The former governor of the Central Bank of Hungary, an associate of Viktor Orbán, was detained for fraud

György Matolcsy, the former governor of Hungary’s Central Bank and one of Viktor Orbán’s close associates, was detained by police on Wednesday on suspicion of economic fraud and the use of a forged private document. The detention is part of investigations launched by the new administration in Budapest into alleged financial irregularities during the former government’s tenure.

Prime Minister Péter Magyar confirmed that Matolcsy is in the custody of the authorities. Hungary’s Central Prosecutor’s Office had previously announced coordinated investigative actions at several locations in a case concerning the alleged illegal diversion of funds associated with the Central Bank.

The former governor’s lawyer stated that he is accused of causing significant financial damage and using a forged document. Matolcsy, who has denied any wrongdoing, led the bank between 2013 and 2025, after having served as Economy Minister in the Orbán government.

The investigation also targets foundations financed by the central bank with hundreds of billions of forints, as well as real estate investments that an audit indicated may have been carried out at inflated prices. It is unclear whether the detention is directly related to these purchases or to the transfers to the foundations. In September, a criminal complaint was filed for embezzlement, negligence, fraud, and abuse of office.

Read also Peter Magyar presents Romania as a negative example in the Hungarian Parliament: ”We see exactly where things end up when a government does not stop waste, corruption, and theft”