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Former central bank governor to become MNB supervisory board chairman

Former National Bank of Hungary (MNB) governor Zsigmond Járai has been nominated to serve as chairman of the MNB's supervisory board, CIG Pannonia Life Insurance Spokesman Gabor Missura told MTI.

Parliament is expected to elect the central bank supervisory board on Tuesday and its members will take their oaths the same day.

Járai, who is currently chairman of CIG Pannonia's supervisory board, was central bank governor between 2001-2007. Previously he served as finance minister in the first Orbán-government.

Missura noted that as central bank governor Járai disagreed with the idea of a supervisory board delegated by parties controlling the central bank.

The supervisory board was set up at the MNB when the 2001 central bank act was amended at the time of the Hungarian Socialist Party-controlled Medgyessy-government.

The supervisory board only has authority over the central bank's internal financial management and operation and has no say in how monetary policy is shaped. The mandate of the members of the supervisory board expire with the mandate of the members of parliament. The supervisory board has eight members, six of whom are delegated by the parliamentary parties, with the chairman nominated by the largest party in parliament. The national economy minister delegates one representative and one specialist into the supervisory board. (MTI – Econews)