“Zombie Funds” One Reason Why Hungarian Gov’t Will Centralise Its Investment Funds
- 25 Oct 2022 5:28 AM
- Hungary Around the Clock
All 65 state-owned capital funds are to be united under one fund, controlled by Economic Development Minister Márton Nagy, from January 1, 2023, state secretary Máté Lóga told journalists in the ministry.
This market has been characterized by fragmentation until now, he said, so the funds will be brought under the same umbrella, with a unified governing structure, under the name Nemzeti Tőkeholding.
There are 65 state capital funds, with available resources of over Ft 1 trillion, including funds owned by the state export promotion bank Eximbank.
About one-third of these entities are “zombie funds”, where the level of allocated capital did not reach the expected levels.
This is one of the reasons why the state is setting up a new system, Lóga said.
As most of the funds are partially operated with private capital, they will not disappear, but their operational management will change.
MTI Photo: Zoltán Balogh
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