World Economy

Hungary CB Buys 68% of Budapest Bourse

Hungary CB Buys 68% of Budapest BourseHungary CB Buys 68% of Budapest Bourse

Hungary’s central bank said on Tuesday it had bought a 68.8% stake in the Budapest Stock Exchange, an intervention into financial markets it said was designed to help companies obtain capital and aid growth, Reuters reported. The stake came from Austria’s CEESEG AG and Osterreichische Kontrollbank AG. “The number of new issuances and turnover have fallen to such a degree that today the capital market no longer fulfils its role, thus, intervention by the state became unavoidable,” the central bank said in a statement. National Bank of Hungary, under chairman Gyorgy Matolcsy, a close ally of conservative Prime Minister Viktor Orban, has unveiled a number of programs in recent years to aid Orban’s pro-growth policies. The bank said in a statement it bought the stake at 3,550 forints per share, or 13.2 billion forints ($45 million) altogether, boosting its stake to 75.8%. The central bank expects to close the transaction in the middle of December, pending competition authority approval.