Budapest, February 26 (MTI) – The economy and interior ministries have set up a working group to assess damages to the state and local governments caused by the suspension of the activities of Buda-Cash group, Economy Minister Mihaly Varga told MTI on Thursday.

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Central bank suspends operating licence of Buda-Cash Brokerhaz

The National Bank of Hungary said on Tuesday it had withdrawn the licence of the brokerage and reported suspected criminal activity to the police. The central bank and financial market regulator also put a limit on withdrawals that members of the DRB Bank group, which has ownership ties to Buda-Cash, can make.
More than 80 local councils have accounts with financial institutions that belong to the Buda-Cash group, Varga said. The government will see that transfers from the State Treasury to the affected local councils go to other accounts, he added.

The NBH said earlier that it is suspected that Buda-Cash had misreported data in its financial reports for more than a decade and that it has racked up losses of up to 100 billion forints (EUR 327m).

Photo: MTI


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