HungaryTrends – The business and financial news from the previous week

Budapest (MTI) – See below MTI’s main business and financial news from the previous week:

EUROPEAN COMMISSION CLEARS STATE AID FOR PAKS UPGRADE

The European Commission said it approved Hungary’s financial support for the construction of two nuclear reactors in Paks on the basis of commitments made by Hungary to limit distortions of competition.

CBANK TO ROLL OUT “CONSUMER-FRIENDLY HOME LOAN” CERTIFICATION

The National Bank of Hungary announced the introduction of a “consumer-friendly home loan” certification to counter high interest margins and the low rate of borrower refinancing. Only banks whose lending products meet strict conditions laid down by the NBH may apply for certification and use the “consumer-friendly home loan” logo.

CIB BANK PROFIT REACHES HUF 12BN LAST YEAR ON PROVISIONS RELEASE

Italian-owned CIB Bank had net profit of 12.0 billion forints (EUR 38m) last year, improving over a 40.2 billion forint loss in the base period on a release of provisions, a consolidated IFRS earnings report showed. CIB Bank released 4.9 billion forints of provisions for impaired assets last year after building up provisions of 35.9 billion forints in the base period.

FUNDAMENTA-LAKÁSKASSZA PROFIT DROPS TO HUF 5.3BN ON IT DEVELOPMENTS

Home savings bank Fundamenta-Lakaskassza’s consolidated after-tax profit fell about 18 percent to 5.3 billion forints (EUR 17m) last year because of IT developments, the lender said. Outlays reached 101 billion forints. Allocations to members came to about 200 billion forints and were matched by 29 billion forints in state subsidies.

M+A VALUE IN HUNGARY CLIMBS TO USD 1.61BN IN 2016

The number of mergers and acquisitions (M+A) in Hungary fell 15 percent to 110 last year, but their value rose 6 percent to 1.61 billion dollars, data compiled by consultancy EY show.

IMF TERMS HUNGARY OUTLOOK “FAVOURABLE” BUT “SUBJECT TO RISKS”

International Monetary Fund (IMF) staff acknowledged Hungary’s “high economic growth” over the past several years and said the medium-term outlook for the country “remains favourable but is subject to risks” in a concluding statement issued after regular Article IV consultations. Risks will be mitigated by the improved current account and international investment position over the past years as well as by “the enhanced market sentiment towards Hungary”, the staff said.

Source: MTI