money

Is Revolut opening a branch in Hungary?

revolut

Hungary’s Minister for the National Economy, Márton Nagy, met with executives from Revolut Bank at his office in Budapest on Thursday, sparking speculation about the topics discussed during the meeting.

Nagy meets Revolut CEO

According to MTI, Márton Nagy held talks with Revolut Bank’s CEO, Joseph Heneghan, Deputy CEO, Vytautas Danta, and Tamás Léder, the managing director of the financial services provider’s Hungarian unit. At the meeting, Nagy emphasised the importance of digitalisation for the future of Hungary’s financial services but underscored that consumers and consumer protection remain the top priorities. He added that the bank is expected to operate in a transparent manner, comply with all regulations, and fulfil its tax obligations. Revolut currently has over 45 million users globally, including 1.5 million in Hungary.

Revolut branch in Hungary

As reported by Mfor, Revolut, with its 1.5 million customers in Hungary, currently operates without a local branch but is considering establishing one. The Hungarian National Bank (MNB) has raised concerns about the difficulties of supervising the service and safeguarding customer interests when it operates solely as a cross-border service. The MNB prefers the establishment of a Hungarian subsidiary rather than a branch, as this would provide greater protection to customers through domestic deposit insurance, rather than relying on Lithuanian coverage.

revolut card payment
Photo: depositphotos.com

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Long-awaited moment: Liberty makes payroll at Dunaújváros steelworks

Dunaferr steelworks Hungary

Indian-owned steelworks Liberty Dunaújváros has paid over 3,000 employees their wages for August, on time, plus a one-off HUF 150,000 bonus, the National Economy Ministry said on Tuesday.

Ministry calls on steelworks owner

The ministry said it was following closely developments at the steelworks and had consulted with both union representatives and management. The ministry added that it had instructed the steelworks owner in August to take steps to ensure wages were not paid late again, as happened a month earlier.

Dunaferr steelworks Hungary
Dunaferr. The main gate in Dunaújváros. Photo: Creative Commons CC BY-SA 3.0

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Finance Ministry: Hungarian government respects pensioners

pensioners

Hungary’s government respects pensioners and is standing by its pledge to raise pensions, even in wartime, the Finance Ministry said in a post on Facebook on Wednesday, responding to a piece published in daily Népszava.

Hungarian government supports pensioners

The ministry pointed out that pensions had been raised by 18.5pc last year and by 6pc this year, and were expected to be bumped up by around 3.2pc in 2025, addressing an attempt by the paper to create an “uproar” over pensions citing a former state secretary who was at the finance ministry when the left-wing government at the time scrapped pensioners’ annual bonus.

The Finance Ministry noted that legislation stipulates pensions must be raised if data from January-August show average annual inflation is set to exceed the scale of the pension increase at the start of the year. The government raised pensions by 6pc in January, and average annual inflation is expected to be around 3.7pc, which means the real value of pensions will increase this year, it said.

The ministry added that the law also allows payment of a pension premium if GDP growth exceeds 3.5pc and the general government balance is on target. That premium has been paid five times since 2017, while the left wing never took any such step, it said.

Pensions have doubled since 2010 and their value adjusted for inflation has climbed over 20pc, the ministry said. The government also reintroduced the annual pensioners bonus, equivalent to a full month’s pension, which pensioners can count on getting in February, it added.

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Unveiled: How Hungary plans to spend the Chinese loan funds

green energy electric vehicle chinese loan

Hungary is set to use part of its EUR 1 billion Chinese loan to fund the installation of electric vehicle charging stations in rural areas. This move comes as the government redirects funds due to delays and uncertainties with EU recovery grants.

According to Portfolio, the Chinese loan will be allocated to this project initially planned for EU funding. The government’s decision also involves using the loan for other related initiatives, reflecting a strategic shift in funding approaches.

green energy electric vehicle chinese loan
Photo: Facebook/Energiaügyi Minisztérium

Initially, this project was planned to be funded by the EU’s recovery loan framework through an upcoming HUF 28 billion (EUR 70.9 million) grant. However, with EU funds either delayed or uncertain, the government has decided to utilize the Chinese loan for this initiative. It appears that not only will part of the HUF 28 billion grant be covered by the Chinese loan, but also a separate HUF 30 billion (EUR 76 million) EU grant for electric vehicle purchases.

Since Daily News Hungary first reported in late July about Hungary’s quiet acquisition of a EUR 1 billion loan from Chinese banks, there has been speculation about how this significant funding would be used. The Debt Management Agency’s (Államadósság Kezelő Központ) database lists only broad categories for the loan’s purpose: “Financing the central budget’s expenditures in high technology, infrastructure development, transport infrastructure, and energy sectors.”

First reports about the possible usage of the loan

National Economy Minister Márton Nagy stated the following day that this loan “will be integrated into state financing, primarily for infrastructure development.” Meanwhile, Finance Minister Mihály Varga confirmed last week that “the Chinese loan is being used for energy efficiency investments,” although the Chinese partners have not agreed to declassify the loan agreement.

Portfolio now reports that at least HUF 28 billion from the nearly HUF 400 billion Chinese loan will be allocated to expanding electric vehicle charging stations in rural areas, a project initially planned to be funded by the EU’s recovery program.

The “Installation of Electric Vehicle Charging Stations” tender, coded RRF-REP-10.14.1-24, was socially consulted in early July and was expected to open in August, but it has not yet begun. Businesses with electric charging station operator licenses will be able to apply, committing to establishing at least one charging station in one of the 45 designated underserved districts.

green energy electric vehicle chinese loan
Photo: Facebook/Energiaügyi Minisztérium

Government substitutes EU recovery funds with Chinese loans

It is highly likely that the government intends to use the Chinese loan for both the HUF 28 billion EU grant and the ongoing HUF 30 billion electric vehicle purchase grant. This is supported by two factors.

First, when the government added the electric vehicle charging tender to the REPowerEU loan project list last August, it also added the electric vehicle purchase grant. A government decree allowed for these projects to be financed by the budget if EU funds were not received or were delayed, paving the way for using Hungarian and potentially Chinese funding.

Second, on 2 July, the Ministry of Energy highlighted the EU tender for expanding the charging network while reminding that the HUF 30 billion vehicle purchase program had already started in February, also under the REPowerEU framework.

If this report proves accurate, it will be the first tangible sign that the Hungarian government is substituting EU recovery funds with Chinese loans due to difficulties accessing EU funds.

Minister Márton Nagy previously indicated that “we are entitled to this money, but the EU is blocking us for political reasons.” He added, “We continue to fight for the funds, but it seems we are encountering very tough obstacles.”

EU recovery funds still out of reach

The government has yet to meet several key milestones for accessing EU recovery funds, and recent updates suggest a lack of progress or intention to meet these requirements, making access to these funds uncertain. However, the EUR 0.92 billion advance from the REPowerEU chapter may need to be repaid if milestones are not met by 2026. Consequently, it is notable that the government has sought a EUR 1 billion Chinese loan with objectives closely mirroring those of the EU’s recovery program.

The government’s choice to use Chinese funding for the tenders, despite challenges with EU funds, can be explained by several factors:

  • According to the Ministry of Interior, the number of green license plate vehicles in Hungary has surpassed 100,000, with over 60,000 being purely electric. The HUF 30 billion vehicle purchase program and other initiatives suggest that developing charging infrastructure, along with significant upgrades to the electrical network, is crucial.
  • The transportation sector’s greenhouse gas emissions are the second highest in Hungary after the energy sector, accounting for about 20%. Following a rise in emissions over recent years, last year saw the first significant decrease, over 7%. Expanding the charging network and electric vehicle fleet could further drive this reduction in the coming years.

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33 million in EU funds used to renovate 8 castles now set for free privatisation in Hungary

Sándor Metternich Castle Hungarian castle

Hungary’s new “castle law,” introduced by Minister of Construction János Lázár, is opening the door for historic castles to be transferred to private ownership free of charge. These properties, many of which were recently renovated using millions of euros in EU and state funds, are now available through privatisation bids. Despite the significant public investment in restoring these landmarks, they will be handed over to private owners at no cost, sparking questions about the use of EU funds and the potential beneficiaries of the law.

Millions of euros spent of castles that are now being privatised

The core of the “castle law” is that the state is offering certain castles, manor houses, and estates for privatisation, many of which were recently renovated using billions of EU and state funds, often with the involvement of government-aligned contractors. To test this policy, eight recently refurbished castles have been put up for bidding. The news site Telex took a closer look at the costs involved in restoring these properties.

Sándor Metternich Castle Hungarian castle
The Sándor–Metternich Castle. Photo: NÖF

According to Telex, a total of HUF 22 billion (about EUR 58 million) was spent on the renovation of these eight castles. Each of these properties received a mix of EU and state funding, although, in every case, the EU contribution was the larger portion.

Here are the renovation costs (in euros) of the castles now up for privatisation:

  • Sándor–Metternich Castle (Bajna): 4.32 million from the EU, 1.52 million from domestic funds
  • Károlyi Castle (Füzérradvány): 4.32 million from the EU, 3.56 million from domestic funds
  • Nádasdy Castle (Nádasdladány): 3.81 million from the EU
  • Bishop’s Palace (Sümeg): 4.32 million from the EU, 0.76 million from domestic funds
  • Wenckheim Castle (Szabadkígyós): 4.32 million from the EU, 3.81 million from domestic funds
  • Esterházy Castle (Tata): 4.06 million from the EU, 3.81 million from domestic funds
  • Festetics Castle (Dég): 4.32 million from the EU, 3.81 million from domestic funds
  • Kamalduli Hermitage and Esterházy Castle (Oroszlány-Majk): 4.32 million from the EU, 3.81 million from domestic funds

János Lázár and his team started working on the castle law over a year and a half ago. During this time, it became evident that the minister had made its implementation a personal mission. After some back-and-forth, the final version was approved by Parliament in June this year, Telex reports. The essence of the law is that the state is offering 48 castles for privatisation, many of which were renovated in recent years using billions in EU and state funds, often involving government-aligned contractors.

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Hungary in trouble? Orbán cabinet issues samurai bonds

Japanese Yen samurai bonds (2)

Hungary issued JPY 39.6bn of samurai bonds denominated in Japanese yen on September 5, Friday, by issuing two series with different maturities, the Government Debt Management Agency (AKK) said.

AKK sold JPY 1.3bn of a ten-year green bond at a spread of 1.48pc over the JPY TONA mid-swap rate. t also sold JPY 38.3bn of a conventional three-year bond at a spread of 1.1pc over mid-swaps.

The lead organisers for the issues were Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities, Nomura Securities and SMBC Nikko Securities.

The proceeds from the green series will be used to finance and refinance certain green expenditures of the central budget, and the proceeds from the other series will be used for general financing purposes of the central budget.

The capital and interest payments from the Japanese Yen bonds will be swapped into euros by AKK in accordance with debt management rules.

Moody’s assigned the three-year and ten-year yen-denominated bonds issued by Hungary a “Baa2” rating, with stable outlook, the same as the rating it assigned to Hungary’s long-term sovereign debt, Moody’s said in London on Friday. The ratings are supported by a diversified economy with robust growth outlook, and the authorities’ commitment to gradual fiscal consolidation which should help to reduce the comparatively high government debt burden over the coming five years, Moody’s said.

Watchdog fines financial service provider HUF 24m

The National Bank of Hungary (NBH) has fined Capital Hitelhaz HUF 24m over collateral assessment and customer rating problems and temporarily prohibited the company from entering into new guarantee transactions, the financial market watchdog said on Friday. The NBH set deadlines for Capital Hitelhaz to correct the shortcomings and comply with the regulations.

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Featured image: depositphotos.com

Hungarian minister travelled to Beijing for more Chinese loans? – UPDATE: pact signed

national economy minister márton nagy for chinese loan

Márton Nagy is Beijing to convince the Chinese to support additional Hungarian developments. In July, the Hungarian government took out a EUR 1 billion loan but did not share what they would like to spend that sum.

According to hvg.hu, Mr Nagy met with the governors of the Bank of China and the China Construction Bank to win their support for Hungarian energetics and infrastructure developments, his ministry said. The ministry added Hungary has become the number one target of Chinese investors, highlighting that the country would like to become an economic bridge between the East and the West.

Nagy promoted energetics, digitalisation, and e-mobility projects, and the ministry said the Belgrade-Budapest railway upgrade would be ready by next summer.

Ministerial meeting for battery recycling

National Economy Minister Márton Nagy met with Chinese Minister of Industry and Information Technology Jin Zhuanglong in Beijing, his ministry said in a statement on Friday.

The ministry said the main topic of their discussion was battery recycling, which is an essential element of the green transition and for improving Hungary’s competitiveness.

The ministers agreed that an existing cooperation agreement will be expanded to include battery recycling and that a working group will be set up this year to share knowledge between the two countries.

The working group on the Hungarian side will include associations of and domestic companies operating in the sector, universities and the National Economy Ministry. On the Chinese side it will be comprised of the Ministry of Industry and Information Technology and companies included on a white list it compiles.

During the meeting Mr Nagy emphasized that Hungary strives for cooperation based on mutual respect and wishes to further strengthen its role as an economic bridge, in which Eastern and Western capital and top technology are connected in Hungary.

This was the third meeting between the ministers in a year, the statement said.

UPDATE: Minister signs cooperation pact with China culture and tourism minister

Nagy has signed a cooperation accord with Sun Yeli, China’s culture and tourism minister, his ministry said in a statement on Friday. According to the statement, the agreement was based on a dynamic increase in the number of Chinese tourists, with 105,000 visiting Hungary in the first seven months of 2024, compared with 110,000 for the full previous year.

Apart from 21 direct flight services between Budapest and seven Chinese cities, China’s unilateral decision to lift the visa requirement for Hungarians arriving in China on short trips has contributed to a strengthening of tourism ties, the statement said.

China’s visa decision “largely contributes to the development of personal and business ties” between the two countries, the ministry said.

A “spectacular” increase in the number of foreign visitors “clearly reflects Hungary’s growing attraction”, the ministry said, adding that the new agreement aimed to encourage even more Chinese tourists to visit. “To that end the goal is that a Chinese airline should set up an airdrome within Budapest Liszt Ferenc International Airport, from which Chinese passengers could be carried on to the west,” the ministry said.

The statement noted the importance of tourism in terms of the national economy. Tourism accounts for over 10 percent of Hungary’s GDP, while the sector employs some 400,000 people, the statement added.

Read also:

  • Hungarian minister meets battery recycling company executives in China – read more HERE
  • Chinese money will save the collapsing Hungarian railway system? – details in THIS article

Fidesz asks Brussels to stop financing the war in Ukraine

fidesz mep tamás deutsch

Rather than continuing to finance the war and expand the power of the Brussels bureaucracy, the 2025 European Union budget should promote peace, sovereignty and the interests of Europeans, families and nations, the MEPs of ruling Fidesz said in a statement on Thursday.

Tamás Deutsch, the head of the Fidesz-Christian Democrat delegation, has submitted a comprehensive amendment proposal regarding the 2025 budget in the name of his Hungarian ruling-party delegation and the Patriots for Europe party group, the MEPs said in a statement.

Fidesz MEP Deutsch: This is a flawed budget

fidesz mep tamás deutsch
Fidesz MEP Tamás Deutsch. Photo: MTI/Purger Tamás

In its draft EU budget for 2025, the European Commission plans to commit 199.7 billion euros, pay out 152.7 billion, and borrow 71.8 billion, the statement said. Deutsch called for “fundamental changes to the deeply flawed budget”. “Rather than promoting illegal migration, the budget should support border protection, finally protect Europe and the Europeans, and take help to where help is needed,” he said.

The group’s MEPs have called for border protection costs to be raised by 2 billion euros, and have proposed earmarking funding to cover the expenses Hungary has incurred protecting the border, the statement said. The “absurd” fine imposed on Hungary “for stopping migrants at the border” should also be deducted from that sum, they added.

It was time that the EU’s budget supported national sovereignty rather than “institutionalised political blackmail, rule-of-law jihad and gender and woke madness … while generously financing the Soros network”, Deutsch said. “We have proposed significantly cutting monies enabling the ideological blackmail of member states by 170 million euros,” he said.

The Fidesz MEP also called for a budget aimed at “bringing home the development, Erasmus and R+D funding Hungary is entitled to, instead of further exploiting the country. We propose raising cohesion funding by 10 percent, or 2.8 billion euros, and freezing 5 percent of the frameworks, some 1.5 billion euros, to ensure that the monies Hungary is entitled to is not used for other purposes or in other countries.”

The delegation also proposed raising funding for the Erasmus programme by 23 million and R+D funding by 700 million euros, he said. “We also proposed freezing some 100 million euros to ensure that Hungary’s monies are not spent elsewhere,” he said. Funding for the integration of the Western Balkans should be raised, as well as resources for young farmers and beekeepers, he said.

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Hungarian central bank governor calls for economic policy turnaround

hungarian central bank governor györgy matolcsy

Central bank governor György Matolcsy called for a complete turnaround in Hungary’s economic policy at the 62nd Itinerant Conference of Economists in Nyíregyháza (NE Hungary) on Thursday.

He argued that a loss of economic policy direction between 2021 and 2024 has undermined the achievements of the 2010s and jeopardised attainment of the goals set for the period up to 2030.

Central bank governor: Hungary has two adversaries

hungarian central bank governor györgy matolcsy
Governor of Hungarian central bank György Matolcsy. Photo: MTI/Derencsényi István

Hungary has two dangerous adversaries, Mr Matolcsy said, high and costly indebtedness and high and stubborn inflation.

Mr Matolcsy said there had been a wrong turn in economic policy, the government failed to control the budget deficit and did not join the central bank in the fight against inflation for one and a half to two years.

Mr Matolcsy said because of inflation a significant number of households and businesses suffered such a loss of wealth that “victims of the inflationary shock” have arrived: those who do not consume and those who have lost half of their reserves.

The expenses of the state budget this way increased and its revenues decreased, he added. He said it is a faulty economic policy to claim that real wage growth will automatically lead to consumption.

Real wages cover only half of incomes, the real value of pensions and social expenses did not increase, he noted.

The central bank governor said we have moved from a nearly balanced budget to a permanently high deficit, and it is unacceptable and life-threatening to carry such a deficit through the decade.

Mr Matolcsy said a green re-industrialization is needed and a new service sector because it helps to balance the current account.

Forint eases to euro on interbank forex market

The forint traded at 393.20 to the euro around 5:30 in the evening on Thursday, slightly down from 393.11 late Wednesday.

The forint was slightly up at 354.74 from 354.81 against the dollar. It softened to 418.76 from 418.28 to the Swiss franc.

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Chinese money will save the collapsing Hungarian railway system?

Budapest Hungary railway

National Economy Minister Márton Nagy met with executives of the Bank of China (BoC) and the China Construction Bank (CCB) during his official visit to Beijing. Among others, they touched some railway development projects concerning even the future Budapest Airport-city centre line, in which Hungary would need Chinese co-financing.

The talks aimed to continue the dialogue for the financing of energy and infrastructure developments in Hungary, the National Economy Ministry (NGM) said on Wednesday. The Bank of China opened its Budapest office in 1997 and the China Construction Bank has been operating an office here since 2022. The sides discussed bilateral economic cooperation, and the minister called for deepening relations further, especially in finance.
China’s global financial role continues to grow, and Hungary has become the number one target for Chinese investments in Central and Eastern Europe, which contributes to the country becoming a regional financial hub. The partnership of the Bank of China and the China Construction Bank can help more Hungarian banks enter the Chinese market and help bring more Chinese investments to Hungary, the ministry said. The Chinese partner banks focus on infrastructure projects approved by the government, including energy, digitalisation and e-mobility, presented by the ministry early this year in Beijing.
After the projected completion of the Budapest-Belgrade railway line next summer, the V0 freight rail ring road bypassing Budapest, the railway connection between the city centre and Liszt Ferenc Airport and the development of the border crossing between Hungay and Serbia could be the next strategic investments implemented in Hungary with Chinese co-financing, the ministry said.
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Hundreds of thousands of ethnic Hungarians beyond borders receive money from Hungarian government

Ethnic Hungarians in Serbia

Some 227,159 ethnic Hungarian children and youth beyond the borders are receiving support this year through the government scheme dubbed Szülőföldön magyarul, an official of the Prime Minister’s Office said on Friday.

Árpád János Potápi, the state secretary of policies for Hungarian communities abroad, said in a statement that the scheme played an important role in enabling Hungarian children and youth beyond the borders to study in their mother tongue in their place of birth.

The government has been offering this type of support since the 2002/2003 academic year. All ethnic Hungarians studying in their mother tongue in their place of birth are eligible to apply for gross 100,000 forints (EUR 250) education-upbringing support and 100,000 forints student support, he added.

This year 237,296 applications were submitted and 227,159 were approved, he said. The transfer of support will start next week and continue in the upcoming weeks, he added.

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New QR code payment system qvik to launch in Hungarian stores on 1 September

qr code payment system qvik

Starting Sunday, a new payment system called ‘Qvik’ will be available in Hungary, allowing customers to make payments through their mobile phones by scanning a QR code. According to the Deputy Governor of the Hungarian National Bank (MNB), Barnabás Virág, this new payment method aims to add convenience to everyday transactions.

From 1 September, Hungarian consumers will have access to this new QR code payment option. According to Virág’s previous announcement, shared by Portfolio, the system is expected to be widely adopted by retailers, including major supermarket chains, in the coming weeks. Stores will clearly indicate that customers can initiate payments simply by scanning a QR code, similar to how they accept card payments today.

New payment system Qvik to launch on Sunday

In developing the name for this system, Hungary took inspiration from international trends, such as countries like Sweden using “Swish” and Switzerland using “Twint.” After considering over 50 potential names, the Hungarian solution was branded as ‘Qvik,’ which will be available to all bank customers.

Qvik has several advantages over traditional card payments.

Not only will transactions be free from fees imposed by banks, but they will also be exempt from transaction taxes,

making it a cost-effective alternative for both consumers and businesses. However, users will need a bank account to access Qvik’s services.

The new system will benefit retailers and customers alike

A key benefit for retailers is the immediacy of receiving funds. While card transactions may take up to two days to settle, with weekend purchases sometimes delayed by up to four days, Qvik payments will be processed instantly.

The system, created in collaboration between the MNB, Giro, and Hungarian banks, is built on the existing Instant Payment System, which already handles domestic transfers. The goal is to offer a secure, competitive alternative to card payments, providing simplicity and efficiency for users.

While the introduction of Qvik offers convenience, its full impact on simplifying payment processes remains to be seen. Nonetheless, it is positioned as a significant innovation in Hungary’s digital payment landscape.

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Uber introduces cash payment option in Budapest!

uber taxi in budapest

Uber has adapted to the Hungarian market by introducing the possibility of paying with cash for rides in Budapest, the company recently announced. Although Uber typically operates cash-free, there are several cities worldwide where cash payments are accepted—and now Budapest joins that list.

Uber introduces cash payments

uber taxi in budapest
An Uber taxi in Budapest on the first day of its relaunch, 13 June 2024. Photo: Daily News Hungary

Passengers wishing to use cash can select the option within the app before starting their ride. If a passenger realises they don’t have enough money on hand, the app allows them to switch to a digital payment method or use a card on the driver’s terminal. Additionally, if a driver is unable to provide exact change, the American company’s customer service will assist in resolving the matter, HVG reports.

For new users, the initial cash spending limit is set at HUF 14,000. As users complete more trips, this limit may increase to HUF 20,000.

The company’s return to Budapest

Uber returned to Budapest this summer after an 8-year absence, following their departure due to pressure from the local taxi lobby. Now, the ride-sharing company operates in collaboration with Főtaxi’s subsidiary, allowing only licensed taxi drivers to participate. Pricing is strictly aligned with the fare regulations set by Budapest’s public transportation authority, BKK.

Despite these restrictions, the American company offers the advantage of a user-friendly app that makes it easy to book rides and lock in the fare at the start of the journey. Moreover, it remains a popular choice among tourists arriving in the city, who often search for Uber as soon as they land.

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Hungary to build new Danube bridge with a budget of EUR 1 billion

new danube bridge with huge budget

The Hungarian government has issued a decree to allocate funding for the construction of a new Danube bridge near Mohács and the accompanying road network. According to the decree, the total budget for the project is set at HUF 389.3 billion (approximately EUR 1 billion).

A new Danube bridge with a huge budget

new danube bridge with huge budget
PrtSc: Facebook/Pávkovics Gábor

Most of this huge sum will be spent between 2025 and 2029, while HUF 2 billion (EUR 5.1 million) will be allocated this year, Telex reports. In 2030 and 2031, HUF 100 million (EUR 255 thousand) will be earmarked each year to finalise the project. Construction and Transport Minister János Lázár has been authorised to begin spending the initial HUF 2 billion in 2023. Lázár discussed the bridge during a guest appearance at the Semmelweis Summer University, and a video of his remarks is available online.

Talks about building the Mohács Danube bridge have been ongoing for decades, but only recently has the project reached a stage where it is close to realisation. The project involves three main components:

  1. A new bridge over the Danube River,
  2. A 2×2 lane road connecting the bridge to the M6 motorway to the west,
  3. A 2×1 lane road linking the bridge eastward to Route 51, which will require the construction of a 19-kilometer stretch of new road.

The bridge will include two floodplain viaducts and a river bridge, with a total length of 756 meters. A 2×2 lane road will run across the bridge, with an adjacent bicycle path.

László Szíjj, the 6th richest Hungarian, behind the project

In April, it was announced that business tycoon László Szíjj, linked to the government, would oversee the construction of the bridge. At the time, the net cost was projected to be HUF 294 billion (EUR 749 million), which aligns with the current gross figure of HUF 389 billion. Out of this amount, the state will recover around HUF 100 billion through VAT.

Other construction firms like Strabag and Swietelsky submitted bids for the bridge, offering net proposals of HUF 309.96 billion (EUR 790 million) and HUF 316.03 billion (EUR 805 million), respectively. Last December, Minister Lázár estimated the bridge would cost between HUF 300 and 320 billion (EUR 764 and 815 million).

The plans for the new bridge, its connection to the M6 motorway, and the road network with Route 51 were developed by Speciálterv Építőmérnöki Ltd., under the direction of the National Infrastructure Development Plc. (NIF). According to the company’s website, the steel bridge will cover a total area of 18,000 square meters.

Once completed, the Mohács bridge will be the 21st bridge over the Danube within Hungary’s borders, following the Kalocsa Danube bridge, which is nearing completion and is expected to be inaugurated later this summer.

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Hungary introduces new commemorative coin honouring 800 years of Pannonhalma Archabbey

Pannonhalma Archabbey

On 28 August 2024, the National Bank of Hungary (MNB) issued a new commemorative coin in honour of the Pannonhalma Archabbey, a UNESCO World Heritage site.

Issuance of the coin marks an important date

The release of the new forint coin marks the 800th anniversary of the abbey church’s medieval reconstruction and consecration, as well as the 10th anniversary of its designation as a national heritage site, Pénzcentrum reports. The 3,000-forint coin is part of a larger series that showcases Hungary’s national heritage sites, which was initiated in 2014 by the National Heritage Institute. The Pannonhalma Archabbey coin was designed by artist Balázs Bitó.

The Pannonhalma Archabbey is one of Hungary’s most important spiritual and cultural centres and is regarded as the cradle of Hungarian Christianity. Its thousand-year-old school and one of the largest monastic libraries in the world are located here. Established in 996 by Prince Géza in honour of St. Martin of Tours, the monastery’s church was first consecrated around 1003.

Pannonhalma Abbey
Photo: Wikimedia Commons

Over the centuries, it was rebuilt multiple times due to fire and war. The current church, restored in 1224, stands as a rare example of medieval architecture, still in use today for monastic prayer. Pannonhalma was officially declared a national heritage site in 2014.

The commemorative Pannonhalma Archabbey coin

The coin commemorating the Pannonhalma Archabbey is the 11th in a series featuring Hungary’s national heritage sites. The series follows a consistent design principle: one side of each coin features an image representing the entire heritage site, while the other side highlights a characteristic detail of the site. The Pannonhalma coin exemplifies this design.

On the front of the coin, within a circular border, there is a depiction of part of the abbey’s founding charter. To the right, breaking the border, is a sculpture by Géza Stremeny of St. Maurus of Pannonhalma, emerging from one of the columns in St. Martin’s Basilica. The circular edge of the coin includes the inscriptions “MAGYARORSZÁG” (Hungary) at the top, “2024” and the mint mark “BP.” at the bottom, with the value “3000 FORINT” to the left.

The back of the coin shows the Pannonhalma Archabbey complex and its surrounding landscape, again enclosed within a circular border. At the bottom, slightly extending beyond the border, is the crest of the Hungarian Benedictines. The right side features the mark of designer Balázs Bitó. The circular edge on the reverse includes the inscriptions “PANNONHALMI BENCÉS FŐAPÁTSÁG” (Pannonhalma Benedictine Archabbey) and “NEMZETI EMLÉKHELY” (National Heritage Site), separated by the emblem of national heritage sites.

The coin is made of an alloy of 90% copper and 10% zinc, weighing 18.4 grams and measuring 37 mm in diameter, with a reeded edge. Only 10,000 pieces will be minted in this bronze-patinated finish. To ensure broad access to this commemorative coin, it will be available at face value for one year following its release, as long as supplies last. Interested buyers can purchase it starting 28 August 2024, from the Hungarian Mint’s coin shop in Budapest or through their online store.

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Is an enigmatic Hungarian businessman the world’s 36th wealthiest person with EUR 34.35 billion?

Wealthiest Hungarian businessman

The unknown Hungarian businessman’s wealth is 1.5 times bigger than the first 100 wealthiest Hungarians, including PM Orbán’s friend, Lőrinc Mészáros. He is Europe’s fifth wealthiest person and the 36th in the world. Typing mistake or real wealth is behind János György T.?

Typing mistake or existing money?

János György T. owns two companies having billions of euros. For comparison, the Hungarian government is struggling with Brussels for a similar amount of money for Hungary’s development between 2021 and 2027. The two companies submitted a one-page report saying that both firms are hybernated. That means they do not have income or expenditures. Therefore, they do not pay taxes, G7.hu found.

Journalists at the online news outlet thought Donor Ltd. made a typing mistake of three magnitudes. Such mistakes are rare but happen sometimes if the accountants write data in forint instead of thousand forints in relevant charts. Donor Ltd. is unknown even to journalists, but based on their 2023 report, they had HUF 6,534 billion (EUR 16.62 billion). That means they are in Hungary’s top 10.

The company was founded only in November 2023, and its seat is in a twin house in Budapest’s 14th district.

Zugló City Center
The new Zugló Centre designed by Zaha Hadid. Source: https://www.facebook.com/Zaha Hadid Architects/

The company’s sole owner increased capital by HUF 4,532 billion last December. G7 excluded a typing mistake because the relevant paper contains the number and the written sum. Furthermore, there are documents confirming that the owner transferred the money to the firm account. Moreover, the company has a long-term liability of HUF 2002 billion, coming from one stockholder. That means the enigmatic owner of the company put more than HUF 6,500 billion into the company last year.

The wealthiest Hungarian?

The owner has another company, the Brasil Államkötvény Hasznosító Ltd. The documents here also contain the written sums and show that the company had HUF 6,956 billion (EUR 17.7 billion) in 2023. The capital increase in that case was HUF 5,099 billion, while the long-term liability provided by the owner was HUF 1,857 billion.

The sole shareholder put HUF 13.5 thousand billion (EUR 34.35 billion) into the two companies. The wealth of Lőrinc Mészáros, believed to be the richest Hungarian, did not reach HUF 1,000 billion. MOL’s market capitalisation is only HUF 5,194 billion, while the Hungarian budget deficit stands at HUF 5,018 billion.

MOL Campus at night Russian oil Hungarian businessman
The MOL Tower in Budapest. The wealthiest Hungarian can buy it in no time. Photo: FB/MOL Campus

The Brasil Államkötvény Hasznosító Ltd. keeps the money in Brasilian state bonds, just like Donor Ltd. The expiration date is 2036. G7 could not find Brazilian state bonds with that expiration. But if the company documents are real (and a lawyer countersigned them), the Hungarian owner is one of the South American country’s biggest creditors, holding 2.5% of the entire Brazilian debt.

The only shareholder of the two companies is János György T., a Hungarian businessman living in Malta. He is enigmatic, but his name emerged in the Paradise Papers, containing 13.4 million documents of offshore investments.

flying from hungary malta pécs Hungarian businessman
Hungary’s wealthiest businessman living in Malta? Photo: depositphotos.com

Neither he nor his lawyer answered G7’s questions.

Read also:

  • Newest list of the top 10 wealthiest Hungarians out – read more HERE
  • New list of wealthiest Hungarians: Lőrinc Mészáros gained half of his wealth in a year – details in THIS article

Hungarians go shopping abroad because Hungary became too expensive

Shopping abroad Penny Hungary Easter retail sales

In the 1990s and the 2000s, it was not extraordinary to see Slovakians, Romanians or Serbians in Hungarian supermarkets close to the border. The reason was simple: Hungary was cheaper than the neighbouring countries. In the last few years, the trend reversed: Hungarians flood Romanian and Slovakian supermarkets because they can save lots of money if they go there to do their shopping. However, that means the Hungarian state loses an immense amount of taxes, which is bad for the struggling Hungarian state budget.

Shopping abroad is cheap

According to RTL Klub, a Hungarian commercial TV channel, Hungarians spent 40% more money abroad than they did in 2023. The Ministry of National Economy published the shocking increase, so we should take it seriously. The Hungarian government believes shopping abroad is one of the factors why consumption in Hungary – and the state revenues generated by the world’s highest VAT – is falling unstoppably.

The Orbán cabinet believes that is because of the many holidaymakers, but GKI writes about “shopping tourism” instead. Of course, some local subsidiaries of international chains try to attract Hungarians with Hungarian-language leaflets to their stores in Slovakia or Romania.

mandatory discounts end in hungary grocery shopping stores 20 August shops close shopping abroad
Photo: depositphotos.com

RTL Klub asked multiple Hungarian citizens living close to the Hungarian-Romanian border. One of them lives close to Nagyszalonta (Salonta), so they regularly buy food and clothes in the Romanian town with a Hungarian majority (53% in 2021). János Kiss said they could save up to HUF 15 thousand (EUR 38) with only one route.

Another local said they travel to Salonta once every ten days. He added everything was cheaper there than in Hungary, including tuna salad. Compared with Hungary, they pay half the price for liver paste in a local supermarket.

Hungary loses tax revenues

Based on the latest figures from the Eurostat, food prices are 27% lower in Romania than in Hungary. In Slovakia, that rate is 6% higher. However, that is only the average. An international chain has been advertising its products to potential customers in Hungary with Hungarian-language magazines for months. Interestingly, the Slovak state tried to oppress Hungarian language use in the Southern regions (where hundreds of thousands of Hungarians live thanks to the post-war peace pacts). Now, they publish Hungarian promotional leaflets to attract more customers from beyond the borders.

aldi store shopping 1 may 20 august shopping abroad
Aldi. Photo: depositphotos.com

They list their prices not only in euros but also in Hungarian forint. A Hungarian customer said beer costs 50% of the Hungarian price in Slovakia. Therefore, it is worth doing the shopping abroad.

The Hungarian National Economy Ministry said Hungarians spent 40% more abroad in Q1 2024 than in Q1 2024. The ministry believes consumption in Hungary falls because of the growing savings, property purchases and holidaymaking abroad.

Hungary is more expensive due to its government?

GKI believes holidaymaking means one-day shopping trips to cheaper countries like Romania and Slovakia. CEO László Molnár said more and more Hungarians discovered that Hungarian stores became very expensive compared to their Romanian or Slovakian counterparts, so it happens that they look for their favourite chain’s store beyond the border.

Shopping Hungary charity inflation multinational companies Aldi
Photo: Aldi/FB

Lajos Braunmüller, a senior analyst of Agrárszektor, said the world’s leading VAT in Hungary (27%) and the Hungarian government’s 4.5% excess profit tax paid by retail chains (or rather their customers) raises product prices by 23% in Hungary.

Consumption fell by 0.1% between May and June. That means consumption in Hungary is still below pre-COVID levels.

Read also:

  • Multinationals in trouble: Hungarian government imposes a new special tax, keeps excess profit tax – read more HERE
  • Hungarian government plans significant minimum wage increase – Could EUR 1,000 become the new standard?

Hungary’s central bank keeps base rate on hold

National Bank of Hungary central bank

Hungarian central bank (NBH) rate-setters kept the base rate unchanged at 6.75 percent at a regular policy meeting on Tuesday.

The Monetary Council also decided to keep the bank‘s O/N deposit rate at 5.75 percent and the O/N collateralised loan rate at 7.75 percent.

Barnabás Virág, the NBH’s deputy governor, said today’s pause in rate cuts was in line with the bank’s stability-focused monetary policy, but further cautious reductions may be possible in the upcoming period.

July headline and core inflation have inched higher, Virág told an online press briefing after the rate decision, noting that headline inflation again exceeded 4 percent, mainly on the back of higher food prices.

Still, the longer-term inflation outlook was unchanged and the price index would return to the tolerance band in the coming months, he said. Disinflation may start to take hold from the first quarter of 2025, he added.

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