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hvg.hu English version

Lukoil Plans Gas Station Network In Hungary

Russian oil giant Lukoil plans to establish a network of 100-120 filling stations and obtain 10% share in Hungary’s gas station market
a network of close to 40 stations in Hungary. Last year Lukoil established 19 gas stations in Hungary. Out of the estimated 1,100
... Hungary, market leader MOL Hungarian Gas and Oil Rt. operates close to 400 and runner-up Shell Hungary Rt. 179. Purchase price for the
... network, reduced its equity from HUF 1.72 billion to HUF 50 million late last year. The company, which previously went into the red

English version

EU Loosens Scrutiny

The council of EU Finance Ministers made a decision late Sunday night, which could be extremely important for Hungary. The ministers voted
... certain requirements of the stability and growth pact of EU member states. The council accepted a Hungarian proposal to modify the
for fiscal policy, said that countries introducing such large-scale reforms will be given a five-year grace period to overcome
... reforms and reduce public sector deficit to the level required by the EU. Countries that are already members of the euro zone will
... waivers from currently applied sanctions if they have to solve serious economic problems. In return, such countries will be obliged

English version

FinMin Tipped Capping Ministry Expenditures

Hungarian Finance Minister Tibor Draskovics is considering introducing a limit on expenditures of government ministries in order to stop
... increase in the central budget deficit, according to a Central East European regional survey published by London-based investment bank
Citing information obtained from local reports, DrKW said the Finance Ministry is mulling a proposal that aims to limit development
... government ministries to 35% of their planned budget in the first half of 2005. The report adds that at a recent Budapest visit of
... a move is necessary until it sees deficit figures of the first half of 2005. In this case, any possible modification to the budget

hvg.hu English version

Budapest Spring Festival Expects Record Crowd

With a HUF 1 billion – larger than ever before – budget, the 25th Budapest Spring Festival aspires to attract a record crowd. The
... three large-scale art exhibitions with the Festival to make sure the attendance record is
keep the original music and lyrics, otherwise it pays a USD 100,000 penalty to the license-holder. However, the Theater staged the

hvg.hu English version

Phone Book Of Communist Agents Found

The sophistication and diversity of Hungary’s state security system has started to become apparent to ordinary people only
book that was used by the central unit of the III/III department in 1989. The booklet includes the list of “K-lines”, which were direct phone lines
... pertain to official III/III department staff. It is not surprising, however, that numbers of other Interior Ministry departments
... were allowed to keep the special lines and the six-digit numbers after retirement. Direct phone lines connected the state security

Itthon

Adopting Euro, Expanding Economy at Stake

Ashoka Mody, Assistant Director of the International Monetary Fund’s European Department, just concluded a ten-day visit to Budapest, as
government debt surged to record high, unemployment is increasing, and the budget deficit in the first two months reached almost half
... the whole year. Prominent economists whose ideas are otherwise close to the present government’s philosophy, concluded in a recent
... country has lost its earlier advantages compared to other new EU members, the old routine of paternalistic management is coming back

hvg.hu English version

Tenth Budget Airline Starts Serving Budapest

British low cost carrier EUJet will start flights to Budapest on March 28, pushing the number of budget airlines serving the Hungarian
.... Observers say the market is approaching saturation point, while Europe’s low-cost giant Ryanair is yet to start service
2004, however does not hurt the positions of traditional airlines. “Low-cost carriers are competition to traditional airlines, but
... aimed at a different group of passengers, namely to those who otherwise would opt for other means of transportation,” said Hungary’s
... foreigners to Hungary who wouldn’t come otherwise, and we fly Hungarians who never took an airplane.” Mostly as a result of a number

hvg.hu English version

Hungary Attracts A League Of Financial Co’s

Since Hungary entered the European Union last May, the number of foreign financial companies that registered in the country has reached and exceeded
According to the registry of the State Supervision of Financial Institutions (PSZÁF), the last financial service provider that entered
... a permit. They only have to report their intention to enter Hungary to their respective market watchdog
... member states and in Iceland, Norway and Liechtenstein. Budapest Bank Rt. aims to enter Poland and the Czech Republic, to

hvg.hu English version

FinMin Promises Tax Cuts

Finance Minister Tibor Draskovics said revenue-based local industrial tax will have to be eliminated on the long
industrial tax will have to be terminated on the long run, and as a first step, it should be reduced and changed to be
.... Draskovics added that the flat healthcare tax is also likely to be abolished at the end of 2006. Regarding corporate taxes, the
... corporate tax rate can be reduced to 10% and later to half of the currently 16% in the case of companies earning not more

hvg.hu English version

German Property Firm Ups Investments in Budapest

Bonn-based IVG Immobilien AG plans to invest EUR 66 million in the Infopark office complex in Budapest by the end of 2007, IVG president
Freyend said IVG has invested more than EUR 100 million in Budapest by building 65,000 square meters of real estate and the company plans
... square-meter office building, which cost EUR 25 million to build. The building’s first tenant is software developer Freesoft, which
... square meters. IVG has a preliminary contract with Deutsche Telekom’s IT arm T-Systems, which plans to populate 3,500 square meters in

hvg.hu English version

Finance Ministry Vetoes Airport Land Purchase

State-owned Budapest Airport Rt. has to invalidate its contract with Carion group involving a HUF 4.7 billion land purchase deal, the
Carion bought former agricultural land for HUF 2,500-HUF 5,000 per square meter and sold it to Budapest Airport for HUF 24,000 per
... public utilities and building permits. Budapest Airport originally planned to build its new cargo base on the area. Budapest Airport
... Airport “should restrain from contracts involving land deals.” When asked if the ÁPV’s order referred to the contract with Carion

hvg.hu English version

OTP CEO Suspected Behind Owner Of Rotary Rt

Oil industry sources suspect Sándor Csányi, chairman and CEO of OTP Bank Rt., to be owner of the U.S.-based offshore company that owns
business comes from oil and gas company MOL Rt., of which Csányi is chairman. MOL’s board decided in 1999 to sell Rotary, which was a
... hinting that it has Csányi in the background. RMBK was established prior to it became owner of Rotary, but after 10 months of
... to ÁDI Auditing Asset Valuation and Management Kft., a company owned by György Ádámosi, a close friend of Csányi. ÁDI has acted as

hvg.hu English version

Tax Committee Unveils Reform Proposals

A special committee set up to reform Hungary’s current tax system will propose introducing two-bracket systems in corporate profit tax
While keeping the current 15% simplified entrepreneurial tax (EVA), the committee suggests to introduce a new, lower bracket – at 10% –
... brackets. Corporate profits for up to HUF 5 million will be taxed at 10%, while profits exceeding the limit will be taxed at 16%, which
... 18%, while those making more will be levied 38%. The committee proposes significant changes in the financing of municipalities, as it also plans

hvg.hu English version

Real Estate Tycoon Invests 1 Bln In Romania

TriGránit Real Estate Development Rt. has announced plans to invest EUR 1 billion in building a new city area in the Romanian
plans to build a 104,000 square-meter multi-functional city center including shopping and entertainment facilities, cultural
... Romania as the new eastern gate of the European Union. According to written materials distributed to the press at the
... the EUR 1 billion figure. The company will not restrict itself to Bucharest only, but also plans developments in other Romanian cities

hvg.hu English version

Hungary Goes Digital

The Hungarian government has approved a proposal on the strategic aims and government tasks related to the changeover to
prompted the Hungarian government to start preparations for the changeover, said the Ministry of Information Technology in a statement
... Hungary’s densely populated areas as early as in 2007. After coverage of the digital service has been expanded to the entire country
... operating analogue system will be shut down in 2012. According to the government’s plans, analogue broadcasting will continue after

hvg.hu English version

Erste To Continue Expansion

Austria-based Erste Bank is increasing the number of its branches by 20 to 170 by the end of this year, making it the bank with the
According to information from Austrian business newspaper Wirtschaftsblatt, Erste will focus its expansion on West Hungary, where it
... to a latest cooperation agreement the two companies made, Erste will be allowed to sell its current account, credit card
... services through Magyar Posta’s post offices across the country. The services are currently available in 20 post offices, and Erste plans

hvg.hu English version

Real Wages To Grow In 2005

Hungary’s economy could grow 4% this year, while inflation is expected to continue falling and real wages will keep rising, according
driven by export and investments in 2004. Due to uncertain growth prospects in Western Europe, the rate of investments could slow in
.... Real wages grew 1% in the private sector and fell 5% in the public sector last year. The latter is partly due to the fact that public
... workers were paid their year-end bonuses as late as in January 2005. Still, turnover in retail trade was up 5.7% in 2004, partly due to

hvg.hu English version

EU Gets Tough On Hungary’s Swelling Deficit

Contrary to hopes by the Hungarian government, it seems likely that Hungary can’t get away with more favorable calculations on its
outlining its plan to join the euro zone last May. In its program Hungary forecast that budget deficit will be reduced gradually
..., but it resulted in a plan with more drastic reductions towards the end, as the deficit figure for 2008 was upped to 2.8% only. The EC
... program as leaving only small reserves to meet the euro zone conditions, and has urged the Hungarian government to make

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