MNB rejects accusation of covert monetary financing
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.
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