Losses at Central Bank Fund Cast Shadow Over Orban’s Hungary

A report by the State Audit Office puts the spotlight on a foundation that invested in a Polish real estate developer and Swiss chalets.

Viktor OrbanPhotographer: Akos Stiller/Bloomberg
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When Viktor Orban’s trusted lieutenant took over running Hungary’s central bank this month, he promised to clean up its opaque finances, including a $1.3 billion foundation set up by the previous governor.

Just how opaque those finances may have been was laid bare last week in a report by the State Audit Office that’s stunned many in the country. As well as lifting the lid on the central bank, it’s shone a light on the inner workings of Orban’s Hungary with his political opponents seeking to put allegations of corruption and cronyism center stage at next year’s election.