7days, 2005. április 25

7/28/2019 7Days, 2005. április 25.

http://slidepdf.com/reader/full/7days-2005-aprilis-25 1/25

1051 Budapest, Hercegprímás utca 19 Tel: 354 3290 Fax: 354 0130 Mail: [email protected]

03 June 2013Business Huawei makes Bp regional center

Philips suffers from low monitor demandBosch plant to double revenue in 2005Marketline shows Axelero 40% growthMFB prolongs loan to NA

Matáv lowers Internet feesKempinski expands Rác spa and hotelTVK successful in 2004Ózd-Diósgyör steel lawsuitThree more low-fare carriers add Bp to timetablesMinistry and Veszprém save Ajkai CrystalSchneider carries on growingMOL announces drop in fuel prices

Economics Treasury has regulation deficit - SAOChemical industry overviewConstruction output up adjusted 28.6% in February

Financial sector’s profits will lag behind growthPolitics PM fires Finance Minister Draskovics

Parliament fails to pass constitutional amendmentOpposition Fidesz launches poll for president

Domestic Hungarian Radio seeks presidentGovt decree ends common land

Stockwatch BUX Close: 16,665.33 Change: -463.14 (-2.70%)Exchange Fixed Middle RateWeather Tomorrow: rain

2

mailto:[email protected]


7/28/2019 7Days, 2005. április 25.



03 June 2013Business FinMin says 4-month deficit Ft 245 bln

Malév reports Ft 2 bln lossBÉT may introduce Ural crude early 2006Magna-Steyr mulls plant in NyíregyházaCBA stores defect to Reál

MAN mulls Miskolc plant Albacomp doubles notebook salesChill hits Fevita refridgerator partsDiósgyör steel relaunched and hopefulPack upgrades plants for qualityVontoble bank mulls Budapest branchSpar to open 20 shops in Hungary this year Praktiker plans no new store openings in 2005 Autodesk buys Colorfront46 products recalled in Hungary in 12 monthsSzabolcs Gabona changes name

Economics Foreign working capital tops Euro 44 bln in 2004Gross wages up 7.9% yr/yr in FebruaryForint falls to 7-month low on Draskovics firingFarmers subsidies processed

Politics Papers to apologize to Budapest mayor, court rulesDomestic Combined pass for BKV, MÁV, Volán

Drug abuse redefined to meet AB decisionGreens launch nationwide campaign to ban GM food

Stockwatch BUX Close: Change: 16,652.91 down by 12.42 points or 0.07%Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

3



7/28/2019 7Days, 2005. április 25.



03 June 2013Business Baring sells stake in printers

Power Plant signs for Ft 11.4 bln in loansMalév flies Athens to Dublin, HelsinkiDuna TV to start 2 Internet channels Atradius insures deals worth Ft 350 bln

Erste Leasing profit of Ft 1.7 blnGerling-Konzern pulls out of Hungary Auchan splits activitiesLand registry office to send sms or e-mail on changesSkyEurope/Sterling coop to Copenhagen4 new co's at Gy?r Indust. ParkFt 10 mln in gas stolen from MOL refineryRába's HAS profit, 33% of IFRS profit Alliance fights illegal software

Economics ÁSz: Budget not transparent enough PSzÁF: banking profitability extraordinary

Chocolate to get more expensive from AugustCompanies mull court re business tax38 million to Esztergom cityInvestors turning to fundsPolice to get 1,000 new cars from fall

Politics Committee gives nod to PM investigation PM highlights education priorities

Domestic Books by new pope sold out in a day 12th international book fair opens ThursSulinet vendor terms too strict

Stockwatch BUX Close: : 16613.66 Change -39.25; ( -0.24%)Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

4



7/28/2019 7Days, 2005. április 25.



03 June 2013Business Zwack projects unchanged profits

Keler to pay Ft 2 bln dividendDanubius to reinvest all ’04 profitsVCP uses BorsodChem stake as c’lateralKemira set to grow in Hungary

Currus prepares tanks for desertBrau not paying dividendM4 communication tender Bauhaus comes to HungaryGLS to set up PaketShopMOL launches Euro 450 mln loan Again no dividend from TVKPSzÁF fines another ING fund

Economics Veres pledges clampdown on tax evasion Analysts expect 25bp rate cut at Monday meetingIndustrial Parks in boom

Hungarian Slovakian workforce agreementFlu resulted in high state funded drug salesTruckers mull protest against taxPension, health fund assets increase 33%

Politics By-elections to be held in SopronPM to extend parliamentary session

Domestic Center for Democracy to set up in Bp Archaeological finds unearthed along m’way

Stockwatch BUX Close: 16381.92 Change : -231.74, ( -1.39%)Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

5



7/28/2019 7Days, 2005. április 25.



03 June 2013Business OTP, Denizbank deny rumors about deal

FHB approves Ft 200-per-share dividendRaiffeisen may sell more sharesÉmász to pay no dividendElm? to pay Ft 14 billion dividend

Ft 18 bln to be spent on electricity networkHeathrow operator eyes BudapestMÁV seeks Ft 30 bln loanZalaegerszeg okay Ft 2.5 bln developmentMOL buys back sharesBalaton Furniture Ft 2.1 bln in rev.MFB plans Ft 5 bln in investmentsHarkány to supply water for Med Gate

Economics Retail sales volume up 2.4% yr/yr Veres - political appointment say analystsH'way toll, fuel prices anger truckers

Eva revenue Ft 3.4 bln moreStudents may 'hire purchase' laptopsSugar companies to offer sugar for interventionTake-up on Bp warehouse market fallsPolicemen to receive 10% more for overtime

Politics Support for Socialists falls below 20% Sopron by-election again invalidFidesz reports Ft 500 mln deficit in 2004

Domestic Pope sends best wishes to HungariansStockwatch BUX Close: 16621.26 Change: +239.34, (+1.46%)Exchange Fixed Middle RateWeather Tomorrow: showers

6



7/28/2019 7Days, 2005. április 25.



03 June 2013BusinessOTP, MOL against joint bourse in SlovakiaHungary’s four-largest companies by market value, OTP Bank Rt, oil company MOL Rt, drugmaker GedeonRichter Rt and telecom Matav Rt, oppose an Erste Bank der Oesterreichischen Sparkassen AG plan to create acentral European bourse in Bratislava, Napi Gazdaság said yesterday. OTP Deputy Chief Executive CsabaLantos called it „totally absurd” to move the regional exchange’s base to a place where the market has not beenliquid for a decade, Napi Gazdaság reported. MOL said it will not leave Budapest and list elsewhere, and wants tomove into a market rather than delist from one, MOL Chairman Zsolt Hernadi said, the daily reported. Richter islobbying to keep the Budapest bourse open, the company’s Chief Executive Erik Bogsch said, according to NapiGazdaság. (Bloomberg)

Huawei makes Bp regional center Chinese telecommunications hardware manufacturer Huawei decided to expand their current Budapest office intoan East European trade center, increasing staff numbers from 6 to 80. Huawei’s reasons include the facts thatBank of China has a Hungarian office, and Hungary has the biggest Chinese community in the area. Dependingon the regional turnover, the company is planning to invest in production sites in the country, as well. (Vg 5) M.M.

Philips suffers from low monitor demandDutch company Philips’ earnings decreased by 79% due to the drop of the LCD monitor prices. In the first quarter the company’s net profit was 117 million euro as opposed to last year’s 550 million. Philips expected its earnings

to be around 156 million in the period. The fallback in earnings can be explained by the weak demand for the LCDmonitors. The poor performance will not have an effect on the Hungarian operations. The company has alreadysold its Szombathely LCD producing plant, and no cutback is expected at the Székesfehérvár plant, Péter Blázsevác, the company’s communications officer said. (MH 11) Fr. Sz.

Bosch plant to double revenue in 2005German engineering giant Bosch’s factory in Hatvan, 60km from Budapest, expects to double revenue this year, just like last year, Thomas J. Schonenberg, who heads Bosch’s units in Hungary, announced yesterday. Boschemploys 2,000 people in Hatvan, and plans to hire 1,000 more over the next several years. Last year, the factorygenerated Euro 250 million in sales, double revenue a year before. This year the factory aims for sales of Euro500 million. The factory has turned out dashboards, engine controlling units, automatic gears, windscreen wipersand break system control units and stabilising systems for 15 million cars since starting operations in 1998. Inaddition to the factory in Hatvan, Bosch has factories in Eger and Miskolc. Bosch’s three factories in Hungary

generated revenue of about Euro 450 million last year up from Euro 249 million in 2003. (Econews; Nv 5 MH 11)Marketline shows Axelero 40% growthMatáv Rt subsidiary Axelero Marketline Kft achieved 40% yr/yr growth in the electronic goods auction turnover in2004, equal to Ft 35 billion. Compared to the upset price, their clients saved 14% on average, while purchasingservices and products through Marketline. Sales revenues increased by 18% yr/yr, reaching Ft 500 million. (Vg 5)M.M.

MFB prolongs loan to NABecause of previously unforeseeable events, the Hungarian Development Bank (MFB Rt) has prolonged the Ft158 billion loan to the National Highway (NA) Rt by six months BUBOR+0.5%. Loan conditions were previouslynot disclosed by the Economy Ministry. The loan was provided to help finance the 2005 highway construction andthe related investments. (Vg 4) M.M.

Matáv lowers Internet fees

Matáv Rt is reducing prices of Open Internet Services from April 15th. Besides the development of its broadbandservices, Matáv still holds its modem-access services to be of strategic importance, which resulted in thesimplification of the price structure. Net access will cost 5 Ft from 7 AM-12 AM as opposed to its former 9 Ft 7 AM-6 PM and 6 Ft 6 PM-12 AM. Costs for the night will remain 3 Ft. The service was introduced in 2003, offeringInternet access for no initial fees or connection costs. Some 110 thousand people used the service in March2005. (Nv 5) Fr. Sz.

7



7/28/2019 7Days, 2005. április 25.



Kempinski expands Rác spa and hotelThe construction of a five star Kempinski Hotel and Spa Rác was officially started in the Rác Garden today. TheFt 5 billion investment will be completed by September 2006. The Budapest Municipality owns 25% of the projectcompany, Rác Nosztalgia Kft, and the rest of the equity is in the hands of private investors. The general contractor is Hungarian Constuction Rt. The investment is a result of a public private partnership, as the sate supports theconstruction with Ft 750 million non-reimbursable loan as part of the Széchenyi Plan. The HungarianDevelopment Bank Rt (MFB) is also providing Ft 3.25 million financial support for the investment. Besides thestate, MKB Rt and private investors also extending loans. The investment not only includes the construction of the3-story, 55-room hotel but the enlargement of the old spa. After completion the Kempinski chain will beresponsible for the operation of the establishment. (Nv 5; MH 16) Fr. Sz.

TVK successful in 2004 As a member of the MOL group, TVK Rt closed a very successful 2004. It increased its turnover by 17%, its netprofit by 71%, and its cumulated EBIT grew by 192% thus reaching Ft 12.2 billion. These outstanding results wereattributed to higher cost efficiency, better leverage of the production capacity, and better collateral productioncapacity. Some 55% of TVK’s turnover was realized in Hungary, and the most significant export destinations werePoland (20%), Germany (17%), and Italy (15%). (NG 7) E.C.

Ózd-Diósgyör steel lawsuitGerman company Max Aicher-owned Ózd Steel Plant (OAM) Kft is suing the Diósgy0r Steel Plant (DAM) Kft,which belonged to the Swiss-Ukranian group of Donbass, for being sold to Európahíd 2003 Kft unlawfully. Theowner of OAM wants to get a court statement commanding DAM to stop production. In the first round, the courtdid not support the statement - the lawsuit is to continue in May. DAM employs 1200 workers producing 1200 tonsof steel a day, and their plans for the year includes the production of 343 thousand tons of steel and 327 thousandtons of rolled goods, while turning over Ft 50 billion. DAM owner has already invested Ft 5.4 billion to restart thefactory, and is planning on performing a Ft 10 billion investment in the future. (NG 4) E.C.

Three more low-fare carriers add Bp to timetablesThree new low-fare airlines started making scheduled flights to Budapest in 2005, and a fourth is expected toappear on the market in June, Ferihegy International Airport operator Budapest Airport Rt announced yesterday.Eight low-fare airlines were offering scheduled flights to Budapest at the end of 2004. Denmark’s Sterlingappeared on the market in February 2005, the UK’s EUJet started services in March and Sweden’s Malmo Aviation started regular flights in April. Finland’s FlyNordic is expected to start offering scheduled services toBudapest in July. A total 445,420 passengers or 30% of all passengers using Budapest’s Ferighegy airport flewwith low-fare airlines in Q1, 2005. Last year low-fare airlines accounted for 15% of the traffic at Ferihegy airport.

(Econews)Ministry and Veszprém save Ajkai CrystalThe Ministry of Labor and Veszprém county’s labor office saved well-known crystal producer Ajkai Kristály Kftfrom immediate bankruptcy. Ajkai Kristály, a 127 year old company currently employing 860 has been goingdownhill for three years now, with losses totaling Ft 430 million in 2004. CEO Zoltán Katzer blames the lasting,unfavorable exchange rate, which has caused the export-oriented firm a Ft 1.5 billion loss in turnover. Thanks tothe Ft 201 million assistance from the ministry and the Ft 5 million subsidy from the county’s labor office, 726workers can retain their jobs for 4 months; majority owner Fotex Rt. promised to keep the factory running for anadditional 6 months. (Nb 6) M.M.

Schneider carries on growingFrench electric equipment production factory Schneider Electric continues to expand its Hungarian productionfacility, confirmed the Zalaegerszeg-based factory, SE Hungária Kft CEO Norbert Sziva to Napi Gazdaság.

Expansion became necessary because of the growth in demand in Central and Eastern Europe and the growth of production costs in Western Europe. The production hall will be doubled in size by 2006 and an extra 30 workerswill be needed. The company plans to have net profit of Ft 4 billion, about three times the 2004 figure. SEHungária’s customers include MOL Rt and TVK Rt. It sells 75% of its goods in Hungary while 25% are exported,but it aims to reverse this ratio by next year. (NG 5) E.C.

MOL announces drop in fuel pricesFuel prices in Hungary will drop from Wednesday as a result of a decrease in crude prices in internationalmarkets, Hungarian oil and gas company MOL announced yesterday. The price of petrol will drop by Ft 2 to Ft256.50 and the price of diesel by Ft 3 to Ft 249 per liter, but different petrol stations and oil companies maydeviate from this. MOL increased the price of petrol and diesel on 9 April and prices reached an all-time highbenchmark. Fuel prices in neighboring countries to the south and the east are Ft 50-60 less per liter than inHungary. (MTI; Nv 5)

8



7/28/2019 7Days, 2005. április 25.


7/28/2019 7Days, 2005. április 25.



DomesticHungarian Radio seeks presidentThe application deadline of the competition for the Radio presidency was closed today. The evaluation processstarts this Wednesday, and the advisory board will reach its final decision in one month. The prime runner for thepresidency is said to be György Such, former vice president of the Hungarian National Television (MTV). Thesecond potential president could be György Bernáth, former news officer at TV2. József Szalay, vice editor of Rádio Petofi is also among the candidates. If the advisory board fails to reach a 2/3 majority in voting, it will have

to open a new competition for the position. In this case current vice president, János Hollós will take over theadministration for departing president, Katalin Kondor, until the final decision is made. (Nv, 3) Fr. Sz.

Govt decree ends common land A government decree is soon to be passed which will end the concept of undivided common land. A transitionperiod of 5 years is envisaged, costing Ft 6 billion, Ft 1.2 billion of which has already been secured from thisyear’s budget. The distribution of the lands once belonged to Production Cooperatives (TSz) have already takenplace, however, these properties cannot be sold or only with significant restrictions. By March 2002, 240 thousandowners had indicated that they wish to have their own separate land registration number. The problem is that thepieces of land cannot be accurately delineated, and if one of the partial owners would like to have their own pieceseparated from the rest, it raises the question of which piece to be separated from where. Lawyers expect thelandowners to compromise in this matter, and if no agreement is reached, the owner of each piece will beselected by a draw. (NG 1) E.C.

StocksBUX Close: 16,665.33 Change: -463.14 (-2.70%)Stock Closing price Daily change (%) Average price VolumeMOL 15,760 -1.3 15,706 752,789Matáv 860 -1.7 855 2,159,365OTP 6,050 -4.9 6,118 1,808,361Richter 26,450 -1.3 26,407 19,657Egis 16,600 -0.9 16,482 8,561 Antenna 4,520 -0.6 4,525 21,991TVK 5,190 0.8 5,181 6,465Rába 725 -3.3 727 10,059Budapest Stock Exchange

Exchange RatesFIXED MIDDLE RATE In forints Apr 18, 2005 National Bank of HungaryEUR 1 248.40USD 1 191.39GBP 1 363.60CHF 1 160.59JPY 100 178.14CZK 1 8.25PLN 1 59.61

Weather

Tomorrow: rainHigh 10°C (50°F)Low 1°C (33°F)

10



7/28/2019 7Days, 2005. április 25.



03 June 2013BusinessFinMin says 4-month deficit Ft 245 blnHungary’s fiscal deficit will reach Ft 729.2 billion in the first four months of the year, or 3.3% of projected annualGDP, calculating with the Finance Ministry’s deficit projection of Ft 245 billion for the month of April. The ministryannounced the figure yesterday. The four-month deficit projection is equivalent to 71.3% of the target for thewhole year. The year-end GFS deficit, excluding local councils, is expected to be Ft 1,023.4 billion, or 4.6% of projected GDP. Tamás Katona, state secretary at the Finance Ministry, blamed the burgeoning four-month deficitfigure on Ft 250 billion in extraordinary expenditures. The ministry expects a Ft 244.6 billion monthly fiscal deficitin April on top of a Ft 484.7 billion deficit in the first three months of the year. (Econews; Nb 1, NG 1, MH 13, Nv11)

Malév reports Ft 2 bln loss According to a document presented at a conference for the Committee of Tourism last Tuesday, Malév Rt’srevenue was Ft 125.699 billion, with costs of Ft 127.810 billion, resulting in a Ft 2.111 billion loss last year. In2003 the company’s revenue was Ft 113.785 billion, its expenditure was Ft 118.092 billion, giving a loss of Ft4.307 billion. The board will be discussing the company’s 2005-2006 budget next week. Malév’s financial positionis stable until 2006, and no state subsidy is needed, János Gönci, Malév CEO said. (NG 5) Fr. Sz.

BÉT may introduce Ural crude early 2006The Budapest Stock Exchange (BÉT) and the Budapest Commodities Exchange (BÁT) could introduce a Ural

crude contract developed together with the New York Mercantile Exchange (NYMEX) early in 2006, the BÉTannounced yesterday. The exchanges will work on the details of the contract, which will be for 1,000 barrels of oil,in the second half of this year. The contract will be paid for in cash, and its settlement price will be determinedwith the help of an independent organisation. The contracts will be traded on the BÁT’s MMTS system andprocessed by Hungary’s Central Clearing House and Depository (Keler). The exchanges announced plans tointroduce the contract back in February. (Econews)

Magna-Steyr mulls plant in Nyíregyháza Austrian Magna-Steyr AG and Co KG, Europe’s number one Austrian automotive supplier, is mulling Hungary asone potential location for its new regional production plant, business daily Világgazdaság said yesterday. Thecompany is currently in talks with the Economy Ministry about the investment and it has already visited a possiblesite in Nyíregyháza. According to Világgazdaság, Hungary was picked due to its good infrastructure, high-qualitylabor and relatively low bureaucratic red tape. Magna-Steyr is also considering Slovakia and Romania for the

project. The Austrian automotive firm, which has contracts to manufacture BMW, Saab and Mercedes brands, hadsales of $6.2 billion in 2004. (Tue Vg 1) S.F.

CBA stores defect to ReálThe directors of retailers CBA Alföld Kft decided to join Reál’s domestic system, bringing the total number of retailstores Reál Hungária Rt has seduced from CBA Kft to 41. Store layouts will be changed next week, and theswitch will not have an effect the ownership of the company. Last year, CBA Alföld’s trade volume was above Ft12 billion, and it was active throughout Csongrád county. Earlier in April Élésker Kft and Maus Kft also becamemembers of the Reál group. With the accession of the 62 stores and 3 warehouses, Reál is gaining an annual Ft27 billion at CBA’s expense. (NG 5) Fr. Sz.

MAN mulls Miskolc plantGerman truck manufacturer MAN AG may build a plant in Miskolc. The city is one of the four possible locations;two of them are in Poland (Wroclaw and Starachowice) and one in Slovakia (Kosice). Although the decision has

not yet been made, experts believ the two Polish towns stand a better chance. In Miskolc two industrial parks maybe in the running, one on the site of former Diósgyor Machine Factory, and the other in Miskolc-alsózsolca, asuburb of the city. The company wants to start production in the new factory next year or at latest in 2007, so thelocation has to been chosen by the end of May. (NG 4) G.R.

Albacomp doubles notebook salesSzékesfehérvár-based Albacomp Rt doubled its notebook sales last year, and plans to increase sales by 50% in2005, said the company in a statement. According to IDC Hungary Kft’s latest IT survey, thanks to mobility andwireless technologies notebook sales could be boosted 17.1% yr/yr by 2009. Albacomp gained a 7.3% share inthe notebook market in 2004. ‘In the first quarter of 2005 we raised our notebook sales by 44% compared to thesame period in 2004. This year we aim to achieve a 10% share of the notebook market,’ said Csaba Deme,deputy CFO of Albacomp. (BBJ Online)

11



7/28/2019 7Days, 2005. április 25.



Chill hits Fevita refridgerator partsSzékesfehérvár-based refrigerator parts producing company Fevita Rt is facing hard times due to a glut of suchproducts since EU accession. In the worst-case scenario, the company’s loss will be about Ft 200 million by theend of 2005. The board is expecting this year’s loss to be around Ft 85 million. With the help of the crisismanagement measures taken last year, Fevita is expected to have positive earnings by 2006-2007. At themoment, Fevita is one of the least liquid companies on BUX and only 12 000 of its stocks were exchanged thisyear (NG 12) Fr. Sz.

Diósgyör steel relaunched and hopefulThe recently relaunched Diósgyör steel plant in north-eastern Hungary is operating at ¾ capacity, Béla Tóth,managing director of DAM 2004 Kft, the plant’s operator said. After years of loss-making production, the plantwent bankrupt last September and was bought out by the Ukrainian Donbass group, which since then has spentover Ft 5 billion to revive the once-thriving steel producer. Tóth said the company’s main priority this year is to winback lost contracts. DAM, which manufactures 70% of products for German and Italian companies, is hoping toregister revenues of Ft 45 billion in 2005. (Nb 7) S.F.

Pack upgrades plants for qualityPackaging group PAck said it is investing Ft 500 million to upgrade production technology at three of its plants,two in Budapest and one in Veszprém, western Hungary. Antal Pelcz, managing director of DR-Pack II. Kft saidthe investment is aimed to boost product quality in a bid to counter growing competition from Asia. He added thatPack had patented four new technologies last year which would bring sweeping new changes to plastic stretchfilm production. The first new production line is expected to be up and running in May. PAck said it was also intalks to sell the technology to German partners. The company posted revenues of Ft 3.4 billion on group level lastyear. (Tue Vg 12)

Vontoble bank mulls Budapest branchSwiss bank Vontoble may open up a branch in Budapest, the company announced at the Hungarian event of itsinternational road show. The Zurich-based company is 40% owned by Vontoble family, it had after-tax profit of CHF 95.3 million last year, and has already invested CHF 750 million in Eastern Europe 15% of which wasinvested in Hungary. (NG 4) G.R.

Spar to open 20 shops in Hungary this year Austria Spar International AG will open 20 new Hungarian outlets in 2005, business daily Vilaggazdasag reported.Spar, which purchased several chains in recent years including 22 Hungarian Kaiser’s stores from theTengelmann Group in 2003, plans to open four hypermarkets and 16 supermarkets in Budapest and in provincialtowns, boosting the number of its stores to 174, the newspaper reported, citing no one. Spar Hungary Trading Kftposted sales of more than Ft 184 billion in 2004, up 30% from the previous year, Vilaggazdasag said.(Bloomberg)

Praktiker plans no new store openings in 2005German do-it-yourself chain Praktiker plans to open no new stores in Hungary this year, because of a nearlysaturated market and a slowdown in spending by Hungarians. Praktiker will continue updating its existing storesbut will not open any new stores in Hungary until 2006, Karl-Heinz Keth, managing director for Praktiker’sHungarian unit, said yesterday. Although Praktiker will not report last year’s results for several weeks, Keth saidthe figures would probably show the company had matched 2003’s gross revenue of Ft 42.5 billion. The companyplanned unchanged revenue for 2004. Praktiker has changed its strategy in Hungary to focus on the sale of moreexpensive, higher-quality products, Keth said. (Econews; NG 4)

Autodesk buys ColorfrontCalifornia-based Autodesk Inc. is buying Hungarian company Colorfront Kft for Ft 2.9 billion. The acquisition willbe completed by the end of May. Colorfront was founded by the Jászberényi brothers in the 90’s, and is the prouddeveloper of Lustre, software used in Spiderman 2, Passion, Lord of the Rings, and in several Pixar animationmovies, like The Incredibles. In 2003 the company’s revenue was Ft 256 million generating Ft 86.93 milllion pre-tax profits. Employees will continue their work as part of Autodesk Hungary Kft. (NG 5) Fr. Sz.

46 products recalled in Hungary in 12 monthsIn the last twelve months, 46 products were recalled in Hungary because of faulty manufacturing or because theyposed a hazard to consumers - the second-highest figure in the EU, according to a survey published byPriceWaterhouseCoopers. Only in Germany were more products recalled. Recalled products in Hungary includeda gas lighter, a suitcase lock, an electric hand mixer, a steam iron, a soldering iron, a stun gun, a hair dryer andmany toys. Since the EU introduced the General Product Safety Directive in January 2004, almost three times asmany products have been recalled in member states than before. (Econews)

12



7/28/2019 7Days, 2005. április 25.



Szabolcs Gabona changes nameSzabolcs Gabona Holding Rt is changing its name to ABO Holding Rt. The company is operating in the mill,fodder and grain sectors, and affiliates names will also change. From April 1st Szabolcs Grain Tradeshousebecomes ABO Trade Rt; Alföldi Malomipari Rt will be ABO Mill, and Szabolcs Takarmányipari Rt becomes ABOMix Rt. After completing acquisitions and developments in both Hungary and abroad the holding has become oneof the regions most important cereal company. ABO’s revenues rose from Ft 40 billion to Ft 50 billion Ft in 2004,and its expected to increase by 25%, to Ft 63 billion by the end of 2005, Kerezsi Miklós, vice-CEO said. (NG 4) Fr.Sz.

EconomicsForeign working capital tops Euro 44 bln in 2004The working capital of foreign-owned companies operating in Hungary totaled Euro 44 billion in 2004, over fivetimes higher than ten years ago, figures released by the National Bank of Hungary (MNB) showed. In 2002-2003,Hungary regained its top spot in the CE European region as the country with the highest real foreign directinvestment, while in absolute terms, Hungary came third after Poland and the Czech Republic Top investors inHungary include Germany, the Netherlands, Austria, the USA and France. (Tue Vg 8 - correction)

Gross wages up 7.9% yr/yr in FebruaryGross monthly wages rose 7.9% yr/yr in February to Ft 144,850, the Central Statistics Office (KSH) announcedyesterday. Net monthly wages rose 9.4.% yr/yr to Ft 96,524. Real wages rose 6% yr/yr in February, Econewscalculated, based on the rise in net wages and February’s twelve-month CPI of 3.2%. In the first two months of

2005, gross wages rose a sharp 17.5% yr/yr, pushed up by public sector annual bonuses - usually the equivalentto an entire month’s pay - for 2004, which were paid out in January, instead of in December. Excluding the effectof one-off bonuses and other contributions, gross wages rose 7.1% yr/yr in January-February, KSH reported. Netwages were up 16.5% yr/yr in January-February, including one-off effects. (Econews; NG 3, MH 11, Nb 12)

Forint falls to 7-month low on Draskovics firingThe Hungarian forint fell to its lowest in seven months after Prime Minister Ferenc Gyurcsány dismissed Tibor Draskovics as the nation’s finance minister. Gyurcsány told reporters at a press conference in Budapestyesterday he had replaced Draskovics with János Veres, a member of the ruling Socialist Party, to push aprogram of cutting taxes and government spending. Draskovics, 50, has been Hungary’s finance minister since2004. He will leave his post on April 25. Against the euro, the forint fell to 249.96 by 10 AM in Budapest, its lowestsince Sept. 15 2004, from 248.36 late yesterday. It earlier fell to as much as 250.66. The currency, which may fallto 252 per euro next week, probably will not weaken to more than 255 per euro, Bethell said. (Bloomberg; NG 3,Nv 11, Nb 14, MH 12)

Farmers subsidies processedProcessing of land-based farmers’ subsidies has been completed, and 99% of the grants will be paid by April 30,Minister of Agriculture and Rural Development Imre Németh said. Nearly 208,800 claims arrived in total, for 5,134,000 hectares of land. About 7,000 of them were rejected and in 2,500 cases the subsidies were returned tothe budget. (Nv 5) G.R.

PoliticsPapers to apologize to Budapest mayor, court rulesThe Budapest Municipal Court ruled yesterday that three newspapers charged with libeling Budapest Mayor Gábor Demszky regarding holiday property in Croatia must publish apologies, the mayor’s lawyer said. Threedaily newspapers, Budapesti Reggel, Magyar Nemzet and Színes Bulvár Lap, published articles early in Februaryaccusing the mayor of misleading the Croatian tax authorities by falsifying information on the purchase contractfor a holiday residence on the Adriatic coast and using unregistered labour to refurbish the building, Péter Mátyássaid. (MTI)

DomesticCombined pass for BKV, MÁV, VolánFollowing over a decade of failed attempts, a combined pass valid on all public transport services within theBudapest area is due to be introduced this fall. The new type of season ticket, which passengers will be able touse on all MÁV trains, Volán buses and BKV vehicles in Budapest, will cost 10% more than the all-round BKVpass currently available and is a bid to make transportation easier and overall cheaper for some 3.3 millionpassengers living or working in the capital. (Tue Vg 1)

13



7/28/2019 7Days, 2005. április 25.



Drug abuse redefined to meet AB decisionThe definition of drug abuse currently contained in the Penal Code has to be altered before May 31, 2005 toconform to a Constitutional Court decision, the justice minister told parliament yesterday. Currently different typesof drugs are treated differently under international and national law, so the two have to be brought into line,Justice Minister József Petrétei said. The new law will conform to the Constitutional Court ruling and recognise thenarcotic and psychotropic agent lists issued internationally as valid for Hungary, the minister said. In other words,it will clearly state the agents that have to be considered illegal drugs from the point of view of the criminal code.(MTI; Nv 4)

Greens launch nationwide campaign to ban GM food A Green organisation launched a two-week nationwide campaign yesterday to raise public awareness of thedangers of genetically manipulated foods and to encourage municipalities to declare themselves ‘gene-manipulation-free zones’. Activists from the Hungarian Federation of Nature Conservationists (MTSz) will travel tonine cities where they will group around a huge inflated tomato and collect signatures. Programme manager Robert Fridrich said that the signatures would be submitted to the local authorities in a lobby effort calling on themto declare their municipality and its neighbourhood ‘gene-manipulation-free’. (MTI; Nv 12)

StocksBUX Close: Change: 16,652.91 down by 12.42 points or 0.07%Stock Closing price Daily change (%) Average price VolumeMOL 15,990 1.5 15,897 205,229

Matáv 850 -1.2 852 1,447,206OTP 5,995 -0.9 6,052 2,074,744Richter 26,490 0.2 26,652 17,428Egis 16,200 -2.4 16,108 19,094 Antenna 4,500 -0.4 4,507 12,709TVK 5,145 -0.9 5,150 2,441Rába 725 0.0 721 17,051Budapest Stock Exchange

Exchange RatesFIXED MIDDLE RATE In forints Apr 19, 2005 National Bank of HungaryEUR 1 249.82USD 1 192.33GBP 1 366.56CHF 1 161.59JPY 100 179.09CZK 1 8.24PLN 1 59.55

Weather Tomorrow: p/cloudyHigh 10°C (50°F)Low 1°C (34°F)

14



7/28/2019 7Days, 2005. április 25.



03 June 2013Business

Baring sells stake in printers

Baring Corilius Private Equity, the Central European investment arm of Baring Private Equity Partners Group, saidit had sold its 42.92% holding in the Hungarian printing company Állami Nyomda (ÁNy) Rt. The minority stake hasbeen taken over by another shareholder, Láng Holding Rt, which now holds 76.28% of ÁNy, and the printing

company itself. The capital invested by Baring had been used by ÁNy to finance the construction of its newprinting house, which had revenue of around Ft 10 billion last year. (NG 1) S.F.

Power Plant signs for Ft 11.4 bln in loans

The Miskolc Thermal Power Plant yesterday signed for Ft 11.375 billion in loans from K&H Bank Rt which it willuse to build a new, more modern power plant, the Hungarian Electricity Works, the plant's owner, announced. Theloans include a Ft 9.975 billion project loan, a Ft 400 million operating loan and a Ft 1 billion VAT financing loan.Work on the new plant has already started and the plant is expected to be operational by Q1 2007. The plant willsave the city of Miskolc (NE Hungary) Ft 450 million a year. (Econews; NG 5)

Malév flies Athens to Dublin, Helsinki

Malév Rt, will start flights from Athens in July, the first time the carrier is expanding away from its Budapest base.Malév will fly three times a week between Athens and Dublin, the only scheduled flight between the Irish andGreek capitals, Malév said in an e-mail today. The carrier also will begin flying three times a week between Athens and Helsinki, compete with one weekly Finnair Oyj flight. The Malév flights begin in July. (Bloomberg; NG4, Nv 5, MH 11)

Duna TV to start 2 Internet channels

Satellite public service channel Duna TV plans to launch two new channels on the Internet, chairman LászlóCselényi announced. Channel Autonómia will broadcast about ethnic minority problems and wants to supportautonomy in Hungary and Central Europe. Channel Unió will become a youth, educational and music channelrelying on Duna's archives, Cselényi said. The decoders necessary to receive the new programs will cost about €150-200. (Nv 3, Nb, 3 NG 5) M.K.

Atradius insures deals worth Ft 350 bln

Atradius Credit Insurance insured business deals worth Ft 350 billion in Hungary last year, the company saidyesterday. Hungarian companies and foreign companies accounted for equal parts of Atridius's contracts. Atradius controlled 11% of Hungary's Ft 2.5 billion credit insurance market last year. Atradius had revenue frompremiums of nearly Ft 260 million. Atradius has been present in Hungary since 1996, first under the name GerlingKonszern Insurance, and, since January 2005, as Atradius. (Econews; NG 5)

Erste Leasing profit of Ft 1.7 bln

Erste Bank's leasing unit had pre-tax profit of Ft 1.7 billion and total assets of Ft 106.7 billion last year, ErsteLeasing said yesterday. Erste Leasing was formed from the merger of leasing companies owned by Erste Bank Rtand Postabank Rt following the merger of the two banks in September 2004. Erste Leasing's profits in 2004exceeded the combined profits of its two predecessors in 2003. Erste Leasing laid out new loans of close to Ft 74billion last year, including Ft 62 billion in car financing. This year, Erste Leasing's management expects the newcar financing market to contract 5-10%. (Econews; NG 5)

Gerling-Konzern pulls out of Hungary

Insurance broker Gerling-Konzern Kft will wind up its operations in Hungary by the end of this year, the companyannounced. The State Financial Institutions Supervision (PSzÁF) has suspended Gerling-Konzern's permit untilJune 30, 2005 at the end of March, because Gerling failed to present the required liability insurance. Gerling later presented the document, however, the company's owner German Gerling Allgemeine Versicherungs AG plans tostop Gerling-Konzern's activity in Hungary, because the mother company established its own insurance branch inHungary. (Wed. Vg 19) M.K.

Auchan splits activities

Auchan Hungary Kft is splitting its activity into 3 independent companies. One affiliate will be responsible for hypermarket operations, the other two will be in charge of the real-estate maintenance of commercialdevelopment and retail outlets. Due to the reorganization process hypermarket and real estate activities will be

legally separated at Auchan. In 2004 the company's revenue was 184 billion Ft, which is below Auchan's targetlevel, Jean Paul Filliat CEO said. In 2005 Auchan is expecting a revenue around 25 billion Ft. (Nv 5, MH 13) Fr.Sz.

15



7/28/2019 7Days, 2005. április 25.



Land registry office to send sms or e-mail on changes

Land registry offices plan to offer a new service in a few months. Clients will be informed by e-mail or sms if anownership change request has been submitted to the office about their property. The digital real estateregistration system will be finished all over Hungary in two years, as an attempt to prevent the work of apartmentmafia. Land registry offices have considerably reduced the number of cases waiting for processing, from 275,000in December 2002 they declined to 3,000 by now. (Wed. Vg 1) M.K.

SkyEurope/Sterling coop to CopenhagenLow-cost airlines SkyEurope and Sterling have signed an agreement on having joint flights on the routeBudapest-Copenhagen-Budapest. From May SkyEurope and Sterling will fly five times per week on the route.Three flights will be operated by SkyEurope, two by Sterling. Sterling has already signed similar agreements withits partners Norwegian Air Shuttle and FlyNordic concerning other flights to and from Budapest. (Wed. Vg 13)M.K.

4 new co's at Gy?r Indust. Park

Four new Hungarian companies purchased space at the Gy?r International Industrial Park (GyIIP) yesterday.GyIIP has offered premises for industrial activity since 1991, hosts 62 companies at the park, and it is becomingmore popular with Hungarian clients. With the 4 new members, the number of Hungarian companies at the Parkrose up to 28. The new companies start development next year, and construction is expected to be accomplishedby 2006, László Balogh, GyIIP CEO said yesterday. (Nv 5) Fr. Sz.

Ft 10 mln in gas stolen from MOL refinery

The National Investigation Bureau arrested a group of criminals who have regularly been stealing gas from MOLRt's Szászhalombatta refinery. The quantity of fuel stolen throughout last year is about 1 million L; its estimatedvalue is above Ft 10 million. The investigation found that night-guards and the security service were cooperatingwith the criminals, who pumped 50-100 thousand L gas into their tank cars each time. The stolen fuel wasdistributed amongst truck drivers; none was sold to gas stations. MOL did not comment on the events. Tuesday,MOL signed contract with a new security company. (Mh 7) Fr. Sz.

Rába's HAS profit, 33% of IFRS profit

Vehicle and vehicle parts maker Rába Rt recorded after-tax profit of just Ft 458 million last year, calculatedaccording to Hungarian Accounting Standards, compared to after-tax profit of Ft 1.6 billion listed in its IFRSstatement. Rába's AGM proposals, published late on Tuesday, show that the company plans to pay no dividend. All of Rába's units were profitable last year, with the exception of F?t?m?. The parent company recorded profits of Ft 832 million, while subsidiaries Alkatrész and Járm? reported profits of Ft 193 million and Ft 396 millionrespectively. F?t?m?, which has the biggest turnover within the group, had losses of Ft 793 million. (Econews)

Alliance fights illegal software

Business Software Alliance Hungary (BSA) said yesterday it is launching a new Ft 10 million - 15 million mediacampaign to encourage companies to use legal software. About 42% of Hungarian companies use illegal softwareproducts, according to the BSA, compared to an average 36% of all companies in new EU member states. Thecampaign will focus special attention on SMEs, among which the rate of illegal software usage is 10-15% higher than that among big companies. (Econews)

Economics

ÁSz: Budget not transparent enoughThe head of Hungary's State Audit Office (ÁSz), Árpád Kovács, yesterday gave poor marks to government effortsto make the budget more transparent. Kovács said the government had failed to outline the responsibilities of private investors in Public Private Partnership schemes being used to finance big public infrastructure projects.Neglecting to do so could leave the state with losses, while its business partner walks away with a profit, headded. Kovács said the public sector needs to be modernized if it is to become more transparent. (Econews; NG3, MH 3, Nv 5, Nb 12)

PSzÁF: banking profitability extraordinary

Hungary's banks had overall after-tax profit of Ft 275 billion in 2004, up 58% from 2003, extraordinary profitabilityeven in international terms, financial markets regulator PSzÁF said in a report published yesterday. The weightedROA of the bank sector rose from 1.50% to 1.97%, and ROE rose from 17.06% to 23.40%. The ROE of Hungarian banks is much higher than that of banks in old (8.3% in 2003) and new (10.9%) EU members. Theimproved profitability of Hungarian banks was a result of more assets, a stable interest margin and improvedoperating efficiency, PSzÁF said. Hungarian banks intermediated more capital in 2004 than a year before(Econews; MH 3, NG 4, Nv 5)

16



7/28/2019 7Days, 2005. április 25.



Chocolate to get more expensive from August

Chocolate prices may rise by 5-10% from August in Hungary to to difficulties in raw material purchase, managingdirector of Bonbonetti Kft Sándor Sánta said. Cocoa butter costs 20-25% more on the world market this year thanlast year, because Ivory Coast cut some of its cocoa export after the tense situation in the country, Sánta said.Sugar prices have also increased in Hungary by 10-15% since May last year, that's another factor contributing tohigher chocolate price, Sánta said. (Wed. Vg 1) M.K.

Companies mull court re business taxSeveral companies are considering launching a series of test cases in the coming months to claim back localbusiness taxes from local municipalities, which are thought to have been unlawfully levied since Hungary's EUentry last May, a joint conference held by Deloitte and the American Chamber of Commerce said. According toEU regulations, member states can collect only one type of turnover tax, however, the local business tax is aquasi-VAT, tax experts said earlier. The European Court of Justice is currently hearing a similar case concerningItaly's IRAP, a regional income tax, and is widely expected to rule against it. (NG 1) S.F

38 million to Esztergom city

Esztergom City Local government won Ft 38 million to improve Hungarian-Slovakian Cross-border CooperationProgram, said the government in a statement. The amount is to create an effect-study of the new train andvehicular bridge between Esztergom-Párkány. The city will finance the Ister-Granum Venture-Logistic Areastrategic program from the HUF 38 million. The construction of the new bridge and the creation of the economicarea will boost enterprises in that region. (BBJ Online)

Investors turning to funds

Investment funds assets are at a record breaking high. Two years ago the steady inflow of capital into InvestmentFunds was interrupted by the departure of Ft 400 billion, mainly due to increasing interest rates, which devaluatedbonds issued earlier that year. Now, as a result of falling interest rates and rising stock prices, assets held byinvestment funds reached Ft 1,362 billion. In March the inflow of capital was Ft 102 billion. With little hope for further drop of interest rates, investors are expected to turn to less risky real estate and monetary funds. (Nv 5) Fr.Sz.

Police to get 1,000 new cars from fall

The government decided to authorize the leasing of a thousand new police cars from autumn onwards,government spokesman András Batíz said after the cabinet meeting yesterday. Minister of the Interior MonikaLamperth said the police and other civilian security agencies will lease 3,000 new cars in a public procurementprocedure. Lamperth said the tender was under preparation. The new cars will be leased and entered into serviceover the coming three years. Lamperth said withdrawing from service the police force's outdated cars, which wereput in service before 2000, will save Ft 700 million. (Econews; NG 4, Nb 2, MH 2, NV 3)

Politics

Committee gives nod to PM investigation

Parliament's procedures committee yesterday accepted the opposition Fidesz party's motion for setting up aninvestigation committee to look into the assets of Prime Minister Ferenc Gyurcsány and his family. Fidesz MPPeter Szijjártó said an investigation was needed to find out how the prime minister's businesses were connectedto the state and how public money had contributed to his wealth. The deputy said that Gyurcsány's assets hadincreased by Ft 100 million in 2004 and by Ft 83 million the year before, adding that the prime minister's wife had

not made a public statement about her financial situation. (MTI; MH 2)PM highlights education priorities

At a university student's forum on Tuesday, Gyurcsány declared the renewal of the Hungarian Public EducationSystem as the second pillar of the National Development Plan. According to a survey, some 20% of theHungarian population does not have a secondary school degree, and 73% have problems with readingcomprehension. The population's literacy deficiency lessens their chances on the EU labor market and decreasesthe long term competitiveness of the Hungarian economy. (Nv 1, 3) Fr. Sz.

17



7/28/2019 7Days, 2005. április 25.



Domestic

Books by new pope sold out in a day

All books published in Hungarian by the newly elected pope were sold out in Budapest yesterday, the publisher said. Until yesterday, the Saint Stephen Publishing Company had 400 copies of Joseph Ratzinger's God and theWorld, which came out in 2004, but all copies were bought in one day, director Oliver Farkas said. Another bookby the new pope, Salt of the Earth, was published in Hungarian in 1994 and reprints of both books have already

been ordered and expected to be ready in two weeks, Farkas said. (MTI; Nv 1,3, MH 4,10)12th international book fair opens Thurs

New works by Hungarian writer György Spiro, Brazil's Paulo Coelho and Colombian-born Gabriel Garcia Marquezwill feature at this year's international book fair to be opened on Thursday. The 12th fair of this kind will be held inthe city's Convention Center from Thursday to Sunday, with guest of honor Coelho and Russian literature put intothe focus of attention, festival director László Péter Zentai said yesterday. György Spiro's new novel Captivitypromises to become this year's literary sensation, while Coelho's new autobiographical novel O Zahir is already atthe top of book lists, he said. (MTI; Nb 1, NV 6)

Sulinet vendor terms too strict

The IT Ministry's impending third round of Sulinet tender for IT equipment suppliers have sparked an outcryamong vendors, who said that around 90% of the businesses who now act as Sulinet suppliers would not be able

to meet the tender's new excessively rigorous terms. Under new conditions, only distributors operating at least ahundred stores in the country can apply to become suppliers, while they are also required to provide a guaranteeand undertake to replace faulty products within 15 days. (NG 4) S.F.

Stockwatch

BUX Close: : 16613.66 Change -39.25; ( -0.24%)

Stock Closing price Daily change (%) Average price Volume MOL 16,170 1.1 16,129 313,659 Matáv 837 -1.5 839 2,221,104 OTP 6,000 0.1 6,016 2,170,618 Richter 25,550 -3.5 25,900 12,920 Egis 16,005 -1.2 16,047 7,678 Antenna 4,500 0 4,471 10,394

TVK 5,180 0.7 5,160 934 Rába 700 -3.4 707 33,956

Exchange

FIXED MIDDLE RATE In forints

Apr 20, 2005 National Bank of Hungary EUR 1 249.18 USD 1 191.07 GBP 1 365.82 CHF 1 161.36 JPY 100 178.64 CZK 1 8.23 PLN 1 59.76 Weather

Tomorrow: p/cloudy

High 9°C (49°F)Low 2°C (36°F)

18



7/28/2019 7Days, 2005. április 25.




Zwack projects unchanged profits

Shareholders of Zwack Unicum Rt, Hungary’s best-known spirits maker, yesterday approved the company’sbusiness plan for the business year started April 1. The plan targets pre-tax profit of 2.8 billion and gross revenueof Ft 27.3 billion, practically unchanged from 2004. Last year Zwack had pre-tax profit of Ft 2.86 billion and gross

revenue of Ft 27.3 billion. Profits included a one-off item of Ft 100 million. Shareholders also approved payment of the company’s biggest dividend to date: Ft1.6 billion from Zwack’s net profit of Ft 2.45 billion. The dividend isequivalent to Ft 800 per share, or 80% of nominal value. (Econews; NG 11)

Keler to pay Ft 2 bln dividend

Shareholders of the Central Depository and Clearing House (Keler) approved at an AGM yesterday payment of aFt 2 billion dividend from 2004’s after-tax profit of Ft2.256 billion. Keler justified the dividend citing its high level of capital reserves. Last year Keler paid a Ft 286 million dividend from 2003’s after-tax profit of Ft 1.14 billion. Keler had financial profits of Ft 1.92 billion in 2004, up 71% from 2003. Revenue from services rose 21.3% to Ft 3.08billion. Operating profit was Ft 758 million and pre-tax profit was Ft 2.26 billion, both about twice as much as in2003. (Econews; NG 11)

Danubius to reinvest all ’04 profits

Yesterday’s AGM of Danubius Hotels approved a proposal to put all of 2004’s unconsolidated after-tax profit of Ft5.78 billion back into the company. Shareholders acknowledged the management’s argument that Danubius’srising share price—up 50% in a year—partly offset the lack of a dividend. Last year Danubius paid a Ft 47-per-share dividend. The AGM approved last year’s unconsolidated balance sheet, prepared according to Hungarian Accounting Standards (HAS), showing Ft 57.33 billion in revenue. Danubius had consolidated after-tax profit of Ft1.12 billion on Ft 74.87 billion in revenue. This year, Danubius targets consolidated pre-tax profit of Ft 2.6 billionon revenue of Ft 42.9 billion. (Econews; NG 11)

VCP uses BorsodChem stake as c’lateral

Vienna Capital Partners (VCP) said yesterday that it is using its 21.5% stake in Hungarian chemicals companyBorsodChem Rt as collateral for a Euro 100 million loan from HSBC Bank Rt. The stake has a market value of about Euro 167 million, according to Econews calculations. VCP will use the money to make mid-terminvestments or for unspecified projects, according to the statement. VCP’s Heinrich Pecina said in the statement

that ‘The money from HSBC would allow VCP to continue to be part of BorsodChem’s growth.’ VCP reduced itsstake in BorsodChem from 91% in October 2004 through an international share offering. In addition to its stake inBorsodChem, VCP owns 31.39% of BorsodChem peer TVK Rt. (Econews; NG 11)

Kemira set to grow in Hungary

Because of the increasingly lucrative Central and Eastern European market, Finnish fertilizer producer KemiraGrawHaow is concentrating production in Hungary. Kemira decided to further invest in the Peremarton (WHungary) subsidiary bought last year, Transcenter Kft, to utilize the site’s annual 200,000 ton capacity. Within theframework of the development project, Transcenter, a company with a staff of 140 and a registered capital of Ft996 million, will also improve the quality, range and agents content of their products, as well as their efficiency.(Ng 4) M.M.

Currus prepares tanks for desert

Currus Rt is going to renew and prepare for desert conditions 77 T-72 tanks, which were offered by Hungary tothe Iraqi army as a NATO-aid, according to unnamed sources. The value of the contract is about $ 0.5 million,which will be paid by Iraq. Currus Rt has been set up by Defense Ministry; it is the only Hungarian company that isable for the job. Currus also works for foreign countries, it contracted with American Defense Solutions onrenewing tanks and other military vehicles. (Nb 1) G.R.

Brau not paying dividend

At the six hour long general meeting of brewery Brau Union Hungária Rt yesterday, minority shareholders wereinquiring in detail from the board about the Heineken Group’s acquisition in the company and the significantdownward trend in performance. Mainly as a result of the contracts with Heineken and the growing market shareof cheaper canned bears, net profit went down from Ft 2.69 billion in 2003 to Ft 909 million. While minorityshareholders proposed a nearly Ft 5,000 dividend at the general meeting, majority shareholder Brau ImmobilienGmbH decided against paying any dividend. (Ng 12) M.M.

19



7/28/2019 7Days, 2005. április 25.



M4 communication tender

Although the drilling of the M4 tunnel has not yet been started, the tender to carry out the communication tasksuntil 2012 has already been launched. The winner of the tender may be able to spent Ft 50 million a year for 6years to perform communications and PR tasks before and during the preparatory phase. According to NépszavaInformation, one of the applicants include Sawyer Mills Group, which has already propagated the parking systemof Budapest, the renovation of Haller street, and the services of the Budapest Transport Company (BKV) Rt. Sofar, there have been 2 applications registered for the tender, the preliminary evaluation is to be finished next

month. Final results are to be announced by the end of August. (NV 4) E.C.Bauhaus comes to Hungary

The fifth DIY German store-chain Bauhaus is coming to Hungary, reported daily business Világgazdaság. Thecompany is planning to build its first store in Dunakeszi, next to Auchan supermarket, which will be followed byfurther shops in Budapest and in the outskirts. Bauhaus is considered Germany’s third biggest DIY store, it hassome 190 shops all over Europe, its revenue is up to EUR 2,6 billion, according to market analysts. (BBJ Online)

GLS to set up PaketShop

Parcel delivery company GLS Hungary Kft is setting up a PaketShop network in Hungary, general manager Gábor Szemkeo said. The first ten shops to accept packages were opened in the biggest cities at the beginning of April.If the three-month test period ends with success the company may extend the network countrywide. GLS payspercentage to the local contractors after each parcel and picks up the packets daily. The company started

operation in Hungary in 1998. Last year it delivered about 3 million packages with more than 200 vehicles. In thebusiness year ending March 31, it reached turnover of almost Ft 3 billion, which is 50% increase. ( Thurs Vg 8)G.R.

MOL launches Euro 450 mln loan

Hungarian oil and gas company MOL Rt has launched syndication for its Euro 450 million revolving credit facilityvia BNP Paribas, Citigroup and HSBC, the banks said yesterday. The deal will offer 12.5 basis points to co-arrangers who participate in at least Euro 20 million of the loan. For lead managers who contribute at least Euro10 million, that spread is 10 basis points, Dow Jones quoted the announcement. The facility will fund MOL’splanned capital expenditure program, replace maturing loans, and be used for general corporate purposes.(Econews)

Again no dividend from TVK

The Board of Directors of petrochemical firm TVK Rt plans to pay no dividend this year, according to the proposalfor the agm published on Wednesday. The company has not paid dividend for four years, which is reasoned withthe high financing need of the investments made. (Vg 9) G.R.

PSzÁF fines another ING fund

The Hungarian Financial Supervisory Authority (PSzÁF) has fined the ING Voluntary Pensioner Fund Rt, Ft800,000 for failing to meet conditions outlined in a 2003 PSzÁF resolution. The earlier resolution cited the fund for deficiencies in its accounting practices. PSzÁF also fined the fund’s manager Ft 100,000, according to anannouncement in capital markets gazette Magyar Tokepiac yesterday. Members of the ING group have so far paid Ft 3.1 million in fines to PSzÁF. Most recently, ING Private Pension Fund was fined Ft 1.5 million for deficientaccounting practices. (Econews)

Economics

Veres pledges clampdown on tax evasionNew Finance Minister János Veres plans a crackdown on tax evasion to raise revenue as the country struggles tocut its budget deficit closer to euro adoption limits. The government will stop companies from avoiding value-added tax payments and get the estimated 500,000 people currently not paying personal income taxes or socialsecurity contributions to contribute to the costs of running the country, Veres said yesterday on an evening talkshow on state television. ‘We want to make Hungary more just,’ said Veres, 48. ‘We want more even-handedparticipation in public costs. We want to involve people who have so far not paid taxes and contributions but havebenefited from health care services, for instance.’ (Bloomberg; NG 3, Nb 12)

20



7/28/2019 7Days, 2005. április 25.



Analysts expect 25bp rate cut at Monday meeting

Analysts polled by Reuters a month ago expected 25 basis points to be shaved off rates at next Monday’smeeting, taking the central bank’s lending charges to other banks down to 7.5 %. Out of 15 foreign exchangetraders polled by Reuters in April, 8 now expect the central bank to cut rates on Monday. But if there is a cut, it willbe the last for a while, they added. The analysts put the year-end base rate at 7 %, while rates will fall a further 50basis points by the end of 2006. Neither analysts nor traders expect any drastic weakening and the forint wouldprobably trade between 247.50 and 250.5 after the Monday meeting. The central bank has reduced the base rate

by 325 basis points since October. (MTI; NG 3)Industrial Parks in boom

Industrial parks show an explosive growth in Hungary; the 2004 total sales revenues of the 165 parks was Ft3,600 billion. While the total ground space of the 28 parks registered in 1997 was 5,807 acres, last year 2550companies occupied nearly 25,000 acres. The enterprises settled in Hungarian industrial parks employed 153,000in 2004, and invested Ft 1,320 billion. (Ng 5) M.M.

Hungarian Slovakian workforce agreement

A Hungarian-Slovakian workforce agreement was signed yesterday in order to more closely monitor workforcemovement along the countries’ border and to reduce the number of illegal workers. Despite there having been2,000 new jobs created in Komárom-Eszetergom county, the unemployment ratio has not gone down. Since theminimal wage in Hungary is Ft 57 000 and is Ft 36 000 in Slovakia, our northern neighbors are eager to come to

work to Komárom-Eszetergom and Gyor-Sopron-Moson county. Although, by law, no worker may get less thenthe all time minimal wage, Slovakian workers are happy to work for that money, when a Hungarian employeewould require Ft 80-90 thousand. (MH 3, NV 4) E.C.

Flu resulted in high state funded drug sales

Drug prices were raised in the beginning of this year, and the long-lasting flu resulted in an unusually high amountof state-subsidized medication sales. In Q1, a total of Ft 84.1 billion was spent from the relevant, Ft 284 billion2005 state budget; by the end of March, the deficit reached Ft 7.6 billion. Experts are counting with a 13%-15%increase in medicine sales for this year; at the same time, the budget is Ft 5 billion less than last year. Still, newFinMin Veres recently stated his intent to save Ft 10 billion on medicine subsidies. (Ng 3) M.M

Truckers mull protest against tax

Trucker representatives said yesterday that either they can convince the new finance minister to cut the excise tax

on Diesel fuel or protests would be in the offing. Meanwhile, the National Association of Trucking Businesses(Fuvosz) and the Industrial body of International Private Freight Forwarders (NIT) have issued a statement to their members suggesting that they fill up while abroad as long as the government’s surcharge cuts into their competitiveness. The trucker representatives give the government until May 17 to reduce the tax on Diesel fromFt85/litre by Ft 10, after which they are calling for ‘local boycotts and limiting access.’ (MTI)

Pension, health fund assets increase 33%

Hungary’s private and voluntary pension funds, health insurance funds and mutual assistance funds hadcombined assets of Ft 1,338.2 billion at the end of 2004, a third more than a year earlier, according to an annualreport on the sector by financial market regulator PSzÁF. The funds had a yield of 16.9%, their biggest ever.Health insurance funds performed the best. The assets of private pension funds grew 43.1% last year to Ft 803.5billion. Private pension funds’ revenue from investments more than doubled to Ft 130.8 billion, while investmentcosts rose just 20% to Ft 18.1 billion. PSzÁF noted in the report that the funds’ asset management costs were

actually below those of Hungary’s banking sector. (Econews)Politics

By-elections to be held in Sopron

By-elections will be held in Sopron (W Hungary) on Sunday to elect a deputy replacing former MP József Szájer,who resigned from his post after becoming MEP. Szájer, of the main opposition Fidesz party, ran as an individualand not from a party list in 2002, which is the reason why the by-elections need to be held. This was already donein November last year, but both rounds were considered invalid as a result of a low turnout. The second roundwas won by Mátyás Firtl of the Fidesz who received 88.8 % of the votes. A total of seven candidates will run for the post on Sunday, including Mátyás Firtl and Ferenc Csák of the senior government party MSzP. (MTI; NB 2,MH 15)

21



7/28/2019 7Days, 2005. április 25.



PM to extend parliamentary session

The government will not close this seasons parliamentary session until the most important law modifications to beable to start the program of ‘hundred steps’ have been attended to, PM Ferenc Gyurcsány said earlier this week. According to Népszava information, the prime minister will ask the Parliament to prolong the spring parliamentarysession. To make public administration more effective, there are 62 laws to be corrected, added Gyurcsány. (NV3 ) E.C.

DomesticCenter for Democracy to set up in Bp

The government approved plans to further research and scientific life related to democratic processes by settingup a research center in Budapest, the government spokesman said yesterday. The Center for Democracy and theFoundation for Democratic Change will undertake coordinating and financing research related to democracy, incooperation with the United Nations, the European Council and the OSCE, András Batiz said. The center’s aim isto draw on Central and Eastern European experiences in tackling democratic change worldwide. The Foundationwill finance the center’s operation from foreign governments, NGOs and private sponsors, foreign ministry official,László Várkonyi said. (MTI; Nv 2, Nb 9, MH 3)

Archaeological finds unearthed along m’way

Archaeologists working along the planned track of motorway M3 in Szabolcs-Szatmár-Bereg county, E Hungary,

have unearthed over a thousand finds, a local museologist said. The invaluable treasures excavated by the teamat 15 locations near the city originate from the Bronze Age, the Neolithic Age and the age of great migrations over 11 centuries ago, Katalin Kurucz reported. The archaeologists unearthed an Avar cemetery with 15 graves, aCeltic and a Sarmatian cemetery, she said. Under Hungarian law, all motorway construction projects should bepreceded by extensive archaeological excavations on the area. In view of the huge workload, archaeologists fromthe Romanian cities of Satu Mare and Zalau have been involved in the excavations. (MTI)

Stocks

BUX Close: 16381.92 Change : -231.74, ( -1.39%)

Stock Closing price Daily change (%) Average price VolumeMOL 16,100 -0.4 16,079 146,220Matáv 823 -1.7 828 2,089,236OTP 5,975 -0.4 5,990 758,426

Richter 24,655 -3.5 25,275 15,688Egis 15,200 -5 15,606 9,412 Antenna 4,495 -0.1 4,472 10,890TVK 5,070 -2.1 5,080 1,450Rába 705 0.7 699 22,055Budapest Stock Exchange

Exchange Rates


Apr 21, 2005 National Bank of HungaryEUR 1 248.56USD 1 189.80

GBP 1 363.09CHF 1 161.15JPY 100 177.52CZK 1 8.22PLN 1 59.55

Weather

Tomorrow: p/cloudy

High 11°C (51°F)Low 6°C (42°F)

22



7/28/2019 7Days, 2005. április 25.




OTP, Denizbank deny rumors about deal

OTP bank Rt was looking at several potential takeover targets in Turkey, including Turkey's 11th largest bankDenizbank, but had not yet agreed to buy any of them, an OTP executive said on Friday, cooling rumors that anannouncement about Denizbank's acquisition was imminent. "There is no written agreement whatsoever for OTP

to buy any bank in Turkey," László Wolf, OTP's deputy chief executive in charge of acquisitions told Reuters.Denizbank's majority owner Zorlu Holding also said that Turkish press reports suggesting the bank had been soldto OTP were not true. (Econews; NG 7, BBJ 1)

FHB approves Ft 200-per-share dividend

An AGM of Land Credit and Mortgage Bank (FHB) on Friday approved the board's proposal to pay a Ft 200-per-share dividend. Last year FHB paid a Ft 100-per-share dividend. Shareholders also approved a ten-for-one sharesplit. The AGM approved the bank's financial statements, prepared according to Hungarian AccountingStandards, with total assets of Ft 416.204 billion and retained earnings of Ft 5.083 billion. FHB had consolidatedtotal assets of Ft 416.196 billion and retained earnings of Ft 5.105 billion. FHB will place retained earnings intoprofit reserves. (Econews; NG 7)

Raiffeisen may sell more shares

Raiffeisen International Bank-Holding AG and its parent company said more shares in the unit may be sold after they received demand for more than 20 times the amount of stock on offer in an initial share sale. As many as4.47 million additional shares may be issued as part of a so-called greenshoe option, Raiffeisen International said.Raiffeisen Zentralbank and Merrill Lynch & Co. can exercise an option to sell the additional shares within 30 daysof when the stock starts trading on April 25. "The demand from local private and institutional investors amountedto over 4 billion euros," Herbert Stepic, the unit's chief executive officer, said in the statement. (Bloomberg; NG 7)

Émász to pay no dividend

Shareholders of Émász, electricity distributor for North Hungary, decided at an AGM on Friday to put all of 2004'safter-tax profit of Ft 2.61 billion into profit reserves. Emmerich Endresz, chairman of the board, said Émász usesits cash flow for investments, so the board did not propose a dividend. The AGM also approved Émász 's balancesheet showing unconsolidated total assets of Ft 59.69 billion, based on Hungarian Accounting Standards (HAS).

Consolidated assets were Ft 87.33 billion, and consolidated pre-tax profit was Ft 3.99 billion. (Econews; NG 8)Elm? to pay Ft 14 billion dividend

Shareholders of Elm?, the electricity distributor for Budapest, approved payment of a Ft 14 billion dividend from2004's after-tax profit of Ft 14.58 billion at an AGM on Friday. The dividend is equivalent to Ft 2,350 per share.The AGM also approved Elm?'s 2004 balance sheet showing unconsolidated assets of Ft 136.31 billion, based onHungarian Accounting Standards (HAS). Consolidated assets were Ft 143.29 billion, and consolidated pre-taxprofit was Ft 18.87 billion. (Econews; NG 8)

Ft 18 bln to be spent on electricity network

The Hungarian Electricity Works (MVM) plans to spend Ft 18 billion on upgrading the electricity network inHungary this year, network director Gábor Tari said. MVM hopes to have a network that respects European Unionstandards by 2012, Tari said. The largest project of this year is the network between Gy?r and Szombathely, west

Hungary, which is expected to be ready by the end of 2006, Tari said. The Gy?r-Szombathely project itself costsFt 15 billion, Tari said. (Nv 5) M.K.

Heathrow operator eyes Budapest

The operator of the Heathrow Airport in London, BAA International Plc., has expressed an interest in theprivatization of Budapest Airport Rt (BA), which operates the Ferihegy International Airport in Budapest. BAA'smanaging director Andrew Jurenko added that his company would mull going public with BA if circumstancespermit. BAA spent ?8 billion on airports it operates over the past 17 years, and promised to spend another ?8billion during the upcoming decade. The operators of the Copenhagen Airport and the Frankfurt Airport are alsosaid to be interested in BA's privatization. (NG 5) P.?.

23



7/28/2019 7Days, 2005. április 25.



MÁV seeks Ft 30 bln loan

Hungarian State Railways Rt (MÁV) is in talks with several banks about a Ft 30 billion bridging loan it needs to fillthe gaping holes in its coffers, broadsheet Népszabadság reported citing unnamed sources. By mid-May, thedebt-ridden state railway behemoth, which has so far just managed to steer clear of bankruptcy, will have used upthe remainder of a Ft 59 billion loan taken out with a state guarantee last year. The company will also be barredfrom using any of the Ft 41 billion 2005 budget funding earmarked for MÁV at least until the end of April, as newlydismissed Finance Minister Tibor Draskovics refused to sign its public service contract. In the meantime, the

government is soon expected to discuss another guarantee that would allow MÁV to borrow a further Ft 100billion later this year. (Nb 12) P.P.

Zalaegerszeg okay Ft 2.5 bln development

The municipality of Zalaegerszeg, western Hungary, have given the green light to a Ft 2.5 billion real estatedevelopment project near the city's aquapark. On the premises of the so-called Gébárdi Leisure Center, AquaplusKft, operator of the aquapark, will build an indoor thermal spa for 600 guests, together with a 100-room hotel. Theproject will be financed by developer. Zalaegerszeg mayor Endre Gyimesi explained that Aquaplus had previouslyoffered to build a smaller thermal spa and hotel by September of this year, but then the company came up withthis grand-scale project. (NG 18) P.?.

MOL buys back shares

Hungarian Oil and Gas Company MOL Rt, announced on Friday that it had bought 13,835 treasury shares at anaverage price of 16,074 Ft/share on the Budapest Stock Exchange through ING Bank Rt as investment serviceprovider on Thursday. The company had announced their intention to do same in March. (Bloomberg; NG 8)

Balaton Furniture Ft 2.1 bln in rev.

The Veszprém-based furniture maker Balaton Furniture Rt closed 2004 with Ft 2.1 billion in net revenue,compared to the Ft 2.3 billion from 2003, the company announced. Representatives of Balaton Furniture cited therecession holding back the industry, as well as the strong currency as reasons behind the steady downfall of revenue dating back to 2001. Balaton Furniture has lost around 30% of its export market during the past couple of years, and the local demand has also dwindled. The 450-strong workforce from 2002 also decreased to 240 bythe end of 2004. (NG 5) P.?.

MFB plans Ft 5 bln in investments

NIL, the Hungarian Development Bank's property developer, expects to invest Ft 3 billion in residential real estateprojects this year, about the same as last year, CEO Sándor Seprényi said on Friday. Additionally, the companywill spend Ft 1.5 billion on brownfield projects together with local councils, and Ft 360 million to renovate a spaand build a hotel in Bükkszék (NE Hungary). (Econews; Fri Vg 11)

Harkány to supply water for Med Gate

Harkány Spa Rt will provide thermal water for the 10 billion Mediterranean Gate project in Siklós, southernHungary, the company's owner, the Baranya County municipality, announced. Real estate developer TriGránit Rtwill refurbish the castle in Siklós, and build three hotels, including a spa hotel, and a conference hall in closeproximity. Construction company Arcadom Rt is set to carry out the grandiose plans. (NG 18) P.?.

Economics

Retail sales volume up 2.4% yr/yr

Retail sales growth slowed to 2.4% in February year-on-year, according to working day-adjusted figures, theCentral Statistics Office (KSH) reported on Friday. Based on seasonally and working day-adjusted figures, salesgrew 0.2 % from January. Retail sales rose a working day-adjusted 5.7% year-on-year in 2004. In line with EUstatistics, the figures do not include sales of vehicles, vehicle parts or fuel. Volume of fuel sales fell 2.8 % fromJanuary and rose 0.2 % year-on-year. Retail sales volume, including vehicle and fuel sales, increased 1.3 % inFebruary and rose 1.8 % in the first two months of this year. (Econews; NG 3)

Veres - political appointment say analysts

János Veres who took over from sacked Finance Minister, Tibor Draskovics, last week, is widely regarded to havebeen appointed because he is willing to be a yes man for P.M. Ferenc Gyurcsány, according to BBJ information. Analysts believe the new F.M. will not stray from the fiscal policy laid down by Draskovics. According to BarbaraNestor of Commerzbank AG in London, Veres enjoys more political support than his predecessor and will bemore likely to work towards and election budget. (BBJ 1)

24



7/28/2019 7Days, 2005. április 25.



H'way toll, fuel prices anger truckers

The transport ministers of the EU-25 have agreed on a uniform highway toll structure member states will have toapply to trucks over 3.5 tons if the European Parliament grants its approval of the plan. The directive, whichdefines guidelines for setting tolls instead of requiring all EU countries to set tolls at the same level, is expected tocome into effect in 2006 and be finalized in 2008. In other news, the National Federation of TransportationCompanies (Fuvosz) and the Federation of International Private Transporters (NiT-Hungary) are trying to putpressure on the government to lower the excise tax on diesel by Ft 10 per liter immediately by calling on their

members to buy fuel outside Hungary. If this does not yield any results by May 17, haulage companies will notonly boycott filling stations but also bar access to them with their trucks. (Fri Vg 3, 5) P.P.

Eva revenue Ft 3.4 bln more

The government budget received Ft 17.8 billion in Q1, 2005 as taxes paid in the framework of simplifiedentrepreneurs' tax, commonly called eva in Hungary, deputy state secretary of the Finance Ministry ImrénéKarácsony announced. This sum is Ft 3.4 billion more, than eva taxes paid in the first three months of 2004,Karácsony said. Currently about 100,000 entrepreneurs can pay according to eva rules, Karácsony said. (Nv 5)M.K.

Students may 'hire purchase' laptops

Education Minister Bálint Magyar is supporting a student initiative for a governmental program that would enablestudents in higher education to hire purchase laptop computers. The idea was brought up by the NationalConference of Student Bodies (HÖOK) a few months ago. Magyar said he agreed with the suggestion and haddiscussed it with the management of state-owned student loan company Diákhitel Rt. At the present state of talks,it seems likely that the ministry will be able to launch the program in September, he said. According to the plan,students are to pay in daily instalments of Ft 250 for a new computer, which will be subtracted from the amount of the student loan they receive. (Nb 2) P.P.

Sugar companies to offer sugar for intervention

Hungarian sugar processing companies are expected to offer several ten thousand tons of sugar for interventionthis year, with wholesale prices standing at least 10% below the EU intervention price as a combined result of domestic oversupply and duty-free Serbian imports, members of the Hungarian Sugar Industry Association said.The excess sugar beet produce has caused problems throughout the EU, an unprecedented situation in the past30 years. According to the association, Hungary produced nearly 500,000 tons of sugar last year. In comparison,the domestic market can take up approximately 320,000 tons per year, with imports accounting for about 25% of this. (Vg 1) P.P.

Take-up on Bp warehouse market falls

Budapest's market for modern warehouse space saw a sharp decline in the first quarter of the year: 16,500sqm of space was rented out during the period, just a tenth of the area rented out in all of 2004, according to a survey byreal estate company DTZ. The slowdown is even more apparent when compared to the 57,000sqm of modernwarehouse space rented out in Q1 2004. DTZ blames the decline on companies' decisions to hold off on rentingwarehouse space after Hungary joined the EU in May 2004. (Econews; NG 17)

Policemen to receive 10% more for overtime

Policemen will receive 10% more overtime pay, Interior Minister Mónika Lamperth announced. Lamperthhas already informed chief of the National Police László Bene about her plan, which will require Ft 500 million

from the Interior Ministry's budget this year. Lamperth also said that public security has improved in Budapest andin Hungary in recent years and people are more satisfied with the work of policemen. (Nv 4) M.K.

Politics

Support for Socialists falls below 20%

The popularity of the governing Socialist Party (MSzP) dipped below 20% in the voting-age population while thefigure for the main opposition Fidesz party slightly rose to exceed 30% by the second half of April, a nationalpaper reported on Saturday, citing the latest Gallup poll. The survey reveals that Fidesz is backed by 31% of allvoting-age Hungarians while the Socialists are supported by 19%, the second lowest figure measured by Gallupover the past six years, with the gap between the country's biggest two parties widening from 6-8% in early 2005to 12% by now, Magyar Nemzet said. (MTI; Nb 1)

25



7/28/2019 7Days, 2005. április 25.



Sopron by-election again invalid

The first round of the second by-election in Sopron constituency was again invalid due to the low number of voters. Only about 28% of voters cast their vote, but the first round would have required a 50%+1 personparticipation. The second round will be held on May 8, when already 25% of the voters can take a decision on thecity's MP. Almost two-third of the votes in the invalid election were given to Fidesz-Hungarian Civic Alliance'scandidate Mátyás Firtl. The by-election has to be held as the previous Sopron MP József Szájer won a mandatein the European Parliament last year. (Nv 3) M.K.

Fidesz reports Ft 500 mln deficit in 2004

Major opposition party Fidesz-Hungarian Civic Alliance published its balance sheet for 2004, according to therules of the party law in Hungary. Fidesz reported a Ft 500 million deficit for 2004. The party received Ft 1.3 billionas revenue, but spent Ft 1.8 billion last year. On the revenue side, Ft 66 million came from membership fees andFt 817 million from state subsidies. The deficit of Fidesz' budget may be due to the European Parliament electionslast year and the publicity costs of the referendum in December. Since the last general elections in 2002, Fideszhas doubled the number of its members. (MH 6) M.K.

Domestic

Pope sends best wishes to Hungarians

Pope Benedict XVI sends his best wishes to the Hungarian people, and confirmed his high appreciation of

relations between the Vatican and Hungary, President Ferenc Mádl said after the pope's inauguration ceremonyin the Vatican yesterday. In his inaugural homily addressed to all, the new pope expressed awareness of the greatheritage of Pope John Paul II and committed himself to continuing the lifework of his charismatic predecessor, thepresident said. The president especially underlined that the pope spoke about the special responsibility of the richand the mighty in this impoverished world. Mádl said the assessments of Pope Benedict XVI as a conservativeare generalizing and superficial. (MTI; Nv 1, MH 1, Nb 1,9)

Stockwatch

BUX Close: 16621.26 Change: +239.34, (+1.46%)

Stock Closing price Daily change (%) Average price Volume MOL 16,200 0.6 16,269 214,255 Matáv 825 0.2 826 2,832,280 OTP 6,205 3.8 245 102

Richter 24,750 0.4 24,798 78,704 Egis 15500 2 15,373 34,483 Antenna 4,,500 0.1 4,479 1,180 TVK 5,060 -0.2 5,061 2,202 Rába 695 -1.4 697 5,644

Exchange


Apr 22, 2005 National Bank of Hungary EUR 1 249.19 USD 1 190.83 GBP 1 364.47 CHF 1 161.32 JPY 100 179.35 CZK 1 8.23 PLN 1 59.39

Weather

Tomorrow: showers

High 17°C (62°F)Low 3°C (37°F)



7days, 2005. április 25

Documents