The party’s parliamentary group leader said that an investigation should establish the extent of losses to the central budget due to the 17 billion forint (EUR 56.6m) unsecured loan by Hungarian Development Bank to Quaestor.

Meanwhile, Foreign Minister Péter Szijjártó said the government had considered Quaestor a “serious firm” before the scandal erupted at the brokerage, and this is why public funds had been entrusted to it.

On the prime minister’s instructions, the ministry withdrew funds from the brokerage and “no taxpayer money was lost,” he said. Szijjártó insisted he had never received a letter from Tarsoly regarding the brokerage’s imminent bankruptcy.

Only a few days before the bankruptcy announcement the foreign ministry state secretary had helped connect Quaestor with an Arab investor, he said, adding this would not have happened had they known of the situation at Quaestor.

On March 25 the prime minister announced he had ordered all government ministries to check whether they had financial ties with brokerages after learning the Buda- Cash bankruptcy announced on Feb. 24 could have a domino effect. Public television channel reported later that he had made the instruction at a cabinet meeting on Feb. 24.

The foreign ministry said that the affiliated Hungarian National Trading House decided to withdraw funds it held with Quaestor on March 5.

According to unconfirmed reports, the withdrawal took place on March 9, when private bond issuer Quaestor Hruria announced it had filed for bankruptcy protection. The central bank partially suspended the operating licence of Quaestor on March 10.

Source www.hungarymatters.hu

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