ECONOMY

ÁKK buys back HUF 37.4 bln of bonds at reverse auction

The Government Debt Management Agency (ÁKK) bought back about HUF 37.4 bln of two bonds before maturity at a reverse auction, Hungarian news agency reported today. ÁKK accepted all of the HUF 24.3 bln of bids submitted by primary dealers for the early redemption of 2015/A bonds which mature on February 12, 2015. Average yield was 1.33%.

POLITICS

Falus quits BP mayoral race, backs Bokros

Leftist candidate for Budapes mayor Ferenc Falus announced that he quit the elections in favor of conservative Lajos Bokros, the mayoral candidate of the conservative Movement for a Modern Hungary (MoMa).

ECONOMY

Bank card purchases outnumber withdrawals

Hungarians use their bank cards to make purchases about three times more frequently than for cash withdrawals, the National Bank of Hungary said yesterday, citing data from the first half of 2014. In value terms, withdrawals were still two and a half times higher than purchases, the MNB noted. 

ECONOMY

KSH: Deficit 3.8% of GDP, highest level in 18 months

Hungary's general government deficit came to HUF 272.5 bln, which is 3.8% of GDP, in Q2, preliminary data released by the Central Statistics Office (KSH) revealed today. The GDP was HUF 171.9 bln more than the deficit in the corresponding period of the previous year, with a gap of 2.7% of GDP in Q1, while the Q2 reading is the highest since Q1 2013.

ECONOMY

Weaker forint raises Hungary's net external debt

Hungary's net external debt rose slightly, mainly on revaluation effects, in the second quarter of 2014 and reached 39% of GDP at the end of June, the National Bank of Hungary said in its quarterly balance of payments report, released yesterday.

ECONOMY

Hungary PMI climbs to 52.6 in September

Hungary's seasonally-adjusted Purchasing Managers Index (PMI) rose to 52.6 points in September from 51.0 points in August, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) – which compiles the index – said today.

POLITICS

National asset company buys HUF 3.75 bln 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.

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.

ECONOMY

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%.

BUSINESS

CIB Group announces 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.

ECONOMY

BUX further up on OTP

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.

ECONOMY

Forint up again in euro on interbank market

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.

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. 

expert opinion

CIB and SMEs: Awareness, perseverance, trust

CIB and SMEs: Awareness, perseverance, trust

Szerdahelyi Róbert

CIB's SME Regional Director