is having trouble.
They need to change how they pay back their bonds, which are like loans.
They're asking bondholders (people who own the loans) to agree to give them more time to pay.
This is happening because credit rating agencies lowered GTC's rating due to the bank's issues.
If bondholders don't agree, GTC might have to pay back the loans immediately, which they can't do.
The central bank bought most of the bonds originally.
The company's stock price has dropped considerably, and the situation is causing financial uncertainty.
GTC, a real estate developer, is seeking to renegotiate repayment terms on its forint bonds.
The request follows a financial scandal involving the Hungarian central bank, which indirectly controls GTC.
Bondholders must vote on the request to extend grace periods for repayment.
Fitch and Scope Ratings have downgraded GTC's debt due to refinancing risks.
GTC's share price has fallen significantly since the Hungarian central bank's foundation acquired a stake in 2020.
- Who
- Globe Trade Centre SA (GTC), controlled indirectly by the Hungarian central bank.
- What
- GTC is seeking to amend the repayment terms of its forint bonds.
- When
- Bondholders have until Monday at 2 p.m. CET to vote on the request. The company's management was overhauled earlier this month.
- Where
- Warsaw-based GTC, with ties to the Hungarian central bank.
- Why
- To avoid early repayment of forint bonds following credit downgrades related to a financial scandal at the Hungarian central bank.
- Company
- Globe Trade Centre SA (GTC)
- Bonds Affected
- Forint bonds due 2030 and 2031
- Rating Downgrades
- Fitch: B, Scope: B-
- Bondholder Vote Deadline
- Monday, 2 p.m. CET
- Primary Stakeholder
- Hungarian central bank (indirect)
- 2026 Euro Bond Price
- 91.8 cents on the euro