Gyorgy Matolcsy, the former head of Hungary’s Central Bank, was detained by prosecutors on Wednesday morning as part of an ongoing investigation into the operations of the central bank during his tenure. Matolcsy, a close ally of Prime Minister Viktor Orbán, has seen their relationship deteriorate in recent years.
According to reports from Telex, Matolcsy is suspected of economic fraud that resulted in significant financial losses and the use of a falsified private document. His attorney, Pál Bátki, indicated that questioning had yet to begin but was expected to take place later in the morning.
In addition to Matolcsy, several other individuals were also detained during the operation. Prime Minister Péter Magyar announced Matolcsy’s arrest on Facebook, stating, “The Central Investigation Prosecutor’s Office has detained Gyorgy Matolcsy, the former president of the National Bank of Hungary and former minister in Orbán’s government.”
The Central Investigation Prosecutor’s Office (KNYF) had reported that procedural actions were being carried out in the bank’s case at multiple locations. The operation involved significant resources, with participation from the National Investigation Bureau, Budapest Police Command, and the National Protection Service. The prosecutor’s office promised to provide further information later in the evening.
Hungarian media reports suggest the investigation focuses on mismanagement and the disappearance of hundreds of billions of forints from assets linked to foundations established by the central bank during Matolcsy’s leadership. The scrutiny from authorities intensified following a 2025 report by Hungary’s State Audit Office.
Searches were already conducted at Matolcsy’s residence at the end of September. Matolcsy had served as the central bank’s governor for 12 years after being appointed by Orbán, with their relationship worsening due to differing views on economic policy.
