Lithuanian start-ups mull moving to Latvia
Ukrainian gas production to grow to 500 mcm in 2017
Czechs are worried about Polish coal mine expansion
Polish government has successfully issued “green” bonds worth EUR750m to fund projects aiming to improve the environment, the Polish Radio informed. The bonds were issued at 48 basis points over mid-swaps, a better result than the original expectations of 60 basis points over mid-swaps. A big part of the funds raised is expected to fund pro-environment commitments in the 2017 budget.
The Polish Radio quotes Piotr Nowak, deputy Finance Minister: “There was a lot of interest concerning our issue [of these bonds] which was translated into high demand from investors during the issue. (…) Green bonds will allow us to further diversify our investor base, as they have largely been purchased by investors with a clear interest in green investments”.
Poland currently relies on coal for the majority of its electricity production. Nevertheless, the country is a signatory of the Paris Agreement.
The Baltic Course informs that new Lithuanian entrepreneurs are considering moving to Latvia because of the tax code. The tax rate for start-ups’ salaries in Lithuania has become three times as high as in Latvia. The Latvian parliament has recently approved tax advantages for innovative businesses.
The portal quotes Elena Vegelyte, tax adviser from the law firm Cobalt: “After making a good start and facilitating a particularly successful development of the start-up ecosystem over the past years, creating the conditions for start-ups to thrive, Lithuania seems to be gradually losing its positions in the competitive struggle to its neighbors”. As Mrs. Vegelyte explains Latvia-based seed start-ups will pay a flat tax of EUR252 per employee on salaries below EUR4,050 per month. Thus, a EUR1,200 salary paid by a start-up in Latvia will be a subject to personal income and social insurance taxes at a rate of 21 per cent, while the same amount of salary in Lithuania would be taxed at a rate of 54.98 per cent.
The Interfax reports, after Ukrainian Prime Minister Volodymyr Groysman, that natural gas production in the country could expand to 500 million cubic meters (mcm) in 2017.
Mr Groysman wrote on Twitter: “This year we increased own production to 50 mcm of gas. Next year we expect the increase to 500 mcm (…) I think that by 2020 we would be able to cover our needs with own gas”.
Radio Praha reports on Czech worries about development plans for a massive coal mine on the Polish side of the frontier in the far north of the country. Czech and Polish Prime Ministers, Bohuslav Sobotka and Beata Szydlo, were supposed to deal with the problem during their meeting on December 12th.
Czechs are looking for assurance over concerns that water sources on the Czech side of the frontier will not be polluted. “The Polish plans to develop the massive brown coal or lignite mine at Turow have already been the topic for bilateral talks between Czech and Polish environment ministers. Plans to expand the mine, which already covers 45 square kilometres, to 55 square kilometres and deepened to around 75 metres, to release hundreds of millions of tons of coal, was already high on the agenda when environment ministers met in mid-February,” writes the Radio Praha.
Poland plans to exploited coal reserves for over 25 years and furnish a massive power plant, which is scheduled to keep on running until 2045. But Czechs on the other side of the border, especially around the Frýdlant area, are concerned about the environmental consequences.
What’s up in indexes
BUX (of Budapest) increased from 30613.15 index points Monday, December 12th to 30938.13 index points Tuesday, December 13th. So it’s 1.06 per cent d/d and up 29.34 per cent from year-end.
BET (of Bucharest Stock Exchange) was up 0.36 per cent d/d – increasing from 6954.09 index points Monday, December 12th to 6979.27 index points Tuesday, December 13th. From year-end it dropped by 0.33 per cent.
PX (of Prague) was up 0.63 per cent – increasing from 905.43 index points Monday, December 12th to 911.09 index points Tuesday, December 13th. From year-end it dropped by 4.73 from year-end.
WIG20 (of Warsaw) was up 1.96 per cent d/d and up 3.25 per cent. It increased from 1882.58 index points Monday, December 12th to 1919.49 index points Tuesday, December 13th.
OMXT (of Tallinn) dropped by 0.12 per cent – falling from 1049.61 index points Monday, December 12th to 1048.34 index points Tuesday, December 13th. So it’s up 16.61 per cent from year-end.
OMXR (of Riga) dropped by 0.98 per cent d/d – falling from 740.12 index points Monday, December 12th to 732.89 index points Tuesday, December 13th. From year-end it’s up 23.31 per cent.
OMXV (of Vilnius) decreased from 559.36 index points Monday, December 12th to 558.15 index points Tuesday, December 13th. So it dropped by 0.22 per cent d/d. From year-end it’s up 14.85 per cent.
SAX (of Bratislava) closed at 313.01 index points Tuesday, December 13th. It’s the same result as Monday’s. From year-end it’s up 7.07 per cent.
SOFIX (of Sofia) dropped by 0.32 per cent – falling from 582.70 index points Monday, December 12th to 580.85 index points Tuesday, December 13th. From year-end it’s up 26.03 per cent.
UX (of Kyiv) dropped by 0.24 per cent – falling from 780.42 index points Monday, December 12th to 778.55 index points Tuesday, December 13th. From year-end it’s up 13.51 per cent.
CROBEX (of Zagreb) dropped by 0.05 per cent – falling from 1985.90 index points Monday, December 12th to 1984.90 index points Tuesday, December 13th. From year-end it’s up 23.15 per cent.