Bálint Ruff and his team aim to prevent a trillion-dollar asset rescue with a lightning law aimed at private equity funds.

On Monday, Deputy Prime Minister Bálint Ruff submitted a bill that was quickly passed by the Parliament the next day. The legislation aims to protect state assets and strengthen state-backed financing, addressing perceived loopholes left by the previous government. Finance Minister András Kármán justified the expedited process by emphasizing the need for immediate protection of state wealth and preventing attempts to siphon off funds. The government’s banks, including Eximbank and MFB, have significantly financed private companies, raising concerns about the management of public funds. Transparency International reported that over 2600 billion HUF has been funneled into private equity funds since 2013, often without adequate state oversight. The new law includes provisions affecting financing from government banks, particularly regarding state guarantees for loans to companies, amidst ongoing investigations into suspicious financial packages totaling over 1000 billion HUF.