Orbán’s system conquered the Hungarian stock exchange!

Here is the economic supermajority of PM Orbán’s system in Hungary. The supermajority of the Hungarian companies present on the Budapest Stock Exchange is in Orbán-close oligarchs’ and businessmen’s ownership.

We wrote HERE about Thomas Peterfyy, the richest Hungarian in the world, who said in an interview with Válasz Online, an independent Hungarian media outlet, that without a free stock market, we cannot imagine a free society. The Hungarian dollar billionaire living in the USA and revolutionising stock exchange trade added that that is why all Socialist regimes shut bourses in the first place. He believes stock exchanges are the culmination of free markets in a free society.

In 2015, the Hungarian National Bank bought the Budapest Stock Exchange (BÉT) from its Austrian owner. They promised to make it the most important area for Hungarian companies to acquire capital. They could not. Then the BÉT had 45 companies, now it has 62. But the activity/revenue level of 25 of them is below the required. Therefore, we should calculate with only 37 stock exchange firms.

That shows Hungarian companies would not like to get capital on the stock exchange. Instead, they seek government ties and would like to utilise state bond and loan options because that was not too risky. Hungarian companies–despite being among the country’s wealthiest ones–are not present on BÉT.

Out of the 37 active and strong Hungarian companies present at BÉT, 25 are in the ownership of Orbán-close oligarchs. That means the Orbán system (the System of National Cooperation – NER) won supermajority even on the Budapest Stock Exchange. But why did they do so?

Here are the names

Válasz Online suggests that being present on the bourse is prestigous in the economy. People believe those active and successful on the bourse can be trusted. Furthermore, in the case of a future government change, it is harder to fine companies present on the BÉT since they have many small investors. As a result, the oligarchs can use the small investors for protection.

Finally, Válasz Online names all the companies owned by Orbán-close oligarchs:

1. Lőrinc Mészáros. Mr Mészáros was a gas fitter living in PM Orbán’s village, Felcsút. He became the wealthiest Hungarian (living in Hungary) in just years, owning construction companies, banks, and insurers and provoking ordinary Hungarians by buying a huge yacht when Hungary struggled with an economic crisis. We wrote about that scandal HERE. He owns the following BÉT companies: Opus Global (e.g. with the Hunguest Hotels), MBH Bank, MBH Jelzálogbank (with the Hungarian Postal Services and national bank governor György Matolcsy‘s circle), CIG Pannónia Életbiztosító, and Delta Technologies.

2. István Tiborcz (the son-in-law of PM Orbán) and Dániel Jellinek. Waberer’s International, one of Europe’s biggest transport companies, Alteo Energiaszolgáltató (renewable energy), and Appeninn Vagyonkezelő Holding (office sector).

3. Other Orbán-close business people: 4iG (Gellért Jászai), Budapesti Ingatlan (Péter Ungár LMP co-chairman’s family), Nap Ltd (Matolcsy group), Akko Invest and AutoWallis (Tibor Veres) and Forrás Ltd (Tamás Leisztinger).

Other Hungarian companies not directly related to the Hungarian government include OTP Bank, Richter, and Rába bus manufacturer.

Read also:

• Hungary saved another pro-Putin oligarch from the EU sanctions – Read more HERE
• PM Orbán: we have a plan but we need 10 more years in power