BUDAPEST, May 5 (Reuters) - National Bank of Hungary’s (NBH) Governor Gyorgy Matolcsy has dismissed opposition allegations of nepotism and corruption involving $1 billion worth of central bank funds as “political bluff” and said he would not resign.

The bank created six foundations and endowed them with 267 billion forints ($974.4 million), only divulging how that money was spent after the top Constitutional Court annulled a ruling party bill that would have guaranteed their secrecy.

The foundations gave grants to companies, several of which are controlled by members of Matolcsy’s family, including a first cousin.

In an interview published on Friday in Magyar Nemzet, one of Matolcsy’s first public statements since the scandal erupted last month, he said that was not a relevant consideration.

“The foundations do not examine what owners stand behind the grantees,” he said.

“The news that cast a bad light on the National Bank of Hungary and its foundations, as well as its governor, are a matter of political bluff by the opposition parties and certain media players,” Matolcsy told the newspaper.

He said he still had the confidence of his old ally Prime Minister Viktor Orban, the only person who could remove him.

The central bank has actively supported the government’s economic policy, reducing debt servicing costs by cutting interest rates to a record low of 1.05 percent and helping pay down massive foreign currency loans in early 2015.

Matolcsy’s power has grown rapidly in recent years partly as a result of those moves, and Orban said “heaven and earth should collide” before he initiated Matolcsy’s removal.

“Not only do I not plan to (resign), I don’t understand the question,” Matolcsy said.

“Why should the Governor of a well-functioning, law abiding central bank, which executes a successful monetary policy ... resign? Because of an ongoing political bluff?”

He said the foundations promoted financial education, a goal close to the central bank’s core mission.

“It is up to everyone to support education. Most European central banks have economic education, financial education... We created six foundations to strengthen various parts of higher education.” ($1 = 274.0200 forints) (Reporting by Marton Dunai; Editing by Louise Ireland)