Former Hungarian Central Bank Governor Detained, Report Says

Former Hungarian central bank Governor Gyorgy Matolcsy was detained early on Wednesday as prosecutors probe cases of embezzlement and fraud under his leadership.

Matolcsy, long a close associate of former Prime Minister Viktor Orban, was governor for 12 years until 2025. During his tenure, the bank became mired in scandals involving diversion of public money and self-enrichment by members of Matolcsy’s family.

Prime Minister Peter Magyar confirmed the arrest, reported first by Telex news portal, in a Facebook post. Matolcsy has denied those allegations. The central bank in Budapest had no immediate comment.

Allegations against Matolcsy center on a refurbishment of the bank’s headquarters building and a series of real estate investments by foundations that were endowed by the bank.

“My client is suspected of fraud and document falsification alleged to have caused material financial losses,” Pal Batki, his lawyer, was quoted by portal Telex as saying.

Read More: How Hungary’s Central Banker Funneled Funds to Friends, Family

The Central Investigative Prosecution Service said it was conducting investigative work at several locations in connection with the case, adding a detailed briefing would take place later in the day.