The assets of the foundations of the National Bank of Hungary (NBH) amounted to HUF273.6bn at end-Q2, the state news agency MTI reported citing data from the foundations. Assets increased by HUF0.5bn q/q. The majority HUF150.8bn of the assets were invested in investment funds. Investments in real estate amounted to HUF82.6bn, in bank deposits — HUF18.8bn and in corporate bonds — HUF20.3bn. The foundations have spent HUF8.6bn on 1,500 academic and scientific projects since their establishment, according to the announcement, suggesting HUF200m of spending in Q2 alone.
The foundations are not allowed to spend their original endowment from the NBH but to finance activities only from the yield. Their operations remain under scrutiny by the ECB for quasi-fiscal activities, respectively a possible violation of the rule of monetary financing prohibition. Eurostat suggested recently that the foundations should be classified in the general government sector. The potential inclusion of the foundations has been estimated to raise the general government budget deficit by 0.1% of GDP in 2016, 0.2% in 2017 and 0.1% in 2018. There will be no impact on the general government debt level.