NBH rejects accusation of covert monetary financing
Budapest, June 15 (MTI) – The National Bank of Hungary (NBH) does not pursue covert monetary financing through its subsidiaries, the NBH told MTI on Monday.
The NBH observes at all times the ban on monetary financing included in the central bank act, which stipulates that the central bank must not provide overdraft or any other form of credit to the public sector; the NBH does not pursue covert monetary financing through the government securities purchases of its foundations, the central bank said.
MTI contacted the NBH after business website mfor.hu said that a statement on the volume of government securities held by retail investors published by the Government Debt Management Centre (AKK) last week revealed that the volume of Bonusz Hungarian Government Securities rose by 38.2 billion forints (EUR 122m) and the “increase was largely due to purchases by other organisations”. Mfor.hu said these buyers include the national bank’s foundations.
The NBH told MTI that the foundations operate independently from their founder, taking their investment decisions independently.
Source: http://mtva.hu/hu/hungary-matters
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