On Monday evening, Quaestor Financial Hrurira, member of Quaestor Group, has declared itself bankrupt, for the lack of financial resources to repay bonds many of its clients requested to redeem in what Quaestor labelled as panic triggered by recent scandals at two local brokerages. By Tuesday morning it turned out the National Bank of Hungary (MNB), which is also the financial markets regulator of the country, uncovered irregularities at Quaestor and introduced a partial suspension of the licence of Quaestor security trader and investment firm. According to the latest reports, Quaestor sold HUF 150 billion worth of fictitious bonds and is suspected to be responsible for a HUF 210 billion (EUR 689 million) fraud.

200 billion forints?

MNB Deputy Governor László Windisch has held a press conference on the matter, local news portal 444.hu reported. It said there is suspicion of an over HUF 200 billion (!) fraud. Quaestor issued HUF 150 bn worth of bogus bonds besides selling HUF 60 bn worth of securities lawfully.

Trading also suspended

As of 08:30 local time the Budapest Stock Exchange (BSE) has also suspended trading right of brokerage Quaestor Értékpapír-kereskedelmi és Befektetési Zrt. both in the spot and derivatives sections of the bourse.

Ministry acts too

The Ministry of Foreign Affairs and Trade has revoked with immediate effect contracts on the operation of the trading house in Istanbul, Turkey and the visa centre in Moscow, Russia, with companies which are the interests of the Chairman-CEO of Quaestor Group.

Minister of Foreign Affairs and Trade Péter Szijjártó told a press conference (on a different matter) today that the contracts were terminated for they no longer believed these two units can be operated without disruptions.

The ministry has co-operated with Quaestor Group several times over the last few years.

In 2012, Szijjártó - who was then only state secretary in charge of foreign affairs and trade at the Prime Minister’s Office - attended the inauguration ceremony of a 4-star hotel of Quaestor Group, saying both a stadium development subsidy and HUF 250 million from the New Széchenyi Plan were well spent.
In April 2013, Szijjártó - as government commissioner responsible for Hungarian-Russian economic relations - opened the Hungarian trading house in Moscow, which was created by the Hungarian state in co-operation with Quaestor Group.
In November 2014, Szijjártó and Csaba Tarsoly, Chairman-CEO of Quaestor Group, jointly opened a Hungarian visa centre in Moscow.