Hungarian National Bank Reports 788 Billion HUF Loss for 2024
The financial statements highlight significant losses amid currency fluctuations and past fiscal challenges.
The Hungarian National Bank (MNB) reported a loss of 788 billion forints (approximately 2.1 billion euros) for the year 2024, according to their annual report released recently.
Despite this loss, the bank's capital position improved due to the depreciation of the forint by year-end, resulting in a total net negative equity of 1,700 billion forints (approximately 4.5 billion euros).
In 2024, the MNB experienced several notable financial developments:
- The bank incurred a loss of 1,095 billion forints from forint-denominated interest results.
- Conversely, gains from foreign currencies amounted to 394 billion forints.
- Financial operations led to an additional loss of 329 billion forints.
- Fluctuations in foreign exchange rates contributed a positive result of 393 billion forints.
- Various other factors caused an additional loss of 151 billion forints.
The 2024 loss follows a significant financial downturn in 2023, when the MNB reported a loss of 1,763 billion forints.
Historically, according to previous regulations, such losses would have been the responsibility of the central government.
However, a legal amendment in 2023 alleviated the government's obligation to cover these losses, allowing the MNB to carry forward its financial deficits.
Under the leadership of Governor György Matolcsy, concerns have surfaced regarding the management of the central bank's assets.
The recent financial results have highlighted ongoing scrutiny about the bank's fiscal responsibility during his tenure.
Despite this loss, the bank's capital position improved due to the depreciation of the forint by year-end, resulting in a total net negative equity of 1,700 billion forints (approximately 4.5 billion euros).
In 2024, the MNB experienced several notable financial developments:
- The bank incurred a loss of 1,095 billion forints from forint-denominated interest results.
- Conversely, gains from foreign currencies amounted to 394 billion forints.
- Financial operations led to an additional loss of 329 billion forints.
- Fluctuations in foreign exchange rates contributed a positive result of 393 billion forints.
- Various other factors caused an additional loss of 151 billion forints.
The 2024 loss follows a significant financial downturn in 2023, when the MNB reported a loss of 1,763 billion forints.
Historically, according to previous regulations, such losses would have been the responsibility of the central government.
However, a legal amendment in 2023 alleviated the government's obligation to cover these losses, allowing the MNB to carry forward its financial deficits.
Under the leadership of Governor György Matolcsy, concerns have surfaced regarding the management of the central bank's assets.
The recent financial results have highlighted ongoing scrutiny about the bank's fiscal responsibility during his tenure.
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