The week in business and finance in Hungary
See below MTI’s and Daily News Hungary’s main business and financial news from the previous week:
WILL THE PRICE OF DRAFT BEER DECREASE DRASTICALLY IN HUNGARY?
The VAT of several restaurant services is expected to fall to 5% next year, and beer manufacturers have asked the Minister of National Economy to expand the discount to draft beer. With the support of the Kraft Beer Association, an exemplary unity was formed in the industry.
NO MORE EMPTY INDUSTRIAL PROPERTIES IN THE VICINITY OF BUDAPEST
Hungary’s industrial real estate market reached a 5.5% vacancy rate in the first half of 2017, which is a record-breakingly low rate since the measurements introduced by the Negotiating Forum of Budapest Estate Advisors.
INVESTMENTS CLIMB 26.8 PC IN Q2
Investments in Hungary rose by an annual 26.8 percent in the second quarter, albeit from a low base, the Central Statistical Office (KSH) said. Growth was strong across nearly all sectors.
ORBÁN, PUTIN REVIEW OLD BUSINESS AT TALKS IN BUDAPEST
Prime Minister Viktor Orbán and Russian President Vladimir Putin reviewed the implementation of agreements reached earlier at talks in Budapest. The sides confirmed that construction works of two new blocks at the Paks nuclear power plant would start in January 2018. Putin visited Budapest for the opening of the World Judo Championships which the capital is hosting until September 3.
HUNGARY PMI RISES TO 56.6 IN AUGUST
Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) stood at 56.6 points in August, rising from 54.2 in July, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which compiles the index, said. An index value above 50 shows expansion in the manufacturing sector, while a value under 50 signals contraction.
GOVERNMENT SUPPORTS BIG FAMILIES WITH MORTGAGE PAYOFFS
Hungary’s government said it will pay off 1 million forints (EUR 3,271) of families’ mortgages for every third and subsequent child they have from the start of next year. The measure is expected to cost the state 17 billion forints in 2018. Read more HERE.
HUNGARY ASKS BRUSSELS TO CONTRIBUTE TO COST OF BORDER DEFENSE MEASURES
Prime Minister Viktor Orbán asked the European Commission to cover half of the 270 billion forints (EUR 883.3m) Hungary has spent on border protection measures “in the spirit of European solidarity”. “We agree that solidarity is an important principle of the European community. When Hungary had to protect the common external borders, we started with immediate action and not a request for help. I hope that, in the spirit of European solidarity, we can rightly expect that the European Commission, acting on behalf of Member States, will reimburse half of our extraordinary border protection expenses in the foreseeable future,” Orbán said in a letter to EC President Jean-Claude Juncker. Opposition Jobbik has called on the government to file an official request with the European Union for the reimbursement of the full EUR 883m Hungary has spent on border protection measures since 2015.
GOVERNMENT CLEARS EUR 284M IN ADDITIONAL FUNDING FOR ANTI-TERRORISM MEASURES
Hungary’s government approved additional spending of up to 86.8 billion forints (EUR 284m) on anti-terrorism measures. The 2017 budget allocates just 100 million forints for anti-terrorism measures under the interior ministry’s chapter.
GOVERNMENT RAISES CAPITAL OF SZÉCHENYI VENTURE CAPITAL FUND
Hungary’s government raised the capital of the Széchenyi Investment Fund (SZTA), an EU-supported venture capital fund established by the state to invest in SMEs, by 8 billion forints (EUR 26.2m) and extended its run. The investment period of the fund, established in 2011, was extended until the end of 2025. The deadline for exiting its investments was extended until 2030.
KONZUM MAKES BUYOUT OFFER FOR APPENINN AT HUF 261 PER SHARE
Holding company Konzum announced a buyout offer for property company Appeninn at a price of 261 forints per share, the statutory minimum. Konzum is making the buyout offer together with Konzum Management, Konzum Private Equity Fund and Konzum Investment Fund Management, which hold a combined 33.6 percent of Appeninn at present.
DEBRECEN AIMS TO DRAW MORE SSC JOBS WITH HUF 10 BN OFFICE BUILDING
Local council-owned Debreceni Vagyonkezelő and construction company HUNÉP Universal laid the cornerstone of a 10 billion forint (EUR 32.8m) office building in Debrecen (E Hungary). The local council hopes the building will bring more than 2,000 shared service centre jobs to the city.
KÉSZ INAUGURATES HUF 1.2 BN PRODUCTION HALL
Steel structure maker Kész Ipari Gyártó, a member of construction group Kész, inaugurated a 1.2 billion forint (EUR 3.9m) production hall in Kecskemét (C Hungary). The government awarded a 583 million forint grant for the investment which will create 40 workplaces and raise annual production capacity by 30 percent.