ÁSZ President Questions 'Neutralization' of MNB Losses
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The accumulated losses of the National Bank of Hungary (MNB) could only be "neutralized" in several years, but it is questionable how this could be solved from the central bank's profits, the president of the State Audit Office (ÁSZ) László Windisch said last week in Eger (130 km northeast of Budapest).
Speaking at the 61st Traveling Economists' Meeting, business daily Világgazdaság [Global Economy] said Windisch indicated that the HUF 2 trillion loss dwarfs the HUF 127 billion interest profit, and the reimbursement from the budget would put the fiscal policy in an extremely difficult situation.
Although the Hungarian Central Bank Act is being amended to address this controversial situation, in which the budget would certainly not have a repayment obligation next year, the Budget Council must answer as early as this December as to whether it would be justified to increase the central bank's capital from budgetary resources.
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