Hungary’s former central bank chief is arrested on suspicion of fraud as the new government cracks down on alleged corruption

Hungarian authorities arrested former Central Bank governor György Matolcsy on Wednesday, amid the new government's crackdown on alleged corruption during Viktor Orbán's tenure. Matolcsy, who also served as finance minister, was detained on suspicion of economic fraud causing significant financial damage and using a forged private document, according to his lawyer.

The Central Bank's tenure was marred by accusations of corruption, including the establishment of foundations endowed with hundreds of billions of forints from public funds. A criminal complaint was filed last month for suspected embezzlement, negligence, fraud, and abuse of office. Hungary's new Prime Minister Péter Magyar stated that members of the previous government, oligarchs, businessmen, and their families were involved in serious crimes, particularly corruption involving national and EU funding.

This arrest comes as part of a broader investigation by the Central Prosecutor's Office into criminal misappropriation of funds, following accusations of inflated real estate purchases during Matolcsy's tenure.