Hungarian Central Bank Arms Itself - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Hungarian Central Bank Arms Itself

blog | Published On by
Hungarian Central Bank Arms Itself

The bewildering story of the Hungarian Central Bank took another turn recently when it was revealed that it had gone out and purchased 112 nine-millimeter pistols and 200,000 round of 9x19mm Parabellum ammunition. The purchase, which was made in December, was apparently kept secret until a member of the Hungarian Parliament asked about it. The head of the central bank cited terrorism and migrant concerns among the reasons for the purchase, as well as an increase in properties under its control.

Properties like an 18th century estate converted into a four star hotel, as a private retreat for bank employees.

This is far from the first brush with controversy for the bank and its head, Gyorgy Matolcsy, who is operating

Matolcsy is using the profits flowing into the bank due to the devaluation of the national currency, the forint, to fund these purchases. He defended his actions, saying the profits of the central bank were for its own use.

In addition to militarizing the central bank, just a few of the other purchases include:

Just in 2014, real estate purchases by the Hungarian Central Bank totaled $1.1 billion -- more than 1% of Hungary's GDP. And according to critics, the bank grossly overpaid for every one of its purchases, including the works of art (except for maybe the pistols.)

While Matolcsy comes under increasing fire from opposition politicians, who maintain the money spent on these things should have been paid into the national treasury, the patronage he enjoys from Hungarian Prime Minister Viktor Orban has protected him. Should the central bank's profits turn to losses, though, the Hungarian people will tapped to cover them.




The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product

About the Author

Everett Millman

Steven Cochran

Precious Metals Market Analyst
BS University of South Florida (2002)

A published writer, Steven's coverage of precious metals goes beyond the daily news to explain how ancillary factors affect the market.

Steven specializes in market analysis with an emphasis on stocks, corporate bonds, and government debt. He writes a monthly review of the precious metals markets for

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.