February 2009

Government to Cut Top-Up of Payment to Farmers as Part of Savings

Budget support for Hungary's farm sector will drop compared to original plans this year as part of savings decided at a cabinet meeting on February 19.

Construction Output Down 5.1 pct in 2008

Output of Hungary's construction sector fell 5.1 pct in 2008 after a 14.8 pct decrease in 2007, the Central Statistical Office reported on February 17.  

Government to Allocate HUF 1,800 bn for Construction Investments

Hungary's government will allocate HUF 1,800 billion (EUR 6.24 billion), most of which will be derived from EU funding.

IMF Official Welcomed the Structural Reforms

An IMF official welcomed the structural reforms announced by the Hungarian Prime Minister on February 16th 2009.

Richter Q4 Profit More Than Doubles on Higher Revenue, Financial Income

Hungarian drug maker Gedeon Richter’s consolidated Q4 after-tax profit jumped 136.4 pct to HUF 15.9 billion from the same period a year earlier.

Hungary Offers 30 pct of the Initial Investments to Build ESS in Debrecen

Debrecen  was nominated as the host town for the grandiose ESS pan-European project.

Government Spending to be Cut HUF 200-220 bn This Year, Says PM

The government on February 16th presented a tax package to Parliament that would effectively lower taxes paid on corporate profit and reduce the payroll tax, while raising the main VAT rate.

Consumer Price Inflation Slows Further to 3.1 Pct in January

Twelve-month consumer price inflation slowed to 3.1 pct in January from 3.5 pct in December 2008 and 4.2 pct in November of last year, the Central Statistical Office (KSH) said on February 13.

OTP Bank Q4 Profit Plunges 97 Pct on Risk Provisions, Write-Offs

OTP Bank’s consolidated fourth-quarter after-tax profit plunged 96.7 pct to HUF 1.71 billion from the same period a year earlier.

Austrian IT Holding Company Acquires Majority Stake in Hungary's Grepton

Austria's New Frontier Holding has acquired a 51 pct stake in Hungarian software company Grepton Informatikai, business daily Vilaggazdasag reported on February 12th 2009.

News Monitoring