HungaryTrends – previous week in business and finance

See below MTI’s main business and financial news from the previous week.

HUNGARY, RHEINMETALL SIGN EUR 2 BN INFANTRY VEHICLE DEAL

Hungary signed an agreement with German defence industry company Rheinmetall on a more than 2 billion euro programme to produce and procure Lynx infantry fighting vehicles. Under the agreement, Rheinmetall and the state of Hungary will establish a joint venture to manufacture the Lynx vehicles in Hungary.

Read our article here: Next-generation combat vehicles to be manufactured in Hungary − VIDEO

4IG ESTABLISHES HUNGARY’S FIRST COMMERCIAL SATELLITE BUSINESS

Listed IT company 4iG established a venture to launch and operate Hungary’s first satellite suitable for commercial, governmental and scientific research missions in 2024. 4iG holds a 51 percent controlling stake in the company, called CarpathiaSat Magyar Urtavkozlesi, that was established with share capital of HUF 5 million (EUR 14,300) and a capital reserve of 365 million forints. Terrestrial broadcasting company Antenna Hungary has a 44 percent stake in the venture and New Space Industries holds 5 percent.

Our report here: WOW! Hungary to conquer space with their satellite?

PANDEMIC SPENDING LIFTS STATE DEBT RATIO TO 71.9 PC

Government expenditures related to the coronavirus pandemic lifted Hungary’s state debt relative to GDP to 71.9 percent at the end of the second quarter from 66.8 percent at the end of Q1, preliminary data released by the National Bank of Hungary (NBH) showed. The state debt ratio stood at 66.4 percent at the end of 2019.

COMMERCIAL ACCOMMODATIONS DRAW MORE DOMESTIC VISITORS IN JULY

About 1.2 million domestic travellers stayed at commercial accommodations in Hungary in July, up from 1.1 million in the same month a year earlier, the Hungarian Tourism Agency said. Domestic travellers spent 3.6 million guest nights at commercial accommodations in July. The 200,000 foreign travellers who visited Hungary in July spent about 700,000 guests nights at commercial accommodations.

ALTEO BUYS WIND FARM

Listed alternative energy company ALTEO concluded an agreement to buy 100 percent of Pannon Szeleromu, which has a 15MW wind farm near Babolna (NW Hungary). The transaction will raise the volume of ALTEO’s wind portfolio to 47.5MW and its total power generation capacity to more than 122MW.

BACK-TO-SCHOOL PROTOCOLS ISSUED

Pandemic protocols for the next academic year were completed and delivered to schools. The protocols stipulate that measures responding to any coronavirus cases at schools are to be decided by the human resources ministry and the National Public Health Centre (NKK) together with local health authorities.

Read more here: Hungarian schools to open on September 1

INVESTMENT FUNDS DRAW MORE MONEY IN JULY

Net subscription of units of funds managed by members of the Association of Hungarian Investment Fund and Asset Management Companies (BAMOSZ) came to 56.0 billion forints (EUR 160m) in July. BAMOSZ reported net subscriptions for the third month in a row after big redemptions in March and April, amidst increased market volatility because of the coronavirus crisis.

Source: MTI