MNB investigation: Were news reports of ÁKK bonds “undue market influence”?

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In its capacity as financial market regulator, the National Bank of Hungary (MNB) yesterday reported the launching of a review of the propagation of reports on January 29 that Hungary could not repay a foreign currency bond.

The MNB aims to determine with the official procedure whether the propagation of the news fits the definition of undue market influence prohibited by the capital markets law. The MNB noted that the news had caused the forint to weaken.

The forint weakened to a more than two-year low against the euro following the reports and has seen a steady slide downward against major currencies since then.

The Government Debt Management Agency (ÁKK) said on January 29 that the reports were viewed as “malicious activity intended to negatively influence the market,” adding that it would “take appropriate measures, if necessary.”

-- material from national news service MTI was used in this article

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