Prosecutors have requested the pre-trial detention of former National Bank of Hungary governor György Matolcsy following a lengthy interrogation over suspected economic fraud. A judge is expected to decide on Friday whether he will be remanded in custody.
Matolcsy did not make a statement during questioning
György Matolcsy’s questioning as a suspect ended shortly before 3.30 PM on Wednesday, 21 October, according to reports by Hungarian news outlets Telex and Index. His lawyer, Pál Bátki, said his client had not made a statement about the allegations during the several-hour interrogation, speaking only about his personal circumstances.
Bátki added that the investigating prosecutors had outlined the circumstances on which they based the suspicion against the former central bank governor and had requested his pre-trial detention.
“It was very difficult to process this five-page document containing a great deal of information. Until we see what evidence forms the basis of it, we cannot respond to it,” the lawyer said.
Matolcsy is suspected of economic fraud causing significant financial damage and the misdemeanour of using a forged private document.
Judge to decide on pre-trial detention
After the interrogation, Matolcsy was transferred from the Central Investigative Prosecutor’s Office to a police detention facility, where he is expected to remain until the hearing on the prosecution’s request. A judge is expected to rule on Friday whether to order his pre-trial detention. The court could also decide on a less restrictive measure, such as criminal supervision, instead of keeping him in custody.
Under Hungarian procedure, detention following arrest can last for up to 72 hours before a decision on further measures must be made.
Bátki had previously said that the defence had lodged a complaint against Matolcsy’s detention. He also argued that pre-trial detention would be unjustified, citing his client’s age, stable living conditions and close family ties.
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Prosecutors outline alleged scheme involving foundation assets
In a more detailed statement released on Wednesday afternoon, the Central Investigative Prosecutor’s Office outlined the specific transaction at the centre of this strand of the National Bank case. Prosecutors allege that Matolcsy and his associates used a sham securities-lending agreement signed on 28 February 2025 — one of the former central bank governor’s final working days — in an attempt to transfer control over the assets of the PADME Foundation to people who would remain under his influence after he left office.
The foundation originated from the Pallas Athéné foundations established by the central bank under Matolcsy’s leadership in 2014. According to prosecutors, these foundations received more than HUF 266 billion (approximately EUR 700 million) from the central bank’s exchange-rate gains. They merged in 2019 under the name PADME, with their assets managed by Optima Befektetési Zrt.
The alleged transaction involved Optima and the Central European III Private Equity Fund, represented by Quartz Befektetési Alapkezelő Zrt. Prosecutors claim the agreement was not a genuine securities-lending arrangement, but a means of transferring control over the foundation’s assets to a circle of people whom Matolcsy could continue to influence after his term as governor ended.
According to the prosecution, the alleged purpose was to enable Matolcsy and his son, Ádám, to make investments serving their own interests and to generate personal gains. The transaction transferred the shares of Optima Befektetési Alapkezelő Zrt. to the private equity fund, shifting ownership control over an asset manager overseeing assets with a market value of nearly HUF 200 billion (around EUR 547 million).
Prosecutors said the precise financial damage has not yet been established, but that it substantially exceeded the HUF 500 million threshold for particularly significant financial damage under Hungarian law.
Alongside Matolcsy, two other people were detained, while prosecutors also sought international arrest warrants for two further individuals. Searches were conducted at several locations and evidence was seized.
Investigation into the National Bank case continues
Investigating prosecutors detained Matolcsy early on Wednesday morning as part of the ongoing case involving the National Bank of Hungary (MNB). Investigative measures were also carried out at several locations.
According to Telex, other people were also detained in connection with the case, including the regular lawyer for companies belonging to Matolcsy’s son, Ádám, and a senior official at a company linked to Ádám Matolcsy and István Száraz.
