The MNB may purchase securities in the framework of open market operations and repurchase agreements in the conduct of its core tasks as set out in Article 18 b) of the MNB Act.
The purchase of government securities and securities issued with government guarantees in the secondary market was introduced by the MNB at the beginning of the COVID-19 epidemic, following a decision by the Monetary Council with the aim of supporting liquidity in the government bond market and of driving long-term yields. The Mortgage Bond Purchase Programme consisted of three phases: the first programme was designed to enforce monetary conditions on longer maturities; the second programme was launched during the COVID-19 epidemic to increase the availability of long-term funding for the banking sector; and the Green Mortgage Bond Purchase Programme was launched in August 2021 to support the creation of a green mortgage bond market promoting the energy-efficient modernisation of the Hungarian housing market.