BUSINESS

Audi Hungária School starts HUF 5 bln expansion

Government and corporate officials today laid the cornerstone of a HUF 5 bln expansion that will triple the size of the Audi Hungária School in Győr and double the number of spaces for pupils. One fourth of the investment is covered by European Union and state funding, according to the company.

ECONOMY

ÁKK sells HUF 40 bln of three-month bills, in line with expectations

The Government Debt Management Agency (ÁKK) sold HUF 40 bln in discount three-month T-bills at an auction today, in line with the original offer, according to Hungarian news agency MTI.

ECONOMY

PwC: Traditional banks could fade away

The market economy of 2025 could possibly operate without the presence of “traditional” banks, according to a PwC report published today and entitled “The Future Shape of Banking”.

POLITICS

Varga: Budget still on track to hit target deficit

National Economy Minister Mihály Varga reaffirmed the government’s commitment to achieving this year’s GDP deficit target of 2.9%, in an interview on Hungarian commercial television channel Hír TV late yesterday.

ECONOMY

CIB Bank: Borrowers’ relief to cost HUF 20 bln

CIB Bank has set aside HUF 20 bln in the first half of 2014 to pay for compensation that may be due to borrowers based on a new law that voids the use of exchange rate margins for foreign currency-denominated loans, the bank announced today.

POLITICS

Hungary to open two new consulates-general in Germany

Hungary will establish two new consulates-general in Duesseldorf and Stuttgart, Germany, the Hungarian foreign minister said after negotiations with his German counterpart in Berlin yesterday.

POLITICS

Deficit at 82.6% of full-year target by June

Hungary's cashflow-based general government deficit, excluding local councils, came to HUF 813.7 bln by the end of June, equivalent to 82.6% of the full-year target, detailed data released by the National Economy Ministry late yesteray show.

OPINION

Mixed signals: China’s unpredictable foreign policy

The 18th Party Congress in November 2012 produced new leadership for China, but it did not produce much optimism for the future of China’s relationship with its East Asian neighbors or the United States.

BUSINESS

Unnamed bakery chain fined HUF 4.5 mln

The National Tax and Customs Authority of Hungary (NAV) fined a foreign-owned bakery chain HUF 4.5 mln after it was found guilty of illegally employing staff and keeping inventories of undefined origin, the authority announced today.

BUSINESS

Hungary opens trading house in Macedonia

Hungary opened a trading house in Skopje, Macedonia, today, MTI, the Hungarian news agency, reported. At an official opening ceremony, Hungary's State Secretary for Foreign Affairs and Trade Péter Szijjártó said the house was part of the Hungarian government’s strategy to make inroads on eastern markets, according to MTI.

BUSINESS

CIG Pannonia to transfer general retail policies to Aegon

Hungarian insurer CIG Pannonia today announced that it had decided to transfer the retail policies of its general insurance unit to Aegon Magyarország.

BUDAPEST

Controversial statue goes up overnight

Around midnight Saturday, just hours after a court rejected opposition to the memorial, a controversial statue that opponents call an apology for fascists, supporters call a revisiting of a troubled time in Hungarian history and the government calls "a project of primary importance for the national economy" was erected in Szabadság tér.

BUSINESS

MKB: FX loan law to cost bank HUF 5.1 bln

The new law requiring banks to compensate borrowers for fluctuations in foreign exchange loans will cost MKB Bank an estimated HUF 5.1 bln, the bank announced today.

POLITICS

Varga: Personal income tax to stay as is

Although Prime Minister Viktor Orbán expressed hopes of lowering the personal income tax to a single digit figure just a few weeks earlier, National Economy Minister Mihály Varga said in an interview that personal tax rate will not go below 10%, Hungarian news weekly HVG reported on its website today.

BUSINESS

Alteo sells HUF 925 mln of bonds in private placement

Hungarian energy supplier and trader Alteo today said it sold five-year zero-coupon bonds with a nominal value of HUF 925 mln in a private placement. The corporate bonds have a yield of 7.5%.

ECONOMY

OTP Bank commits to mortgage business

OTP Bank undertook an “unconditional and irrevocable obligation” to its mortgage and leasing units, despite the effects of the recently approved "FX-loan" borrowers' relief legislation, the bank announced today.

ECONOMY

Next talks on INA set for July 25

Next discussions on INA by the negotiators of the Croatian government an Hungarian oil and gas company MOL will be held on July 25, Croatian Economy Minister Ivan Vrdoljak told his country's news agency HINA.

ECONOMY

GKI-Erste: Businesses not as confident as consumers

GKI-Erste announced today that their combined index of consumer and business confidence fell in July as a result of worsening expectations among companies.

ECONOMY

Analysts: MNB to cut rates 10bp on Tuesday

Analysts polled by international news agency Reuters expect the National Bank of Hungary's rate-setting Monetary Council to continue an easing cycle at a meeting on Tuesday, reducing the central bank's key rate by 10bp to 2.20%

BUSINESS

State fails to sell Kapuvári meat assets, 7th tender set

State-owned liquidator National Reorganization Nonprofit (NRN) cancelled the contract it signed with Saudi Arabian investors in May to sell the assets of troubled meat companies Kapuvári Hús and Kapuvári Bacon after the investors failed to meet the payment deadline, NRN Managing Director Csaba Kovács told Hungarian news agency MTI late yesterday.

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