Hungarian Watch Winter 2014
Hungarian Watch editions
The Government is willing to take over 6-7 major utility service providers
Turbulent times in the energy sector
The Hungarian retail energy sector is still in trouble. After the hectic summer the Government
continued with its price cut policy which resulted in a total reduction of 20% of energy costs for retail consumers. Utility service providers complain that they have come to their financial wall. Prime Minister Viktor Orban said that the Government is currently in talks with 6-7 major utility service providers willing to sell their Hungarian operations to the Hungarian state.
Banking sector may face consolidation
Raiffeisen and MKB plan to exit the Hungarian banking market
The recent market events evidence that the long promised consolidation of the Hungarian banking industry is closer than ever. Bayern LB, the parent bank of MKB announced that it will split MKB in a way that will increase its chance of being sold. Raiffeisen is currently considering some purchase offers in order to exit the market. On the other hand, one of the few profitable banks, OTP announced again that it would grab any opportunity for growth. Taking all into account the next couple of months may bring important changes to the Hungarian banking industry.
4G mobile spectrum auction to be held in Hungary soon
Frequency rights for sale within the 800, 900, 1800, 2600 MHz and 26 GHz spectrum
The National Media and Communications Authority has recently published the draft of the
tender document for the frequency rights within the 800, 900, 1800, 2600 MHz and 26
GHz spectrum. It is expected that the auction will be significant, as it can bring approximately
half billion Euros to the state budget. The main potential applicants are Vodafone,
Telenor and T-Mobile. Still the Authority categorically stated that it would create an equal
opportunity for both incumbents and new entrants.
The largest energy deal in Central Europe and the Balkans
The Hungarian blue-chip energy company, MOL, may sell its stake in the Croatian INA
In order to give a boost to upstream gas and geothermal sector the Hungarian Minister of National Development has recently published the calls for tenders for the exclusive right of exploration, development and production of hydrocarbons and geothermal energy under concession contracts. Bids may be submitted by 15 November 2013. Will this long awaited opportunity attract the major players in the Hungarian upstream gas and geothermal sector?
Hungarian pharmacy industry still booming
Strong appeal for investors to buy Hungarian pharmaceutical stocks
Like other Hungarian industries, the Hungarian pharmaceutical industry is facing a challenging regulatory and tax environment. However despite this fact, the Hungarian pharmaceutical industry is still one of the leading industries in Hungary. The strong economic figures and recent market events – including the purchase of Egis by Servier and the rapid increase of Richter’s stock – undoubtedly evidence that makes it worth keeping an eye on the industry developments in the Hungarian pharmaceutical industry Read more...
Hungary’s economic forecast for 2014
Stable economic growth in 2014
The Central Bank of Hungary expressed its strong financial outlook that the next year will be a promising year in Hungary. It predicted 7.4% increase of investment growth, historic low level of interest rates, moderate GDP growth, low inflation rate and the deficit of 2.5% of the GDP which is still below the 3% of GDP reference value to stay beyond the excessive deficit procedure. It seems that the Hungarian stable economic growth will continue in 2014. Read more...
A new financial watchdog
Merger of the Central Bank of Hungary and the Hungarian Financial Supervisory Authority
The Hungarian Parliament has recently decided on the full merger of the Central Bank of Hungary and the Hungarian Financial Supervisory Authority. Both the Central Bank of Hungary and the European Central Bank welcomed the merger. They believe that the integration has compelling benefits for the whole Hungarian financial system. Read more...
No barriers for cross-border company transformation
The Supreme Court decision may result in a more investor-friendly application of Hungarian Law
According to the ruling of the Supreme Court cross-border transformation cannot be banned by national law. The ruling set a Hungarian precedent by approving cross-border company transformation in respect of companies who are registered in other Member States and want to move their seat and business to Hungary. Read more...