(Bloomberg) — Hungarian Prime Minister Viktor Orban’s decision to start ruling by decree indefinitely triggered European Union criticism and a currency sell-off in response to what was seen as a thinly-veiled power grab during the pandemic.But the prospect of Orban calling all the shots has done wonders for stocks owned by the premier’s family and friends.Shares of Opus Global Nyrt., a conglomerate controlled by Orban’s boyhood friend and closest business ally Lorinc Meszaros, surged 57% since parliament approved Orban’s power play on March 30, versus a 5.7% gain in the benchmark BUX index. Real-estate group Appeninn Nyrt., co-owned by Meszaros and Orban’s son-in-law, was runner-up with a 25% gain, followed by 4iG Nyrt., a technology group in which Meszaros also has a stake. All three rely heavily on state contracts.The day after assuming emergency powers, Orban’s government filed a bill to classify for 10 years contracts relating to a $2 billion, Chinese-funded Budapest-Belgrade rail construction. An Opus unit based in Orban’s home town has a 50% stake in the consortium running the project.The rail link was green-lighted despite earlier criticism about the project’s viability and its cost, especially during the coronavirus crisis. The government estimates a deep recession this year due to the pandemic. The rail project’s cost is equivalent to half of the budget funds the cabinet earmarked for its economic stimulus plan.While the details of the stimulus package are still hazy, Opus shares surged 20% on back-to-back trading days after Orban said he’d channel government funds to the sectors worst-hit by the pandemic, including tourism and construction — areas in which Opus is active.“The Meszaros Group is continuously monitoring government measures aimed at moderating the impact of the coronavirus pandemic on the national economy,” according to an emailed statement. “Management will decide after a comprehensive assessment what kind of assistance the group will accept.”Hungary’s opposition has long accused Meszaros — who went from village gas-fitter to Hungary’s richest person in the span of the past five years thanks largely to an avalanche of government contracts — of being a front for Orban’s personal business, an allegation the premier and Meszaros have rejected.“I’ve never had a business relationship with the prime minister,” Meszaros, 54, said in a written reply to questions last year, one of the rare instances when he’s talked about his business. “Our relationship is private in nature. I’ve known Viktor Orban since my childhood.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
