Hungary Central Bank buys castle hotel to support ‘corporate social responsibility’

August 8, 2014


The Hungary Central Bank (MNB) has bought a castle hotel on the banks of the Tisza river as part of its corporate social responsibility strategy. The bank argues that it is trying to support its payroll of over one thousand employees by providing them with fringe benefits and welfare services. The MNB paid HUF 415 million for the Chateau Borbély in Tiszaroff, making it one of the most expensive castles in Hungary. The initial asking price for the castle, which is currently functioning as a four-star hotel, was HUF 680 million. Chateau Borbély will be used as the MNB’s main vacation resort, HVG writes.

Critics question whether the Central Bank is authorized to make such purchases without the approval of parliament.  They also question whether the country can afford it, given large arrears on the part of local governments, ministries, budgetary institutions (such as hospitals and schools) and the fact that Hungary’s national debt exceeds the 80 percent of GDP ceiling specified by the Basic Law adopted in 2011.

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