Hungarian National Bank Foundation Losses Deepen, Sparking Investigation
Budapest – A deepening financial scandal surrounding foundations linked to the Hungarian National Bank (MNB) is raising serious questions about the management of public funds and the potential for conflicts of interest. Recent reports indicate that hundreds of billions of forints have been lost through opaque investment schemes, while individuals connected to former Governor György Matolcsy and his family reportedly benefited.
The controversy centers on the Pallas Athéné Domus Meriti (PADME) Foundation, established in 2014 when György Matolcsy was governor of the MNB. According to reports, approximately HUF 266.4 billion (approximately $715 million USD at the time) was transferred from the central bank to the foundation. The foundation’s assets were largely managed by Optima Investment Ltd., and subsequent investments have been described as high-risk and lacking transparency.
A draft report from the State Audit Office of Hungary, obtained by Direkt36, details significant asset losses and other serious problems within the foundation. The report suggests that poor financial decisions led to substantial losses, yet individuals close to Matolcsy’s son, Ádám Matolcsy, appear to have profited. Further scrutiny has focused on the Neumann János University’s foundation, which received substantial state funding – nearly HUF 150 billion (approximately $402 million USD) – but allegedly diverted a significant portion of those funds into corporate bonds issued by Optima Investment Ltd., rather than investing in educational purposes.
The scale of the alleged mismanagement is staggering. Telex reported in March 2025 that hundreds of billions of forints worth of assets had disappeared from the MNB’s foundation during Matolcsy’s tenure as governor. More recently, reports indicate that the value of the foundation’s Polish subsidiary has plummeted, losing more than two-thirds of its value in just six years. Privátbankár.hu reported that the situation is “shocking” and raises questions about the oversight of these funds.
Adding to the complexity, a EUR 170 million loan was granted to PADME by MBH Bank, a financial institution partially owned by the Hungarian state and with close ties to Prime Minister Viktor Orbán. This loan has further fueled concerns about potential conflicts of interest and the misuse of public resources.
The allegations prompted an investigation by Hungarian police, following a complaint filed by the State Audit Office over suspected financial misconduct. The investigation is ongoing, and authorities are attempting to unravel the complex financial structure used to manage the foundation’s assets.
In a related development, György Matolcsy was dismissed from his post as Hungary’s governor representing the country at the International Monetary Fund (IMF) in March 2025, according to Insight Hungary. This move came shortly after the initial reports of financial irregularities surfaced.
The scandal has sent shockwaves through Hungary, prompting calls for greater transparency and accountability in the management of public funds. The case highlights the risks associated with opaque financial structures and the potential for abuse when oversight is lacking. The investigation is expected to continue, and further details are likely to emerge as authorities delve deeper into the financial dealings of the MNB’s foundations and those connected to them.
The Telex documentary, “The Big Scheme,” summarizes the complex case, detailing how the Matolcsy family’s business interests became intertwined with the structures surrounding the central bank, and how the Hungarian state appeared to passively allow the situation to unfold. The documentary suggests that the scandal reveals methods used to convert public money into private wealth, even within an institution responsible for maintaining the integrity of the country’s financial system.
