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Big fish hooked in Hungary, as Orbán’s ex-bank chief placed in custody (Day 163 of the Tisza government)
The series continues as we report on developments following April’s historic election and on the steps taken since then by the Tisza government. This week, we cover the following topics:
- Orbán’s former right-hand man in custody.
- What did we learn from Tisza’s first budget?
- Ursula von der Leyen to give a speech on the anniversary of the revolution.
- Poll of the week: more than four million people back Tisza.
Orbán’s ex-right-hand man in custody
The last time a central bank governor was taken into custody in Hungary was in 1944, during the German occupation, as Válasz Online pointed out. This 82-year hiatus ended on Wednesday (21 October), when György Matolcsy was taken into police custody.
But Matolcsy is not simply a former central bank governor; he is one of the architects of Orbán’s economic policy, a key figure in the former prime minister’s system, and together with his family he has in recent years become one of the symbols of Fidesz’s taste for luxury.
Who is György Matolcsy?
“I have a very strong emotional relationship with Matolcsy. I owe him a great deal, I have learned a great many things from him. Matolcsy is an economist of historic stature,” prime minister Péter Magyar quoted ex-prime minister Viktor Orbán’s words from an interview last November, after the former central bank governor had been taken into custody.
Matolcsy was a member of the Hungarian Socialist Workers’ Party (MSZMP), and after the regime change he became prime minister József Antall’s chief adviser. In 1999 he joined Orbán’s advisory board, and from 2000 to 2002 he served as economy minister in the first Orbán cabinet.
Even after the 2002 election defeat he remained loyal to Orbán, and in 2010 he became minister for national economy, meaning he was put in charge of both the finance and economy portfolios at the head of a merged super-ministry. It was at this time that Orbán called him his right-hand man.
Matolcsy was the architect of Orbán’s “unorthodox economic policy”; he oversaw the nationalisation of private pension funds, the sending home of the IMF from Hungary, and the introduction of high sectoral surtaxes.
The great bank heist
He was appointed central bank governor in 2013, and by 2016 the foundations scandal had already broken. It emerged that 266bn forints’ worth (€840m) of public assets had been shifted into the foundations of the Hungarian National Bank (MNB). These foundations bought buildings and works of art, and also granted substantial benefits to their own leaders.
Later, the foundations’ money was entrusted to an asset management company, which obtained further funds and thus came to control assets of around 500bn forints, of which some 400bn forints (€1bn) – was public money.
This asset manager built up an international corporate network, behind which stood the central bank governor’s son, Ádám Matolcsy, and his circle. The asset manager bought into risky foreign companies, spending a significant part of its resources. The Matolcsy family visibly became very rich, and Ádám also amassed a notorious Porsche collection.
György Matolcsy’s mandate expired in 2025, and after his departure the State Audit Office also concluded that abuses may have taken place at the central bank. For a long time, however, no police investigation was launched.
The current case
The current charges relate to a case that unfolded in the final days of Matolcsy’s activity as central bank governor. Matolcsy wanted to ensure that his family would control the roughly 500bn forints (€1.25bn) of central bank assets even after he no longer held office.
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