Hungarian National Bank's Educational Foundation Under Scrutiny

Hungarian police have opened an investigation into the National Bank of Hungary (NBH) following a State Audit Office report alleging misuse of public funds. The probe focuses on activities under previous governor Gyorgy Matolcsy. Current governor Mihaly Varga aims for transparency and reducing non-essential activities at the bank.

Hungarian authorities have initiated an investigation into the National Bank of Hungary's educational foundation following severe allegations of fund misappropriation as detailed in a State Audit Office (SAO) report. The report highlighted substantial irregularities during Gyorgy Matolcsy's tenure as the bank's governor.

Newly appointed governor, Mihaly Varga, presided over his first monetary policy meeting, maintaining the base interest rate at 6.5%. Varga articulated his vision for a more transparent and streamlined central bank, discarding activities extraneous to its primary function.

The SAO's recent reports include criticisms of the bank's real estate dealings and its educational foundations which received substantial public funds. Part of the probe involves the questionable operations of the Pallas Athene Domus Meriti foundation and Optima investment company.

(With inputs from agencies.)