public finances
March 12, 2010, 09:45 CET
Budapest municipal council approves Ft 539 billion budget
The Budapest Municipal Council on Thursday approved the city's 2010 budget showing expenditures of HUF 539bn and revenue of more than HUF 491bn. The budget was passed with a vote of 34 ayes and 30 nays.... [read complete entry]
March 11, 2010, 10:20 CET
Tax authority's cartoon contest cancelled due to lack of tax revenues
Because Hungarian government agencies are always just a few weeks away from announcing some type of goofy public relations contest, the national tax office APEH announced that it was planning to organize a children's story and comic-writing competition where inspectors,... [read complete entry]
March 11, 2010, 09:33 CET
State infrastructure company issues tender for building of roads to race track
Hungary's National Infrastructure Development Company (NIF) has issued a tender for construction of roads necessary to reach a planned MotoGP motorcycle track in the village of Savoly near Lake Balaton, the latest issue of the Public Procurement Gazette reveals. The... [read complete entry]
March 10, 2010, 09:37 CET
Bajnai gov't spends half of budget reserves available in first half 2010
The Bajnai government has already spent about half of the budget reserves available to it in the first half of the year. The 2010 budget contains 57.3 billion forints (EUR 214.44m) of general reserves, of which the government may spend... [read complete entry]
March 09, 2010, 09:33 CET
EC may deny Hungary €37.5 million in EU funds, daily reports
The European Commission may scrap 10 billion forints (37.5m euros) in cohesion funds for Hungary saying that the funds had been applied for on the basis of an illicit claim, the business daily Napi Gazdasag reported on Tuesday. Hungary's authorities... [read complete entry]
March 08, 2010, 09:47 CET
Hungary EU funds agency rejects corruption charges
Hungary's National Development and Economy Ministry, which is responsible for handling EU funds, rejected main opposition Fidesz's recent allegations of corruption and fraud surrounding the use of EU funds, the deputy minister said on Friday. Laszlo Varju said Hungary is... [read complete entry]
March 05, 2010, 09:53 CET
Budapest municipal budget records unexpected surplus in 2009
The city of Budapest recorded a preliminary budget surplus of HUF 23bn (EUR 86.33m) in 2009, compared to an expected deficit of HUF 18.3bn, the business daily Napi Gazdasag reported on Thursday. The newspaper attributed the municipal budget's unanticipated surplus... [read complete entry]
March 05, 2010, 09:42 CET
N Hungary national park goes bankrupt
Aggtelek National Park (ANP) has gone bankrupt with only Ft 20 million in its account, which is only sufficient to pay its staff salaries, Magyar Hírlap reports. According to the daily the Environment Ministry has transferred this sum as a... [read complete entry]
March 04, 2010, 03:13 CET
New governmental portal costing billions taken offline after a few hours
Hungary's online public administration service Ügyfélkapu ("Client Gateway", which currently has 850,000 registered users) returned to its old version after a brand-spanking new version launched on March 1 experienced many errors following its launch. According to hirextra.hu, no date has... [read complete entry]
February 26, 2010, 09:54 CET
Transparency International calls for halt to Balatonring project
Three NGOs have demanded that the government suspend financing of the Balatonring motorcycle race track at Sávoly, based on the findings of a feasibility study conducted by financial consultants KPMG. Transparency International, K-Monitor and the Civil Liberties Union have published... [read complete entry]
February 23, 2010, 09:58 CET
If tax fraud is such a big problem in Hungary, why are there so few big stories about people getting in big trouble for it?
The ongoing fiscal calamity in Greece has again brought the issue of taxes - and how some countries seem to have such trouble collecting enough of them to finance their spending - to the forefront. Why is it that in... [read complete entry]
February 23, 2010, 09:40 CET
Hungary's prime minister urges tax cuts, competitiveness
Prime Minister Gordon Bajnai on Monday urged the next government to cut taxes and social contributions with an emphasis on reducing labour taxes in order to boost Hungary's economic competitiveness. Addressing the last session of parliament before the April general... [read complete entry]
February 23, 2010, 09:38 CET
E Hungary university launches €18.4 million upgrade
The University of Debrecen has launched three development projects using a budget of nearly 5 billion forints (EUR 18.4m), mostly in European Union funds. Head of the university Laszlo Fesus and Gyula Szucs, CEO of Hunep Universal signed the general... [read complete entry]
February 12, 2010, 11:11 CET
OECD sees Hungary deficit reaching 4.1% of GDP in 2010, over gov't target
The OECD projects Hungary's general government deficit could reach 4.1pc of GDP in 2010 in a survey published on Thursday, over the 3.8pc government target. The OECD projects Hungary's GDP will fall 1pc in 2010 in its Economic Survey of... [read complete entry]
February 12, 2010, 11:04 CET
Budapest's fungus-infested main railway station molders as renovation budget dries out
A long-planned renovation of Keleti pályaudvar - Hungary's busiest railway station - would cost Ft 18 billion (over €66.2 million), but only Ft 10 million is available this year for keeping it from further deteriorating, daily Magyar Hírlap learned from... [read complete entry]
February 12, 2010, 10:13 CET
Hungary GDP down 6.3% in 2009
Hungary's gross domestic product (GDP) fell by 0.4pc in the fourth quarter of 2009 from the third quarter according to seasonally and calendar-adjusted figures, and fell an unadjusted 4.0pc and a workday-adjusted 4.1pc from Q4 2008, the Central Statistics Office... [read complete entry]
February 12, 2010, 10:02 CET
FM bumps up full-year deficit target, but GDP-term gap unchanged
The Finance Ministry said on Thursday it raised its 2010 cash flow-based budget deficit target to HUF 878.9bn from HUF 870.3bn, but the new target is still equivalent to 3.3pc of GDP. The ministry raised the target on the expenditure... [read complete entry]
February 09, 2010, 09:24 CET
Orbán offers funding to energy-saving households
If Fidesz forms Hungary's next government, it will set up a "green bank" to finance the rehabilitation of pre-fab housing estates and improvements in the homes to facilitate more economical heating, Viktor Orban, head of the main opposition party, said... [read complete entry]
February 08, 2010, 10:21 CET
State runs surplus in January, but pensions and local gov't deficits mount
Hungary's cash flow-based public finance, excluding local councils, ran a 31.3 billion forint (EUR 114.23m) surplus in January, the Finance Ministry said in a preliminary report on Friday. The central budget had a 38.8 billion forints surplus and separate state... [read complete entry]
February 05, 2010, 10:56 CET
IMF, EU delegations start post-bailout review of Hungary
Delegations from the International Monetary Fund and the European Commission on Wednesday began the latest reviews of a EUR 20bn financial support package Hungary was granted in November 2008. The quarterly review is the fifth by the IMF and the... [read complete entry]
February 02, 2010, 09:44 CET
Moody's downgrades OTP Bank's Tier 2 ratings
Moody's Investor Service on January 29 downgraded its rating on OTP Bank's Upper Tier 2 perpetual subordinated bond issue to Ba1 with a negative outlook from Baa2 pursuant to the financial service's revised Guidelines for Rating Bank Hybrids and Subordinated... [read complete entry]
January 18, 2010, 11:21 CET
MDF proposes constitutional cap on state debt
Small conservative party MDF is proposing the introduction of a constitutional limit on Hungary's state debt, Lajos Bokros, MDF's MEP and a former finance minister who authored an austerity package in the 1990s, said at a press conference in Budapest... [read complete entry]
January 18, 2010, 11:11 CET
Customs police search three Roma offices
The Customs and Excise Office (VPOP) police are conducting a search of two Budapest offices of the Hungary's national Roma self-government (OCO) and the Roma MCF party, a regional chief prosecution office spokesman said on Friday. The search follows the... [read complete entry]
January 14, 2010, 10:53 CET
Gov't to spend Ft 2 billion to create and preserve jobs in 2010
The government will spend HUF 2bn (EUR 7.49m) in Labour Market Fund resources on job creation and job preservation in 2010, Ministry of Social and Labour Affairs State Secretary Gabor Simon said. The government has earmarked HUF 1.5bn in support... [read complete entry]
January 13, 2010, 09:40 CET
FM says Hungary on track to meet budget deficit targets
Hungary is on course to meet its budget deficit target for 2009 based on European Union accounting rules, the finance ministry said on Tuesday. Hungary must meet the deficit target of 3.9 percent of gross domestic product (GDP), based on... [read complete entry]
January 12, 2010, 09:34 CET
Former HR director of Budapest transit company arrested for fraud
Eleonóra Sz. Sz., the former HR director at Budapest transport company BKV, has been placed under preliminary arrest for one month for "fraud of exceptionally large scale and other crimes," reports index.hu. Sz. had received nearly Ft 100 million in... [read complete entry]
January 12, 2010, 09:34 CET
Head of Hungary's investment and trade development agency sacked
The economy minister has recalled the head of the Hungarian Investment and Trade Development Agency (ITD Hungary) Gyorgy Retfalvi based on the results of an investigation by the Government Review Office (KEHI) that put his competence in question, the ministry... [read complete entry]
January 12, 2010, 09:17 CET
Hungary to submit new EU convergence report by end of month
Hungary will submit a review of its convergence programme on January 31 instead of the usual early December, in line with a decision taken by the EU, the business daily Napi Gazdasag reported on Monday. As a result of runaway... [read complete entry]
January 12, 2010, 09:00 CET
State to bail out EU grant winners hit by weakened forint
Hungary's National Development Agency (NFU) will compensate recipients of European Union development funding for higher costs resulting from a weakening of the forint, under a decree issued by the National Development and Economy Ministry in the latest issue of official... [read complete entry]
January 12, 2010, 08:22 CET
Analysts expect Hungary's credit-rating outlook to stabilize by year-end
Analysts interviewed by the business daily Napi Gazdasag said Hungary's negative credit-outlook could change to stable or possibly positive this year, in line with Moody's views, but an upgrade is unlikely this year, the newspaper reported on Monday. Moody's said... [read complete entry]
January 11, 2010, 12:58 CET
PM says Hungary could adopt euro by 2014 with political consensus
Hungary needs a consensus between its major political forces on adopting the euro, possibly by 2014, Prime Minister Gordon Bajnai told public television on Sunday evening. In order to start following a benign path, like the ones seen in Ireland,... [read complete entry]
January 11, 2010, 10:45 CET
Hungarian state pays out Ft 736 billion in EU funding
About HUF 736bn has been paid out under the New Hungary Development Plan, the framework for European Union development funding in the 2007-2013 budget period, National Development and Economy Minister Istvan Varga said on Friday. So far, about 38,000 applications... [read complete entry]
January 06, 2010, 12:24 CET
Bloomberg: Hungarians just a bunch of work-hating welfare cases
In case anyone out there thinks this website is too harsh in its coverage of Hungary and its various problems, just get a load of this doozy of a story put out by Bloomberg News earlier today. Entitled "Hungarians Shun... [read complete entry]
January 06, 2010, 11:02 CET
Hungary's 2009 fiscal deficit said to come in under target at 3.6% of GDP
Hungary posted a cash flow-based surplus of 205 billion forints in December, better than 135 billion surplus target, bringing the full-year deficit to 918.6 billion forints compared with the target of 992.4 billion, the Finance Minister said on Tuesday. The... [read complete entry]
January 05, 2010, 08:39 CET
President refers pension law to court for constitutional review
President Laszlo Solyom has sent the law on private pensions to the constitutional court for review, the president's office said in a statement on Monday. The president believes that it is in the public interest that the private pension system... [read complete entry]
January 04, 2010, 10:41 CET
PM says continued austerity to ensure growth in 2011
The minority Socialist government will go on with its crisis management programme until the general elections, and if the next government proceeds along the same lines, Hungary will see economic growth of up to 4 percent in 2011, Prime Minister... [read complete entry]
December 30, 2009, 11:04 CET
Report claims Hungary EU's most generous provider of aid to multinationals
Among the 27 European Union member states Hungary grants the largest direct state aid to multinational companies in terms of gross domestic product, national daily Magyar Nemzet said on Tuesday, quoting a recent European Commission report. Large companies last year... [read complete entry]
December 29, 2009, 10:36 CET
FinMin calls for reducing taxes on labor, scrapping local business tax
Hungary's Finance Minister Peter Oszko told MTI that the tax burden on labour should be reduced by further 5 percent and local business tax should be scrapped as soon as Hungary's economy enables this. These would be the most urgent... [read complete entry]
December 29, 2009, 10:18 CET
Gov't stresses feasibility of 2010 deficit target
The government's budget deficit target of 3.8 percent of gross domestic product (GDP) for 2010 is feasible, despite opposition voices claiming it is a risky budget, the government spokesman said on Wednesday. Domokos Szollar said the biggest threat and risk... [read complete entry]
December 23, 2009, 09:59 CET
Spokesman says Fidesz to follow strict budget despite talk of bigger deficit
Fidesz will not allow the budget deficit to reach 7-10% of GDP next year, former economy minister György Matolcsy told a Tuesday press conference. Fidesz chairman Viktor Orbán and deputy chairman Mihály Varga have said that the 2010 budget deficit... [read complete entry]
December 23, 2009, 09:40 CET
Fiscal Council says 2010 budget fails to meet all legal requirements
Hungary's 2010 Budget Act does not fully meet the stricter requirements of the Acts on public finance and on budget responsibility, the Fiscal Council, a body designed to review fiscal policy independently of the government, said on its website. Hungary's... [read complete entry]
December 22, 2009, 09:33 CET
Analysts surprised by shallowness of rate cut by National Bank
Analysts were surprised that the National Bank of Hungary (NBH) elected to cut key-interest by only 25 basis points to 6.25pc on Monday afternoon. The NBH had been widely expected to cut interest rates by 50 basis points. Zoltan Adam... [read complete entry]
December 22, 2009, 09:20 CET
National Bank cuts base rate to 6.25%, expects growth to return by mid-2010
The National Bank of Hungary's (NBH) Monetary Council voted to lower the base rate by 25 basis points to 6.25 percent at a rate-setting meeting on Monday. Most analysts had expected a 50 basis point rate cut, especially after twelve-month... [read complete entry]
December 21, 2009, 10:23 CET
Hungary to leave fifth tranche of IMF loan untapped
The board of the International Monetary Fund (IMF) concluded on Friday that Hungary had fulfilled the terms of its stand-by loan agreement and can now call down the fifth tranche of SDR 725.1 million (about EUR 796m). The country, however,... [read complete entry]
December 18, 2009, 10:18 CET
Finance ministry denies president's claim 2010 budget is illegal
Hungary's finance ministry rejects President Laszlo Solyom's assertion in an interview published in the weekly Heti Valasz that the 2010 government budget adopted in mid-December contains many open and intentional infringements of the law, the finance ministry announced on Thursday.... [read complete entry]
December 18, 2009, 10:05 CET
Debt agency says Hungary to favor market borrowing over bailout funds in '10
Hungary's state debt management agency AKK said on Thursday that the country planned to return to market financing next year and did not have plans to drawn down any more funds from its IMF standby loan. The AKK said that... [read complete entry]
December 18, 2009, 09:59 CET
Government said already spending 2010 budget reserves
The Hungarian government has already made commitments to spend some of next year's budget reserves, business daily Napi Gazdasag reported in its Friday issue. Out of reserves totalling just over 200 billion forints (EUR 718.5m) for 2010, the government has... [read complete entry]
December 16, 2009, 09:42 CET
Leading economic researcher says 2010 deficit "risky but appropriate"
The 3.8pc-of-GDP deficit in the 2010 budget is "risky, but appropriate", Andras Vertes, head of economic think tank GKI, said on Monday. Mr Vertes said Hungary could and should join the the ERM-2, the "waiting room" for the euro, in... [read complete entry]
December 15, 2009, 08:10 CET
FM says Hungary could lead regional peers in competitiveness after crisis
Hungary could come out of the crisis more economically competitive than its neighbours in the region, Finance Minister Peter Oszko told MTI. Small open economies stand to benefit from the pickup in global economic growth and growing demand on global... [read complete entry]
December 14, 2009, 12:13 CET
State said poised to rescue Budapest transit firm BKV from bankruptcy
Budapest's cash-strapped public transport company will be saved from bankruptcy next year as the government and the city council have agreed on the key points of bailing out the indebted BKV by providing HUF 23bn in additional funding in 2010,... [read complete entry]
December 14, 2009, 11:26 CET
Hungary's fiscal consolidation seen as model for floundering Greece
Hungary's fiscal consolidation efforts seem to be the best example that Greece should follow, a major City-based banking group said on Friday. In a note released after Greece, a eurozone member, was downgraded from the coveted "A" rating band by... [read complete entry]
December 09, 2009, 10:58 CET
European Commission figures show Hungary "leader" in state subsidies
Hungary had the highest level of state aid as a percentage of GDP in the European Union last year, data compiled by the European Commission show. Hungary's state aid, excluding support for railways, came to 2.38pc of GDP in 2008,... [read complete entry]
December 09, 2009, 10:27 CET
Court rules Statistics Office must make deficit figures available to public
The Budapest Court of Appeals on Wednesday ruled that the Central Statistics Office (KSH) must ensure public access to the excessive deficit procedure (EDP) reports it sends to Eurostat, not just the final form of the reports published after Eurostat's... [read complete entry]
December 09, 2009, 09:55 CET
Gov't plans to abolish energy subsidies by next April
The government plans to abolish gas price and district heating subsidies by April 15, 2010, the business daily Vilaggazdasag reported on Tuesday, citing information from sources close to the Finance Ministry and the State Treasury. The planned phase-out is also... [read complete entry]
December 08, 2009, 09:06 CET
Rating agency Fitch keeps Hungary at "BBB" but says outlook negative
The international credit rating agency Fitch Ratings affirmed Hungary's Long-term foreign currency Issuer Default Rating (IDR) at 'BBB' and long-term local currency IDR at 'BBB+' on Monday. The outlooks on both long-term IDRs are Negative. The agency has simultaneously affirmed... [read complete entry]
December 08, 2009, 09:04 CET
London analysts say market pressure to head off post-election fiscal easing
Market pressures are likely to stop the next government from giving up on fiscal consolidation, London-based emerging markets analysts said. In its fortnightly New Markets Analyst report, Goldman Sachs said that the 3.9pc-of-GDP fiscal target set for 2009 by the... [read complete entry]
December 08, 2009, 09:02 CET
Opposition leader says government's 2010 budget intentional fraud
Viktor Orban, the leader of Hungary's main opposition party Fidesz, said that the government's 2010 budget adopted one week ago is a fabrication intentionally founded upon inaccurate data. Speaking after a meeting at the weekend with economists who earlier signed... [read complete entry]
December 07, 2009, 08:40 CET
2010 budget targets Ft 101 billion from state asset manager
The 2010 budget targets revenue from the management of state-owned assets of HUF 101.4bn, about the same as the HUF 100bn targeted for 2009. The budget targets HUF 38bn from privatisations, including HUF 34.5bn from the sale of real estate,... [read complete entry]
December 04, 2009, 12:30 CET
FM says no bailouts for unprofitable state firms without restructuring
Loss-making state-owned companies, such as the Budapest Public Transportation Company (BKV) and railway company MAV, have to be put on a sustainable path before their debts can be consolidated, Finance Minister Peter Oszko said at a financial summit organised by... [read complete entry]
December 04, 2009, 12:27 CET
Deputy head of national asset manager resigns following criminal convicion
Fulop Benedek, deputy-CEO of Hungary's National Asset Management Company (MNV), tendered his resignation to Finance Minister Peter Oszko on Thursday. Mr Oszko accepted the resignation. Mr Benedek was sentenced on Tuesday to 18 months imprisonment, suspended for three years probation... [read complete entry]
December 03, 2009, 01:36 CET
Government to launch Ft 13 billion public works programs
The government will launch six public work programmes with combined funding of HUF 13bn (EUR 47.63m) beginning in January, Ministry of Social and Employment Affairs State Secretary Gabor Simon said on Wednesday. The programmes are expected to involve 25,000 job-seekers... [read complete entry]
December 03, 2009, 11:32 CET
PM says Hungary needs IMF support, but not more bailout funds
Hungary continues to need the support of the International Monetary Fund but will no longer draw on its USD 25.1 million dollar IMF stand-by loan, Prime Minister Gordon Bajnai said in Washington after talks with IMF Managing Director Dominique Strauss-Kahn... [read complete entry]
December 02, 2009, 12:52 CET
Struggling airline Malév seen as beneficiary of special budget write-off
Parliament on Monday gave the government a mandate to write off up to HUF 19bn of central budget receivables by the end of 2009 if doing so prevents damage of a greater amount and if it is in the best... [read complete entry]
December 02, 2009, 09:58 CET
2010 budget cuts public transport spending by Ft 40 billion
The 2010 budget, approved by Parliament late Monday, cuts spending on public transportation by HUF 40bn from 2009 to HUF 220bn, the communications department of the transport ministry said when asked by MTI on Tuesday. The budget targets HUF 153.9bn... [read complete entry]
December 02, 2009, 09:51 CET
Opposition predicts 2010 deficit to reach 7% of GDP, vows to rewrite budget
Opposition Fidesz expressed concern over the 2010 budget on Tuesday, a day after it was passed by members of parliament in a comfortable majority. Fidesz's parliamentary group leader Tibor Navracsics said the 2010 budget deficit target of 3.8 percent of... [read complete entry]
November 26, 2009, 01:11 CET
Malév CEO says "no plan B" without fresh capital, taxpayer bailout not ideal
Hungary's national carrier Malev needs fresh capital, some of it in the form of cash, but the ideal solution would not burden the country's taxpayers, CEO Martin Gauss said in an interview published in Thursday's issue of Nepszabadsag. "(Malev) needs... [read complete entry]
November 26, 2009, 11:27 CET
Merrill Lynch says Hungary to enjoy accelerating growth from early 2010
Hungary's economy is set to see accelerating growth from early next year, a major London-based investment banking group said on Wednesday. In its Emerging Markets Monthly research publication released in London, Bank of America-Merrill Lynch said that "while it may... [read complete entry]
November 26, 2009, 11:26 CET
Finance officials mull future of Hungary's welfare state
The welfare state is living its final days in Hungary, people will have to place greater emphasis in future on self sufficiency and the various forms of savings, National Bank of Hungary (NBH) vice president Julia Kiraly said at a... [read complete entry]
November 25, 2009, 11:56 CET
National Bank sees fiscal gap at 4% of GDP in '09, higher in '10
The National Bank of Hungary (NBH) expects Hungary's government deficit according to ESA to be 4.0pc of GDP in 2009 after 3.8pc last year, and 3.8pc to 4.3pc of GDP in 2010, the bank reported in its new inflation report... [read complete entry]
November 25, 2009, 11:48 CET
Hungarian state broadcaster MTV in crisis following subsidy cut
State television channel MTV has no money to pay wages or the rent on its office because it will not receive any supplementary subsidy from next year's budget, MTV executives announced after a crisis meeting yesterday. Parliament on Monday voted... [read complete entry]
November 25, 2009, 09:56 CET
PM says 2010 will be "tough" year, says employment recovery to lag
Although Hungary's economy may restart growing in the second half of 2010 and the IMF prognosticated a 4 percent GDP growth for 2011, the next year will be "very tough", Prime Minister Gordon Bajnai said at the Budapest Corvinus University... [read complete entry]
November 23, 2009, 06:20 CET
Hungarian National Bank cuts base rate to 6.50%, lowest since June 2006
The National Bank of Hungary's Monetary Council voted to lower the base rate 50bp to 6.50pc at a meeting on Monday, as expected by the market. The cut brought the rate to its lowest level since June 2006. At a... [read complete entry]
November 23, 2009, 09:19 CET
Hungary's Fiscal Council says 2010 budget still problematic
Although recently approved amendments and corrections place the quality of Hungary's 2010 budget bill well ahead of those in past years, the bill still does not fully meet the stricter requirements of the Acts on the general government and on... [read complete entry]
November 23, 2009, 09:06 CET
Government, opposition spar over "distortion" of country's economic image
Hungary's government rejects main opposition Fidesz's criticism regarding its alleged distortion of the country's economic situation, government spokesman Domokos Szollar told MTI on Friday. Senior Fidesz official Peter Szijjarto earlier said the government was "delusional" when it "continued to paint... [read complete entry]
November 23, 2009, 09:04 CET
JP Morgan upgrades Hungary, saying austerity opens scope for growth
JP Morgan said on Friday that now it recommends moving Hungary to Overweight from Marketweight in its EMBIG model portfolio, citing its quickly improving fiscal standing. The recession in Hungary was the deepest in the Central and Eastern European region... [read complete entry]
November 20, 2009, 10:51 CET
OECD projects deeper recession in Hungary than government
The OECD sees Hungary's gross domestic product falling by 6.9 percent in 2009 and 1.0 percent in 2010, slightly more than the respective 6.7 percent and 0.9 percent contractions forecast by the government, according to the organisation's latest Economic Outlook... [read complete entry]
November 19, 2009, 09:40 CET
EU, state grants to support business developments triple in 2009
Payouts of European Union and state grants to support business developments in Hungary have more than tripled in the last ten months, while the number of applications for funding that have been approved has doubled, department head at the National... [read complete entry]
November 19, 2009, 09:09 CET
Hike in pension payments to add Ft 110 billion to state budget in 2010
Pension payments in Hungary will rise by 4.1pc from January, in line with the government's projection for average annual inflation in 2010, Minister of Social and Labour Affairs Laszlo Herczog said on Wednesday. The increase will mean Hungary's 2.7m pensioners... [read complete entry]
November 18, 2009, 09:20 CET
Opposition reverses course, says not to allow fiscal gap to grow
Hungary's conservative opposition Fidesz, if it wins the parliamentary elections next spring, will not pursue a policy which would deliberately raise the budget deficit, Mihaly Varga, Fidesz's deputy chairman told a news conference on Tuesday in reaction to a statement... [read complete entry]
November 18, 2009, 09:17 CET
Ombudsman denounces 2010 budget as not sufficiently green
The draft budget for 2010 does not stipulate sufficient measures which would guarantee environmental sustainability, a statement by the environmental ombudsman released on Tuesday said. Sandor Fulop had already urged the government to design next year's budget with environmental, social... [read complete entry]
November 17, 2009, 09:05 CET
Politics bringing reform of public transport to halt
Political pressure has slowed down the process of restructuring Hungary's public transport system, but the plan has not been completely watered down, government commissioner in charge of the task Karoly Antali said in an interview published in daily Nepszabadsag on... [read complete entry]
November 17, 2009, 09:00 CET
European Commission says Hungary's finances improving, but warns on deficits
Hungary has made good progress in its economic programme, and the country is not requesting the release of international assistance as its access to market finance improved markedly and external financing needs strongly reduced, the European Commission (EC) said in... [read complete entry]
November 17, 2009, 08:34 CET
Hungary not to call down next scheduled installment of IMF bailout loan
Hungary will not call down the next installment of its IMF loan, and it is preparing an agreement on postponing the call-down of its next installment of a loan from the European Union, Finance Minister Peter Oszko said at a... [read complete entry]
November 17, 2009, 08:31 CET
2010 deficit target realistic, says IMF delegation head
Based on the budget structure approved for 2010, Hungary's 3.8pc-of-GDP general government deficit target for next year is realistic, IMF delegation head James Morsink said at a press conference on Monday, after the delegation completed a review. The IMF would... [read complete entry]
November 16, 2009, 09:17 CET
London analysts say Hungary "on path to recovery" despite dismal Q3
Hungary is now "on the path to recovery" despite preliminary growth figures that have shown a still deeper-than-expected recession in the third quarter, and the Hungarian economy is set to grow next year, London-based emerging markets analysts said on Friday.... [read complete entry]
November 16, 2009, 08:53 CET
Hungary's Q3 GDP plunge steeper than expected as firms deplete inventories
Analysts asked by MTI on Friday said Q3 GDP fell more sharply than expected as companies continued to use up their existing stocks, retail trade contracted, and the farm, services and construction sectors dropped more steeply than projected. Hungary's GDP... [read complete entry]
November 13, 2009, 11:07 CET
Körmend ready to operate local hospital
The local council of Körmend, west Hungary, decided at an emergency meeting on Thursday to take over the local hospital from private hands. The facility was transferred to Medisyst five years ago but the private health care company will not... [read complete entry]
November 12, 2009, 10:16 CET
PM says Hungary must stick to euro timetable
Hungarian Prime Minister Gordon Bajnai said in a press interview that Hungary would be able to introduce the euro ahead of Poland and the Czech Republic if it follows the course set by next year's state budget. The relatively strong... [read complete entry]
November 12, 2009, 10:15 CET
IMF said worried about fiscal slip in Hungary
This year's budget deficit is likely to be bigger than the government's target of 3.9 percent of gross domestic product, and the International Monetary Fund is asking tough questions about whether Hungary can stick to its targets, Nepszabadsag daily said... [read complete entry]
November 11, 2009, 09:54 CET
PM says Hungary's next government must continue reforms
Hungary's next government must carry on implementing reforms to successfully transform the country's tax system, health care and state railway MAV, the prime minister said in an interview posted on political-economic weekly Figyelo's web site fn.hu on Wednesday. Hungary's deficit... [read complete entry]
November 11, 2009, 09:48 CET
Executives at state companies can still draw big salaries under new law
The several million forint monthly salaries of state company chief executives are not in danger, as the bill passed by Parliament on Monday limiting such salaries applies to new contracts only, Magyar Nemzet writes. The new bill sets a maximum... [read complete entry]
November 10, 2009, 09:11 CET
Government selling operating rights for 13 state vacation resorts
The Prime minister's Office (MeH) is selling operating rights for 13 state-run vacation resorts through open public procurement tenders, government spokesman Domokos Szollár announced on November 5, stressing that the real estate will remain property of the state. According to... [read complete entry]
November 09, 2009, 05:25 CET
FinMin defends government's 2010 budget against opposition's criticisms
Finance Minister Peter Oszko said on a television program on Sunday evening that the government's 2010 budget is sustainable, maintaining that government job-preservation initiatives will moderate the rise in unemployment next year, even if they can not halt its growth... [read complete entry]
November 06, 2009, 10:29 CET
Baker Tilly, Deloitte win tender to audit National Development Agency
A consortium led by Baker Tilly Hungaria and Deloitte Business Management Consulting have won the net HUF 60m open public procurement tender called by the National Development Agency (NFU) to perform its internal audit plan this year and in 2010.... [read complete entry]
November 05, 2009, 10:02 CET
Gov't says willing to re-acquire stake in Malév, downplays risk to taxpayers
The Hungarian government is willing to acquire a stake in national carrier Malev and take part in financing the company in the future, but not through spending taxpayers' money, Finance Minister Peter Oszko said on Wednesday. Russian state-owned bank Vnesheconombank... [read complete entry]
November 05, 2009, 09:59 CET
PM says worst risks of financial crisis over, but export threat remains
Hungarian Prime Minister Gordon Bajnai said on Wednesday that the worst risks of the crisis are over, Hungary has turned away from the edge of the cliff. Interviewed by CNBC television, the prime minister said, however, that the global crisis... [read complete entry]
November 04, 2009, 02:34 CET
Budapest public transit operator's new business plan: suing overpaid former executives
Perpetually cash-strapped Budapest public transport operator BKV is now suing some of its former executives to get back over Ft 100 million (€360,000) it paid them over the previous years, nol.hu is reporting based off an MTI piece, which itself... [read complete entry]
November 04, 2009, 12:10 CET
Opposition spokesman says 2010 fiscal gap to greatly exceed gov't estimates
The main opposition party Fidesz projects a budget deficit of 5-7pc of GDP in 2010, although the party -- if it takes office after general elections in the spring -- wants to do its best to prevent the deficit from... [read complete entry]
November 04, 2009, 09:40 CET
Oszkó says gov't moves promise long-term growth; sliding forint no danger
Oszkó says gov't establishing conditions for long-term growth; forint no danger The government's current crisis-management measures and tight budget policy will give the country an advantage in the long term, establishing the conditions for economic growth when the upturn starts,... [read complete entry]
November 04, 2009, 09:36 CET
Parliament passes main elements of 2010 budget
Hungary's parliament on Tuesday evening passed the main figures of the government's 2010 budget bill. Expenditure is set to be 13,533 billion forints with a cash-flow-based deficit of 870 billion forints excluding local governments. Revenue is planned to be 12,662... [read complete entry]