Lots of surprises

Giorgio Armani. Armani has announced its plans to open a clothing factory in Bulgaria. (CC By Bruno Cordioli)

Jarosław Kaczyński, the former Prime Minister of Poland, became a Man of the Year.

ARMANI will invest in Bulgaria.

Hard times for payday loans suppliers in Estonia.



Polish business is not afraid of Jarosław Kaczyński any more. The Polish conservative party, PiS, is the most prominent in this year’s Forum in Krynica. Nothing surprising, if we take into account that the candidate of his party Law and Justice (PiS) won the presidential elections in Poland. In 2007 Jarosław Kaczyński announced that he doesn’t have a bank account…

After Jarosław Kaczyński was named a Man of the Year, Polish Prime Minister Ewa Kopacz announced her appearance at the event. She is supposed to give a speech on Thursday, 10th of September, the last day of the forum, when she is supposed to reveal the election programme of Civic Platform. In the meantime, Jarosław Kaczyński is set to win the autumn election.

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The Central Bank of Hungary is not afraid of what the Fed is going to do the next week. Hungary has a strong account surplus (EUR 8bn) and a flexible currency that trades with euros rather than dollars, Andrew Byrne in The Financial Times claims.

The source of vulnerability could have been the high foreign ownership of Hungarian public debt. But foreign outflows can be seen now. “We have already seen a tangible fall-off in forint-denominated government debt owned by foreigners” – FT cites Zoltan Torok, head of research at Raiffeisen Hungary.

Citing Hungarian experts of Nomura and Raiffeisen, Byrne writes that the Fed’s decision could only strengthen the MNB loose monetary policy, which is about to boost Hungary’s export sector. It’s base rate is now 1.35%.

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Have you heard that Bulgaria’s third largest foreign trade partner (after Germany and Russia) is Italy? Well, it certainly is. The exchange between those two is approx. EUR 4 bn. Italy has just invested EUR 1.4bn in Bulgaria and wants more. A luxurious brand, Armani, has announced its plans to open a clothing factory there, near to the city Pleven. Italian companies provide employment to approx. 25,000 people in Bulgaria. This number would rise. The other sectors where Italians are searching for business opportunities in the country are the production of automobile parts, operating concessions of ports and airports, and the modernisation of railway infrastructure. >>Read more 


Hard times for payday loans suppliers in Estonia. Non-bank credit providers are obliged to register with the Financial Supervision Authority (FSA). The new requirements of the FSA may cause 80% of those companies to stop operating, reports Postimees.

Starting from 21st March 2016 every non-bank credit supplier in Estonia would need to have a license. But the registration process may last up to 8 months. As the spokesperson for the FSA, Livia Vosman, said to the newspaper, only 20% of those companies have already supplied their applications for registration. It may mean that on March 2016 they could be forced to stop operating.

The new law was passed this spring by the Estonian parliament (Riigikogu).


What’s up in indexes?

BUX index (of the Budapest Stock Exchange) finished up 0.74% at 21,106.96 on 9th September  after diving 1.79% the day before. It is up 26.89% from year-end, after losing 10.40% last year.

Romania Stock Market (BET) increased to 7,200.18 index points on Wednesday from 7,105.91 index points in the previous trading day. It is up 1.35% from Tuesday and 1.65% from year-end.

The PX of the Czech Republic increased to 1,008.59 index points on Wednesday, 9th September  from 1,000.66 the day before. It is up 0.79% day-on-day and up 6.54% from year-end.

The Polish WIG20 increased from 2,135.15 to 2,142.53 index points Tuesday to Wednesday. It is up 7.38%. From year-end it has fallen 7.49 %.

The Bulgarian SOFIX fell to 451.47 index points from 454.43 the day before. It is 0.65% down. It is also 13.53% down from year-end.

The OMX Tallinn fell from 881.79 to 880.83 index points Tuesday to Wednesday. The loss is -0.96, but it is up 16.66% from year-end.

The OMXV Vilnius increased to 486.74 on Wednesday from 484.29 on Tuesday (up 0.51 %). It is up 7.59% from year-end.

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