In November 2017 a new government decree entered into force on the status, organisation and tasks of the Hungarian State Treasury (Treasury).
As of 31 October 2017 in the new governmental organisational structure the National Pension Insurance Agency terminated with succession by merging to the Treasury. As a result, in addition to the central body of the Treasury, it has currently an entity with special competence, i.e. the Pension Paying Agency (Magyar Államkincstár Nyugdíjfolyósító Igazgatóság in Hungarian). Now the Treasury also performs tasks relating to the pension insurance and other benefits, for example planning, management and reporting obligations in connection with the Pension Insurance Fund.
The new law also lists the public finance tasks of the Treasury, such as liquidity management and investment services relating to the debt securities issued by the state, or reporting and accounting tasks.
Furthermore, the Treasury has been appointed as a paying agency in respect of the grants financed from the European Agricultural Fund for Rural Development and the European Agricultural Guarantee Fund. The Treasury will also act as an agricultural and rural development supporting entity and also the organ providing compensation for agricultural disasters.
By Levente Csengery, Partner, KCG Partners Law Firm
