Czech pensions to rise but slowly in 2016

Temenuzhka Petkova, Bulgarian Ministry of Energy. (C. Bulgarian Ministry of Energy)

Bulgarian energy market would be free starting from 2016.

Russian Alfa-Bank accused by Tymoshenko of insider trading.

Czech pensions to rise slowly in 2016.

Ukrainian Finance and Credit bank under temporary administration.

Czech Republic

Czech monthly pensions would grow only an average of 40 crowns in 2016 due to a low inflation. In order to satisfy Czech pensioners, the Labor and Social Affairs Ministry decided to raise the one-off bonus from CZK 600 to CZK 900.  It would compensate for low pensions indexation in the past years and it would be paid in February 2016, Minister Michaela Marksova (of Social Democrats, CSSD) said.

Y/y inflation in Czech Republic dropped to 0.3 per cent in August 2015 from 0.5 per cent in July 2015.

The Czech Social Security Administration (CSSZ) paid out 2.4 million full and 17,000 relative pensions last year.

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Ukraine

The Bank Finance and Credit, a pocket bank of Kostiantyn Zhevaho, is under the temporary administration of Individuals’ Deposit Guarantee Fund. It happened after the National Bank of Ukraine (NBU) announced its insolvency on September 17. This special status will last for three months.

Bank Finance and Credit was founded in 1990. The main beneficiary of the bank is Ukrainian businessman and MP Zhavaho and its company Ferrexpo. Bank Finance and Credit ranked the 10th among 127 operating banks in the country as of July 1, 2015.

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Tymoshenko accuses Russian Alfa-Bank of insider trading. The bank is said to earn USD320 m due to insider information from the Ukrainian government. The information was used to buy and sell Ukrainian state debt, said Yulia Tymoshenko, the former prime minister of Ukraine and Batkivschyna Party faction leader. In the political talk show aired on Friday, September 18th, she said: ‘Starting from April, knowing that the debt is to be written down on April, not the state that entered the secondary market to buy its debts, but a large intermediary fund structure, which bought USD1.2 bn of the state debt at the average price of 56 per cent of the face value.

Then, knowing about the announcement of the restructuring, it sold our securities for 79.8 per cent of the face value, earning USD320 m in several days. The most interesting thing is that Russian Alfa-Bank is behind this scam. The scam was realized only thanks to the leakage of insider information from the government”. She encourages international forces and authorities to investigate this case.

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Hungary

Hungary’s government deficit above the year’s target. The National Economy Ministry of Hungary informed on Tuesday that the country’s cash flow-based general government deficit (without local councils’ budgets) amounted to HUF914,9 bn at the end of August 2015. It is 102.5 per cent of the year’s target (HUF892,4 bn). But the officials informed the full-year deficit target of 2.4 per cent of GDP is still achievable.

The Ministry explains the result is caused by the decline in European Union funding – some projects were suspended by the European Commission in 2014 due to „revealed systemic weakness in the project section system”.

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Huge refunds for Hungarian taxpayers. Magyar Idők, Hungary’s daily, revealed Hungary’s National Tax and Customs Authority (NAV) owes its taxpayer approx. HUF1 trillion in refunds, as of August 2015.

Private individuals are to receive HUF100 bn in refunds, while business units wait for HUF900 bn. More than 1.5 m individuals and 400K companies are waiting for money.

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Bulgaria

While visiting the Kozloduy nuclear plant on Friday, September 18, Bulgarian Energy Minister Temenuzhka Petkova announced the upcoming liberalization of the energy market. She revealed government is working on new laws that would fully liberalize the sector. She informed the market would be free starting from the beginning of 2016. According to the World Bank report that starts with the question of introducing new laws and the transition would be accompanied by an information campaign and debates over the issue.

The liberalization of Bulgarian energy market is expected to improve financial situation of the energy companies and reduce prices of energy for households and industrial consumers as a result of competition and market regulate pricing.

As a result of imposing new laws, the role of the Commission for Energy and Water Regulation (KEVR) would be changed. The KEVR would now only determine transit and access fees.

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What’s up in indexes?

Budapest, Bucharest, Prague, Warsaw and Bratislava increased its indexes on Monday, September 21st. And they’re still growing.

BUX index (of the Budapest Stock Exchange) ended up 0.57 per cent Monday, September 21st with 21238,83 index points compared with 2119.26 index points on Friday. From year-end it’s up 27.68 per cent.

BET (of Bucharest) was up 1.1 per cent, increasing from 7102.28 index points on Friday to 7180,72 index points on Monday. And it is up 1.38 per cent from year-end.

PX (of Prague) rose by 0.02 per cent from 983.45 index points on Friday to 983,60 index points on Monday. From year-end it’s up 3.9 per cent.

WIG20 (of Warsaw) also increased. Starting from 2168.19 index points on Friday, ended up with 2178,27 index points on Monday (up 0.46 per cent). But from year-end it fell by 5.94 per cent.

OMX (of Tallinn) dropped by 0.44 per cent (from 887.17 index points to 883.31 index points). It is up 16.99 per cent from year-end.

OMXV (of Vilnius) fell from 487.44 on Friday to 486,47 index points on Monday (a drop by 0.20 per cent). And from year-end it is up 7.53 per cent.

SAX (of Bratislava) increased from 266.56 index points on Friday to 267,86 index points on Monday. So it was up 0.49 per cent. And it grew by 20.48 per cent from year-end.

UX (Ukraine) ended down with 945 index points on Monday (compared with Friday’s result of 950,06 index points). It means it dropped by 0.53 per cent. And from year-end it dropped by 8.55 per cent.

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