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BoA-Lynch Hungary - Worlds Fiscal Leader TEVA to Start EUR 65

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					January 20th 2010 | Week 4.




                                      BoA-Lynch: "Hungary - World's Fiscal
                                      Leader"
                                      January 16, 2010
                                      London-based Bank of America-Merrill Lynch has released its monthly
                                      global emerging markets report and dedicated a whole section to the
                                      Hungarian "draconian" procyclical fiscal tightening during the recent years.
                                      Read more...




  TEVA to Start EUR 65 Million                                              PRESS MONITOR
  Investment near Budapest
  January 12, 2010
                                                                            Ukrainian Arm of Hungary's
  Israeli drug maker TEVA will lay the cornerstone of a EUR                 OTP Bank Posts Double-Digit
  65 million investment at its base in Gödöllõ, on the
  outskirts of Budapest
                                                                            Retail Deposit Growth in 2009
                                                                            Bloomberg cited an unnamed source at OTP Bank as
  Read more...
                                                                            saying that the Ukrainian unit of Hungary's OTP Bank had
                                                                            double-digit growth in household deposits in 2009.
                                                                            Read more...




General Information for
Investors                             Magyar Nemzeti Bank Discontinues EUR/CHF
ITD Hungary offers general
information about investment          Foreign Exchange Swaps
regulations and company               January 18, 2010
registration in Hungary.              The Swiss National Bank, the European Central Bank, the Narodowy Bank Polski and
                                      the Magyar Nemzeti Bank are announcing that they will discontinue EUR/CHF foreign
Read more...
                                      exchange swaps, whereby Swiss franc is provided against the euro, within a term of
                                      seven days. Demand for liquidity provided by this type of operation has declined, and
Taxation in Hungary                   conditions in the Swiss franc funding market have improved. Therefore, similarly to the
The Hungarian taxation system         other three central banks, the Magyar Nemzeti Bank will conduct the last one-week
has developed to the level of         EUR/CHF swap operation on January 25 2010.
complexity found in Western
Europe. ITD Hungary supplies all
important information for
investors in order to organize
their activity smoothly in Hungary.
                                      Billions of EU Funding for Healthcare
Read more...
                                      Development - Assistance Contract of the
                                      Integrated Hospital in Szeged Signe
                                      January 18, 2010
Corporate Legislation                 Altogether 8 hospitals will be developed with the help of funding amounting to more than
Becoming familiar with local
corporate legislation is a            HUF 80 billion, made available under the New Hungary Development Plan.
prerequisite for successful           The HUF 12 billion assistance contract concerning the construction of the new block of
investments. Hungary has              the healthcare center in Szeged has just been signed. By constructing this complex
harmonized its regulations with       healthcare block, the center currently operating with 385 beds will be enlarged and
the European and international        developed into a 650-bed service facility, where, among others, it will also be possible
systems.
                                      to integrate the full range of high standard medical services for treating heart and
Read more...   vascular diseases.


               TiSUN Installs 1,500 Sqm of Solar Panels on
               Hungary's Biggest Housing Estate
               January 18, 2010
               Austria's TiSUN said it had completed the installation of 1,500 square meters of solar
               panels in a refurbishment of Hungary's biggest housing block.
               The panels will provide hot water for the building's 3,000 residents. They were installed
               as a part of a larger investment to improve the energy efficiency of the building,
               supported with a EUR 4.45 million subsidy from local and European Union funding.
               Homeowners in the building paid 27 pct of the cost.


               Robert Bosch Extends Its Hungarian Operations
               January 18, 2010
               Bosch plants in Miskolc and Hatvan, in NE Hungary, will take over the Cardiff-based
               operations until 2011. Plant director Adam Willmott told the BBC the move was "pure
               rationalizing" after a feasibility study had concluded the switch to Hungary was
               necessary. Labor costs in Hungary are 65 pct of those in Cardiff, Bosch has been
               present in Hungary since 1899 and was reorganized in 1991.


               BoA-Lynch: "Hungary - World's Fiscal Leader"
               January 16, 2010
               London-based Bank of America-Merrill Lynch has released its monthly global emerging
               markets report and dedicated a whole section to the Hungarian "draconian" procyclical
               fiscal tightening during the recent years. The section entitled "Hungary - world's fiscal
               leader" is not the first occasion that the City acknowledges the achievements of the
               technocratic government, which handled debt mitigation in a successful way. General
               deficit was expected to be around 3.9 pct of the GDP by the end of 2009 but finally
               turned out to be less.
               During the four-year-long fiscal tightening, expenses were cut by around 10 pct of the
               GDP, the largest ever in EEMEA history. BoA/ML predicts a 0.7 pct structural budgetary
               surplus, which means that the 3.8 pct GDP-ratio deficit is mostly generated by interest
               rates and capital redemptions emitted by the state, rather than the difference between
               basic spending and revenues.
               Read our press monitoring section below!




               TEVA to Start EUR 65 Million Investment near
               Budapest
               January 12, 2010
               Israeli drug maker TEVA will lay the cornerstone of a EUR 65 million investment at its
               base in Gödöllõ, on the outskirts of Budapest, on January 14, business daily
               Világgazdaság reported on January 12. National Development and Economy Minister
               Csaba István Varga and Hungarian Investment and Trade Development Agency
               Investment Director Csaba Kilián will participate at the ceremony, the paper said.


               Government to Spend HUF 2 Billion to Create
               and Preserve Jobs in 2010
               January 14, 2010
               The government will spend HUF 2 billion (EUR 7.49 million) in Labor Market Fund
               resources on job creation and job preservation in 2010, Ministry of Social and Labor
               Affairs State Secretary Gábor Simon said.
               The government has earmarked HUF 1.5 billion in support for investments creating an
               estimated 1,400 jobs, a further HUF 200 million for high added-value investments,
               projected to create 250 new jobs and HUF 444 million for a program creating 600 new
               telecommuting jobs.
               The government has allocated HUF 500 million in job-preservation funds aimed at
               safeguarding 3,500-4,000 jobs, Mr Simon said.
               In 2009 the government utilized HUF 2.5 billion in Labor Market Fund resources for job
               preservation and creation, including HUF 555 million in support for 251 companies to
               create 2,296 new jobs, Mr Simon noted.
Seven Members of the Monetary Council Voted
to Reduce the Base Rate to 6.25 Pct
January 13, 2010
On December 21, seven members of the National Bank of Hungary's (NBH) Monetary
Council, voted to reduce the base rate to 6.25 pct: Péter Bihari, Vilmos Bihari, Ilona
Hardy, Ferenc Karvalits, Júlia Király, Judit Neményi, András Simor. One member,
Tamás Bánfi, voted to reduce the base rate to 6.00.
Council members agreed that previous decisions on interest rate and comments on
interest rate policy had made it obvious that, in view of the outlook for inflation, it was
justified to continuously reduce interest rates, which the MNB was implementing
gradually.




LEGAL BRIEF
Changes in Local Business Tax Obligations from January 1 2010
Click here to read




PRESS MONITOR
BoA-Lynch: "Hungary - World's Fiscal Leader"
Bloomberg.com
Click here to read
Realdeal.hu
Click here to read

MTI-ECONEWS
To remain competitive, Hungary's economy has to grow faster than EU average - Bajnai
After the crisis, Hungary's growth rate must exceed the European Union average by two
percentage points if the country's economy is to be competitive and attract investors,
Prime Minister Gordon Bajnai said at a conference in Vienna on Tuesday.
Click here to read

Portfolio.hu
Ukrainian Arm of Hungary's OTP Bank Posts Double-Digit Retail Deposit Growth
in 2009.
Bloomberg cited an unnamed source at OTP Bank as saying that the Ukrainian unit of
Hungary's OTP Bank had double-digit growth in household deposits in 2009. The
source added that capital adequacy ratio of the Ukrainian bank is well above the
statutory limit.
Click here to read

Reuters
SNB to Stop Franc Tenders With Hungary, Poland
"Conditions in the financial markets by and large normalized already by the summer of
last year," said analyst Zoltán Török at Raiffeisen. "This is another element fitting into
the bigger picture that the crisis is easing."
Click here to read


BOOKS AND PUBLICATIONS
"Daniel Dãianu sends a very strong and important warning. The main lesson from the
crisis is that to deliver their best results in terms of growth, employment and fight
against poverty, markets must be embedded in the right set of principles and rules." -
Pier Carlo Padoan, Deputy-Secretary General of the OECD.
Click here for more information

				
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