Hungarian OTP Bank Becomes Attractive Partner in the Region

May 27th 2008

Both the Polish PKO BP and the Greek National Bank of Greece (NBG) intends to develop strong strategic partnership with the Hungarian OTP Bank. NBG is looking for a partner in the Central and East European region and became interested in either a fusion or an exchange of shares with OTP. If the Hungarian partner decides to accept the offer NBG will hold the strongest position in the South East European bank sector.

Highway Development Tender

May 27th 2008

National Infrastructure Development Zrt (NID) introduced the winners of the tender for the development of M43 highway in South East Hungary. The highway will link the two towns Szeged on the Tisza river bank and Mako, which has become strategically important recently thanks to the major natural gas supplies recovered in its region. The budget for the project is HUF 61 billion (EUR 250 million). NID will commission 4 winners to construct the different sections of the road, including a four-lane part crossing the Tisza on a bridge North by Szeged.

Pannonpower Pioneers Renewable Energy Production

May 26th 2008

Pannonpower Holding Zrt launches its reed cultivation project in order to broaden its biomass energy production in South West Hungary. Pannonpower, specialized on renewable energy resources, gives the figures of the Hungarian energy sector on its homepage and stresses that only 3-3.5 percent of the total energy consumption is covered by similar biomass-based resources. Pannonpower intends to sign contracts with farmers in three counties of the region for 15 years to harvest reed on 5,000 acres. The reed will be used for the electricity production in the power generator started up in August 2004.

International Fair in Gyor

May 26th 2008

Gyor, Hungary's major Transdanubian town will host the General Fair and the related AGROGRAAB agricultural and food industry fair from June 5th to 9th. In the framework of the two programs an international business forum and global investor's market will take place at the local Szechenyi Istvan University. The General Fair was organized by Gyor for the 18th time. If you intend to visit the event, please click here.

Hungarian Monetary Council Raises Base Rate by 25 Base Points

May 26th 2008

The Monetary Council of the Hungarian National Bank (NBH) decided on Monday to raise the base rate by 25 base points to 8.50 percent. The decision met the analysts' expectations. According to the National Bank's announcement the present requirements to hit the 3 percent inflation target in 2009 constrained the members to vote for the rise.

Telecommunication Market Expands in 2008

May 23rd 2008

Telekom 4 Telecommunication Zrt plans to offer its mobile virtual network operation (MVNO) services to the Hungarian public in 2008. The core idea of MVNO is to use an already operating telecommunication network of a major full-service provider, thus avoiding the necessity of building or purchasing an own system. Telekom 4 following the general method of MVNO intends to sign a contract with a major mobile company in the near future in order to use its network. Telekom 4 would pay a lump sum for a high number of subscriptions expecting a discount price in return. In the second step Telekom would offer a low fee of subscription for those future customers who would enter the market persuaded by the inexpensive service. According to professional analysts at least 150,000 new customers would be needed in Hungary in order to cover the investment.

Budapest Trade Segment Grows Spectacularly

May 24th 2008

Both the city center and the agglomeration of Budapest show rapid development in retail. The 19th century avenues and the modern age shopping streets including Andrassy Avenue and Vaci street offer several elegant spots for both local retailers and global brands. Besides Louis Vuitton close to the Opera the Hungarian capital hopes to welcome Gucci and Chanel in the elite villa district of the town. Meanwhile major plazas occupying tens of thousands of square meters grow like mushrooms, some of them specializing on certain sectors others offering eclectic services, like offices to rent and sport facilities.

PM Gyurcsany and President Sarkozy Met in Elysée

May 23rd 2008

Hungarian Prime Minister Ferenc Gyurcsany was on his official visit in the Elysée Palace in Paris last Thursday and signed a five-year strategic agreement with French President Nicolas Sarkozy. The Hungarian Premiere called attention to the unimpeachable Hungarian research and development capacities. President Sarkozy confirmed that France would cooperate with Hungary on the fields of biotechnology, renewable energies and agriculture. During the visit Mr. Pierre Guenant, who presides over La Baule investors' conference and received the Cross of the Hungarian Republic from Mr. Gyurcsany, announced the opening of the French-Hungarian Chamber of Commerce (FRAMAC) with 50 Hungarian and 25 French members.

Hungarian PM Encourages SMEs to Invest in Montenegro

May 21st 2008

"Hungary is the biggest foreign investor in Montenegro" - announced Hungarian Prime Minister Ferenc Gyurcsany on a press conference with Premiere Milo Djukanovic. Mr. Gyurcsany and his counterpart enumerated major Hungarian companies present in Montenegro, like OTP Bank, TriGranit and Hunguest. The speeches of the premieres also encouraged the members of the Hungarian SME sector to use the opportunities offered by Montenegro.

State-Owned Forestry Companies' Revenue Grows by 7 pct

May 21st 2008

According to the National Asset Management Council's (NVT) last week report Hungary's 19 state-owned forestry companies' revenue reached HUF 65.5 billion in 2007, 7.3 percent more than in 2006. The companies' pre-tax profit of HUF 2.5 billion was HUF 674 million higher than the previous year. All of the companies were profitable in 2007 and their ROA rose to 3.8 percent in 2008 from 2.9 percent in 2007.