Matolcsy has asked the Metropolitan Court to establish that a legal violation was committed. In addition to compensation, he demanded that Bárándy be barred from impugning his reputation in the future. The central bank said Bárándy’s statements were part of a political campaign which aims to weaken the bank.

The governor continues to reject all party political pressure which tries to violate or restrict the independence of the ban, it added. Bárándy said Matolcsy’s lawsuit was proof that the central bank governor “is afraid” that the Socialists “will uncover and expose the abuses going on at the central bank”.

He said Matolcsy was also afraid that he will have to explain “how his relatives were able to get a hold of billions of forints” in central bank funds under his tenure as governor. Bárándy called the lawsuit “a pathetic move made to intimidate” opposition MPs.

Republished with permission of Hungary Matters, MTI’s daily newsletter.

MTI photo: Illyés Tibor