Close co-operation between Hungary and Macedonia

Budapest, Hungary (Moyan Brenn, CC BY)

Russia refuses to accept its bonds as an Ukrainian commercial debt.

Bulgaria talks to Iran.

Latvian growth in 2016 and 2017 will be the highest among Baltics.

Hungary and Macedonia

Hungary and Macedonia will start co-operating on improving health care systems, air traffic control and consumer protection. A special declaration between the countries was signed by Levente Magyar, state secretary in the Hungarian Ministry of Foreign Affairs and Trade and Aneta Dimovska, state secretary in the Macedonian Economy Ministry. Hungary is perceived as a strategic partner by Macedonia thus a special joint economic committee is meeting regularly in Budapest. And the bilateral trade is growing (30 per cent increase in the first 4 months of 2015). According to awebsite of the Hungarian Ministry of Foreign Affairs and Trade “Hungary is currently the fifth largest investor in Macedonia, and this may be further improved due to a close political and geographical proximity, as well as the complementary nature of the Hungarian and Macedonian economies”.

Russia – Ukraine

Russia refuses to accept the Ukrainian idea to have its loan to Ukraine (a two-year bond maturing on December 20th, 2015) treated as a commercial debt. It is becoming clear the two countries will end up in court. Ukraine owes Russia USD3bn and for sure this debt will not be repaid on time. As we have reported Ukraine has included its Moscow’s debt to commercial debts and negotiated its restructuring with private investors. Partially it succeeded but Russia didn’t join the negotiations insisting that its loan should be treated as an official country-to-country one. Reuters reports that when Arseny Yatseniuk, the Prime Minister of Ukraine, confirmed on Friday Ukraine would not repay the Eurobonds, Dmitry Peskov, a spokesman for Russia President Vladimir Putin, commented: „This is the recognition of their default. Effectively, there are only legal prospects now”. Also the International Monetary Fund said on December 17th that it also classifies the bond as official debt.


Daniel Mitov, Bulgarian Foreign Minister, is visiting Teheran (Iran). The visit, the first trip of a Bulgarian Foreign Minister to Teheran in 12 years, was planned to strengthen energy cooperation and bring trade exchange to previous levels, reports.

Mitov met with the Iranian President Hassan Rouhani on December 20th. They were  discussing possibilities of sending liquefied natural gas from Iran to Bulgaria via Georgia’s Black Sea ports. Also “Iran was a Bulgarian key trade partner before sanctions were imposed on the Islamic Republic due to its controversial nuclear program. Exchange in some years topped USD1bn annually but was drastically reduced, to a maximum of a few hundred million, after the measures were enforced”, writes.


2.7 per cent in 2016 and 3.5 per cent in 2017 – those are predictions of a Latvian economic growth made by SEB Bank. At the same time Lithuanian economy is expected to grow by 2.8 per cent in 2016 and 3.2 per cent in 2017 and Estonian GDP will be up 2.7 per cent in 2016 and 3.4 per cent in 2017. “Next year will provide opportunities for faster growth but external factors and ability to coordinate the absorption of EU funding will play a crucial role”, writes Baltic-Course. The portal cites SEB Bank survey which shows that Latvian economic growth will be driven by consumption and EU funds for the next couple of years. The Eurozone economy is supposed to grow by 2 per cent in 2016 and 2.1 per cent in 2017. The best performance will be in Germany and Spain. The weakest economies in the next years are expected to be France and Italy.

What’s up in indexes?

OMXR grew most rapidly – by 1.05 per cent. The other indexes performance was rather weak.

BUX (of Budapest) dropped by 0.16 per cent on Friday, December 18th – from 23703.08 index points (Thursday) to 23666.29 index points. From year-end it’s up 42.28 per cent.

BET (of Bucharest Stock Exchange) climbed from 6800.81 index points Thursday to 6801.09 index points Friday. But it’s up about 0 per cent d/d. From year-end it lost 3.98 per cent.

PX (of Prague) lost 0.55 per cent – decreasing from 931.85 index points Thursday to 926.71 index points Friday. From year-end it dropped by 2.11 per cent.

WIG20 (of Warsaw) is green again. On Friday, December 18th it was up 0.99 per cent closing at 1858.87 index points (while the day before it closed at 1840.57 index points). From year-end it dropped by 19.74 per cent.

OMXT (of Tallinn) fell down from 889.67 index points Thursday to 883.70 index points Friday. So it lost 0.67 per cent d/d. But from year-end it’s up 17.04 per cent.

OMXR (of Riga) grew by 1.05 per cent – increasing from 576.37 index points Thursday to 582.41 index points Friday. From year-end it’s up 42.74 per cent.

OMXV (of Vilnius) gained 0.18 per cent closing at 483.21 index points (compared with 482.36 index points Thursday). From year-end it grew by 6.81 per cent.

SAX (of Bratislava) still with flat result: 295.09 index points. From year-end it’s up 32.73 index points.

SOFIX (of Sofia) decreased from 440.78 index points December 17th to 440.61 index points December 18th, dropping by 0.04 per cent. And from year-end it lost 15.61 per cent.

UX (of Kyiv) lost 1.91 per cent d/d and 35.09 per cent from year-end. On Friday December 18th it closed at 670.67 index points. The day before it was 683.76 index points.

CROBEX (of Zagreb Stock Exchange) decreased from 1658.96 index points Thursday, December 17th to 1657.62 index points Friday, December 18th. So it dropped by 0.08 per cent d/d and by 5.03 from year-end.

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