Former Hungarian central bank chief György Matolcsy detained in financial fraud probe

The investigation follows scrutiny of the central bank's foundations, which managed more than €1 billion in public funds. Matolcsy has denied wrongdoing. Former Hungarian central bank governor György Matolcsy was detained on Wednesday morning and taken to the Central Chief Prosecution Office for Investigations. A longtime associate of former Prime Minister Viktor Orbán, Matolcsy led the National Bank of Hungary (MNB) for 12 years until 2025. "My client is suspected of the felony of financial fraud causing significant financial loss and the misdemeanour of using a forged private document," Matolcsy's lawyer, Pál Bátki, told Hungarian newspaper Telex. Bátki said his client's questioning had not yet begun but was expected to take place later that morning. In a statement issued on Wednesday, the prosecution office said it was conducting coordinated operations at several locations as part of an investigation into suspected breach of trust causing particularly significant financial loss. Prosecutors said they expected to release further details early in the evening, once the initial investigative steps had been completed. Being detained for questioning does not mean Matolcsy has been remanded in pre-trial custody. It remains unclear whether he will be allowed to leave after questioning. If he is formally named as a suspect, a court may decide whether to order his pre-trial detention. Matolcsy was questioned as a suspect in a separate case in September over alleged abuse of office involving pressure on Erste Bank Hungary, part of Austria's Erste Group. He denied the allegations and was allowed to leave after questioning. Investigation into central bank foundations The current leadership of the MNB and Hungary's State Audit Office have both filed criminal complaints concerning the central bank's foundations. Optima Investment, the asset manager of the Pallas Athéné foundations established by the MNB under Matolcsy in 2014 and merged in 2019, managed almost 500 billion forints (more than €1 billion) in public funds. The State Audit Office identified an opaque network of companies and investments, serious management failings and suspected criminal offences. The merged foundation, PADME, and Optima subsequently faced severe financial difficulties. Hungarian media have also reported links between the investment network and associates of Matolcsy's son, Ádám. Matolcsy has previously denied allegations concerning the management of the central bank foundations' funds. On 26 May 2026, Hungary's parliament adopted a resolution to establish an inquiry committee into alleged abuses at the central bank. Investigators have also been examining suspected breach of trust involving the foundations and the renovation of the MNB's headquarters, alongside a separate money laundering investigation. In May 2026, authorities said they had seized cash and securities worth 91.8 billion forints.