7Days, 2004. december 6

7/28/2019 7Days, 2004. december 6.

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

30 November 2004

Business OMV to rival MOL in bid for Bosnian co.Q3 results for GraboplastPhilip Morris site to become sports center

Schneider production to move to HungaryLidl contractors dispute paymentGas co. in Nagykanizsa expandsKelly Services opens office in HungaryMontana reveals new encryption softwareGE offices under construction in Budaörs Animal feed plant in ZalaegerszegBroadband Internet subscribers up 40% a year Bp-Manchester discount flightsForex loans are 80% of all business loansForrás buys Szegedi Paprika from PickHungarian recognition software in IraqVideo-on-demand through AxeleroBee-keepers’ demonstration beginsHungária Grande Cuvée Brut wins gold medalKomfort Health Fund membership dwindles

Economics Ecostat: growth in Hungary may slow with EUReuters poll: gov’t wants forint rate at 260/EuroNew office to coordinate tourism

Politics President sends back central bank act amendmentNew gov’t com’sioner to continue Roma integration

Domestic Diesel prices up Ft 5 from tomorrowUnions want to keep EU rules on working hours

Alcohol-related road accidents up by 20%Stockwatch BUX Close: 14170.41 Change: +68.53 (+0.49%)Exchange Fixed Middle RateWeather Tomorrow: rain

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01 December 2004

Business WizzAir responds to easyJet provocationOBI opens biggest Hungarian storePepsi outsources IT to DataplexSanoma poised to buy Index.huVideoton partner as yet unknownMOL flotation on Warsaw bourseCashline’s Albrecht buys Herz stakeMondi Business Paper - name changeParmalat reduces loss before liquidationNovel form of advertisingRemington returns to Hungary via VartaMetro Holding to sell RenaultsZalakerámia to slash 28% of workforce to cut costs

Motorway funds for winter repairsEconomics OECD less optimistic than gov’t on growthEcostat confidence indexHungarian-Romanian pension agreement firms upOct. industrial producer prices up 0.3% m/m

Politics Stop negative campaign, says MSzP policy section2,000 Hungarians vote abroad in referendum

Domestic FinMin ups deficit reduction targetsNew drugs added to OEP subsidy listServers seized due to copyright infringementEarth tremor felt in northeast Hungary

Stockwatch BUX Close: 14,193.88 Change: +23.47 (+0.17%)Exchange Fixed Middle RateWeather Tomorrow: showers

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02 December 2004

Business Pension reform will reduce deficitFeasibility study of factory beginsNew outlets for Pannon mobile packagesKeviép wins Ft 4.6 bln tender Hoffmann builds Ft 3 bln road Advertising boom on commercial TVMalév privatization tender description changesIrish Investor's big plans for FradiPorshe wines Magyar Posta tender Builders protest Lidl's unpaid billsBSE registers record turnover in NovKelly Services opens in BudapestJet2.com starts Bp-Manchester flight

Mobile use increases to 84%LLP sets up software for SodexhoEconomics Economic growth slowed for a second quarter

Insurance companies pay more compensation in H1November PMI 51.2%Investment volume up 12.7% yr/yr in Q3Bonds to raise Ft 7.1 trillion in '05Erste and MFB sign refinancing dealMunicipality to increase utility feesMotorway fines set to increase

Politics Romanian statement unusual - ForMin

Gov't to provide for ethnic HungariansDomestic Court dissolves fascist organizationStockwatch BUX Close: 14317.91 Change: +124.03 (+0.87%) Exchange Fixed Middle RateWeather Tomorrow: rain

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03 December 2004

Business Film trust to support film industryArago boosts stake in ForrásRichter buys own shares

Forrás transfers stakes to FormixHollóházi remains state-ownedCIB employees to receive CIB sharesRoaming mobile travel insuranceKravtex's Ft 300 mln center in GyőrBAT opens logistics center T-Mobile extend Fradi sponsorship dealBÁV to convert sharesMalév pilots to fly for freeUniversity of Szeged wins tenderBiggeorge's and Otthon swap stakesE.ON seeks bigger gas stakesBauTrans sells subsidiaries to peers

New car sales dipEconomics MNB deputy-governor warns of reckless rate

AKK aims to keep ratio of forexAnger over tax refund abolishmentEximbank to finance exports to KareliaResources unused in war on RagweedBiometric passports on the wayDefense spending cut by Ft 593 bln

Politics Conflicting info on effects of dual citizenshipDomestic New highway opens to traffic in NE HungaryStockwatch BUX Close: 14365.98 Change: +48.07 (+0.34%)Exchange Fixed Middle RateWeather Tomorrow:cloudy

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06 December 2004

Business Alpha Bank may trump OTP for JubankaSCA completes Ft 2.3 bln Gyor factoryG. H. Financials rents in Margit Palace

Strabag to build cement factoryPSzÁF fines Concorde Ft 3 mlnEMKTV fined againCsorna to build spa and leisure centerBalda to produce mobile parts in VeszprémSportfolió to become pub. fin. institutionPannonplast sells non-core assetsProLogis opens Budapest officeWizz Air gets Ft 25 mln from IndigoPaks to buy Skoda JS machinerySamsung has 13% share of mobile marketGraboplast sells rug maker to CEOBUX ticking higher in lackluster week

Malév cancels all flights to ViennaSavaria to be privatizedEconomics Private pension members may choose

MFB to aid SMEsPolitics ForMin welcomes Ukraine revote ruling

Voters say noDomestic Nurses lured to Italy

Roma education center for BpHapsburg to head Red Cross

Stockwatch BUX index: BUX Close: 14314.60 Change: -51.38 (-0.36%)Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

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30 November 2004

BusinessOMV to rival MOL in bid for Bosnian co.OMV AG said it has submitted a letter to express its interest in acquiring a majority stake in Energopetrol,Bosnia’s largest crude oil and oil products trader. Vienna-based OMV has told the Bosnian government it is„interested to be invited for further discussions regarding the privatization of Energopetrol,” said Thomas Huemer,a spokesman for the Austrian company. OMV has not yet decided whether it will make a binding bid, Huemer said. OMV joins Hungarian rival MOL Rt, which said on Nov. 26 that it had submitted a joint letter of intent to buy67 % of Energopetrol with Croatia’s INA Industrija Nafte d.d. MOL owns 25% of INA. (Bloomberg)

Q3 results for GraboplastGy?r-based plastic manufacturer company Graboplast Rt forecasts Ft 20 billion in turnover this year, announcedPéter Jancsó president-CEO. The company had Ft 15.7 billion in revenues in the first three quarters of the year and Ft 1.25 billion in profit. Graboplast also plans to increase its parquet manufacturing capacity from the currentannual 900,000 sqm to 1.7 million sq ms next year with a Ft 1.7 billion development in its Kecskemét plant. (Vg14) R.G.

Philip Morris site to become sports center

Philip Morris Magyarország Kft will publish a tender for its plant of almost 30,000 sqm in Eger, northern Hungaryat the beginning of next year, announced company spokeswoman Katalin Házi. The company will take themunicipality’s suggestions to create an entertainment center in the plant when choosing the winner. According toEger mayor Imre Nagy, the municipality wants to see a fitness and sports center, a cinema, billiard and bowlingrooms, restaurants and a hotel in the complex. Philip Morris Kft will shut down operation in the plant at the end of December. (Vg 23) R.G.

Schneider production to move to HungaryGermany-based Schneider Electronics Gmbh, a member of China’s TCL Group, will relocate its production toHungary and Poland as of next January and turn its German site into a distribution center, Felipe Suen, CEO of TCL Internationl Holding Ltd announced. TCL, the Hong-Kong enlisted consumer electronics maker, acquired itsbankrupt German peer in 2002 and has now decided to move its entire production eastward in an effort to bringthe troubled company back to profitability. Launched as a family business in 1953, Schneider employed as many

as 1,500 in its prime. (Nv 15) S.F.Lidl contractors dispute paymentUnpaid subcontractors of Lidl, the recently-arrived German retail chain, have blocked access to the company’sbuilding site in Kalocsa, southern Hungary, demanding that the retailer force its lead contractor to pay up the over Ft 100 million it owes. Subcontractors blame Lidl for picking a main contractor that undercut all rivals to get the jobfor the project but was unable to pay its bills to subcontractors before it scooped up its own money from Lidl. (Nb15) S.F.

Gas co. in Nagykanizsa expandsGas industry machine manufacturer GG Kft continues to enlarge and modernize its production hall with a Ft 100million investment in technological development at its Nagykanizsa production base. The company producesmainly gas industry machinery and gas pressure control equipment and has over 200 employees. GG isexpanding to enable it to meet new orders from Romania, Bulgaria, Ukraine, and from Western Europe in addition

to its previous orders. (NG 4) E.C.Kelly Services opens office in HungaryKelly Services Inc., the second-largest U.S. temporary-employment agency, plans to open an office in Hungary,its first in Central Europe. Troy, Michigan-based Kelly Services will formally announce the opening of the office inBudapest on Dec. 1, the company said in an e-mailed statement. Kelly Services will compete with companiessuch as Manpower Inc. and Adecco SA in Hungary. (Bloomberg; NG 4)

Montana reveals new encryption softwareMontana Rt, a Hungarian software developer, has introduced a new file encryption software. The product is partof Montana’s strategy to focus on software the company develops itself and on consulting services, President andCEO Pál Vadász said at the launch of the new encryption software in Budapest. The software enables users tomake documents and other files inaccessible to other parties, guaranteeing they cannot be opened or used whensent over the Internet or if stolen. Montana, together with its subsidiary Noreg, which specializes in information

protection solutions, had sales revenue of Ft 2.5 billion in the first nine months of this year, with EBITDA of Ft 125million. (Econews; NG 5)

GE offices under construction in Budaörs

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Merkantil Bank Rt is building a 39,000 sqm complex with a plant, a 3-storey office building and a car park for General Electric with an investment of Ft 1.5 billion in Budaörs, west of Budapest, said Gábor Morva, spokesmanfor constructor KÉSZ Kft. Twelve radiation-proof cabins will be constructed in the plant where X-ray equipment willbe tested. The investment will create 340 new jobs. (Vg 13) R.G.

Animal feed plant in ZalaegerszegThe largest animal feed factory in Central Europe is to be built at the new, 120-acre industrial park in

Zalaegerszeg next year. The Slovenian investor Li Premix is putting Ft 10 billion into the construction of aproduction hall and logistics center of over 10,000 sqm on a 6-acre property. Li Premix chose the county capitalbecause of small delivery distances and low transporting costs. The animal feed plant plans to process localcrops, and the products are to be sold on the EU market. (NG 4) E.C.

Broadband Internet subscribers up 40% a year The number of broadband Internet users is expected to rise from the current 315,000 to over 550,000 by 2006,the head of a major Internet service provider told a Budapest news conference yesterday. György Simó, who isCEO of Axelero Internet Rt, said it was likely that broadband user growth would be 40% a year through the 2004-2006 period. He also noted that broadband growth was changing online media access, with some 1.7 millionpeople regularly monitoring Internet news sources, over 900,000 of them on a day-by-day basis. (MTI)

Bp-Manchester discount flights A new discount airline is to appear at Budapest Ferihegy Airport starting from December. Jet2.com will fly

passengers to and from Manchester on a daily basis. The British company will be the eighth discount airline toappear in Hungary. (NG 4) E.C.

Forex loans are 80% of all business loansHungarian businesses have been shifting towards domestic borrowing in foreign currency with the high forintinterest rates and the strong forint. In the twelve months to October, the stock of Hungarian businesses’ loansfrom Hungarian banks rose by Ft 537.2 billion (Euro 2.18 billion), and Ft 432 billion (80%) of the increase was inforeign currency-denominated loans, according to figures published by the National Bank of Hungary Rt. Thestock of foreign currency-denominated business loans totaled Ft 2,086.7 billion at the end of October and theforex loans accounted for 42.8% of all corporate loans. (Econews)

Forrás buys Szegedi Paprika from Pick Arago Rt, a holding company owned by Hungarian investors, has transferred ownership of Szegedi Paprika Rtfrom its salami maker Pick Szeged Rt to Forrás Kft, another holding company in which Arago has a majority

stake. The sale was part of a two-year plan to sell off Pick’s non-core businesses. Szegedi Paprika produces12,000 tons of tinned food and 1,440 tons of paprika a year. Arago owns a 68.73% stake in Pick, and a 37.10%ownership stake and a 66.78% voting stake in Forrás. (Econews; Nv 6, Nb 7, Vg 19)

Hungarian recognition software in Iraq A.R. Hungária Information Technology Rt may win several million Euros worth of business provided the Iraqimarkets open up. The IT company offers license plate and personal ID recognition software in Arabic. Thecompany is present in 66 countries worldwide. One-third of their income comes from the Middle East, and theyexpect a 10% increase in turnover in 2004. According to company CEO Márk Egervári, the number of orders from Arab countries may double in 2005. Their latest innovation introduced in October, the face recognition system, iscurrently being used in Hungary, Slovenia, and Taiwan. (NG 5) E.C.

Video-on-demand through Axelero Axelero Internet Rt is about to launch Hungary’s first video-on-demand service tomorrow. Axelero ADSL

subscribers can download films from Axelero’s 130-film catalogue for Ft 590-790 per film. Clients can view’borrowed’ films for as many times as they want to in 24 hours for this amount. Axelero Internet plans to broadenthe choice of films with the help of international content providers in the near future. (Vg 16) R.G.

Bee-keepers’ demonstration beginsHungarian honey producers began a week-long demonstration in Brussels yesterday to protest the disadvantagesfaced by bee-keepers in the EU when competing with non-EU honey. The 65 Hungarian apiarists want Brusselsto reintroduce stringent quality requirements on honey, which would prevent sales of low-quality honey from non-EU countries, a member of the Hungarian National Union of Apiarists (OMME) said in Brussels. Tamás Csányi,speaking on behalf of the protestors, said purchasing prices in Hungary have dropped by 50% and demand for honey had gone down since the EU began allowing honey imports from non-EU nations. (MTI; Nb 1, Vg 3, Nv 6)

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Hungária Grande Cuvée Brut wins gold medalHungária Grande Cuvée Brut, a sparkling wine from the cellars of Hungária Pincészet has won a gold medal atthe second Effervescents du Monde international sparkling wine festival in Dijon, France. Gábor Vass, marketingmanager for Henkell und Sohnlein, which owns the cellars, announced the prize yesterday. Another sparklingwine, Francois President Brut, from the cellars of Francois Pincészet, which are also owned by Henkell andSohnlein, won a silver medal. Henkell und Sohnlein controls more than 60% of the Hungarian market for sparkling

wine, and owns BB and Törley. (Econews)Komfort Health Fund membership dwindlesOn the basis of the Q2 report of Komfort Health Fund, the State Financial Institutions Supervision (PSzÁF) notedthat its headcount had sunk to a level (5 members) at which the company is unable to provide the number of members necessary to legally conduct the operations. Legislation stipulates that voluntary health funds are toestablish a 3-member management and a 3-member controlling team. PSzÁF warned Komfort to reestablish theconditions necessary for legal operation within 30 days, or their license would be withdrawn and the companywould be liquidated. (NG 5) E.C.

EconomicsEcostat: growth in Hungary may slow with EUSlowing economic growth in the EU could slow growth in Hungary as well, according to the latest report byeconomic research company Ecostat. Ecostat has projected GDP growth of 3.9% for 2004. Hungary’s currentaccount deficit will worsen in 2005, but the general government balance will improve, albeit slightly, according toEcostat. Ecostat expects industrial growth to slow slightly in 2004 to 8.7%. Retail turnover has been hurt by theslowing rise of gross wages, but household consumption should rise faster than expected in Q3, bringing theincrease for the whole year to 3%. Ecostat puts the general government deficit at 5.4% of GDP in 2004.(Econews; NG 4, Vg 5, Nv 6)

Reuters poll: gov’t wants forint rate at 260/EuroHungary’s government probably wants to see the forint at around 260 to the euro, some 6% below current levels,analysts said in a Reuters poll yesterday. The poll was conducted between Nov. 26 and 29, with 14 participants.The estimates for the government’s preferred forint level spread in a wide range between 250 and 275, and themedian estimate was 260. Prime Minister Ferenc Gyurcsány has repeatedly called for lower interest rates and aweaker currency to help cut a bloated budget deficit, increase exporters’ revenues and spur economic growth.(Econews)

New office to coordinate tourism A separate government office will begin operating from Jan. next year to coordinate tourism policy, theParliament’s tourism committee voted yesterday. The newly-established Hungarian Tourism Office (MTH), whichwill be answerable to the minister without portfolio in charge of regional development, will focus on programs toboost wellness tourism, spa reconstruction and regional airport development as well as increasing hotel capacityin Budapest. (Nv 4) S.F.

PoliticsPresident sends back central bank act amendmentPresident Ferenc Mádl has returned to Parliament a bill that would amend Hungary’s Central Bank Act to give thegovernment a greater influence in shaping monetary policy. The President informed Speaker of Parliament KatalinSzili of his decision in a letter. In the letter the President said the amendment was in conflict with its officiallydeclared aim of increasing the central bank’s independence and improving its efficiency. The President is

particularly concerned by the fact that the amended act would create the possibility of extending the monetarycouncil to include a disproportionate number of new members at the same time. (Econews; NG 3, Nv 3, Vg 5, Nb7)

New gov’t com’sioner to continue Roma integrationGábor Daróczi, incoming government commissioner of the Education Ministry for Roma issues told reportersyesterday that his primary tasks included integrating the many segregated Roma classes in primary schools. „Themere fact of having been born in a Roma family cannot be allowed to hurt children in school,” Daróczi said.Outgoing government commissioner Viktória Mohácsi, soon to represent Hungary in the Liberal Group of theEuropean Parliament, said that some 600 of the nation’s 3,400-3,500 primary schools ran separate classes for Roma children. (MTI; Nv 4, Nb 7)

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DomesticDiesel prices up Ft 5 from tomorrowDiesel prices at MOL Rt pumps are to go up another Ft 5 tomorrow, the Hungarian oil and gas flagship saidyesterday citing a steady upward trend in the fuel’s global trading price. The announcement comes only two daysafter MOL’s latest hike yesterday, when a respective Ft 2 and Ft 1 were added to the pump price of gasoline anddiesel due to a slash in the excise tax break introduced by the government to cushion the impact of high fuelprices in global markets. (Nv 6, Nb 16) S.F.Unions want to keep EU rules on working hoursTrade unions rejected a government proposal calling for Hungary to agree to amending EU guidelines on workinghours as early as possible, during a session of the Interest Coordination Council in Budapest yesterday. Thegovernment’s proposal was to have the EU limit official on-duty time to time actually spent working, with theinactive period considered resting time. The current EU guideline allows the inactive time spent on duty to beconsidered part of working hours. (MTI)

Alcohol-related road accidents up by 20%The number of road accidents caused by drunken driving has grown by nearly 20% between January andSeptember from the same period in 2003, the Central Statistics Office (KSH) reported yesterday. In the surveyedperiod there were 15,276 accidents causing various injuries to over 20,000 persons and claiming the lives of some 900 people, the report said. With the exception of western Hungary the figures rose in all parts of thecountry, KSH said, adding that the north-Hungarian region had suffered the highest of road accidents, with anincrease of nearly 15%. I(MTI; Nb 22)

StockwatchBUX Close: 14170.41 Change: +68.53 (+0.49%)Stock Closing price Daily change (%) Average price VolumeMOL 12,390 1.7 12,238 213,927Matáv 784 1.3 787 576,248OTP 5,281 0.2 5,319 1,245,272Richter 23,000 0.7 23,139 30,486Egis 10,700 0.4 10,664 9,654 Antenna 3,840 -0.8 3,845 776TVK 5,150 5.5 5,091 16,056

Rába 630 -0.8 629 5,763Budapest Stock Exchange

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01 December 2004

BUSINESSWizzAir responds to easyJet provocationWizzAir, a low-fare airline owned by Hungarian and Polish investors, has responded to an advertisement paid for by UK competitor easyJet PLC. The full-page ads which appeared in several newspapers yesterday asked thequestion „Dear WizzAir! How many flights have you cancelled already?” The ads mark the first time a low-fareairline operating in Hungary has resorted to directly provoking a competitor. In a statement, WizzAir said that itcancelled a few flights a month ago as part of changes to its timetable. The statement added that as a youngairline, it will sometimes be forced to cancel flights. (Econews; Vg 1, Nv 1, Nb 13, NG 5)

OBI opens biggest Hungarian storeThe Hungarian subsidiary of OBI, a big DIY chain, will open a store in the new Savoya Park shopping mall, justoutside of Budapest, tomorrow. The store is OBI’s seventeenth in Hungary, and, at 12,000 sqm, the biggest. Thestore will have a Ft 1 billion inventory, stocking 70,000 products from 400 suppliers, said the manager. Sales atthe new store should help OBI Magyarország Kft reach its revenue target of Ft 40-42 billion for the financial year ending April 30, OBI’s Country Manager László Reiter said yesterday. (Econews)

Pepsi outsources IT to Dataplex

In line with an agreement it has recently secured with the regional management of soft drink giant PepsiAmericasInc., Dataplex Kft will supply the mission-critical IT infrastructure of the Hungarian, Czech and Polish Pepsisubsidiaries for three years, the company said. The outsourcing contract includes data storage, server, backupand network services supporting the entire ERP system, with the implementation already up and running atBudapest-based FÁÜ (Pepsi-Cola) Rt and completed at the Czech Pepsi company a few days ago. Dataplex willtake charge of managing the beverage maker’s production and sales data in Poland early next year. (NG 5)

Sanoma poised to buy Index.huFinnish-owned publishing giant Sanoma Rt is about to close a deal on the acquisition of news portal operator Index.hu Rt, unnamed sources said. Once concluded, the transaction would be almost certain to come under scrutiny by the Competition Office (GVH), as it may confer the status of a quasi monopoly on Sanoma, already adominant market player with its Ft 17 billion annual revenue from 29 print and 29 online media. Index wasacquired from its previous owners in March by CEO Sándor Mucsi, former Danubius Radio Rt CEO István Sándor

and Wallitrade Kft, part of the Wallis Group. (NG 1) P.P.Videoton partner as yet unknownConsumer electronics manufacturer Videoton Holding Rt is believed to have reached a major contract workagreement with Balda AG subsidiary Balda Solutions Hungária Kft a few days ago that may require a staff of 1,000 as soon as 2005. The news reports were partly confirmed by Videoton CEO Ottó Sinkó, who said hiscompany leased industrial space to an unnamed partner in Veszprém, western Hungary. The contract could givea boost to Videoton, which has been forced to cut jobs by several hundred over the last few years. The companywill push ahead with plans to expand in Ukraine, hoping that the situation there will return to normal soon, Sinkóadded. (NG 1)

MOL flotation on Warsaw bourseThe flotation of Hungarian Oil and Gas Rt (MOL) stocks on the Warsaw Stock Exchange is going according toplan, regional spokesman Denis Mohorovic said denying the allegations of Polish stock exchange gazette Parkiet

that MOL’s failure to meet stricter reporting obligations may jeopardize plans to go public in Poland in earlyDecember. According to the newspaper, Polish laws stipulate more rigorous obligations for publicly tradedcompanies. While there are still a few unresolved issues between MOL and the Polish bourse, these are not goingto hinder the IPO, Communications Director Szabolcs I. Ferenc said. (NG 11) P.P.

Cashline’s Albrecht buys Herz stakeMeat processor Pick Szeged Rt has sold its 99.9% holding in Herz Rt to Ottó Albrecht, managing director andmajority owner of Cashline Securities Rt. Herz has annual EBITDA of about Ft 1 billion and hopes to generatedrevenues of Ft 9 billion this year, up from Ft 8.1 billion in 2003. Speaking to an online business magazine, Albrecht said the company had a healthy balance sheet and was ripe for listing on the Budapest bourse, whichcould take place as early as next year. (Vg 1) S.F.

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Mondi Business Paper - name changeChairman Gunther Hassler announced the name change of former Neusiedler paper mills to Mondi BusinessPaper yesterday. The name change took place in the middle of November. Mondi Business Paper expects its twopaper mills in Hungary to generate combined revenue of Euro 180,000 in 2004. The two mills in Szolnok andDunaújváros, both in central Hungary, are expected to produce a combined 200,000 tons of paper this year,slightly less than last year’s 210,000 tons. Mondi Business Paper has so far invested Euro 150 million in its

Hungarian paper mills. (Econews; NG 5)Parmalat reduces loss before liquidationParmalat Hungária Rt has doubled its production since April, when its liquidation was started, CEO László Fónaisaid. In April, the company processed about 60,000-70,000 liters of milk daily; now this figure is 150,000-160,000liters. This also resulted in the growth of turnover from monthly Ft 320 million in April to Ft 700 million-Ft 800million now. Monthly losses decreased from Ft 180 million to Ft 40 million. (Nv 5) G.R.

Novel form of advertisingMacrosolid Media Consulting Kft is set to launch a city outdoor advertising concept imported from Argentina andhitherto unknown in Hungary, Marketing Director Zoltán Som said. The so-called „streetshields” are man-sizedbillboards carried around by people in peak traffic who march up and down between pedestrian crossings and car traffic while the lights are red. The announcement comes shortly after a ban on vehicles purpose-built to carryadvertisements from the roads and streets of the city. The list price of a five-day „prime time” streetshield

campaign at two locations is Ft 417,000. (NG 7) P.P.Remington returns to Hungary via VartaThe Hungarian subsidiary of Germany’s Varta, best known for its batteries, has started selling Remington shavingand personal care products. Sales of the products are expected to generate revenue of Ft 250 million in 2005.Varta Hungária Kft is selling the products because its owner, Rayovac, one of the world’s biggest battery makers,bought Remington in 2003. Many of Varta’s other European units also started selling Remington products fromthe start of November. Rayovac will start producing Remington electric razors in Hungary soon, managing director of Varta Hungaria Attila Holladi-Horvath said. (Econews; Vg 14)

Metro Holding to sell RenaultsMetro Holding Hungary, the retail chain operator, has signed a deal with Renault Budapest Kft that will allow theauto dealer to sell 80 of its used cars at four Budapest Metro stores, CEO Tamás Jaross said. The cars, none of which is older than a year, all have their lease recently expired. Jaross said the move is aimed at boosting

turnover to offset flagging sales and growing competition in its core business. Metro, which runs 13 stores inHungary, last year saw its sales contract for the first time since 1998. (Vg 1)

Zalakerámia to slash 28% of workforce to cut costsTilemaker Zalakerámia Rt said it will slash 28% of its workforce, or 270 jobs, this year to cut costs and competeagainst imports. Zalakerámia said in a stock exchange statement yesterday it had planned to eliminate 304 postsand reduced the number after talks with employee representatives. A charge for the cuts will be taken this year,the Zalaegerszeg-based company said. The company announced plans to cut jobs Nov. 8, saying its marketshare was shrinking as demand in Hungary shifts toward higher-priced imported tiles. Zalakerámia had 2,824employees at the end of June, down from 2,858 a year earlier. (Bloomberg; Nv 5, NG 11, MH 12, Vg 17)

Motorway funds for winter repairsState Motorway Management Rt (ÁAK) reserved Ft 1.3 billion for road management expenses of this winter. Thestate-owned company has direct responsibility for 457 km of motorways, 46 km of major roads, and almost 200

km of service roads. Some further motorway sections are managed by local motorway management companies,while motorway M5 is handled by Alföld Concession Motorway (AKA) Rt. (Vg 7) G.R.

ECONOMYOECD less optimistic than gov’t on growthGrowth of Hungary’s economy will continue to slow in the next few years, warns the world macroeconomic reportof OECD published yesterday. The organization expects this year’s GDP growth to be 3.9% - lower than mostHungarian economy research institutes’ and government forecasts of 4%. OECD estimates inflation at 6.9% for 2004; government figures give 6.8%. Although the budget deficit will significantly decrease this year, it will still notmeet government predictions, the analysis says. (MH 12) G.R.

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Ecostat confidence indexEcostat’s ’Top 100’ economic confidence index for November was by 2 percentage points down at 52%, while itssmall business confidence index fell to 47.9%, the research institute’s latest poll showed. One third of the biggestcompanies hope their business climate to improve in the short term, almost half of them do not expect any changein that. Some 27% of SMEs are pessimistic about future, 7 percentage points more than a month ago. But onethird of them hope to start cooperation with multinational companies within next six months. (NG 4)

Hungarian-Romanian pension agreement firms up A new agreement on the payment of pensions to Romanian citizens in Hungary and Hungarians in Romania bythe countries in which they earned their entitlement could soon be finalized, a Romanian pension fund official saidyesterday. Camelia Hristea, who is in charge of bilateral agreements within the Romanian national pension fund,said that under the accord, being designed to conform to EU requirements, Romania would be obliged to paypensions to its citizens living in Hungary in proportion with the years spent working in Romania, and the samewould apply to Hungarian citizens living in Romania. (MTI; NG 3, Nb 7)

Oct. industrial producer prices up 0.3% m/mIndustrial producer prices rose 0.3% in the month of October and were up 3.5% in the twelve months to October,the Central Statistics Office (KSH) announced yesterday. Industrial producer prices for domestic sales rose by0.6% in October, while producer prices in forint terms for export sales remained unchanged. Domestic sale pricesrose 9.2% yr/yr in October and forint-term export prices decreased by 1.1% as the result of the forint

strengthening 3.4% against the euro and 9.6% against the dollar. Ten-month industrial producer prices rose 3.8%from the same period last year. Manufacturing industry producer prices rose 0.3% in October, with domesticsales prices up 0.8% and export prices in forint terms remaining flat. October manufacturing industry prices rose2.9% yr/yr, with domestic sales prices up 9.5% and export prices down 1.1%. (Econews)

POLITICSStop negative campaign, says MSzP policy sectionThe governing Socialist Party (MSzP) needs to stop campaigning against the granting of Hungarian citizenship toethnic Hungarians under preferential terms, the party’s social policy section agreed yesterday in a statement onthis weekend’s referendum. The categorical ’no’ appeal by the Socialists runs counter to the sentiments of themajority of left-wing voters, said a press release, so social policy’s executive body is calling on the MSzP to haltits campaign and let voters in Sunday’s referendum make their own decisions. The social policy section said itthought the Hungarian political elite was to blame for failing to work out a long-term ethnic policy over the past 15

years. (MTI)2,000 Hungarians vote abroad in referendumSome 2,000 Hungarian citizens who will be abroad on December 5 have registered to vote at 62 Hungarianmissions in a binding referendum, the foreign affairs spokesman told reporters in Budapest yesterday. Viktor Polgár said most of the voters have registered at the London, Paris, Brussels and Vienna embassies for Sunday’sballoting. He said that Foreign Ministry staff would be traveling to the missions to serve as heads of local electionoffices. (MTI)

DOMESTICFinMin ups deficit reduction targetsHungarian lawmakers voted yesterday on the government’s plan to narrow its budget deficit next as part of itsdrive to adopt the euro by 2010. The plan seeks to cut the shortfall to 4.7% of gross domestic product next year from an estimated 5.3% deficit in 2004. The amended convergence program aims to reduce the general

government deficit by a yearly 0.6-0.7%, in terms of GDP, in order to create the necessary conditions for adoptingthe euro. Before joining the EU’s Exchange Rate Mechanism (ERM II) Hungary must bring its deficit under 3%. - atarget it hopes to meet by 2008 (Econews, Bloomberg; Nb 1, NG 1, MH 11)

New drugs added to OEP subsidy listOver a hundred new pharmaceutical products, 80% of them generic, will be added to the National Health Fund Administration’s (OEP) list of subsidized drugs next year, the OEP said yesterday. Since Hungary’s EU entry inMay, the number of subsidy applications by drug makers has risen to over 450 upon the adoption of the EU’s drugtransparency directives, which forced many pharmaceuticals to re-submit older applications. With more lower-price generic products set to be introduced on the market next year, the OEP expects medication prices to grownot more than 7% on average from January. (Vg 1) S.F.

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Servers seized due to copyright infringementPolice last week seized 8 computer servers in Budapest and Miskolc that were used to illegally distribute anestimated 15 terabytes of pirated software, movies and music depriving producers of revenues of as much as Ft 1billion. Only in April this year, police conducted a similar raid with FBI officials in a Budapest dormitory thatuncovered an international chain of bootleg software distributors. (Nb 22) S.F.

Earth tremor felt in northeast Hungary An earth tremor was felt in northeastern Hungary last night, most probably connected to a stronger earthquake inPoland, but no one was injured and there was no damage, disaster management officials said. The tremor, whichmeasured at a 2 on the Richter scale, was felt in high-rise buildings in Salgótarján, 85 kilometers northeast of Budapest. A quake measuring 4.7 on the Richter scale was registered in Poland at 6:30 P.M. CET, and theHungarian tremor is believed to have been an offshoot. (MTI)

STOCKWATCHBUX Close: 14,193.88 Change: +23.47 (+0.17%)

Stock Closing price Daily change (%) Average price VolumeMOL 12,450 0.5 12,457 365,411Matáv 785 0.1 781 1,537,247OTP 5,310 0.5 5,318 682,887Richter 22,750 -1.1 22,861 50,617Egis 10,700 0 10,808 15,174 Antenna 3,850 0.3 3,863 171,821TVK 5,230 1.6 5,239 20,179Rába 640 1.6 638 10,834

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02 December 2004

BusinessPension reform will reduce deficit

Hungary's general government deficit, calculated according to the EU's ESA'95 methodology, will bereduced, as the government will be able to take the effects of pension reform into consideration in itscalculations, the finance minister said after the cabinet session yesterday. The country's modifiedconvergence program will take into consideration the amounts paid to private pension funds under budget revenue. These adjustments will reduce Hungary's general government deficit, calculatedaccording to the EU's ESA'95 methodology, by 0.8 %age points to 4.5% of GDP in 2004, and by 0.9%age points to 3.8% in 2005, Draskovics said. (MTI; Ng 1, Vg 1, Nv 5)Feasibility study of factory begins

Holcim Hungária Rt, the Hungarian subsidiary of Swiss cement maker Holcim, is starting a feasibilitystudy for the construction of a Ft 50 billion factory in Lábatlan (NW Hungary), Chairman-CEO RichardSkene said yesterday. If the parent company approves the study, which should be completed in springof next year, work could start in 2006 or 2007 and production could begin in 2009. The plant, if built, will

turn out 1.5 million tons of cement a year. Holcim Hungária had net profit of Ft 6.2 billion onconsolidated revenue of Ft 28.5 billion in 2003. (Econews; Vg 15)New outlets for Pannon mobile packages

Mobile service provider Pannon GSM Rt plans to sell its mobile packages at Shell gas stations andElectroWorld department stores from December, Pannon announced. The subscriptions bought in thenew shops will be activated free by calling a Pannon number without further administration or signing acontract, Pannon said. (Vg 13) M.K.Keviép wins Ft 4.6 bln tender

Debrecen-based construction company Keviép Kft has been picked winner in a tender to buildconference center in Debrecen for Ft 4.6 billion. In Apr. this year Keviép was co-awarded a similar contract by the local municitity to build an adjacent four-star hotel, office and resindential building as

well as an underground parking lot, valued at Ft 4.5 billion. The project is scheduled for completion byDec. 2005. (NG 9) S.F.Hoffmann builds Ft 3 bln road

Chairman-CEO of construction company Hoffmann Rt Ödön Hoffmann and chairman-CEO of theNational Motorway (NA) Rt Zoltán Bodnár have signed an agreement to build an 8.5 km detour sectionof the main road no. 51 between Dunavecse and Apostag, central Hungary. The new road must becompleted by November 2006. NA announced the public procurement tender for this road in April thisyear. (Vg 5) M.K.Advertising boom on commercial TV

Commercial TV channels each report record braking revenues from commercials this year. Viasat3 hasincreased its advertising revenue by 108% in the first ten months of the year, CEO Attila Kocsis said.

The channel reported Ft 909 million ad revenue last year. RTL klub earned Ft 26.6 billion from ads lastyear and hopes to increase this by 20%, the channel said. TV2 reported Ft 23.6 billion fromcommercials last year and hopes to be above this by 20% too. (Ng 5, Vg 16) M.K.Malév privatization tender description changes

The government changed the description of Hungarian Airlines Malév Rt's tender yesterday. Accordingto the change, bidders do not have to take a full and unconditional guarantee for Malév's loans. Thegovernment expects professional investors to be more interested in the tender after the change. Themore guarantees bidders take for the loans, the better chances they have to win, the government said.(Vg 5) M.K.

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Irish Investor's big plans for Fradi

The real estate portfolio of sports club Ferencváros was bought by an Irish investor, announced JánosFurulyás, president of the club. The Irish group offered Euro 6 million for the club's real estate, plusagreed to run the soccer team of the club. The investors plan to built a new stadium with a capacity of seating 30,000 people and to construct stores and apartments in Fradi's lots on Könyves Kálmán krt

and Gyáli út. (MH 23) R.G.Porshe wines Magyar Posta tender

Out of six contenders, national postal service operator Magyar Posta Rt (MP) declared PorscheLeasing Kft winner in its tender to buy 190 new vehicles aimed to augment its aging delivery fleet.However, after the announcement, three of the bidders, whose offers were invalidated by MP,approached the Public Procurement Committee (KD) claiming their bids were unfairly disqualified,which left the deal pending indefinitely. MP said Porsche Leasing submitted the best offer undertakingto supply the vehicles for a total Ft 876 million. (NG 8) S.F.Builders protest Lidl's unpaid bills

Sub-contractors of the builder of retail chain, Lidl's store in Kalocsa, Central Hungary are protesting infront of the store for two days lining up their heavy construction equipment because of unpaid dues

worth Ft 100 million. Csaba Skultéti, owner of one of the construction companies said that more than 10contractors have not received their fee. Protesters in Kalocsa contacted constructors of the Lidl store inGyula, South-East Hungary, who have the same problem. Sub-contractors in Gyula plan to hold ademonstration today. (Nv 5) R.G.BSE registers record turnover in Nov

Brokerages at the Budapest Stock Exchange registered a record combined tunover of Ft 661 billion inNovember, the best in four years and more than double compared to a year earlier, sending thebenchmark BUX index to another all-time high of 14,318. The leading broker remains Erste Bank Rt,which has managed deals worth over Ft 1 trillion this year. In view of the unexpectedly strong tradingseen this year the bourse said its profit margin is likely to come in at Ft 1 billion-Ft 1.2 billion this year instead of the originally projected Ft 700 million, which could add up to a 78% rise in total earnings over last year. (NG 11) S.F.

Kelly Services opens in BudapestKelly Services, a global staffing company based in the U.S., has opened its first office in the Centraland Eastern European region, in Budapest. Kelly Services CEO Carl Camden said yesterday. KellyServices places nearly 700,000 employees with businesses around the world every year. In Hungary,about 60% of people get jobs through personal contacts, and the rest rely on employmentadvertisements, according to Anikó Jónás, who will head Kelly Services Magyarország. (Econews)Jet2.com starts Bp-Manchester flight

Low-fare airline Jet2.com of the UK has started a service between Manchester and Budapest. Jet2.comis the eighth low-fare airline to fly from Budapest. Jet2.com chairman-CEO Philip Meeson said ticketsales started at the end of September, and 70% of the available 8,000 seats on the airline's December flights have already been booked. (Econews)

Mobile use increases to 84%Hungarian mobile-phone use rose to 83.7 % of the population in October, with the local unit of Vodafone Group Plc taking market share from T-Mobile Hungary Rt, a unit of Deutsche Telekom AG'sMatáv Rt. The number of Hungarians with cellular phones rose from 83 % in September this year and75.2 % in October last year, Budapest-based regulator NHH said yesterday on its Web site. The newEU member's three wireless companies struggled to add subscribers as 10.1 million Hungarians ownedmore than 8.4 million mobile subscriptions or pre-paid cards. T-Mobile had the most market shareahead of Pannon GSM and Vodafone. (Bloomberg)

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LLP sets up software for Sodexho

LLP Budapest Kft, a software company, has installed a software system for Sodexho Pass Hungáriathat will allow the company, which sells service vouchers, to automate some of its sales and keepbetter track of its customers. LLP Budapest won the contract to set up the client relationshipmanagement (CRM) system in the spring of this year and installed it in just four months. Sodexho is

one of relatively few companies in Hungary that have CRM systems (Econews)EconomicsEconomic growth slowed for a second quarter

Hungary's economic growth slowed for the second consecutive quarter in the third quarter as sluggishdemand in Western Europe, the main market for the new EU member, curbed production and exports.The economy grew 3.7 % in the third quarter, from a revised 4.2 % in the second and 4.3 % in the first,the statistical office said. Growth was expected at 3.7 %, according to the median forecast of 10economists polled by Bloomberg. The economy grew 0.9 % from the second quarter. (Bloomberg; Ng1)Insurance companies pay more compensation in H1

According to a report by the State Financial Institutions Supervision (PSzÁF), insurance companies

paid Ft 80.2 billion for compensations in Hungary in the first six months of this year for non-lifeinsurance, which is 6.6% higher than in the same period of 2003. Compensation was especially higher in car liability and the health insurance sector, PSzÁF said. Only half of compensation paid in the firsthalf of 2004 happened actually in that period, the rest were the consequences of damages in 2003,PSzÁF said. (Vg 10) M.K.November PMI 51.2%

Hungary's unadjusted PMI (Purchasing Manager Index) came in at 51.2% in November indicating amodest rebound in the output of the processing sector, logistics think-tank MLBKT said. The adjustedfigure for the same period was 50.5%, up from 48.1% in October. Compared to the year-ago period, theindex was up 0.1 yr/yr but still an average 2.5% lower than in the previous three years. The productionindex rose 4.2% to 52.5%, while the purchasing index stood at 61.2%. (NG 4) S.F.Investment volume up 12.7% yr/yr in Q3

Investments in Hungary increased 12.7% in the third quarter of 2004 compared to the same period lastyear, rising faster than the 10.0% year-on-year increase in Q2, but slower than the marked 18.9% risein Q1. Seasonally adjusted investment volume in Q3 was 3.2% higher than in Q2. In the first ninemonths of the year investments rose 13.2% compared to the same period in 2003. In the third quarter investments in machines and equipments rose by 14.1% yr/yr and building investments were up 12.7%.(Econews; Ng 3)Bonds to raise Ft 7.1 trillion in '05

Hungary plans to increase debt sales next year by 6 % to finance government spending and pay off maturing debt, the Debt Management Agency said today. Gross bond sales will be Ft 7.1 trillion forint,said László András Borbély, deputy director of the agency. Net forint-denominated bond sales, theamount needed to finance spending, will total Ft 426 billion, 33 % less than this year, the agency said.

Hungary is scaling back its net debt sales as the new member of the EU seeks to bring the budgetshortfall closer to 3 % of gross domestic product from an estimated 5.3 % this year. (Bloomberg; Ng 11)Erste and MFB sign refinancing deal

Erste Bank Hungary Rt will start drawing on a credit line from Hungarian Development Bank (MFB) Rtto grant special loans to local councils for infrastructure development projects. The new loan program isfor loans running for 20 years at most, plus a three-year grace period. The government provides anexchange rate guarantee on the loan, which means local councils pay between 4% and 6% annualinterest on the development loans. The loans are available both for the projects of individualmunicipalities and also to finance regional developments planned jointly by several local councils. Localcouncils must put up 10% of the project's cost to get the loan, but can also opt to take out a separatelong-term loan with a maximum five-year grace period from Erste to cover this amount. (Econews; Ng

4)

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Municipality to increase utility fees

The Budapest municipality is drawing up a plan to increase utility fees, public transport prices andprices of other public services by a rate exceeding the inflation forecast for 2005. Prices of runningwater, sewage and waste collection services are planned to increase by 5.7%, 14.8% and 9.4%respectively. Burial services might become 6% more expensive in 2005. A municipality proposal

suggests 10-25% increase in Budapest transport company BKV Rt's fees. The assembly will vote onthe planned increases on Dec. 16. (Nv 5) R.G.Motorway fines set to increase

Fines imposed on vehicles driving on motorways without a sticker will increase considerably as of January. The biggest penalty for trucks and vans will increase by Ft 84,000 to Ft 262,500. On-the-spotfines for cars without stickers will be up to Ft 11,500 from Ft 10,000, while the maximum amount fromFt 42,000 to Ft 48,300. (Nv 24) R.G.PoliticsRomanian statement unusual - ForMin

Foreign Minister Ferenc Somogyi criticized the Romanian prime minister's remarks that rejectedgranting Hungarian citizenship for his country's Hungarian minority, terming them as "unusual and

irritated." Speaking in the course of a program on Hungarian Klubrádio yesterday, the minister said Adrian Nastase's statements could be interpreted as a sign that Romania wanted to minimize thebenefits of possible Hungarian citizenship to be granted to ethnic Hungarians in the country. TheRomanian prime minister, earlier in the day, said that plans to grant Hungarian citizenship to ethnicHungarians in Romania was an "insane idea", having "no international law or political basis." (MTI; Nb1)Gov't to provide for ethnic Hungarians

The government intends to help ethnic Hungarians in neighboring countries by setting up theMotherland Fund and a credit program with a total Ft 21 billion and will provide passports to help themtravel to Hungary, the justice minister told Parliament yesterday. "People professing to be Hungarianare considered Hungarians, irrespective of where they live, and the Hungarian state feels responsibilityfor them," Minister of Justice József Petrétei said. The minister added that the Motherland Fund would

be established with a starting capital of Ft 1 billion. (MTI; Nv 3)DomesticCourt dissolves fascist organization

The Budapest Metropolitan Court as a court of first instance ruled on disbanding the far-right Blood andHonor Cultural Association (VBKE) yesterday. The disbanding case was initiated by the BudapestPublic Prosecutor's Office last February on the ground that VBKE activists voiced neo-fascist views,which were incompatible with the law on association, the Constitution and international law. Theprosecutor argued at the trial that "Blood and Honor" had been a Nazi slogan, in addition that membersof the association carried neo-Nazi insignia. The court verdict noted that disbanding the organizationwas prompted by the statements made at their public programs which extended harm to the dignity of others. (MTI)

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03 December 2004

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Business

Film trust to support film industryHungarian investment bank Concorde Értékpapír Rt, has devised a film trust, which has tax write-off attractionsfor investors. Under the Act on Motion Pictures, which came into force in April of this year, businesses whosupport film production with cash subsidies - or donations - may deduct 100% of this subsidy from their tax baseas well as from their payable taxes. The tax break has some conditions in that investors may write off no more

than 70% of their payable taxes, and they may not deduct any more than 20% of the total production costs of anyone film, but the write-off is still extraordinary, providing investors with a return - in the form of a deduction - of Ft116 on every Ft 100. (Econews; Ng 1, Nb 16, MH 13, Vg 18)

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Arago boosts stake in Forrás

According to a statement issued by holding company Forrás Rt, its majorityowner investment company Arago Rt increased its stake in the company throughthe purchase of some 1.03 million shares. Arago now owns 88% of Forrás. Theprice of Forrás shares rose 15% on the Exchange as investors scrambled to

take advantage of Hungarian legislation compelling shareholders who own morethan 75% to purchase minority stakes at market price. (NG 11) A.K.

Richter buys own shares

Pharmaceutical company Richter Gedeon Rt purchased 9,150 of its own sharesin a transaction that took place outside the Budapest Stock Exchange. Thecompany uses the shares to finance its employee share ownership scheme. As aresult of a Board decision taken yesterday 18,300 shares will be distributedamong employees who delivered outstanding all-round performace throughoutthe year. The shares have a market value of Ft 415 million. (NG 11) A.K.

Forrás transfers stakes to Formix

The assets management company Forrás has transferred or sold minority stakesin some of its companies to its wholly owned subsidiary Formix. Forrástransferred a 22.92% stake in winery Borászati Vállalkozási and a 47.11%stake in vintage wines trader Muzeális Borforgalmazó to Formix. At the sametime Forrás sold a 26.81% stake in furniture maker Zala Bútorgyár along withother minority stakes to Formix. (Econews; Ng 11)

Hollóházi remains state-owned

The State Privatization and Holding Rt (ÁPV) announced, that the tender issued for the sale of its majority stake in porcelain manufacturer Hollóházi Porcelán Rt was unsuccessful. Only one investor showed interest in

Hollóházi, but the price offered was too low for consideration. ÁPV alsodisclosed the results of other recent tenders: Saye Kft was declared thewinner of a tender for the sale of financial services firm HungarianInvestment and Asset Management Rt at a price of Ft 1.2 billion and SzentesGabonaipari Cooperative won the tender for the sale of milling company DélGabona Malomipari Rt with its offer price of Ft 617 million. (NG 4) A.K.

CIB employees to receive CIB shares

The board of directors of CIB Bank Rt, after having received permission fromits parent Intesa Holding International S.A., decided to effect a capitalraise of Ft 3.5 billion to finance the bank's new employee share ownershipprogram. CIB will issue 2.22 million new shares and distribute it to its

employees. CIB Bank's subsidiary CIB Lízing Rt also raised its capital by Ft200 million through the issue of some 20 thousand shares to employees. (NG5) A.K.

Roaming mobile travel insurance

Telecommunications company T-Mobile, insurance company Atlasz Biztosító andtravel agency IBUSZ are launching a new, joint service in December, makingit possible to get travel insurance through mobile phones. QBE Atlasz CEODoron Grossmann stressed that at in at least 5 million cases each year,Hungarian travelers do not sign insurance contracts because of the lack of time, or similar issues, even though as many as 50% of them leaves thecountry by car. Mobile purchase transactions in general show an incredible

growth; in 2003, the monthly number was less than 10,000, while in 2004,transactions reached 100,000/month. (Ng 5, Vg 14) M.M.

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Kravtex's Ft 300 mln center in Győr

Coach producer Kravtex Kft. has completed a Ft 300 million investment;today, they will be inaugurating a new coach maintenance and diagnosticscenter, as well as an office building, in Gyor (west Hungary). The company

that has spent over a billion forints on production development and capacityexpansion in the past few years also introduces its new, Credo C12 coach.Kravex is currently producing suburban-type Credo buses for 24 Volánregional transportation companies in Hungary; their new production partner is Kühne Rt., a former agricultural machine producer. (Vg 13) M.M.

BAT opens logistics center

Cigarette producer, British American Tobacco Hungary Kft (BAT) opened itsnew logistics and storage facility in the industrial park in Pécs yesterday.The 8,000 sqm. logistics center, built at a cost of Ft 1.5 billion willserve as the company's primary distribution site in Hungary. The productsproduced in BAT's factory in Pécs will be stored here before delivery to the

company's 14 regional distribution centers nationwide. BAT had Ft 6.5billion profit after tax in 2003, a figure expected to be underscored thisyear as the cigarette market continues to shrink. (NG 5, MH 12) A.K.

T-Mobile extend Fradi sponsorship deal

Telecommunications giant T-Mobile prolonged their sponsorship contract withHungarian soccer team FTC for another 2.5 years; the team's main supporter will probably cover one-fourth of the annual Ft 1 billion FTC costs. FTC Rt.chairman of the board András Sugár confirmed that T-Mobile surpassed their expectations. At the same time, he denied the validity of the recent newsabout an Irish investment group acquiring FTC for Ft 1.7 billion; he said hewas authorized to continue negotiations with an investment group, but no

contract has been signed at this point. (Vg 13) M.M.

BÁV to convert shares

Pawn brokerage BÁV Rt decided to convert its physical shares whose dividendslips became outdated to new physical shares. BÁV Rt opted not todematerialize its shares as it is not an open company and thus not requiredto do so by legislation. Shareholders have to take out their shares from thecentral depository KELER Rt, a transaction that carries high fees and takeit to BÁV's headquarters for conversion. Experts say that this move isprobably a scheme of the majority owner to persuade minority shareholders tosell their stakes. (NG 11) A.K.

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Malév pilots to fly for free

Malév-pilots end up flying for free despite talks that were originallystarted to negotiate a wage increase. The end result is attributed to theleadership skills of the management: the pilots will work 30-35 hours for free (which means 7 Bp-London-Bp trips) on top of the 750 mandatory hours.

The free work is a Ft 40-50 million contribution to Malév to break even,otherwise if the company closes in the red, the State Privatization andHolding Rt (ÁPV Rt) will refuse to transfer the subsidy promised earlier.(MH 13) E.C.

University of Szeged wins tender

University of Szeged has been awarded Ft 873 million FinMin tender topurchase modern tools and instruments necessary for conducting scientificresearch and providing quality education. The university itself will add Ft131 million from their own resources. (MH 6) E.C.

Biggeorge's and Otthon swap stakes

The owners of two of Hungary's biggest real estate companies, Biggeorge'sInternational Rt and Otthon Centrum Rt, have bought stakes in each other'scompanies. Biggeorge's owner Tibor Nagygyörgy bought 24.95% of OtthonCentrum, buying out Otthon Centrum owner Adorján Salamon. Salamon bought25.95 of Biggeorge's, giving him a 49.9% stake in the company. WallisIngatlan Rt, which is partly owned by Nagygyörgy, owns the remaining 50.1%of Biggeorge's. Salamon, who is also the CEO of Biggeorge's, said the movewas intended to simplify the ownership structure of the businesses. Thepurchases will be followed by a change of name at Biggeorge's. The new namewill be announced next week. (Econews)

E.ON seeks bigger gas stakes

E.ON AG, Europe's second-largest utility, plans to boost its stakes in twoHungarian natural-gas distributors, weekly HVG reported, citing a localgovernment official. Acquisitions by E.ON of majority holdings in regionalsuppliers Kögáz Rt. and Ddgáz Rt. would boost its combined share of Hungary's gas market to 37 % from 30 % and would require regulatoryapproval, HVG cited Ferenc Horvath, head of the country's market regulator,as saying. E.ON, which last month agreed to buy majority stakes in gas-sales storage assets from Hungary's MOL Rt, expects to benefit fromincreasing demand for natural gas in Eastern Europe. (HVG 12-2) (Bloomberg)

BauTrans sells subsidiaries to peers

Shipping company BauTrans Hungária has sold its fleet of delivery trucks toHungarian peer Waberer's and its heavy load unit to Austria's Felbermayer,which also specializes in moving heavy loads. Elemér Gidófalvy, director of Invescom Corporate Finance Kft, the consultancy that managed the deal, saidthat Waberer's bought more than 100 vehicles with the purchase of a 100%stake in BauTrans's subsidiary Transporta. Feldmayer also bought 100% inBauTrans. (Econews)Economics

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New car sales dip

According to vehicle information company JATO Dynamics, prices of new carsin Hungary went down by an average of 3.9% yr/yr by the end of October,while in the other 19 European countries evaluated in the survey, priceswent up by 2.7%. The main reasons for lowering car prices were lower demand

compared to soaring car sales before the introduction of registration tax,fewer car loans taken out because of the population's higher debts anddecreased wage value. Also, previous car loan structures with low startingpayment had led to a significant amount of cars taken back by the salescompanies and re-sold as used, suppressing both new and used car prices. (Vg1) M.M.

EconomicsMNB deputy-governor warns of reckless rate

The deputy-governor of Hungary's central bank has warned against the effectsof cutting the base rate too quickly. Henrik Auth, deputy-governor of theNational Bank of Hungary (MNB) said an exaggerated rate reduction could

cause the forint to weaken substantially, threaten economic balance and hurtinvestor confidence. Auth was speaking at a national conference of businessexecutives in Budapest yesterday. Auth conceded that the slowing inflationrate, healthy investor confidence and the strong forint allow for a lower base rate, but noted that investor confidence is still vulnerable as areHungary's balances, warranting a cautious rate policy. (Econews; Ng 1)

AKK aims to keep ratio of forex

In a shift from its earlier strategy, Hungary's Government Debt Management Agency (AKK) plans to keep the share of foreign currency denominatedgovernment debt to overall debt between 25-32% in the future. This impliesregular net foreign issuance and financing part of the annual deficits inforeign currency in the future. The target is part of a set of newbenchmarks AKK adopted as part a modified government debt strategy announcedby AKK on Tuesday. The strategy also set target ranges for the fixed- andfloating rate composition of both forint and foreign currency debt. Under the earlier strategy, foreign currency issues were limited to renewingexpiring debt to result a dropping share. (Econews; Ng 3)

Anger over tax refund abolishment

The Hungarian Association of International Companies (Nemzetközi VállalatokMagyarországi Társasága, NVMT) is submitting a complaint to the Ministry of Finance because of the recent abolishment of environmental load tax refundfor waste recycling companies. NVMT claims that the amendment of theregulation may cause over Ft 100 million losses to the biggest Hungarianwaste management firms in 2005. The modification affects nearly 100companies including packaging company Dunapack Rt., metallurgical producer Dunaferr Dunai Vasm? Rt. and protein processing firm ATEV Rt. (Vg 16) M.M.

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Eximbank to finance exports to Karelia

Prime Minister of the Republic of Karelia, Pavel Chernov, Magyar Export-Import Bank CEO Frigyes Banki and Magyar Exporthitel Biztositó(Mehib) CEO Tibor Takács signed a framework agreement on USD 30 million -USD 35 million in financing for Hungarian exports to Karelia. Under the

agreement, Karelian clients of Hungarian companies that export medicalinstruments to Karelia, take part in gas pipe development projects or construction work in Karelia, may get a buyer's loan from Eximbank. The loanwill be taken out by the Karelian government's bank, the Onego Bank.Repayment of the loan is guaranteed by Karelia, and Mehib will insure theindividual deals. Karelia, a member of the Russian Federation, shares aborder with Finland. (Econews; Vg 5)

Resources unused in war on Ragweed

Although Ft 700 million was allocated to rid the land of Ragweed this year and despite the fact that a third of the population suffer from relatedallergies, Ft 140 million was not spent. The leftover is to be saved for

next year, however, NGOs are afraid that that the budget will be cut nextyear. Ministry of Agriculture official István Eke said that the 2005 budgeton ragweed will be over Ft 1 billion, and the regulations will make iteasier to hunt down careless landowners. The Ministry will call for aprocurement tender to purchase motor scythes, and will keep on spendingmoney on campaign and education to raise awareness and to make sure peopleare able to correctly identify the harmful allergenic weed. (MH 7) E.C.

Biometric passports on the way

The introduction of the new biometric passports may cost up to Ft 10billion. The new passports will look exactly like the old ones, however,there will be an intangible chip implanted into the cover containing the

fingerprint and the digital photograph of the person. If the legislation ispassed in Q1 2005, the issuance of the new passports will commence in 3years. International data protection organizations believe that the new ideainvades privacy and human rights and are afraid that, in time, these chipswill be placed underneath the skin. (MH 15) E.C.

Defense spending cut by Ft 593 bln

The government has cut its target for defense spending over the next tenyears by about Ft 593 billion to Ft 3,556.3 billion at 2004 prices. About Ft769.5 billion of defense spending during this period will go towarddevelopments. The new situation will have to be addressed together with the Armed Forces' suppliers, Lieutenant-General Zoltán Szenes, Chief of Staff,

told a conference of defense industry companies. Lt.Gen. Szenes said moniesavailable for development projects could be increased by restructuringspending. Payroll costs account for 50% of the overall budget, as against40% elsewhere outside Hungary. (Econews)

Politics

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Conflicting info on effects of dual citizenship

According to FinMin estimates, every 10,000 ethnic Hungarians moving intothe country would result in an extra expenditure of net Ft 4.4 billion ayear. For 100,000 newcomers, the extra costs would be Ft 46 billion,

approximately 80,000 jobs in Hungary may be in danger, which would cause thecurrent unemployment rate, 6.1%, to go up to 7.5 - 8.0%. According to theWorld Federation of Hungarians, every 10,000 families would bring an extraFt 39 billion income to the state and only cause a Ft 25 billionexpenditure, thus awarding the dual citizenship would increase Hungariannational profit. (MH 5) E.C.

Domestic

New highway opens to traffic in NE Hungary

Traffic has started on the last stretch of main road in northeasternHungary. Prime Minister Ferenc Gyurcsány opened the new section of highway

30, linking Miskolc, 150 kilometers northeast of Budapest, to the M3motorway, at its end junction in the nearby Fels?zsolca yesterday. This andanother main road, no. 304, which also opened yesterday, were the last partsmissing from a ring road bypassing the town's southern and eastern quarters.(MTI; MH 3, Ng 3, Nv 6, Nb 8)

Exchange

FIXED MIDDLE RATE In forintsDec 02, 2004 National Bank of HungaryEUR 1 244.03USD 1 182.90

GBP 1 354.50CHF 1 160.21JPY 100 178.53CZK 1 7.90PLN 1 58.65

Stockwatch

BUX Close: 14365.98 Change: +48.07 (+0.34%)Stock Closing price Daily change (%) Average price VolumeMOL 12,480 -0.5 12,440 427,194

Matáv 794 1.1 789 1,028,976OTP 5,450 1 5,441 979,895Richter 22,800 -0.4 22,613 38,362Egis 10,890 -0.1 10,862 4,721 Antenna 3,840 0.4 3,835 1,888TVK 5,260 1.2 5,215 3,428Rába 640 2.4 638 7,335

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06 December 2004

Business

Alpha Bank may trump OTP for Jubanka

The Greek Alpha Bank had the best offer for the majority (88%) share packet in the Serbian bank Jubanka a. d.Beograd, beating out rivals OTP Bank Rt and Societé Génerale, according to unconfirmed reports. OTP Bankmay submit bids for other Serbian financial institutions, namely Novosadska Banka, whose 83% share is for sale,and Continental Banka, whose 98% share is up for grabs. OTP Bank has made a binding bid for the majority(96%) share packet in the Croatian bank Nova Banka on Nov. 24. (Vg 1) P.O.

SCA completes Ft 2.3 bln Gyor factory

The Hungarian subsidiary of SCA, a big Swedish paper company, has set up a Ft 2.3 billion factory in Gyor (WHungary). SCA Packaging Hungary Kft expects the factory to generate sales revenue of Ft 2 billion-2.5 billion inthe first year of production, CEO Csaba Mathe said on Friday. This year, SCA Packaging Hungary expects

revenue of Ft 9 billion and pre-tax profit of Ft 750 million - 800 million. SCA built the 9,000-square-metre factory in just five months. The facility cost Ft 300 million to build, and the production lines cost Ft 2 billion. SCA received Ft150 million form Hungary's "Smart" program to build the factory. The factory will employ 40 workers. (Econews;Ng 4, Vg 7)

G. H. Financials rents in Margit Palace

G. H. Financials Kft has signed a long term agreement with real estate agent Jones Lang LaSalle to rent 421 sq.m. of office building Margit Palace. G. H. Financials Kft is a subsidiary of G. H. Financials Ltd, which will directelectronic trade at the European Futures and Optional Commodity Exchange from Budapest. Margit Palace offers17,100 sq.m. office space on six levels and 90% of the building is rented. (Ng 17) M.K.

Strabag to build cement factory

Strabag Construction Rt plans to establish a cement production plant in south Hungary, PR manager OttóZimmermann said. Strabag will invest Ft 27 billion into the new plant, which will be built somewhere on the roadno. 6 between Szekszárd and Szigetvár, Zimmermann said. Strabag examined some other potential investmentsites as well before choosing the south Hungarian region, Zimmermann said. Strabag expects the consent of thelocal population before building the plant that will produce 1 million tones of cement annually. (Ng 5) M.K.

PSzÁF fines Concorde Ft 3 mln

The Hungarian Financial Supervisory Authority (PSzÁF) has fined brokerage Concorde Rt Ft 3 million for suspending the sale of units in two of its investment funds. Concorde stopped selling the units betweenSeptember 9 and 24, citing speculative pressure on a share with a large weight in the funds' portfolio. The unitswere in the Concorde 2000 Open-end Investment Fund and Concorde Share Investment Fund, both of whichhave a high proportion of shares in Brau Union Hungária Rt, a big brewer. Small shareholders in Brau UnionHungária, including Concorde, were disputing a buyout of the company by Heineken during the period. (Econews;Ng 8, Vg 9)

EMKTV fined again

The Competition Office (GVH) fined cable TV company and ISP EMKTV Kft for Ft 5 million for abusing itsdominant market position. According to GVH, the company can change its program packages unilaterally basedon the general conditions of contract. It was not the first time the Competition Office deemed EMKTV's generalconditions of contract as a means of abusing dominant market position. (Vg 5) P.O.

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Csorna to build spa and leisure center

The municipality of Csorna, west Hungary, has decided to launch a real estate program in cooperation withZalaegerszeg-based Hoffmann Construction Rt, the municipality announced. Csorna municipality plans toconstruct a spa center and a leisure time center in the town investing billions of Forints into the project. The

project will consist of cleaning the fishing lake, the construction of new apartments and a spa as well as sportsfacilities and a swimming pool. Finally a 50-bed spa hotel will be built. The project is to start next spring. (Ng 17)M.K.

Balda to produce mobile parts in Veszprém

German Balda AG plans to move its mobile phone parts production capacity to Veszprém, west Hungary, thecompany said. Balda has recently signed an agreement with Videoton Holding Rt about the establishment of anew plant from one of the old IBM plants in Veszprém Industrial Park. Balda will not only rent the production hallsfrom Videoton, but will also hire other services, like labor force and logistics from Videoton too. (Ng 4, Vg 5) M.K.

Sportfolió to become pub. fin. institution

Sportfolió Kht, a non-profit organization which was founded by the Ministry of Children, Youth and Sports in 2000for the operation of state-owned sports centers, will be turned into a publicly financed institution, National SportsCenters (NS), director of the National Sports Office Attila Ábrahám announced. Sportfolió has amassed Ft 3.5billion in losses during the past couple of years, Ábrahám added. National Sports Centers would only manage thesports center in Népliget, Budapest, and another six Olympic sports centers, the rest of the state-owned facilitieswould be put up for sale. National Sports Office hopes to net Ft 2 billion from the deals. (Vg 7) P.O

Pannonplast sells non-core assets

Plastic parts maker Pannonplast Rt said on Thursday it had sold its stakes in non-core subsidiaries and divestedreal estate assets as well as unused production equipment. The proceeds will cut this year's losses. In an

announcement made after trading hours, Pannonplast said it sold its stakes in Kaposplast, Recyclen, Multicardand its maintenance firm Pannonplast Karbantarto. The sale is part of the company's reorganization, which wasstarted in March. The proceeds of the sale will cut Pannonplast's consolidated debt-to-assets ratio by 8% toslightly below 50% this year, Pannonplast financial manager Denes Gyimothy said. (Econews; Vg 10)

ProLogis opens Budapest office

Logistics parks and services developer ProLogis has recently opened its Budapest office in Bank Center.ProLogis is now building a new logistics center with the name ProLogis Park Budapest near the motorway M5.The park will host nine buildings with a total net area of 150,000 sq.m., out of these three have been finished sofar. ProLogis is also building a distribution center in Budaörs, near Budapest, which will be finished in the first partof next year. (Ng 17) M.K.

Wizz Air gets Ft 25 mln from Indigo

Low-fare airline Wizz Air, owned by Hungarian and Polish investors, has signed an agreemenent for a Euro 25million loan with investors specializing in the industry from the U.S. and Europe. Half of the loan will come fromIndigo Partners, a U.S.-based private equity company specializing in investments in airlines, and half will comefrom companies in Europe, including Debis AirFinance, a company which leases aircraft, and Lufthansa Technik,an aircraft maintenance company. "The transaction has made Wizz Air one of the strongest low-cost airlines interms of capital," CEO of Wizz Air László Varadi said. (Econews; Ng 5, Vg 8)

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Paks to buy Skoda JS machinery

Plzen-based Skoda JS, part of Russia's United Heavy Machinery (OMZ) corporation, has signed a deal with thePaks nuclear plant to supply Euro 20 million worth of mechanical equipment between 2005 and 2007, OMZannounced. The machinery to be delivered by the Czech company will be part of the plant's regulating and safety

system and will serve the purpose of extending the useful life of its four reactors beyond their expiry date, whichrange from 2012 to 2017. A month ago the Parliament's Energy Committee voiced support for a Ft 172 billionproject that could extend the life span of the plant by 20 years. (Nv 5, MH 2) P.P.

Samsung has 13% share of mobile market

Samsung expects sales of its mobile phones in Hungary to generate Ft 12 billion in revenue this year, up from Ft8.9 billion a year earlier. Samsung expects to sell 280,000 phones in 2004, giving it a 13% share of the market,sales manager Balázs Kunos said on Friday. The company sold 210,000 phones last year and 100,000 in 2002.In 1999, Samsung's first year in Hungary, it sold just 1,300 handsets. Samsung plans to launch several newhandsets shortly, and is developing the software for one of the phones in Hungary. (Econews; Vg 5)

Graboplast sells rug maker to CEO

Flooring company Graboplast Rt has sold 97% of Soproni Szonyeggyar, which makes rugs, to a company ownedby rug company's CEO, Zoltán Jarfas. Graboplast will retain a 3% stake in the company. The purchase price wasnot disclosed. The sale is part of Graboplast's strategy to sell off its non-core companies. Jarfas said-Eco thatSoproni Szonyeggyar sells to a niche market and capitalizes on its 95-year history. (Econews; Vg 5)

BUX ticking higher in lackluster week

The Budapest stock index climbed to new closing highs this week as blue chips OTP Rt and MOL Rt were bothedging higher. But, with no major corporate news coming out during the week, gains remained limited and thesharp rally seen over the past two months slowed considerably. Despite rising four out of five sessions, the BUX

inched up just 1.51%, closing at 14,101.88 points on Friday. (Econews; MH 3)

Malév cancels all flights to Vienna

Hungarian airline Malév has cancelled all flights to Vienna because of poor demand, Malév announced onThursday. The last Budapest-Vienna flight was on Friday, but Malév will still provide for travel for passengersalready holding tickets for flights to Vienna leaving after December 3. Malév is continuing its flights to Munich,Zurich and Ljubljana. Separately, the State Privatisation and Holding Rt. (ÁPV), which owns more than 99.9% of MALEV, announced on Friday that it will decide in this month on a Ft 3billion capital injection to MALEV that wasoffered in a government decision with some conditions attached. (Econews)

Savaria to be privatized

The Vas county council in Szombathely, western Hungary, approved a plan to privatize Savaria Tourist Kft, thecounty's small travel and hospitality company, Vice President of the assembly László Beleznay said. Although thecompany has been a loss-making enterprise for many years and will barely stay in the back at the end of 2004,the sale could bring in an estimated Ft 500 million as Savaria owns a hotel, a B&B, a campsite, a travel agencyand currency exchange precincts. However, the county will retain ownership of a castle hotel in nearby Bozsok. Ithas been suggested by local sources that the sale of Savaria is also very convenient for a prominent county levelpolitician as it will eliminate competition for his own travel agency. (Nb 10) P.P.

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Economics

Private pension members may choose

The Finance Ministry is considering three amendments to the law on private pension funds. One of theamendments, discussed at a conference recently, would let private pension fund members use half of their pension savings as collateral for loans, one would allow older private pension fund members to switch back to thestate pension system up to a set deadline, and another would end the practice of automatically writing off privatepension fund payments from personal income taxes. People nearing retirement age who would get only about aquarter of the amount from their private pension funds than they would from the state pension fund will be allowedto switch back to the state pension system until 2012. (Econews; Vg 11)

MFB to aid SMEs

Hungarian Development Bank (MFB) Rt has launched a new loan program for micro-, small- and mid-sizedventures with Ft 10 billion. MFB aims to improve the competitiveness of the firms with the long-term loans given ata reduced interest rate. The maximum amount of loans is set at Ft 250 million, or 75% of the net investmentvalue, and companies need to cover at least 25% of the investment from their own resources. Bidders should

employ no more than a hundred people, and bids should be submitted at the branch offices of the bank. (Vg 6)P.O.

Politics

ForMin welcomes Ukraine revote ruling

The Hungarian Foreign Ministry on Saturday expressed satisfaction over the Ukrainian Supreme Court's order torepeat a presidential runoff. In a statement issued on Saturday, Foreign Ministry spokesman Viktor Polgar saidthe revote decision of the Supreme Court was an important precondition for a democratic presidential election inUkraine. The Foreign Ministry expects that Ukrainian authorities will do their best to ensure that the repeat votefully complies with international democratic standards as this will ensure that the people of Ukraine can express

their true will. (MTI)

Voters say no

Ethnic Hungarians will be denied the chance for preferential Hungarian citizenship while health-care privatizationcan continue, voters decided in a referendum on Sunday. After 97% of the ballots were counted, István Stumpf, aclose aid to opposition leader Viktor Orbán, conceded that it was "almost certain" that the referendum on bothquestions was unsuccessful, in an interview with on private news channel Hír TV. Voter participation was 37.44%, well below the 50% needed to make it binding. After 99.59 % of ballots were counted 51.55 % voted to grantHungarian citizenship to ethnic kin, while 65.02 % said yes to halting hospital privatization. Since less than 25 %of registered voters had cast their ballots in agreement, neither motion passed. Prime Minister Ferenc Gyurcsánytermed the referendum as "joyless" but that voters had opted for "responsible patriotism". (MTI; Nb 1, MH 1,5,6,Nv 1,2)

DomesticNurses lured to Italy

A Rome-based employment agency called ALI lures away the best graduate nurses from Hungarian schools withtuition and language courses. The Italian agency has already reached an agreement with a number of Hungarianeducational institutions, where nurses are trained. Italy has vacancies for around 60,000 nurses, and trainedHungarian employees are more than welcome. The agency also offers a brighter future for active nurses with one-off money of Euro 3,500, a gross pay of Ft 350,000, and accommodation. (Vg 1) P.O.

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Roma education center for Bp

Budapest will accommodate the first regional Roma education center of the Roma Decade of Inclusion program,the Ministry for Youth, Family, Social Affairs and Equal Opportunities announced. The participants in the programinclude Bulgaria, the Czech Republic, Slovakia, Macedonia, Romania, Croatia and Serbia-Montenegro in additionto Hungary. The center will control approximately Ft 8 billion in grant money for Roma education programs. (Nb 8,

MH 7) P.P.

Hapsburg to head Red Cross

György Hapsburg was elected President of the Hungarian Red Cross by the 11th convention of the organizationon Saturday. In his inaugural speech, Hapsburg noted with regret that state funding for the Red Cross hasconsiderably diminished over the past three years and declared his intention to strive for closer cooperation withthe government and legislation. "The Red Cross needs to lobby more intensely for funds both in Hungary andelsewhere, and I will be happy to do so", he said. The grandson of Karl von Hapsburg, Hungary's last king,György Hapsburg moved to Hungary and became a citizen in 1993. He has been representing the country asambassador extraordinaire to the EU since 1996. (Nb 8, Nv 3) P.P.

StockwatchBUX index: BUX Close: 14314.60 Change: -51.38 (-0.36%)

Stock Closing price Daily change (%) Average price VolumeMOL 12,395 -0.7 12,435 801,669Matáv 796 0.3 799 1,256,492OTP 5,418 -0.6 5,394 903,199Richter 22,795 0 22,754 36,190Egis 10,900 0.1 10,898 4,948TVK 5,155 -2 5,182 786



Documents

7Days, 2004. december 6