In the letter, published a day after the the Prosecutor General took over a case involving the NBH from the police, Matolcsy addressed scrutiny of the central bank's foundations and the renovation of its landmark headquarters.

He noted that the NBH foundations operated independently and were not influenced by the NBH. "They do not play any role in the fulfillment of the NBH's tasks nor do they appear in the central bank's balance sheet," he said.

Matolcsy said reports of losses at the foundations failed to make a distinction between realised and unrealised losses.

He explained that the current share price of listed Polish property developer Global Trade Centre, in which the foundations hold a 62.6pc stake, did not reflect the "real, high value" of the company's real estate portfolio. He added that the shares had been acquired, in 2020, in the framework of a "buy-and-hold" strategy.

Matolcsy said the NBH foundations were not established "for short-term speculation" but for a horizon extending "many decades".

He pointed to central bank measures under his watch that had provided a lifeline to businesses during the pandemic and supported corporate lending. He also highlighted the more than USD 10 billion appreciation of the value of the gold in the central bank's international reserves.

Responding to criticism of the cost of renovating the central bank's headquarters, Matolcsy said the building had not undergone a full-scale reconstruction since its completion some 120 years earlier.

"The asset value of the building and its fixtures are reflected in the NBH's balance sheet and, in the long term, it serves the benefit of the Hungarian state and the Hungarian financial system," he added.

"I will contribute, without reservation, to a probe of the NBH's work in 2013-2025 conducted in a transparent manner by any authority," Matolcsy said.

MTI Stock Photo

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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