Shares in real estate company GTC were down 8% to PLN 3.99 on the Warsaw Stock Exchange since March 19, while the yield on its euro-denominated bond rose to 13% following financial issues related to its parent company, Optima Befektetesi Zrt.
The National Bank of Hungary’s (MNB) foundations, particularly the Pallas Athéné Domus Meriti Foundation and its asset manager Optima Zrt. (majority owner of GTC), are at the centre of a major financial and governance scandal. Following the recent appointment of Mihály Varga as the new central bank governor, a comprehensive internal audit has been launched into these entities’ operations, with the Hungarian State Audit Office (ÁSZ) simultaneously filing criminal charges over suspected financial misconduct.
The foundations, established in 2014–2015 under former governor György Matolcsy, were intended to support financial and educational development in Hungary. However, serious issues emerged regarding their opaque financial practices, excessive risk-taking, and management irregularities. The foundations used €650 million (HUF 260 billion) from the MNB’s exchange rate gains, funds criticized as stemming from self-serving forex operations that burdened the Hungarian population with currency-related debt.
The ÁSZ audit uncovered severe mismanagement, including inflated asset valuations, losses totalling tens of billions of forints, and asset transfers through complex company networks. Optima Zrt., central to managing foundation investments, raised funds via bonds and bank loans, managing close to €1.25 billion (HUF 500 billion) — much of it public money. Despite this, financial records were marred by irregularities, with losses masked by overvalued assets. Investments, such as the high-risk acquisition of Polish property firm GTC at a 31% premium, underperformed significantly.
