Zoltán Bodnár, a spokesman for the party, said the central bank had broken the rules when through its foundations it bought government securities to help finance the central administration. He said that the Maastricht treaty, the founding charters of the European System of Central Banks and Hungary’s central bank law all state that central banks may not buy “debt instruments” directly from the state.

The ECB has also made it clear that central banks may not do this through a mediary either, he added. Bodnár said it was an important detail that the Hungarian central bank foundations had bought residential bonds rather than long-term papers.

He said it is clear that this could only have been bought from the Hungarian Treasury with the mediation of commercial banks. The Democratic Coalition also called on Orbán to dismiss Matolcsy because of his missteps in financing. Lawmakers of the party have pledged to submit a legal proposal on this matter.

Csaba Molnár, the party’s deputy leader, said that central bank foundations are doling out “hundreds of millions in public funds” to friends and relatives, including putting money into offshore accounts.

In addition, Molnár said the Orbán government “not only likes to steal but also to keep quiet about it”, referring to the data secrecy rules folded in to the budget-related bill submitted on Monday.

Source: www.hungarymatters.hu
Republished with permission of Hungary Matters, MTI’s daily newsletter.


MTI photo: Kallos Bea