Contents for Econews No.191 (5 October, 1999)
August industrial output up 1.8pc a month, 9.5pc yr/yr
Business rates down on short term, up on long term
Registered unemployment 9.4pc in September
Phare projects EUR 500,000 outlay for small projects
Moody's upgrades 3 banks' long-term deposit ratings, confirms
two others'
GME expecting 120,000 new car sales this year
23,100 work permit holders at end of June
Budapest, October 5, 1999 (MTI-ECONEWS) - According to
preliminary data, Hungary's industrial output rose 1.8pc in
August (under seasonally and working day adjusted indices)
in volume terms, and stood 9.5pc higher than a year earlier,
the Central Statistical Office (KSH) reported on Tuesday.
January-August industrial output was 7.4pc up in volume
terms from the same period last year.
KSH will publish detailed information on October 18.
See also
Average lending and deposit rates for companies
Average lending and deposit rates for personal deposits
Budapest, October 5, 1999 (MTI-ECONEWS) - The average
short-term lending and deposit rates for businesses
continued to decline in August, but rose on the over-one
year term, National Bank of Hungary (NBH) figures on bank
rates, published on Tuesday, show. The margin between
average business lending and deposit rates fell 0.2pc point
both on the short and on the long-term in August.
The margin between average business lending and deposit
rates fell from 3.7pc points to 3.5pc points on
up-to-one-year maturities and declined from 3.5pc points to
3.3pc on over-one-year maturities in August. In January, the
gap between short-term deposit and lending rates was 3.7pc
and was 4.3pc on the more-than-one-year maturity dates.
The average short-term business lending rates fell from
16.0pc in July to 15.6pc in August. For the short-term, the
value of new and prolonged loans companies made contracts
with banks for in August was 33.2pc down from July, the
central bank reported. Deposit rates for the same maturity
declined from 12.3pc in July and were reduced further, to
12.1pc, in August.
On the more-than-one-year term, the average August
lending rate grew to 16.6pc in August, reversing part of its
sharp 0.9pc point fall, to 16.3pc in July. Banks raised
their long-term deposit rates by a sharp 0.5pc point from
July and paid on average 13.3pc on corporate deposits fixed
for more than one year in August.
Banks' paid on average 0.4pc point more interest on
short-term corporate deposits than on short-term individual
deposits in August and the difference widened to 1.7pc point
in the case of long-term deposits. The gap grew 0.1pc point
on the short term and was sharply (0.9pc point) up on the
over-one-year term.
At the same time, the difference between the average
lending rates banks charge for the two sectors remained 8pc
points, the NBH reported.
Budapest, October 5, 1999 (MTI-ECONEWS) - The
unemployment rate, calculated from the number of registered
unemployed, remained unchanged at 9.4pc in September, the
National Labour Centre announced on Monday.
The number of registered unemployed totalled 397,200 at
the end of September, a mere 344 up on one month earlier,
and 1,300 less than one year before.
In September, the number of non-school-leavers who were
on unemployment decreased by 1,990, this in contrast to the
number of school-leavers who signed on for unemployment,
which increased by 2,334.
School-leavers accounted for 9.6pc of all registered
unemployed, totalling 38,123 at the end of September. One
year earlier, this figure was 9.7pc, 554 higher than this
year.
The number of those, who receive unemployment benefits
was 4,000 down in August on the previous month. They
accounted for 33.3pc of all registered unemployed, 3.5pc up
on one year earlier.
Income supplementing support was paid to 37.9pc of all
unemployed in September, as against 38.8pc in August.
Regional gaps widened further, as regards the
unemployment rate, with the difference between the areas
with the lowest and highest unemployment rates growing
further. Unemployment is 3.7pc in Budapest and its
surroundings, and 19.0pc in Borsod-Abauj-Zemplen (NE-H)
county.
Budapest, October 5, 1999 (MTI-ECONEWS) - In two
separate programmes, the Delagation of the European
Commission to Hungary will administer the distribution of
EUR 500,000 in Phare funds, head of the delegation Michael
Lake said at a press conference on Tuesday.
The first project of Phare's Small Project Programme was
announced this year with a budget of EUR 100,000. This
project is intended to help handicapped high school students
and is expected to continue in the future. The distribution
method is being undertaken in a new manner, as it targets a
specific group, Mr Lake said. Small groups can apply to make
EU-related videos, exhibitions and start exchange programs.
Funding of between EUR 4,000 and EUR 10,000 will be
available, in addition to which at least 10pc of the total
cost has to be contributed, either in cash or in kind, by
the applicant.
The application deadline is November 12, 1999, because
all contracts have to be signed by the end of the year,
otherwise the money will be lost, Mr Lake added.
The other project to be launched next year is the Phare
Democracy Programme Micro-project, a EUR 400,000 programme.
This is the fifth time the project, supporting NGOs, has
been announced, and aims to strengthen grassroots-level
organisations. The method here will also be co-financing,
with the EU contributing up to 90pc of the EUR 3,000 - EUR
10,000 support. The preferred applicants will be small NGOs,
especially ones that have not yet received Phare money, and
there is a limit of one application per NGO. The project is
also available for private firms and government
organisations working for the local community. The EC
Delegation commissioned the Hungarian Foundation for
Self-Reliance to prepare and administer a programme to help
deal with language and organisational problems.
These projects can last between four and twelve months,
and the submission deadline is November 22. All decisions on
projects, will be made locally, by a delegation and a select
board.
Budapest, October 5, 1999 (MTI-ECONEWS) - Moody's Investors
Service upgraded to Baa1 from Baa2 the long-term deposit ratings of
ABN AMRO (Magyar) Bank, Magyar Kulkereskedelmi Bank (MKB) and OTP
Bank. This rating action concluded the review for possible upgrade
initiated in June 1999, following the upgrade to Baa1 from Baa2 of
the foreign currency debt rating of the Republic of Hungary. The
Baa2 long-term deposit ratings of Budapest Bank and Kereskedelmi +
Hitel Bank (K+H), which were also on review for possible upgrade,
were confirmed at their existing level, Moody's said. The outlook
for all the above ratings is stable.
Moody's said that in the case of ABN AMRO (Magyar) Bank
and MKB the upgrades reflect the likelihood of support from
their respective parents (ABN AMRO Bank NV rated Aa2/P-1/B+
and Bayerische Landesbank rated Aaa/P-1/C), as well as the
banks' adequate business and financial fundamentals. The
upgrade of OTP Bank reflects its position as Hungary's
largest bank by far and its adequate financial fundamentals.
With respect to Budapest Bank Moody's noted the bank's
more modest financial fundamentals and the need for ongoing
restructuring, while also taking into account the possible
support from the bank's strategic minority shareholders (GE
Capital and the European Bank for Reconstruction and
Development).
With respect to K+H the rating agency again noted the
bank's more modest business and financial fundamentals,
reflected in the losses recorded in 1998, the need for
positive action to rectify the situation, and the possible
support from the bank's strategic minority shareholders (KBC
Bank and Irish Life).
ABN AMRO (Magyar) Bank is headquartered in Budapest,
Hungary. At 31st December 1998 it had total assets of HUF
524bn (approximately USD 1.5bn).
Budapest Bank is headquartered in Budapest, Hungary. At
31st December 1998 it had total assets of HUF 274bn
(approximately USD 1.1bn).
Kereskedelmi + Hitel Bank is headquartered in Budapest,
Hungary. At 31st December 1998 it had total assets of HUF
524bn (approximately USD 2.2bn).
Magyar Kulkereskedelmi Bank is headquartered in
Budapest, Hungary. At 31st December 1998 it had total assets
of HUF 604bn (approximately USD 2.5bn).
OTP Bank is headquartered in Budapest, Hungary. At 31st
December 1998 it had total assets of HUF 1,708bn
(approximately USD 7.1bn), Moody's said in a press
release.
Budapest, October 5, 1999 (MTI-ECONEWS) - The Hungarian
new car market is expected to grow more than 20pc annually
and automobile firms project to sell more than 120,000 new
cars in Hungary this year, president of the Hungarian
Association of Vehicle Importers (MGE) Gabor Gyozo told the
daily Magyar Hirlap, on the basis of preliminary figures for
the first nine months of this year.
According to Econews' calculations, currently available
figures suggest that the market continued growing in the
third quarter, however, the pace of this growth slowed down
as against the 25pc in the first half of this year and as
against the 30.3pc in 1997/98.
The minimum of 120,000 sales predicted by Mr Gyozo for
this year would mean a minimum 15.3pc growth annually, while
the projected 20pc growth would mean sales of over 124,800
vehicles annually.
In 1998, a total of 104,055 new cars were sold in
Hungary by MGE members and Magyar Suzuki Rt. In 1997, sales
totalled 79,827.
In the first half of 1999, new car sales totalled 60,874
25pc up on 48,691 in the first half of last year.
Magyar Suzuki Rt, which has been the market leader for a
long time, sold 23,336 new cars in the first nine months of
this year, including 22,530 Swifts produced in Esztergom and
806 cars which were imported, a company spokesperson told
Econews on Tuesday. In the first nine months
of last year, Suzuki's sales totalled 17,334, a company
official told Econews. Thus, Magyar Suzuki Rt increased
sales by 34.6pc on the first nine months of 1998.
Of the other leading brands questioned by Magyar Hirlap,
Opel took second place, selling 13,617 vehicles (including
cross-country vehicles), 12pc up on one year earlier. Of the
brands sold by Porsche Hungaria Rt, the importer of Audi,
Seat, Skoda and Volkswagen, Volkswagen sales totalled 7687
in the first nine months of this year, 25.6pc up, Skoda
sales totalled 4146, 60.7pc up, Seat sales totalled 2738,
33pc up, and Audi sales increased 7pc, according to Magyar
Hirlap.
Of the brands mentioned above, Suzuki sales increased
50.9pc in the first half of 1999 as against the first half
of 1998, Opel sales were 13.9pc up, Volkswagen sales rose
22.5pc, Skoda sales increased 61.3pc, and Seat sales were 6
down on the same period of last year before recovering in
the third quarter.
Budapest, October 5, 1999 (MTI-ECONEWS) - The number of
foreign nationals holding a valid work permit rose 1,700 to
23,100 in the 12 months to June 1999, the National Labour
Centre has announced.
This number is a rise of 9,000 over June 1997.
Work permit holders arrived from 100 countries but 95pc
of them came from 20 countries.
EU residents, including 640 from Germany, 633 from the
UK and 293 from France, represented 11.2pc of the work
permit holders, totalling 2,577.
According to six-month figures, 50pc of the work permit
holders, 11,462 people, were Romanian nationals. Citizens of
ex-Soviet states, mostly from Ukraine, numbered 2,942, and
the third largest nation represented was the Chinese, with
1,214.
Manual workers represented 66pc, while the rest were
white collar employees.
Most foreign workers had earlier found employment in the
manufacturing industries, but their number has been
declining for years. Currently, those employed in
manufacturing represented only 12pc of the total, or 2,600.
The leasure industry has employed the most foreign nationals
since the second half of 1997. At the end of H1 1999, 7,000
foreign nationals, or 30pc of the total, worked in this
sector. Construction companies employed 4,000 or 17pc, and
15pc worked for commerce and catering firms.
More than 90pc of the permits issued or extended between
January and June were issued or extended for a period over
six months, the National Labour Centre said.
Copyrigth MTI Econews
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