Business and finance news from Hungary: 39th week in 2017

See below main business and financial news from the previous week:

BUDAPEST AMONG THE FASTEST DEVELOPING TOURIST DESTINATIONS

Mastercard published the top travel destinations this year as well. Bangkok, London, and Paris are the top three, and, while Budapest is not among the top 10 in terms of the number of tourists, it placed quite well on another list.

Budapest is the fifth destination among the fastest developing European cities,

ahead of Moscow and Berlin.

THE PARIS COURT TO BE TURNED INTO A HYATT HOTEL

The Paris Court (Párisi udvar) will be turned into a 110 room Hyatt luxury hotel as the Párizs Property Ltd. signed a contract with Hyatt Hotels. The hotel found in the onetime Brudern House is expected to be opened in 2018, and it will be operated by Mellow Mood Hotels.

BUDAPEST ASSEMBLY RULES TO SELL BÁLNA SHOPPING CENTRE

The Budapest Assembly at its regular Wednesday session voted to announce an open tender to sell the Bálna Shopping and Cultural Centre.

HUNGARIAN BUSINESS LEADERS MEET COUNTERPARTS IN SINGAPORE

Hungarian business leaders met with their local counterparts at a business forum in Singapore. Prime Minister Viktor Orbán praised Singapore for adapting quickly to new technology and using it for its economic advantage. In this respect, Singapore is an example to follow for Europe, including Hungary, he added.

ÁKK TO REPLACE DOLLAR BONDS WITH EUROBOND

Hungary’s Government Debt Management Agency (ÁKK) said it plans to issue a low-interest, long-term eurobond to refinance high-interest dollar bonds that are maturing soon. Switching the dollar bond with the eurobond will result in “significant interest savings”, ÁKK said.

MOODY’S MAINTAINS POSITIVE OUTLOOK ON HUNGARY’S BANKING SYSTEM

Moody’s Investors Service kept its outlook on Hungary’s banking system at positive due to its expectation that the country’s improving economy will bolster banks’ loan quality and support moderate profitability, while capital buffers remain stable. The credit rating agency lifted the outlook to positive from stable in June last year.

WIZZ AIR TO MAKE 1,300 NEW HIRES BY END-2018

Hungarian low-fare carrier Wizz Air said it will raise headcount by almost 1,300 to more than 4,500 by the end of 2018. Wizz Air will hold 400 recruitment sessions, for both pilots and cabin crew, in more than 25 countries to fill the positions.

HUNGARY RISES TO 60TH PLACE IN GLOBAL COMPETITIVENESS INDEX RANKING

Hungary improved its position on the World Economic Forum’s latest Global Competitive Index by nine spots to 60th place in the ranking of 137 economies around the world. Improvements in technological readiness, financial markets and the business and innovation environment lifted Hungary in the ranking. Among the most problematic factors for doing business listed by the WEF were an inadequately educated workforce, corruption and tax rates.

HUNGARY DESIGNATES FREE ZONE NEAR BORDER WITH UKRAINE

Hungary’s National Economy Ministry designated a 17,400sqm free zone, the country’s first, in Záhony, near the border with Ukraine. Goods placed in free zones are free of import duties, VAT and other import charges. They facilitate trading procedures by allowing fewer customs formalities.

GOVERNMENT REALLOCATES HUF 23.7 BN OF BUDGET RESERVES

Hungary’s government reallocated 23.7 billion forints (EUR 76m) in reserves for “extraordinary government measures” in this year’s budget, a resolution published in the official gazette Magyar Közlöny showed. The resolution reallocates 5 billion forints of the reserves for the development of football pitches in the capital, 3 billion for the renovation of schools, 1.2 billion for the construction of gymnasiums and 1.7 billion for church investments.

VAT GAP IN HUNGARY CONTINUES TO SHRINK

The VAT gap, defined as the difference between the estimated value added tax revenues that countries expect to receive and the amount of VAT actually collected, has shrunk from 21 percent in 2011 to 14 percent in 2015 in Hungary, the European Commission said.

Source: MTI/Daily News Hungary