Front Matter

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IMF Country Report No. 15/239

HUNGARY

TECHNICAL ASSISTANCE REPORT—OPERATIONAL ASPECTS OF ESTABLISHING AN ASSET MANAGEMENT COMPANY

August 2015

This Technical Assistance report on Hungary was prepared by a staff team of the Monetary and Capital Markets Department of the International Monetary Fund. It is based on the information available at the time it was completed in July 2015. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Hungary or the Executive Board of the IMF.

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© 2015 International Monetary Fund

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Monetary and Capital Markets Department

HUNGARY

Technical Assistance Report

Operational Aspects of Establishing an Asset Management Company

Atilla Arda (MCM, Mission Chief) and Arne Berggren (Short-Term Expert)

July 2015

The contents of this aide memoire constitute technical advice provided by the staff of the International Monetary Fund (IMF) to the authorities of Hungary (the “TA recipient”) in response to their request for technical assistance. This aide memoire (in whole or in part) or summaries thereof may be disclosed by the IMF to IMF Executive Directors and members of their staff, as well as to other agencies or instrumentalities of the TA recipient, and upon their request, to World Bank staff and other technical assistance providers and donors with legitimate interest, unless the TA recipient specifically objects to such disclosure (see Operational Guidelines for the Dissemination of Technical Assistance Information—

http://www.imf.org/external/np/pp/eng/2013/061013.pdf). Publication or disclosure of this aide memoire (in whole or in part) or summaries thereof to parties outside the IMF other than agencies or instrumentalities of the TA recipient, World Bank staff, other technical assistance providers and donors with legitimate interest shall require the explicit consent of the TA recipient and the IMF’s Monetary and Capital Markets Department.

Contents

  • I. Introduction

  • II. Strategy

  • III. Governance

  • Tables

  • 1. Key Recommendations June 2015 Mission

  • 2. Summary of Progress January 2015 Recommendations

Preface

At the request of the Magyar Nemzeti Bank (MNB), a technical assistance (TA) mission from the Monetary and Capital Markets Department (MCM) of the International Monetary Fund (IMF) visited Budapest during June 2–4, 2015 to assist the MNB in further developing an operational framework for a recently created asset management company (AMC), the Magyar Reorganizációs és Követeléskezelő (MARK).1 This mission followed one that was fielded during January 14–16, 2015

In carrying out its work, the mission met with Dr. Ádám Balog, MNB Deputy Governor; Dr. Csaba Kandrács, Chief Executive Officer of MARK; Mr. Márton Nagy and Mr. Dániel Palotai, both Executive Directors at the MNB; Mr. Gergely Fábián, Director at the MNB; and other MARK and MNB managers and staff.

The mission’s main findings and recommendations were presented at a concluding meeting with Mr. Márton Nagy, Mr. Gergely Fábián, and officials of MARK, and were further elaborated in an aide-mémoire. Following further review at the MNB, MARK, and IMF headquarters, this finalized technical assistance report will be sent to the MNB and MARK.

The mission would like to express its gratitude to Mr. Gergely Fábián, Dr. Csaba Kandrács, and staffs of the MNB and MARK for their hospitality and for the fruitful discussions that underpin the mission’s work, which greatly facilitated the work.

Table 1.

Hungary: Key Recommendations June 2015 Mission

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Table 2.

Hungary: Summary of Progress January 2015 Recommendations

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Hungary: Technical Assistance Report—Operational Aspects of Establishing an Asset Management Company
Author: International Monetary Fund. Monetary and Capital Markets Department