Mihály Varga, president of the Hungarian National Bank (MNB) and a senior figure appointed under Viktor Orbán’s government, says he is aiming for “good working relations” with Hungary’s new Tisza-led cabinet, while insisting the central bank’s priority remains price stability. In an interview with HVG, he also outlined plans to boost transparency around private equity funds, tighten the MNB’s focus on core tasks and avoid losses on the rescheduling of 4iG bonds.
Varga argued that April’s market moves — a stronger forint, lower government bond yields and a rising stock market — create an opportunity, but are not in themselves a guarantee of lasting stability. The MNB’s primary mandate remains price stability, and it does not pursue a formal exchange-rate target, he said, while acknowledging that a stronger forint can help curb inflation.
From Orbán minister to central bank chief under a new political reality
Mihály Varga served as a minister in Viktor Orbán’s first government, and later returned to cabinet where he spent more than 11 years as a minister in Orbán-led administrations before moving to the Hungarian National Bank.
Since then, Hungary’s political landscape has shifted sharply, with the Tisza Party now holding a two-thirds parliamentary majority. Against that backdrop, Varga’s pledge to seek “good working relations” with the new cabinet raises a key question for markets: how closely the central bank’s priorities will align with the government’s economic agenda, and where the MNB will draw a firm line to protect its independence.
Hungarian National Bank: markets want fiscal credibility, not just sentiment
Varga said the key to a durable reduction in Hungary’s longer-term risk premium lies mainly with the government: markets will look for a credible budget path, a lower deficit and a declining debt trajectory. In remarks also highlighted by business reporting that cited the HVG interview, he suggested investors will want clearer, medium-term fiscal plans by autumn, as the initial “grace period” in market sentiment could fade.
He also addressed inflation risks: while inflation has recently eased, he indicated that second-round effects from higher energy costs could push inflation back above 5% later in 2026, underlining why the central bank is prioritising credibility and tight operational discipline.
Private equity fund ownership to become more visible from July 2026
One of the most politically sensitive issues in the interview was transparency in Hungary’s private equity fund sector, which critics have long described as a channel for opaque ownership.
Varga confirmed that following amendments to Hungary’s anti-money laundering framework, closed-end investment funds and their fund managers must disclose their beneficial owners. From July 2026, these data are expected to become accessible to the public.
However, he cautioned against expecting dramatic revelations, arguing that authorities already had visibility over the key information. In a pointed aside, he added that the media had often already identified the likely beneficial owners with reasonable accuracy. He also noted that additional changes may be required from 2027, aligning Hungary’s system with evolving EU anti-money laundering rules.
If you missed it today: The Hungarian forint’s best month in years ends on a sour note
4iG bond rescheduling: MNB “will not take a loss”
Varga also addressed the rescheduling of 4iG bonds issued under the MNB’s corporate bond scheme. He said 4iG participated in the programme in a compliant manner and that when the company requested amended terms, the central bank made it clear it would not accept a loss.
The rescheduling was approved only with a higher interest burden for the issuer, he said. Varga added that most participating companies are servicing their obligations properly, and where credit rating agencies flag problems, issuers have a limited period to resolve them — otherwise, a buyback obligation can be triggered under the programme’s rules.
Matolcsy-era spending under investigation as MNB retreats to core tasks
On ongoing scrutiny of the central bank’s past activities, Varga said the MNB provided documents to Hungary’s National Bureau of Investigation following reports by the State Audit Office, and that the central bank’s leadership previously filed a criminal complaint on suspicion of offences including breach of fiduciary duty and fraud-related allegations. The focus includes property developments and foundation spending launched during the Matolcsy era, he said, with the matter now in the hands of the justice system.
Varga emphasised that the new leadership’s aim is not to “collapse” foundation assets, but to minimise losses and preserve what can be saved. He said that over the past year, measures reduced the shortfall by more than HUF 100 billion (about EUR 274 million, using ~365 HUF/EUR).
Related article - Inside Hungary’s central bank: million-forint chairs, marble interiors and luxury facilities revealed
Slimmer balance sheet, no new growth schemes, asset sales and staff cuts
Varga said the Hungarian National Bank is returning to its core mandate and scaling back non-essential activities. He listed several concrete steps:
- reducing the central bank’s balance sheet
- launching no new subsidised growth lending or bond programmes
- selling surplus real estate not needed for core operations
- transferring artworks to museums
- cutting staffing levels significantly — cited in reporting as a 15% reduction, leaving headcount around 1,500
Varga argued these moves are essential to restoring the MNB’s credibility and ensuring monetary policy is again tightly focused on price stability.
Why this matters
For investors and households alike, the message is that April’s improved sentiment is only a starting point. The MNB is signalling a stricter, credibility-first approach, while Hungary’s wider financial outlook still hinges on whether policy steps — especially fiscal plans and transparency reforms — match the market’s initial optimism.
What's next? Former governor Matolcsy says allegations against him are ‘unfounded’
Mihaly Varga, is a FOUNDING Father – of the Fidesz Political Party.
Varga, was at this time, an advocate, remains as SUCH – in the HUMILIATION of the Victor Mihaly. Orban “outing” as Prime Minister of Hungary and his Fidesz Party – believing that Victor Mihaly. Orban – was the SAVIOUR of Hungary, a Demigod individual, who was going to take Hungary into a new “golden age”.
Mihaly. Varga – remains a FULL member of the Fidesz Political Party.
Mihaly Varga – transition from embracing DEMOCRACY – the “mouth” of Orban circa 1989 – the way forward of Hungary, then in a MAJOR Ministerial Role, elevation to over (2) two decades, a founding Father of Fidesz – to the Minister of Finance portfolio – being “inner sanctum” with Victor Mihaly Orban in being “hands on” playing his part in seeing the DISTILLATION of Democracy in Hungary – Appalling.
Mihaly Varga, in the time a decade as the Minister of Finance of Hungary prior to that appointment “other” positions that played roles in the future direction of the economic and financial directional path of Hungary throughout Mihaly Vargas time his appointments especially as Minister of Finance he has been as witnessed by the State/condition of the Hungarian economy an ABSOLUTE failure – a DUD – of a Finance Minister.
Varga and with Victor Mihaly. Orban – NEVER listened went off on economic and financial paths totally against far greater LEARNED brains than them in finance & economics that just continued to PLUMET Hungary deeper into a MIRE – a cataclysmic MESS financially and economically as a country.
Mihaly Varga – from in-side Brussels the European Union – his opinions NEVER respected his ability thought not of competency, and over years through his relationship with Victor Mihaly. Orban – fell deeply out of TRUST in Brussels and the European Union.
Victor Mihaly. Orbans somewhat side-way movement of Mihaly Varga some nearing (3) three years past, to the position of Governor of the Central Bank of Hungary – leaving his Finance Ministry position in an absolute Turmoil / Disarray – was a decision internally in-side Fidesz – to calm mounting pressure on Mihaly Varga through his positioning with Orban – of the FAILING Hungarian Economy.
“Job of Gratification” – for loyalty and SERVICE.
Mihaly Varga – did have the “whisper” in his large ears, that the position after your time as Governor of the Central Bank of Hungary and the present President “calls time” – that Mihaly Varga you can be will be the next President of Hungary.
Mihaly Varga – must be “Culled” outed removed from his position as the current Governor of the Central Bank of Hungary.
ALL that is happening still to happen play out in the OUTING the Downfall of Victor Mihaly. Orban – the movement out of Hungary of assets and “other” of Fidesz Government Ministers, of the Oligarchy and Fidesz Members = the name Mihaly Varga can’t be left in a position that he could or would DO Favours – for those under Membership and “other” of Fidesz.
In moving forward – under Peter Magyar / Tisza – our FUTURE after the DEVASTATION years of Hungarians in millions individually and of our country – the name – his HISTORY of Mihaly Varga – is beyond HIGH Risk – and MUST be removed outed from his present postion as the Governor of the Central Bank of Hungary.
Mihaly Varga, his LEGACY in his Political life and “other” – will NOT be INSPIRING but be a read, that “beyond reasonable doubt” – highlight – his lack of competency and being a MAJOR Ministerial Power Player, through being a Founding Father – of the disgraced, humiliated being a political party Fidesz – of greed, selfishness and its exploitation of Hungarians of our country Hungary – that Mihaly Vargas so called LEGACY will be an UGLY read.