More than eighty local governments are account holders at financial institutions belonging to Buda-Cash Group in Hungary. As Minister for National Economy Mihály Varga announced yesterday, the Government will enable the State Treasury to make transfers to accounts designated by the local government instead of those at Buda-Cash banks in case the only account of the municipality has been blocked.

In an interview to M1 News and state news agency MTI, the Minister said the fact that for these local governments the payment of wages and social benefits in the month of March may be in danger has necessitated this measure.

He also confirmed that the working group to be set up by the Ministry for National Economy and the Ministry of Interior will first asses the costs which the State of Hungary and local governments have incurred due to the activities at Buda-Cash Group. However, it already seems certain that extra costs total “tens of billions of forints”, he added.

The Minister said that the Ministry has delegated Ministers of State Péter Benő Banai and Gábor Orbán as well as Hungarian State Treasury President József Dancsó to the working group.

(Ministry for National Economy)