Government says ctrl bank sole authority over reserves

History

The central bank has an exclusive authority to manage international reserves and the government has no intention to use the reserves, and the government considers unquestionable the independence of the central bank, the government spokesman's office said in response to a question raised by an opposition MP on Thursday.

The government is interested in Hungary maintaining the highest possible reserves thereby enhancing economic stability, the office said, noting the €388m rise of the reserves in May as a favorable development.

The office cited an early January statement by the National Economy Ministry stating that the reserves cannot be used to fund growth enhancing programs. Prime Minister Viktor Orbán reaffirmed the same stand a few days later after discussions with National Bank of Hungary (MNB) governor András Simor, stating that the central bank has exclusive power to manage the reserves, the office recalled.

Orbán only suggested using some specific financial techniques (such as mortgage bond purchases, granting collateralized loans) to promote growth to the MNB senior officials at the end of last year, the statement said.

Gábor Scheiring, a representative of the opposition green party LMP asked National Economy Minister Matolcsy and chief negotiator to the IMF talks Varga to state the government stand over the optimum level of the country's international reserves and whether it has any intention to use them. He said a controversy over the control of the reserves could be a factor in the delay of the talks on IMF financial assistance, and said he still has the impression that the cabinet has not given up "the idea raised last December to spend part of the €35.5 billion reserves".

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.