Portfolio.hu, citing national news agency MTI, quoted Fellegi as saying proceeds from such a debt issue would be used to finance development projects, not to help roll over Hungary's debt.

He also said the issue would have to be made on the open market to avoid sending a misleading message to investors.

"We have not come here to convince the Chinese of debt financing, because we do not need that," Fellegi, who is on an official visit in China, was quoted as saying.

"But what we do use for debt financing, and is thus missing from the development budget, that could be replenished from here, too."

He said he had discussed the issue with banking leaders in Hong Kong as well as Beijing.