MNB rejects accusation of covert monetary financing

MNB

The National Bank of Hungary (MNB) is not involved in covert monetary financing through its subsidiaries, the MNB told state news agency MTI yesterday. 

The MNB says it observes the ban on monetary financing included in the central bank act, which stipulates that the central bank must not provide overdraft or any other form of credit to the public sector; the MNB also said that it does not pursue covert monetary financing through government securities purchases of its foundations.

uestions on the matter arose following the release of a statement by portal mfor.hu that the volume of government securities held by retail investors published by the Government Debt Management Centre (ÁKK) last week revealed that the volume of Bónusz Hungarian Government Securities rose by HUF 38.2 bln and the "increase was largely due to purchases by other organizations". Mfor.hu said these buyers include the national bankʼs foundations. The MNB told MTI that the foundations operate independently from their founder and make all their investment decisions independently.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

Operative corps for economic recovery decides on further mea... Government

Operative corps for economic recovery decides on further mea...

Healthcare Roadshow Highlights Innovation, Screening Awarene... Interview

Healthcare Roadshow Highlights Innovation, Screening Awarene...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.