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ECB Confirms They Have Received Hungary's Request for Change in CB Law

HUNGARY
  • Bloomberg cites the ECB in reporting that they have received Hungary's request to change their central bank law.
  • Headlines follow finance minister Varga flagging that the government are to amend central bank law in January next year to prevent having to cover NBH losses stemming from the government budget. Varga is supposed to have held talks with the ECB on the matter - so likely the focus for this headline.
  • Varga had made an agreement with the NBH that allowed the NBH to 'correct' losses over the medium-term (he name checked 3-5 years), effectively meaning that negative equity poses no issues for the general operations of the central bank.

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