Hungarian prosecutors said they questioned and detained former central bank governor Gyorgy Matolcsy and others as suspects on Wednesday, in an investigation into foundations set up by the National Bank of Hungary during his tenure, Reuters reported. Prosecutors said they had also initiated an international arrest warrant against two more people, and that Matolcsy refused to testify.

Source: Reuters via Devdiscourse

Matolcsy's lawyer Pal Batki told Reuters his client had been detained, and told the news site Telex that Matolcsy was questioned over suspected economic fraud causing significant financial losses and the use of a forged private document. Batki said the suspicion was 'a very complex set of allegations, which we have not yet had the opportunity to fully review and process', and that prosecutors were seeking his arrest, with a court to decide this week. Matolcsy has previously denied wrongdoing.

More than 266 billion forints moved through the foundations

Since early 2025, prosecutors and police have been examining how more than 266 billion forints of central bank money moved through a network of foundations and companies set up under Matolcsy, Reuters reported — yaani about $817 million, or roughly $0.82 billion (about 82 crore dollars). Prosecutors say this caused a particularly significant financial loss. The investigation began after a State Audit Office report raised concerns about investments by a foundation and by Optima Investment Ltd, which managed its assets.

In May, Hungarian prosecutors and police seized some 92 billion forints in funds and securities — yaani about $300 million (about 30 crore dollars) — as part of a related money-laundering investigation involving the foundations, Reuters reported.

A close Orban ally, questioned under a new government

Matolcsy, 71, headed the central bank from 2013 to 2025 after serving as economy minister from 2010 to 2013 under former prime minister Viktor Orban, and was considered one of Orban's closest economic allies, according to AFP reporting carried by The Business Standard. Prime Minister Peter Magyar, who ousted Orban in an election in April, has said the central bank's past operations must be investigated, and his ruling party has set up a parliamentary committee for that purpose, Reuters reported. The allegations against Matolcsy remain allegations under investigation; no court has convicted him.