EIB will keep on financing the Hungarian economy

European Investment Bank, Luxemburg (CC By NC ND Daniel Bruchet)

Ukraine to get UAH632bn from Ukrnafta.

Uber has problems in Bulgaria.

Chinese investors interested in Latvian airBaltic.


EUR500m – this is how much Hungary would get from the European Investment Bank (EIB) in the first tranche of the total loan of EUR1,5bn. Hungary plans to invest in education, R&D development, projects that would boost energy efficiency and tourism, but also social inclusion. The total loan will co-finance Hungarian strategic projects under the European Regional Development Funds and the European Social Fund within the 2014-2020 EU programming period. In the long run, projects will back up a sustained economic growth, increase the standard of living in Hungary and increase the number (and quality) of jobs.

The EIB has a long history of cooperation with Hungary. Hungary has just got EUR500m at the beginning of 2015 for co-financing projects within the Integrated Transport Development and Environment and Energy Efficiency Operational Programmes and the Connecting Europe Facility.



The state-owned Ukrnafta will pay the state UAH632bn in dividends for 2014 – the company announced during the press conference. Money will be sent this week. The company has a new CEO, Mark Rollins. Rollins expressed his will to improve the management of the company and to pay the dividends always by the end of the year. Ukrnafta is the biggest Ukrainian oil and natural gas extracting company. The main shareholder is Naftogaz Ukrainy. The head of Naftogaz Andriy Kobolev informed that a new strategy of Ukrnafta will be presented at the beginning of 2016.


How much does the conflict in Ukraine cost?
Ukrainian President Petro Poroshenko estimated the costs of the military conflict in Donbas. He says it’s approx. USD5m per day. „The money could have been invested into sustainable development” – Poroshenko expressed his concerns at the UN Sustainable Development Summit in New York on September 27th, 2015. He also mentioned the annexation of the Crimea in the aftermath of which thousands of people have been killed and the critical infrastructure has been destroyed. Within the costs of military conflict with Russia are also displacements (approx. 1.5 million people have been internally displaced during the last two years and it’s the problem of the whole region). „There will be no sustainable development without peace and freedom. Ukraine’s bitter experience reveals that peace and freedom are principal pre-conditions for achieving sustainable development goals. Sustainable development is not achievable where explosions are heard and peaceful people are killed” – said Poroshenko.



The Bulgarian Supreme Administrative Court decided on Monday, September 28th, 2015 that the well-known Dutch start-up Uber would have to pay fine of BGN200K. Uber BV and its affiliated company Rasier Operations BS would have to pay BGN100K each for violating competition rules. Uber has refused to pay license fees which have to be paid by each transportation company in Bulgaria. On top of that they didn’t cooperate with the  authority – the Commission for Protection of Competition (CPC). The companies defense stated that they are not taxi companies but just the intermediaries between passengers and car drivers (namely, that they are only the online tool provider).



Kaspars Ozoliņš from the Latvian Ministry of Transport informed that Chinese investors are interesting in investing in the airBaltic. He revealed that talks started September, 2015 while preparing the Memorandum of Understanding for transport cooperation between Latvia and the Chengdu municipality. The launch of direct flights between the Chengdu municipality and Riga is scheduled for spring 2016. „Yes, we have talked it over, and they are interested. We have separated the possible cooperation into several stages. The first would be strengthening bilateral cooperation, which is organizing direct flights” – the official said in the radio interview. Air Baltic is the flag carrier airline of Latvia. It serves more than 60 destinations from the airport of Riga. The Latvian government offers sale of up to 50 per cent of its shares minus one share.


What’s up in indexes?

The OMXV is getting much better this week. But the Ukrainian UX still falls despite new economic prospects of the country.

BUX index (of the Budapest Stock Exchange) dropped a bit on Monday (minus 0.79 per cent) ending with 20666,72 index points (compared with 20831,02 on Friday). From year-end it increased by 24.24 per cent.

BET (of Bucharest) ended down 1.75 per cent with 7064,82 index points (compared with 7190,37 index points on Friday). And it dropped 0.26 per cent from year-end.

PX (of Prague) was also down on Monday. It fell by 1.10 per cent (from 962,35 index points on Friday to the level of 951,74 index points on Monday). From year-end it is up 0.53 per cent.

WIG20 (of Warsaw) decreased on Monday to 2059,41 index points (from 2060.56 index points on Friday). So the drop was 1.55 per cent. And from year-end it fell by 11.08 per cent.

OMXT (of Tallinn) ended up 0.31 per cent with 873,60 index points (on Friday it was 870,90 index points). And it’s up 15.70 per cent from year-end.

After the black Friday, OMXV (of Vilnius) increased on Monday. The index was up 3.95 per cent with 481.61 index points (compared with 463.32 index points on Friday). From year-end it has grown 6.45 per cent.

SAX (of Bratislava) ended up 0.53 per cent with 270.77 index points (compared with 269.33 index points on Friday). It grew by 21.79 per cent from year-end.

UX (of Ukraine) still decreases. On Monday it dropped by 2.86 per cent. At closing it was 858.49 index points while on Friday it was 883.77 index points. And from year-end it dropped by 16.92 per cent.

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