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Bloomberg Bashes Hungarian National Bank Governor Over “Rewriting Rules Of Central Banking”

By Tamás Székely // 2016.05.23.

Hungarian Central Bank (MNB) governor György Matolcsy is funneling funds to friends and family, according to Bloomberg. The widely read economic news portal has published a report written by Hungarian correspondent Zoltán Simon, who accuses the MNB chief of “rewriting the rules for central banking in the European Union”.

Matolcsy “has funneled the equivalent of almost $1 billion to six foundations he set up” since he was appointed central banker in Budapest, the paper said, adding that MNB is also “under fire for buying fine art and other items unrelated to its mandate.” Bloomberg cited – among others – Otilia Dhand, a political risk analyst at Teneo Intelligence in Brussels, who says that “even by eastern European standards, this goes beyond your usual allegation of crony capitalism.”

“MNB is under political attack because of the successes it has achieved”, said György Matolcsy, who has been also harshly criticized in Hungarian left-wing media recently. Meanwhile Matolcsy is praised in the right-wing and pro-government papers for bringing down inflation in Hungary to close to zero and reducing the prime interest rate to just over one per cent.

via and photo: Lajos Soós – MTI