Ukrainian debt on VAT refunds is still an issue
Latvian and Bulgarian exports is up while import is down
Lithuanian parliament (Seimas) adopted a state budget for 2016, says Delfi.lt. And it’s definitely a budget with a deficit. Expenditures are exceeding revenues by EUR640m. The budget’s revenue (including revenues from the European Union’s funds) is expected to reach EUR8.046bn. Most of it will be collected from the value added tax (VAT), approx. EUR3.049bn. The other sources of income will be: excise duties (EUR1.172bn), corporate income taxes (EUR579m) and personal income tax (EUR362m). Expenditures are expected to reach EUR8.686bn. “The new budget has tasked the government with finding an additional EUR14,000 for Seimas Ombudsmen’s Office and EUR500,000 for the Fund of the Protected Area Directorate. EUR70m will be allocated from the Road Maintenance and Development Program to asphalt gravel roads, and EUR7m will be granted for significant local infrastructure work on the Rail Baltica project”, writes Delfi.lt. 76 deputies (of total 141) voted for the budget, 34 were against and 14 were absent. Starting from January 1st 2015, the minimum wage in Lithuania will be EUR350 (now it’s EUR325). The economic growth is projected at the level of 3.2 per cent with annual inflation of 1.4 per cent.
Ukrainian government of Arseniy Yatseniuk has reduced the debt on VAT refunds from UAH 22bn to UAH15bn, and one on the income tax overpayments to UAH24bn and set the task to speed up the solution to this problem”, Interfax reports. “We are working to maximally increase the amount [of VAT refunds] and repay our debts to you by the end of the year. As for overpayments, we are seeking ways with our Western partners, primarily with the International Monetary Fund (IMF) to repay debts to each of your companies”, the agency cites Ukrainian PM. VAT refunding is still a major issue in Ukraine. There are companies like Metinvest to which the State owes up to UAH3.5bn.
Value of exported goods grew 2.8 per cent in October 2015 compared with September 2015 and imports dropped by 0.04 per cent as shows the data from Central Statistical Bureau (CSB). In October Latvia exported goods worth EUR992.8m. The amount of imported goods was EUR1081.5m.
As Baltic-Course reports main changes in exports in October were:
- Export of wood and wood articles grew by EUR18.6 m (or 12.9 per cent);
- Export of machinery and mechanical appliances, as well as electrical equipment grew by EUR17.3m (or 12.4 per cent);
- Export of processed food grew by EUR12.2m (or 16.5 per cent);
- Export of basic metals and metal articles dropped by EUR8.7m (or 9.8 per cent);
- Export of vegetable products dropped by EUR8.3m (or 5.9 per cent).
Latvia reduced significantly import of the chemical products and allied industries. It dropped by EUR24.2m or 19.7 per cent. But there was an increase of import of some goods, for example machinery and mechanical appliances and electrical equipment, up to EUR32.3m or 15.1 per cent. The main export partners of Latvia in October were: European countries like Lithuania (17.3 per cent of total export), Estonia (10.1 per cent),Germany (7.3 per cent) and Poland (10.8 per cent).
Bulgarian exports to third countries in the period of January-October 2015 grew by 0.8 per cent compared with the same period of 2014, reaching BGN13.6bn (EUR6.9bn). At the same time Bulgaria imported goods worth BGN15.5bn (EUR7.9bn) – so imports dropped by 6.2 per cent compared with the same period of 2014. The main trading partners are: Turkey, China, Serbia, Russia, the United States, Macedonia and Singapore to which Bulgaria exported 54.7 per cent of its all exports. Bulgaria imports mostly from Russia, Turkey, China and Ukraine. “Bulgaria’s balance of trade with third countries in the first 10 months was negative and exceeded BGN1.8bn” – the National Statistical Institute (NSI) informs.
What’s up in indexes?
On Thursday, December 10th WIG20 (of Warsaw) was finally up – 1.45 per cent. The sharpest fall was that of SAX (of Bratislava) – by 1.03 per cent.
BUX (of Budapest) was up 0.19 per cent on Thursday, December 10th closing at 23477.19 index points. The previous close was at 23431.58 index points. And from year-end BUX grew by 41.14 per cent.
BET (of Bucharest Stock Exchange) dropped by 0.37 per cent. It fell from 7047.00 index points Wednesday to 7020.95 index points Thursday. From year-end it lost 0.88 per cent.
PX (of Prague) closed at 931.45 index points on Thursday, December 10th. On Wednesday it closed at 931.41 index points. From year-end it dropped by 1.61 per cent.
WIG20 (of Warsaw) climbed from 1773.21 index points Wednesday to 1798.86 index points Thursday. So it was finally up by 1.45 per cent. But from year-end it lost 22.33 per cent.
OMXT (of Tallinn) dropped by 0.14 per cent. It decreased from 901.53 index points Wednesday to 900.23 index points Thursday. And from year-end it’s up 19.23 per cent.
OMXR (of Riga) dropped by 0.35 per cent, falling from 582.08 index points Wednesday to 584.12 index points Thursday. From year-end it’s up 42.66 per cent.
OMXV (of Vilnius) increased from 483.47 index points to 485.21 index points. So it grew by 0.36 per cent. From year-end it’s up 7.25 per cent.
SAX (of Bratislava) dropped by 1.03 per cent on Thursday. It decreased from 298.18 index points to 295.10 index points. From year-end it’s up 32.74 per cent.
SOFIX (of Sofia) dropped by 0.19 per cent, decreasing from 433.47 index points Wednesday to 432.63 index points Thursday. And it lost 17.14 per cent from year-end.
UX (of Kyiv) gained 0.33 per cent. It increased from 702.27 index points to 704.57 index points. From year-end it lost 31.81 per cent.
CROBEX (of Zagreb Stock Exchange) dropped by 0.40 per cent on Thursday, closing at 1673.30 index points. The previous close was at 1680.02 index points. From year-end it dropped by 4.13 per cent.