HUNGARIAN BANK DENIES MISCONDUCT IN VW AFFAIR
The National Bank of Hungary said its
name had been used in fraudulent foreign exchange contracts
with Volkswagen AG <VOWG.F> but denied any misconduct on its
part.
    National Bank managing director Laszlo Karczag told
Reuters, "All our businesses (with Volkswagen) had been closed
with all payments made when due on both sides and therefore we
do not have ... Any open or unsettled positions whatsoever with
them."
    Karczag said the bank was in contact with Volkswagen and
was "rendering them all possible assistance in their
investigations."
    The West German weekly Der Speigel said a fraud involving
VW's reported 480 mln mark loss on foreign exchange dealings
came to light when the Hungarian National Bank refused to
honour what turned out to be a fake forward currency purchase
contract.
    Reading a prepared statement, Korczag said, "We have
knowledge, however, of the fact that in certain fraudulent
contracts the name of the National Bank of Hungary has also
been misused. We deny any kind of misconduct on our part."
    The bank had been doing foreign exchange business with
Volkswagen "for a few years," he said.
 REUTER
