money

New list of wealthiest Hungarians: Lőrinc Mészáros gained half of his wealth in a year

orbán rich friend lőrinc mészáros wealth

The new list of the 100 wealthiest Hungarians contains both familiar and new names. Lőrinc Mészáros has been named the wealthiest for the second year in a row.

According to Index, there were no changes in the top 3 in the list of wealthiest individuals compared to last year, but there are several new names appearing in the top 100.

1. Lőrinc Mészáros

The 58-year-old businessman’s wealth increased by 50%, as he closed the year with an estimated wealth of a staggering HUF 990 billion (EUR 2.56 billion) compared to 2022’s HUF 660 billion (EUR 1.7 billion), while in 2014, he only had HUF 7.7 billion (EUR 19 million) in his possession. His business group’s most significant sectors are still the banking and insurance sector, the construction industry, agriculture and the food industry, tourism, and energy. In addition, the group has investments in Bosnia and Croatia in tourism and agriculture as well.

2. Sándor Csányi

The CEO of OTP Bank secured second place again after last year, with an estimated wealth of HUF 700 billion (EUR 1.8 billion). He has holdings in the bank itself, which had an estimated income of HUF 990 billion (EUR 2.56 billion), tripling last year’s income, two-thirds of which come from foreign subsidiaries.

3. Zsolt Felcsuti

The proprietor of MPF Holding, whose estimated wealth reached HUF 486 billion. MPF is a manufacturer of machine accessories, industrial components, and cooling equipment. The structure of the company group was transformed last year, MPF Meta Plc. handles the international wholesale of industrial goods and machine tool accessories, MP Widenta Ltd. manufactures tools, and MPF-FÉG Ltd. manufactures refrigerators and cooling devices. The three independent holding companies are located in Switzerland and several foreign companies belong to them.

There was no change in the 5th and 6th place either compared to last year, as Tibor Veres and György Gattyán managed to hold their position with their HUF 422 billion (EUR 1.09 billion) and HUF 398 billion (EUR 1.03 billion) fortune.

New names on the list

The 61st wealthiest, László Vidman is featured in the top 100 list for the first time with his HUF 42 billion (EUR 108 million). He is a prominent figure in the domestic agricultural sector and has a minority share in Városföldi Agrárgazdasági Plc., owned by his parents.

Béla Molnár took the 62nd place with an estimated fortune of HUF 39 billion (EUR 101 million). He is the owner of a microscope-developing company which has become the European market leader by applying high technology.

A prominent figure in the tourism sector Richárd Szepesi was ranked 85th, with HUF 29.5 billion (EUR 76 million).

Being hard-working is not enough?

Péter Magyar, the ex-husband of the former Minister of Justice, wrote a Facebook post recently regarding the success of István Tiborcz, Orbán’s son-in-law, saying that the businessman already has hotels, a bank, fund managers, former state property to his name at the age of 37, when many Hungarians who are talented, educated, and hard-working have no chance in achieving what he has, suggesting that Tiborcz’s success is not just a matter of luck. Tiborcz ranks 19th on this year’s wealthiest list.

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PHOTOS: New, special forint coins issued in Hungary!

forint money collector coin central bank

Two new, special forint coins have been issued in Hungary to mark the 100th anniversary of the founding of the Hungarian National Bank (Magyar Nemzeti Bank, MNB).

A special 100-forint coin was issued on Thursday to mark the 100th anniversary of the founding of the Hungarian National Bank, hvg.hu reports. The new piece is the subject of a separate decree of the Governor of the National Bank, published in the Hungarian Gazette on Thursday. The date of issue is 16 May 2024.

The obverse of the coin will be different from the usual 100-forint.

According to the Hungarian Gazette, “the central field will show a slightly eccentric depiction of the logo of the Hungarian National Bank, surrounded by a motif taken from the decorative frame of the share issued by the National Bank in 1924, which extends on two sides beyond the inner core and interrupts the string of pearls running along the outer edge of the obverse.

On the edge of the front cover, in the upper circles, is the inscription ‘HUNGARY’, and in the lower circles, in three lines, the inscription ‘guardian of a stable financial system that has been independent for 100 years’.”

New 100-forint coin

The year of issue (2024) and the year of foundation (1924) are also shown on the coin. There are no changes on the back. Two million copies of the new coin will be issued.

In addition, there will also be 6000 silver commemorative coins with a face value of HUF 50,000.

New one with a face value of HUF 50,000

silver commemorative coin 50000 forint
Photo: Hungarian Gazette (Magyar Közlöny)

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Featured image: depositphotos.com

Bank business owned by Orbán’s son-in-law is flourishing

tiborcz Orbán's son-in-law property scam

István Tiborcz, the prime minister’s son-in-law has now become one of Hungary’s richest men. His latest deals include the real estate project BudaPart, which many state-owned companies will move into shortly, or the purchase of the Belgrade office building complex. He is also a shareholder of Gránit Bank, which is the 8th biggest universal bank today.

Gránit Bank’s soaring success

As Forbes reports, in 2023, Gránit Bank grew above the sector average in all its business target segments and currently manages nearly 190,000 customer accounts. According to the records of the Hungarian National Bank (MNB), more than 18 percent of all new retail accounts were opened with Gránit Bank in 2023. The bank ended the year with a balance sheet total (the sum of all assets) of more than HUF 1.20 billion (EUR 3.1 million), an individual profit of HUF 19 billion (EUR 49.2 million), and a consolidated profit of HUF 21.6 billion (EUR 56 million) after tax.

In 2024, the bank’s balance sheet total grew to HUF 1.4 billion (EUR 3.6 million), and more than 30,000 accounts were opened with the bank in four months. Éva Hegedüs, the bank’s president and CEO told Forbes that they are planning to expand the services of their app, which was originally developed to be a home insurance calculator, as well as issue a credit card.

István Tiborcz’s success in business

As we reported before, in 2023, it was confirmed that Tiborcz is present in the economic sphere with nearly 40 huge real estate projects and a host of other interests, such as financial markets, transport, reinforced concrete, solar parks, waste management, IT and beauty. In 2020, he left Appeninn, a company in which he was a shareholder since he didn’t want to own a company that was competing for state or local government grants. However, he started to increase his private equity funds, which are used to hide the identity of owners.

He and his wife, Ráhel Orbán have tried to hide their ties to the government, with little to no success. For example, last year, the prime minister’s daughter bought 94 hectares of vineyards in the Tokaj wine region for HUF 600 million (EUR 1.6 million). The purchased land is located next to Patrícius wine farm, which is owned by her husband.

As land owner and former right-wing politician, László Bíró exclaimed, „the Hungarian government and the Orbán family want to control everything from tourism to the wine business.” He also referred to the 2017 incident when Lőrinc Mészáros bought the Andrássy Mansion in Tarcal, as he fears that nobody could stop them from expanding their land, not even local farmers who could have made better use of it.

Péter Magyar, the ex-husband of the former Minister of Justice wrote a Facebook post recently regarding the success of Tiborcz, saying that the businessman already has hotels, a bank, fund managers, former state property to his name at the age of 37, when many Hungarians who are talented, educated, and hard-working have no chance in achieving what he has, suggesting that Tiborcz’s success is not just a matter of luck.

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EUR 390 million employment scheme for over-30s launched in Hungary

jobseekers labour work employment

A HUF 150 billion (EUR 390m) employment support scheme aimed to help job-seekers over the age of 30 is available from Thursday, the state secretary in charge of employment policy said.

Employment support scheme launched

Sándor Czomba told public television M1 that the scheme is expected to reach out to 77,000 people, to support 50,000, and to involve 23,000 in training.

There are 120,000 inactive Hungarians who could hold a job, and the number of registered jobseekers is around 230,000, he added.

The scheme has five elements: wage subsidy available up to a monthly 250,000 forints, accommodation subsidy up to a monthly 186,000 forints, travel subsidy for commuting, training subsidy, and services to assist people to become mentally prepared to return to work after a lengthy period of unemployment.

The target group are the long-term unemployed, people living in underdeveloped regions, those aged over 50 and those that hold only primary education, he said. Subsidies will be available for six months for disadvantaged people and four months for those without a disadvantage.

Czomba said the employment rate among 20 to 60 year-olds in Hungary is 81 percent, which is the seventh best in the European Union. The aim is to increase it to 85 percent, to be in the top three in the EU, he added.

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Hungarian man convicted of tax fraud arrested on Croatian island

arrest police handcuff gang

Croatian authorities using information from Hungarian police have apprehended a Hungarian man convicted of tax fraud totalling nearly 4.5 billion forints (EUR 11.6m) on the island of Vir, the SWAT unit of the national bureau of investigation said on the police website on Monday.

Man convicted of tax fraud arrested

Croatian police apprehended the man in the street during an operation organised at the request of the Hungarian fugitive apprehension unit a few days after a Croatian court decided on his extradition, the statement said.

The man had been sentenced to 6 years in prison by a court in Pécs after a tax office investigation for budget fraud committed in a criminal organisation. He fled and could not be contacted, so a European arrest warrant was issued against him in July 2023.

Police in Mohács received information in April this year that he was in Croatia, involved in renting out property. The Hungarian investigators used the European Network of Fugitive Active Search Teams (ENFAST) to exchange information with their Croatian colleagues and it was established that the man was living with his partner on the island of Vir. He was apprehended on 6 May.

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Sky-high prices: Would you pay this much for a lángos on the beach in Hungary?

Lángos Closeup

As it seems, our favourite Hungarian beach snacks still cannot escape from inflation’s grip. Many eateries are maintaining their pre-season rates, though prices are projected to climb starting in June. Along Lake Balaton, anticipate an uptick of 8-10 percent. Thus, delicacies such as lángos and ice cream will cost an arm and a leg this year!

Lángos

Hungarian lángos is a popular fried dough dish, often served as street food or at fairs and festivals. It is made from a simple dough consisting of flour, water, yeast, and salt, which is deep-fried until golden and crispy. Traditionally, lángos is topped with various savoury toppings, such as garlic, sour cream, grated cheese, and sometimes even sweet toppings such as jam or Nutella. It’s beloved for its crispy exterior and soft interior, making it a satisfying treat enjoyed by many in Hungary and neighbouring countries. For an authentic experience, people visit popular beaches along Lake Balaton to consume this tasty treat.

lángos
Lángos. Source: Wikimedia Commons/Christo

Price hike in 2023

As we reported last year, the prices were quite unbelievably high already. As depicted in the article, the cost of a single lángos topped with cheese and cream began at HUF 1100 (EUR 2.96) in 2020, or three years prior. By 2021, the price had risen by 18 percent to HUF 1300 (EUR 3.50). In 2022, it surged even further, reaching a 31 percent increase from the previous year, totalling HUF 1700 (EUR 4.58). This year, the escalation is even more staggering, at 41 percent, resulting in a price of HUF 2400 (EUR 6.46) for a cheese and cream lángos.

Further price increase

Now, Index reports that visitors to Lake Balaton should brace for a nearly 10 percent hike in prices compared to last year’s peak rates. During the pre-season, efforts will be made to maintain current prices, but another increase is anticipated as peak season sets in. László Kovács, president of the Hungarian Hospitality Industry Association, indicated in April that an 8-10 percent price surge is on the horizon, noting that certain establishments have already implemented price adjustments.

This year’s prices

So what should we expect? A plain lángos is priced at HUF 1,000 (EUR 2.58), while a cheese and cream lángos sells for HUF 1,900 (EUR 4.91), and a tuna lángos for HUF 3,600 (EUR 9.30). Heartier dishes cost even more, bean goulash is listed at HUF 2,600 (EUR 6.71), and a gyros dish at HUF 3200 (EUR 8.27). The sad part is that these prices are still considered to be pre-season prices. As peak season hits, these numbers will skyrocket again.

Additionally, ice cream prices are poised to ascend this year. Confectionery shop managers anticipate a roughly 10 percent increase, attributed to rising costs of butter, milk, chocolate, and overhead expenses. They also expressed intentions to raise workers’ wages in response to inflation. As a result, a scoop of ice cream is projected to cost between HUF 600 (EUR 1.55) and HUF 650 (EUR 1.68).

Best ice cream flavours around Lake Balaton
Balaton and ice cream. Photo: facebook.com/BagameriFagylaltozo

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Surprising: Hungarian banks introduce record low daily transfer limit in 2024

The Hungarian OTP Bank will introduce a record-low money transfer limit in 2024 because of internet fraudsters. Since that is a recommendation by the Hungarian National Bank, all Hungarian banks will do so from September.

According to Telex, the Hungarian OTP Bank informed its customers on Wednesday that they would introduce a HUF 1 million daily limit (EUR 2,579) on each money transfer initiated on the internet.

All Hungarian banks must introduce that extra safety check from September

The bank will not prevent anybody from transferring more than HUF 1 million every day, but such transfers would need an extra safety step. However, there is a bypass. You will have to raise your daily money transfer limit to initiate a transfer of more than HUF 1 million.

OTP bank Hungarian banks
Photo: FB/OTP Bank

The bank believes that is how they can protect their customers from becoming internet or phone fraud victims. The number of such crimes is constantly increasing in Hungary. Perpetrators tend to target older people who are uncertain about how to use modern devices and the internet properly.

The extra safety step is among the recommendations of the Hungarian National Bank (MNB), and all other banks will have to set it from September in their internet bank, mobile bank and credit card.

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Grim news: Inflation in Hungary up again after 14 months of decline

food store spar price inflation in hungary

Inflation in Hungary increased again, as the country’s consumer price index in April was 3.7 percent higher than the same month a year earlier, the Central Statistical Office (KSH) said on Friday.

Inflation in Hungary up again, March inflation: 3.6%

Compared with March, prices rose by an average of 0.7 percent.

Food prices rose by 1.0 percent. Household energy prices fell by 4.5 percent, albeit from a high base. Gas prices were 9.2 percent lower and electricity prices declined by 2.9 percent, KSH reports.

Consumer durable prices edged down by 1.7 percent. Prices in the category of goods that includes vehicle fuel rose by 3.9 percent, with vehicle fuels up by 3.5 percent.

Harmonised inflation, adjusted for better comparison with other European Union member states, was 3.6 percent.

Core inflation, which excludes volatile fuel and food prices, was 4.1 percent.

The CPI calculated with a basket of goods and services used by pensioners was 3.7 percent.

Commenting on the data, Márton Nagy, the national economy minister, said inflation remained low, in line with the trend in earlier months. Inflation, which fell to one-seventh of last year’s CPI, posed no challenge to the national economy, he added.

Nagy said the government had successfully protected families, companies and jobs through targeted and effective measures. Stable, low inflation contributed to re-starting the economy through growing real wages and a gradual pickup in consumption, he added.

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Hungarian government to spend huge amounts on worker housing

workers' accommodation hungarian government

The Hungarian government is launching a HUF 20-billion subsidy programme for the construction of workers’ housing, the Hungarian News Agency (MTI) reports, citing a statement by the Ministry of National Economy. In the next few years, 25-30 new workers’ accommodation for 80-200 people could be built with the Hungarian government’s support. The ministry says they are not being built for foreign guest workers.

Hungarian government launches subsidy scheme

A HUF 20-billion subsidy programme is being launched for the construction of workers’ housing, MTI reports, based on a statement by the Ministry of National Economy. In the next 3 years, 25-30 new workers’ shelters for 80-200 people could be built with the Hungarian government’s support. Businesses have until 30 September to apply for funding, Forbes reports.

workers' accommodation hungarian government
Xanga Seria Ltd.’s new 200-bed workers’ hostel in Nyíregyháza on the day of its inauguration, 27 June 2023. The workers’ hostel was built with a budget of HUF 1.5 billion, with around 50 percent Hungarian state support. MTI/Vajda János

The Hungarian government pledges that applications will be assessed under strict criteria “in line with the strict limits on the employment of guest workers”. These conditions include the following:

  • foreign workers can only be accommodated in the newly created worker hostels if no Hungarian workers apply;
  • at least half of the workforce in these accommodations will have to be Hungarian, which the ministry expects will “greatly facilitate the mobility of the domestic workforce within the country” and contribute to reducing labour shortages.

Sanctions against workers’ accommodations

According to Telex, if the proportion of Hungarian workers falls below 50% during the application period, the owner must repay part of the subsidy. Sanctions would also be imposed on accommodation establishments whose occupancy rate falls below a certain level. In addition, the applicant must commit to operating the accommodation built with the subsidy as a workers’ accommodation for at least 10 years. However, compared to previous similar applications, it is now possible to accommodate trainees, casual or seasonal workers.

Telex reports that new hostels may be needed because despite the fact that the “anti-immigration government does not advertise this much”, more and more foreigners are working in Hungary. In November 2023, a total of 98,500 foreigners were employed in the country.

Of these, more than 76,000 are third-country nationals, i.e. from outside the European Union and EFTA. At the end of 2020, the number of foreign workers was only around 35-40,000. They mainly come from Serbia and Ukraine but are increasingly being replaced by Asian workers.

The strongest trend is the dramatic increase in the number of third-country nationals coming to work in Hungary, while fewer people from neighbouring countries have come to work in the country. Most of them come from the Philippines.

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Hungary to prepare EU’s 2025 budget

european council hungarian finance ministry 2025 budget (1)

The finance ministry stands ready to fulfil the important task of the upcoming presidency of drafting the EU’s 2025 budget, Mihály Varga, the finance minister, said after meeting Thomas Westphal, director-general for economic and financial affairs of the European Council, in Budapest on Tuesday. This year Hungary will take up the presidency of the European Union “for the second time amid challenging times”.

Varga added that the presidency would focus on challenges related to competitiveness and demographics, the ministry said in a statement.

Hungary to prepare the EU’s 2025 budget

The Hungarian presidency will need to find ways to increase the bloc’s competitiveness, the statement quoted Varga as saying, adding that efforts would be made to reduce “the growth and innovation gap” between the EU and its competitors.

“We want heightened focus on demographic problems which may fundamentally determine the continent’s future. Reversing negative demographic trends is one of the greatest challenges; that is why the Hungarian government is committed to supporting families,” Varga said, adding that Hungary’s family benefits in relation to economic output was the highest in the EU.

Varga said the EU should take a greater responsibility for Europe’s security, increase defence spending and reinforce border controls. He warned that illegal migration “must be stopped rather than managed”, and he urged the EU to increase its contribution to the related efforts of members states.

He said the EU could have a new common customs authority and database to “meet new challenges of e-trade,” the statement said.

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BREAKING: Russian gas giant Gazprom may be the main sponsor of Hungarian elite soccer club

Russian gas giant Gazprom may be the main sponsor

Ferencváros won the Nemzeti Bajnokság (OTP Bank Liga, the Hungarian soccer national championships) yesterday, and Hungarian press writes that Russian gas giant Gazprom may become its main sponsor in the new season.

Russian gas giant Gazprom will give a lot of money to Fradi

Blikk, a Hungarian tabloid, wrote that it is an open secret that Gazprom will be Fradi’s main sponsor, giving billions of forints to the top Hungarian soccer club.

Gazprom is the world’s largest natural gas extractor. The Russian giant was the shirt sponsor of the German Schalke and was among the top supporters of the UEFA. However, following the Russian invasion of Ukraine, the club and the association terminated their contracts.

Meanwhile, the Serbian Crvena Zvezda still has the company’s name and logo on its shirts. According to Blikk’s Serbian informants, the Russian firm gives EUR 5 million to the club each season. Blikk speculated that Fradi’s support would be even higher than that sum.

Russian gas giant and Fradi
Dejan Stankovic, the head coach of Fradi after the victory. Waiting for a payrise? Photo: MTI

Game-changer: star footballer will come to Fradi?

Gazprom’s money might be a game-changer for Fradi. For example, Schalke bought Real Madrid’s icon, Raúl, with the Russian gas money they got. Blikk wrote that the Russian money might mean a star footballer may arrive soon at Fradi’s Budapest stadium on Üllői Street.

The annual budget will exceed HUF 20 billion (EUR 50 million) in 2024. In 2022, it was HUF 17,2 billion.

A sports economist, Gábor Szabados, told Blikk he would not believe that Fradi would spend the extra money on a star footballer. He believes Fradi will buy several high-quality players.

Gazprom’s sponsorship will be strange for many, and some will probably criticise it, Mr Szabados believes. Officially, however, the UEFA cannot sanction Fradi because of it.

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Habits regarding tipping in Hungary may shock you

tipping in Hungary

A recent study investigated tipping in Hungary. The researchers measured the percentage of tips that we tend to add to the total amount of the bill. In addition, they also tried to figure out how the coronavirus pandemic has affected our habits.

The history of tipping

Hamu és Gyémánt writes that the culture of tipping dates back centuries. It is thought to have originated in Tudor England, where servants who did a good job were rewarded with a little extra money. The practice quickly spread throughout the country, and in time, customers in cafés and inns also started giving tips.

Love it or hate it, tipping has become ingrained in the social norms of many nations across the globe, spanning from restaurants and hotels to hair salons. Nevertheless, the practice of tipping fluctuates significantly across different cultures.

tipping in Hungary
Source: https://depositphotos.com/photo/tip-3124650.html

Tipping in Hungary

A recent study done by the Budapest Business University was set to explore the practice of tipping in Hungary. The vast majority of respondents tip, and a significant proportion of them tip even if the establishment charges a service fee.
One in six men and women tend to tip between 6% and 10% of the total bill.

There is quite a wide variation when income levels are taken into account. Contrary to expectations, it is not the highest earners who tip the most and the lowest earners who tip the least.

Why do Hungarians tip?

The researchers also tried to discover the motive behind tipping among Hungarians. According to their findings, the majority obey social expectations, as local customs are the most important motivating factor. For instance, in countries where tipping is part of the culture, Hungarians also like to tip.

A significant proportion of respondents tip when they arrive in a restaurant with a group. Surprisingly, good service or delicious food, on the other hand, are less important when it comes to tipping in Hungary.

When do Hungarians tip more?

The participants were asked what other factors influence tipping or the willingness to tip a higher percentage. Men most frequently mentioned “pretty waitress”, “I’m on a date” and “extra attention”. Meanwhile, the most important factors for women are “kindness and attentiveness of the waitress” and being a “returning customer”.

On the other hand, the study also suggests that the price hikes, starting in 2022, may have a serious effect on tipping in Hungary. However, further research is needed to map out the links and draw a conclusion on the matter.

waitress restaurant drinks
pixabay.com

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Hungarian universities still exluded from the Erasmus+ programme

Hungary's most popular university degrees among foreigners socialists call for wage hikes

The European Union is holding back the development of Hungaryian universities, trapping students and lecturers in a political game, Balázs Hankó, the state secretary for higher education, said in an interview published on Friday, declaring that Hungary would “fight back”.

In the interview to Magyar Nemzet, the state secretary for innovation and higher education of the culture and innovation ministry, said the government’s policy to change how universities operate was already bearing fruit and several universities had advanced apace in various international rankings.

Hankó slammed a 2023 European University Association report suggesting that Hungarian universities had no autonomy, saying that the report had focused on state-run universities, even though most institutions were by now not run by the state. He accused the association of making misleading assertions and smearing “our new structure”.

Meanwhile, he accused the EU of making “utterly unreasonable demands” by blocking the Erasmus+ programme and attempting to deprive Hungarian students, teachers and researchers of their international activities and contacts.

Hungarian universities on a success track?

The government’s 10 billion forint (EUR 25.4m) Pannonia programme, however, ensures that 8,000 Hungarian and foreign students studying in Hungary gain experiences abroad, while the HU-rizont scheme helps Hungarian researchers pursue their goals in an international environment, he noted.

Whereas 5 years ago 7 Hungarian universities were placed in the top 5 percent in the global rankings, today this has grown to 12, he said. Also, university funding has increased 2.5 times, with every second forint linked to performance, he added.

Regarding vocational training, Hankó said that the new system from 2020 had “got off to an fantastic start”, and was recognised in international competitions and rankings. He said ties between vocational training and higher education were strengthening, with the number of applicants from vocational training to higher education increasing by 74 percent, while 40 vocational training centres have entered into partnerships with universities.

Read also:

  • Enough is enough: 1000s of professors speak out against unfair salaries at three major Hungarian public universities – Read more HERE
  • Shocking data about the drug use of Hungarian university students – Details in THIS article

Chaos on Deák: Hungarian influencers splash HUF 2 millions from rooftop – VIDEO

crowd mobilfox deak

If you happened to be around Deák Square and Károly Boulevard in Budapest last Saturday, you may have witnessed a pretty odd sight. Two separate events organised by Hungarian influencers drew hordes of teenagers to the popular downtown spots. From doling out free cash to selling limited-edition T-shirts, the scene was nothing short of extraordinary. Here is what went down in detail.

A shoe store for sneakerheads teams up with Hungarian influencers

The sidewalk in front of Balazs Kicks shoe store was buzzing with excitement as the massive crowd gathered to get their hands on limited-edition T-shirts and take part in a much-anticipated raffle, reports Telex. The store, as they write on their website, is “Hungary’s largest sneaker reseller, dealing in special, limited edition, 100% original sneakers.”

The store, run by 20-year-old Balázs Pachert, rose to fame after the young man’s stellar performance in the Hungarian version of Shark Tank. Since then, the store has boasted an annual turnover exceeding one billion forints, generated from the sales of rare and exclusive sneakers.

Pachert made headlines last year when a pair of Louis Vuitton Air Force shoes worth HUF 4.5 million (EUR 11,433) was stolen from his shop. Now, the limelight has once again found him, thanks to a collaborative limited-edition T-shirt campaign with a group of Hungarian influencers.

On 13 April, a slot machine was placed in the store, tempting customers with the promise of winning sneakers worth up to hundreds of thousands of forints for an entry fee of HUF 2,000 (EUR 5). Additionally, a streamer duo called 2okos, incredibly popular among young Hungarians, also launched a sale in the store.

These two Hungarian influencers, who set a national record in 2023 for the number of simultaneous viewers on Twitch, promoted their new merch by staging a daring “kidnapping” live on air—a stunt that even earned them a brief ban from the platform.

The abduction, of course, was only a marketing ploy, with the streamers’ “escape” announced in an action-packed short flick. They returned with the launch of a fresh, limited-edition T-shirt exclusively available at Balazs Kicks.

hungarian influencer merch balazs kicks deak
The crowd gathered to get their hands on the popular Hungarian influencers’ merch.
Photo: PrtSc / Balazs Kicks Instagram

The lucky first ten customers snagged their t-shirts for free, prompting devoted fans—some of whom had camped out since Friday—to queue for long hours for a shot at the merchandise, priced at HUF 17,990 (EUR 45.71), according to Telex.

After a while, the queue swelled up so much that Deák Square had to be closed to traffic.

Free money: HUF 2 million (EUR 5,081) tossed from rooftop by phone case-influencers

At the same time as the shoe store event unfolded, just a few hundred meters away, another group of Hungarian influencers were firing up their fans. 444.hu reported on the bizarre scene as throngs of teenagers swarmed Deák Square.

The masterminds behind the event, best described as an unorthodox advertising ploy, opted for some rather unconventional business management practices. Here’s the lowdown: a Hungarian company selling phone cases, Mobilfox, allegedly fired its well-known advertising face, Roland Szépréthy, familiar to many—particularly youngsters—thanks to his viral TikTok videos.

Szépréthy then allegedly hijacked the company’s TikTok channel, demanding either a 25 percent ownership share in the company or HUF 100 million (EUR 253,562). He promised his followers that if his demands were met, he would rain down HUF 2 million (5,071) in HUF 1,000 banknotes (EUR 2.54) from the rooftop of Mobilfox’s office.

At the company’s Dalszínház Street headquarters, a huge crowd gathered on the day of the event, with teenagers ecstatically chasing the flying 1000-forint banknotes.

After piles of cash were thrown off the building, the founder of Mobilfox, Kevin Diller and Szépréthy, marched together to Deák Square and then back to the company premises, while repeatedly hurling banknotes into the crowd.

hungarian influencer crowd
PrtSc: 444.hu / YouTube
hungarian influencer money crowd
PrtSc: 444.hu / YouTube

“In the crowd, which could by no means be called safe, the children eagerly rushed after the flying banknotes until an unfortunate incident saw a young girl pass out. At that point, the bouncers quickly cordoned off a small area by pushing people away. Later, hundreds of thousands more were scattered by the influencers moving towards the middle of the square, amidst similar scenes of chaos,” reports 444.hu.

In an attempt to catch the stray bills, many climbed into the neighbouring construction site. Fortunately, no injuries were reported during the chaotic affair.

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Big change: 50,000-forint notes to be introduced? Central bank governor answers

forint euro bills

Előd Novák, a politician of the far-right Mi Hazánk Mozgalom (Our Homeland Movement), asked the Governor of the Central Bank of Hungary when a 50,000-forint banknote would be introduced and the 5-forint coins withdrawn in the country. Here is the governor’s answer.

Just last week, we reported on the Mi Hazánk initiative to ban Coca-Cola drinks from the Hungarian Parliament because he feels that public money should not be spent buying the products of a company that “supports the LGBTQ+ lobby”.

This time, the representative of Mi Hazánk asked Central Bank Governor György Matolcsy about the future of the Hungarian forint, index.hu writes.

When are they willing to withdraw the inflated 5-forint notes and introduce the 50,000-forint ones?,

Novák wanted to know.

György Matolcsy’s written response was published on Friday. In it, he highlighted that since the central bank found no disturbances or conditions requiring its intervention in the currency circulation cycle, it will not withdraw or introduce any new currencies.

The 50,000-forint banknote is not coming any time soon, it seems.

“The central bank determines the denomination composition of banknotes and coins in circulation on the basis of complex criteria that take into account the operation of all actors in the cash supply chain, in which special weight is given to the analysis of retail payment methods and the examination of the role of individual means of payment in circulation,” Matolcsy wrote in his reply.

When will a 50,000-forint banknote be available in Hungary?

Photo: depositphotos.com

Portfolio highlighted seven main points from Matolcsy’s answer that justify why new banknotes are not being introduced.

These are the following regarding the withdrawal of the 5-forint coins:

  • although inflation has an effect on the purchase value of individual denominations, it has had a negligible effect on the population’s payment habits in the last two years;
  • the share of individual coin denominations in circulation has been stable for more than a decade;
  • the definition or change of the denomination structure affecting the whole of society cannot be based on a narrow analysis of the current value of metal prices, as their volatility is high.
Hungarian forint
Photo: FB/MNB

The governor of the national bank explained the following regarding the introduction of the 50,000-forint banknote:

  • according to data from the National Tax and Customs Administration of Hungary, in 2023, there were 2.23 billion cash payment transactions completed, the average value of which was only HUF 3,597;
  • large-value payments are usually not paid in cash, and the Instant Payment system available for these transactions provides a fast and reliable platform for people;
  • accordingly, the use of cash is common for lower-value transactions, which does not justify the introduction of new, high-value denominations.
  • And finally, in 2023, the amount of HUF 20,000 banknotes in circulation decreased by 0.7%. Only the amount of 500 and 1,000-forint notes circulated increased significantly, by 5.1% and 5.8%, respectively. Inflation, therefore, heightened the demand for lower-value denominations, not increasing the demand for higher-value banknotes.

As we summarised HERE, the last major changes the Hungarian currency saw were in 2008 and 2009, when the National Bank of Hungary decided to withdraw the 1- and 2-forint coins from circulation, as their production cost was higher than their value. Furthermore, since 2009, 200-forint banknotes have been changed to become coins, as well.

Read also:

  • What is happening here? Hungary’s budget deficit almost reached its full-year target by the end of March – Read HERE
  • Fiscal slippage: Rating agency issues warning to Hungary – HERE

Exciting: New planes will serve Wizz Air passengers in these European cities

The Hungarian budget airline is grappling with issues surrounding the Pratt & Whitney engines powering its Airbus A320neo fleet. However, a Ukrainian carrier appears to be helping the struggling Hungarian carrier, potentially averting a disadvantaged position in the turbulent market.

According to airportal.hu, Wizz Air is set to lease three Boeing 737 aircraft, complete with crew, until next March to service multiple routes for its passengers. The lessor, Ukrainian airline Sky Up Airlines, has been operating under Maltese permissions since the onset of the Russian invasion of Ukraine.

Leasing the new planes will cost Wizz Air an arm and a leg

Operating under a wet-lease/ACMI leasing arrangement (covering aircraft, crew, maintenance and insurance), the contract spans from 1st April to 31st March of the following year. Two of the aircraft will be stationed at the Bucharest-Otopeni base, with the third stationed at Warsaw-Chopin.

Previously, we reported on Wizz Air’s grounding of 20% of its fleet due to issues with Pratt & Whitney engines, with an average maintenance duration of 300 days. Wizz Air has announced its expectation to receive 30 new Airbus A321neo aircraft by 31st March and has extended the leasing agreements for 13 other aircraft. Additionally, three more aircraft will be leased under a dry-lease arrangement (excluding crew). Despite these efforts, the airline has had to suspend several Romanian routes due to capacity constraints.

Wizz Air Pratt & Whittney engine failure
Photo: depositphotos.com

ACMI leasing is the most expensive option in the market, yet Wizz Air anticipates compensation for the damage sustained by the Pratt & Whitney engines.

Green fuel until 2030

According to airportal.hu, Wizz Air has outlined plans to operate 10% of its flights using sustainable aviation fuel (SAF) by the end of the decade. Partnering in this endeavour is British company Firefly, which has received a £5 million investment for biofuel development.

Wizz Air engine
Photo: FB/Wizz Air

Based on the company’s announcement, their carbon dioxide emissions were 6.8% lower in 2023 compared to 2022.

Currently, Wizz Air operates 207 Airbus A320 and A321 aircraft, servicing 60.3 million passengers from January to December 2023.

Read also:

  • Wizz Air moves its headquarters to a landmark office in Budapest – Read more HERE
  • 5 supercheap but mesmerizing destinations from Budapest by plane – Details in THIS article

Featured image: depositphotos.com

Fraud around Budapest’s Chain Bridge revamp?

Chain Bridge Budapest

A recent report by the Government Control Office (KEHI) raises the suspicion of a “serious misuse” of funds concerning the renovation of Budapest’s Chain Bridge, a municipal project, Balázs Hidvéghi said on Friday.

Hidvéghi, the municipal election campaign chief of mayoral candidate Alexandra Szentkirályi, told a press conference that the city had dropped a deal negotiated with the previous leadership and awarded a contract to another company, which was HUF 5.5 billion (EUR 14 million) more expensive. The agreement also authorised a payment to A-Hid, the contractor, to receive an advance fifty times higher than that in the earlier contract,” he added.

During construction, A-Hid regularly transferred monies, amounting to a total HUF 1.5 billion (EUR 3.8 million), to Sunstrike Hungary Ltd, the chief of which company, Mór Víg, is now in pre-trial detention, Hidvéghi said. Those transfers, he suggested, were regularly followed by cash withdrawals.

“The legitimate question arises why a contract with limited scope cost more and why such a large amount of money needed to be transferred to Sunstrike Hungary . where is all that money?” Hidvéghi said and urged that Mayor Gergely Karácsony should provide an explanation.

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Fiscal slippage: Rating agency issues warning to Hungary

rating agency fitch ratings hungary

Hungary’s fiscal slippage is increasing uncertainty over debt relief, rating agency Fitch Ratings warned on Friday. It projects a rising public debt ratio by the end of this year and sends a clear message that a sustained loosening of fiscal policy could lead to a negative rating move.

rating agency fitch ratings
Fitch Ratings building in London, England. Photo: depositphotos.com

“Hungary’s (BBB/Negative) weak 1Q24 fiscal performance underscores the challenge of hitting this year’s deficit target, Fitch Ratings says. Recent fiscal slippage adds to uncertainty around the public debt trajectory,” the rating agency reported.

Rating agency issues warning

The rating agency expects Hungary to be placed under the excessive deficit procedure in 2024. They believe that the government should therefore present a multi-year consolidation strategy, Portfolio reports based on the rating agency. Fitch also recalled that the government has set a deficit target of 3.7% in 2025 and 2.9% in 2026. “Given increased budget rigidities and parliamentary elections in early 2026, we expect a 2025 deficit of at least 3.9%,” they wrote.

Fitch Ratings also noted that it does not expect Hungary to face financing challenges despite a higher budget deficit this year.

forint bank card coin money bond finance interest rate freeze
Source: Facebook/Varga Mihály

The analysts of the rating agency believe that this year’s weak fiscal performance in the first quarter highlights the risks surrounding the achievement of this year’s deficit target.

As we reported, the Hungarian budget deficit has almost reached its full-year target by the end of the 3rd month:

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