National asset company buys stake in gas line

A shareholders' meeting of the state-owned Hungarian Electricity Works (MVM) has decided to sell the company's 49.98% stake in Magyar Gáz Tranzit, the project company for a gas interconnector between Hungary and Slovakia, to the Hungarian National Asset Management Company (MNV) for HUF 3.75 bln.

Hungary PPI down 0.4% y.o.y. in August

Industrial producer prices edged down by 0.4% in August from a year earlier, after declining 0.3% in July, the Central Statistics Office (KSH) said yesterday. Domestic prices fell 2.9% and export prices rose 1.2%.

CIB Group calls another Online Property Auction

The CIB Group – as the first in the Hungarian market to do so – launched a comprehensive programme in 2013 for the resale, in an online auction, of the properties under its ownership. The success of the initiative is also contributing substantially to supporting fulfilment of the Group's strategic objectives focusing on sustainable profitability.

BUX Report: Tuesday

The Budapest Stock Exchange's main BUX index finished up 0.26% at 17,884.71 Tuesday, after rising 1.24% Monday. It is down 3.66% from the end of last year, after it rose 2.15% in 2013. It is up 0.59% on the month, but down 3.88% on the quarter.

Interbank Market Report: Tuesday

The forint was trading at 310.83 to the euro late Tuesday on the interbank forex market, up from 311.67 late Monday. At 311.58 to the euro early Tuesday, the forint moved between 310.07, a five-day high, and 311.86. It is up 1.39% over the month, but down 0.28% over the quarter.

BUSINESS

HUF 220 mln spa development completed

The city of Túrkeve (located in eastern Hungary)  finished a  HUF 220 mln development at its local baths, city mayor Zoltán Szabó told Hungarian news agency MTI.

POLITICS

State to acquire local council Főgáz stake

The Hungarian state is set to acquire a stake in gas distributor Főgáz, currently owned by the Budapest local council, by October 10, according to a decree published today in the most recent issue of official gazette Magyar Közlöny.

BUSINESS

Kirchhoff Hungária winds up HUF 3 bln investment

German-owned automotive industry supplier Kirchhoff Hungária completed a HUF 2.9 bln expansion at its base located in Esztergom (near Budapest), managing director Géza Körtvelyessy told Hungarian news agency MTI today.

BUSINESS

OTP Bank to buy Slovenian peer

Hungary's OTP Bank offered €300 mln in a non-binding bid for Slovenian state-owned bank Nova KBM in July, Reuters said today, citing a report that appeared in the Slovenian paper Finance.

ECONOMY

ÁKK raises offer at three-month T-bill auction

The Government Debt Management Agency (ÁKK) raised its offer on strong demand at an auction of discount three-month T-bills, Hungarian news agency MTI reported today.

ECONOMY

MOL urges consolidation of INA refinery capacity

Ferenc Horváth, head of the downstream business at Hungarian oil and gas company MOL, urged for the consolidation of refinery capacity at Croatian unit INA at a Reuters-organized summit today.

BUSINESS

MKB Bank acquisition closed

The acquisition of MKB Bank was finalized yesterday by the Hungarian state, the National Development Ministry announced today. German owner BayernLB and the National Development Ministry completed the deal with the signing of a contract.

ECONOMY

MNB: Corporate lending stock rises

The corporate lending stock of Hungarian banks rose to HUF 6.75 trillion at the end of August month-on-month, as a result of businesses acting as net borrowers and of the weaker forint increasing the value of FX loans, a monthly report by the National Bank of Hungary (MNB) revealed today.

BUSINESS

Eximbank: Rapid growth of assets to continue

State-owned Hungarian Eximbank expects its lending to expand and the growth of total assets continue, CEO Roland Natran announced in Budapest yesterday. Total assets are seen to exceed HUF 600 mln at the end of this year and to reach HUF 1.1-1.2 trillion by the end of 2016, he said. 

ECONOMY

Banking Association appeals to President on settlement law

The Hungarian Banking Association has asked the President of the Republic not to sign legislation on settlement due borrowers from banks, but send it to the Constitutional Court for review.

ECONOMY

MNB fines MagNet Bank in money laundering case

The National Bank of Hungary (MNB) yesterday announced it fined MagNet Bank HUF 19 mln after being found guilty of violating the law against money laundering. The MNB cited several shortcomings related to anti-money laundering regulations in a targeted investigation it launched in March...

ECONOMY

Hungary debt ratio reaches 85.0% of GDP

Hungary's gross consolidated government sector debt, calculated at nominal value, in line with Maastricht methodology, reached HUF 25,437 bln, equivalent to 85.0% of GDP, at the end of June, a second reading of financial accounts data released by the National Bank of Hungary (MNB) today show.

BUSINESS

IT Services Hungary opens new base

German-owned IT service provider IT Services Hungary has opened a new 2,500 sqm base in Pécs (southwestern Hungary) the company announced yesterday. Headcount at the company's local operations increased by 50 from 340. 

ECONOMY

INTERBANK MARKET REPORT: Monday

The forint was trading at 311.82 to the euro late Monday on the interbank forex market, up from 312.59 late Friday and 312.18 late Sunday. Also at 312.18 to the euro early Monday, the forint moved between 311.73 and 313.03.

ECONOMY

BUX REPORT: Monday

The Budapest Stock Exchange's main BUX index finished up 1.24% at 17,838.87 Monday, after falling 1.23% Friday. It is down 3.91% from the end of last year, after it rose 2.15% in 2013. Last week, it lost 4.31% after dropping 1.49% the previous week.

BUSINESS

INA board to discuss refineries in early Oct

The board of Croatian oil and gas company INA, a unit of Hungary's MOL, could discuss its refining business at a meeting scheduled for October 7 at the earliest, Croatian news agency HINA said on Monday, citing a "well-informed" source that it did not name.

BUSINESS

Daimler marks production milestone in Hungary

German car manufacturer, Daimler turned out a quarter of a million cars at its Hungarian plant, which was inaugurated in the spring of 2012, Mercedes-Benz Manufacturing Hungary announced today.

ECONOMY

Court of appeals refers EvoBank contract case to Constitutional Court

The Budapest Municipal Court of Appeals is turning to the Constitutional Court in an appeal brought by EvoBank against a ruling rejecting its defense of unilateral changes made to loan contracts.

BUSINESS

Magyar Telekom wins bid for frequencies

Magyar Telekom, the Hungarian subsidiary of Germany's Deutsche Telekom, will pay a combined price of HUF 58.65 bln to license new frequencies that it won in a tender, the company announced today.

BUSINESS

BorgWarner launches HUF 9 bln expansion in Hungary

US automotive industry supplier BorgWarner laid the cornerstone of a HUF 9 bln turbocharger plant at its base in Oroszlány (located in northwestern Hungary) today. The company won an HUF 850 mln government grant for the investment.

expert opinion

CIB and SMEs: Awareness, perseverance, trust

CIB and SMEs: Awareness, perseverance, trust

Szerdahelyi Róbert

CIB's SME Regional Director