Are you sure?

Hungary central bank books HUF 42 bln loss in 2010

The National Bank of Hungary (MNB) booked losses of HUF 41.6 billion in 2010, compared to profit of HUF 65 billion in 2009, primarily as a result of a sharp fall in the profit from exchange rate changes and losses on financial transactions, the MNB announced in the bank's 2010 financial report published on Parliament's website.

In a summary of the document MNB president András Simor noted that the bank's operating costs declined by more than HUF 900 million, or 6.9% yr/yr, to under HUF 12.8 billion in 2010, dropping to below the HUF 13 billion mark for the first time since 2003.

Audited figures show that profit stemming from exchange rate fluctuations fell by HUF 86 billion from 2009 to HUF 50 billion in 2010, and the bank accrued a HUF 22 billion loss on financial transactions instead of HUF 9 billion profit in the previous year.

The central bank's budget is, by law, balanced from the central budget by March 31. However, the central budget was not obligated to make such a transfer as the HUF 75 billion in the bank's profit reserves had more than covered the losses, Simor told the press on Tuesday.