Budapest (MTI) – Hungary central bank (NBH) on Tuesday slammed commercial news broadcaster HirTV for citing comments by two former NBH governors that profits made by the bank should be ploughed back into the treasury.
On the NBH website, the bank dismissed HirTV’s “baseless attack”. The bank noted that its operations are governed by the central bank act, which states that the NBH’s profit “is the community’s profit which it spends on community goals and from which it builds wealth for the community.”
HirTV had cited comments by two former central bank governors that the NBH should pay its profit into the state budget to reduce government debt rather than spend it.
Meanwhile, the NBH said it would book 100 billion forints out of 136 billion forints of profit on the sale of foreign currency from its international reserves against any eventual losses. The remainder will be put into profit reserves.