Budapest, August 21 (MTI) – See below MTI’s main business and financial news from the previous week:
ECONOMY MINISTRY MULLS PAYROLL TAX REDUCTION
Hungary’s economy ministry is weighing a possible reduction in payroll taxes, the head of the portfolio said in an issue of daily Magyar Idők. “Payroll taxes [in Hungary] are higher than the European Union average, which could put the country at a competitive disadvantage,” Mihály Varga told the paper. “On this basis, it appears that deliberation on a reduction in payroll taxes is inevitable,” he added.
LOWER PROVISIONING LIFTS RAIFFEISEN PROFIT IN HUNGARY
After-tax profit of Raiffeisen Bank International’s business in Hungary came to 28 million euros in the first half, improving from a 5 million euro loss in the base period on lower provisioning, an earnings report showed. Net provisioning for impairment losses came to just 2 million euros, down from 37 million in the base period. RBI attributed the decline to improvements in the ratings of corporate clients.
FHB H1 LOSS NARROWS ON PROVISIONS RELEASE
FHB Mortgage Bank booked a first half loss of 1.5 billion forints (EUR 4.8m), narrowing from 5.3 billion forints in the base period on a release of provisions, an earnings report showed. According to the report, the provisions release related to the “lawsuit due to the previous [National Bank of Hungary’s] resolution subject to the financial transaction levy, and the effects of settlement law due to the 2016 year tasks” caused the loss on the “other results” line to narrow to 1.6 billion forints from 9.0 billion forints.
TRIGRÁNIT SEALS DEAL TO SELL BONARKA CITY CENTER
Hungarian property developer TriGránit said it reached a preliminary agreement to sell the Bonarka City Center in Krakow to Rockcastle. TriGranit built the shopping centre on 19 hectares of abandoned area in the city’s Podgorze district that was re-cultivated. The 92,500sqm Bonarka City Center opened in 2009.
GROSS WAGES RISE 5.7 PC IN JUNE
The average gross wage in Hungary was 259,875 forints in June, up by 5.7 percent from the same month a year earlier, the Central Statistical Office (KSH) said. Net wage growth outpaced the increase, rising by 7.3 percent to 172,818 forints, because of a one percentage point cut in the personal income tax rate from January. Calculating with twelve-month inflation of negative 0.2 percent, real wages rose by 7.5 percent.
EVOBUS TO DELIVER FRAMES FOR ITK BUSES
The Hungarian unit of EvoBus, the busmaking business of Germany’s Daimler, will deliver frames to Hungarian-owned ITK Holding for a low-floor bus it has developed. The companies signed a declaration of intent on the partnership in Budapest.
HUNGARY PUBLIC DEBT DOWN TO 75.5 PC OF GDP IN JUNE
Hungary’s public debt, calculated according to Maastricht rules, stood at 75.5 percent of GDP at the end of June, down from 77.2 percent of GDP at the end of March, preliminary data released by the National Bank of Hungary show. In nominal terms, state debt stood at 25,900 billion forints in Q2, down from 26,148 billion at the end of Q1 2016.
ANY H1 PROFIT CLIMBS 37PC ON RISING REVENUE, WIDER MARGIN
First-half net income of Hungarian printing company ANY rose by an annual 37 percent to 891 million forints on higher sales and an improved margin, an earnings report showed. Net sales climbed 13 percent to 11.7 billion forints. Direct cost of sales increased at a slower pace, rising by just 11 percent to 8.0 billion forints and lifting gross profit by almost 20 percent to 3.7 billion forints.
BAKERS ASSOC INTRODUCING TRADEMARK FOR LOCAL PRODUCTS
The Hungarian Bakers Association is introducing a trademark for locally baked products made with locally produced ingredients, the association head said on public television. The trademark can be used exclusively by association members whose bakeries are in Hungary, József Septe told public news channel M1.
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