Nord Stream 2 with the new financing plan

(Sami P. Lehtonen, CC BY-SA)

Moody’s: Poland’s forecasts revised

Hungarian OPT bank will acquire Splistka Banka in Croatia

Russia and the European Union

Baltic Course reports about financing agreements the Nord Stream 2 has signed with European energy companies: ENGIE, OMV, Shell, Uniper and Wintershall. As reported, the companies will provide long-term financing for 50 per cent of the total cost of the project (each one will provide EUR950m). Gazprom will remain the only shareholder of Nord Stream 2.

The Baltic Course comments that it is “another important step towards [Nord Stream 2] implementation, responding to the needs of the European Union countries for additional gas imports and thereby improving security of supplies to Europe.”

The Nord Stream 2 gas pipeline will be 1,220 km long with the capacity of 55 billion cubic meters a year. Construction work will start in 2018 but to be completed the operator of the pipeline will have to get approvals from Sweden, Denmark and Finland. The total cost of the project is estimated to be EUR9.5bn.

Poland and the Baltic countries oppose the construction of Nord Stream 2.

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Poland

After S&P kept Poland’s rating at BBB+ and the outlook as “stable” on April 21st, now Moody’s revised its economic growth forecasts for Poland. As the Polish Radio reports, Moody’s claims that Polish GDP will grow 3.2 per cent in 2017 and 3.1 per cent in 2018. In January 2017 agency claimed the growth will reach– respectively – 2.9 per cent and 2.8 per cent.

As reported, “in addition to stronger private consumption boosted by an improvement on the labor market, the agency expects that investment would pick up this year because of greater use of EU funds”.

At the same time Moody’s revised its 2017 fiscal deficit forecast – from 3.2 per cent to 3.0 per cent.

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Hungary and Croatia

Reuters informs that Croatian competition regulator AZTN has just approved the sale of Splitska Banka (owned by the French bank Societe Generale) to the Hungarian OPT Group – one of the biggest financial institutions in the CEE. OPT Group has its subsidiary in Croatia – OTP Banka Hrvatska. CE Financial Observer has reported about the detail of the acquisition in January 2017.

Societe Generale Splitska was the fifth largest player in Croatian banking sector. Thanks to the transaction Hungarian OTP will increase its market share in the sector to over 10 per cent.

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What’s up in indexes

BET (of Bucharest) decreased from 8,296.75 index points Monday, April 24th to 8,260.33 index points Tuesday, April 25th. It’s down 0.44 per cent d/d and up 25.80 per cent y/y.

BUX (of Budapest) increased from 32,226.46 index points Monday, April 24th to 33,519.07 index points Tuesday, April 25th. It’s up 0.88 per cent d/d and up 24.58 per cent y/y.

CROBEX (of Zagreb) decreased from 1,945.25 index points Monday, April 24th to 1,937.55 index points Tuesday, April 25th. It’s down 0.40 per cent d/d and up 17.91 per cent y/y.

OMXR (of Riga) increased from 805.37 index points Monday, April 24th to 814.80 index points Tuesday, April 25th. It’s up 1.17 per cent d/d and up 30.52 per cent y/y.

OMXT (of Tallinn) decreased from 1,117.43 index points Monday, April 24th to 1,114.93 index points Tuesday, April 25th. It’s down 0.22 per cent d/d and up 15.15 per cent y/y.

OMXV (of Vilnius) increased from 580.07 index points Monday, April 24th to 580.95 index points Tuesday, April 25th. It’s up 0.15 per cent d/d and up 16.19 per cent y/y.

PX (of Prague) increased from 992.52 index points Monday, April 24th to 992.98 index points Tuesday, April 25th. It’s up 0.05 per cent d/d and up 8.84 per cent from year-end.

SAX (of Bratislava) increased from 310.65 index points Monday, April 24th to 312.96 index points Tuesday, April 25th. It’s up 0.74 per cent d/d and down 5.16 per cent y/y.

SOFIX (of Sofia) decreased from 657.93 index points Monday, April 24th to 653.76 index points Tuesday, April 25th. It’s down 0.63 per cent d/d and up 50.68 per cent y/y.

UX (of Kyiv) decreased from 1,032.33 index points Monday, April 24th to 1,019.91 index points Tuesday, April 25th. It’s down 1.20 per cent d/d and up 64.03 per cent y/y.

WIG20 (of Warsaw) increased from 2,296.90 index points Monday, April 24th to 2,353.17 index points Tuesday, April 25th. It’s up 2.45 per cent d/d and up 22.22 per cent y/y.

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