GDP growth in Bulgaria and Croatia
The CEO of an Estonian firm Elering on the Energy Union
Polish President’s experts prepared the second draft bill on FX mortgage conversion. As his press spokesmen Marek Magierowski informed, the project will be sent to parliament by the end of June.
The Warsaw Voice writes about the draft legislation: „CHF loans bill should be based on the fair rate concept rather than based on the rate from the time of taking the loan, says Slawomir Horbaczewski, member of the presidential team working on the draft. The bill should allow all borrowers an FX conversion but it should also aim to spread the conversion process in time – in order to avoid high one-off costs to the banking system, Horbaczewski said”.
President Duda has already prepared one FX mortgage conversion bill. But it was criticized by the central bank of Poland (NBP) and the financial market regulator (KNF). The governor of NBP Marek Belka warned in February 2016 the cost of the bill to the banking sector could reach PLN44bn (EUR10.3bn). The KNF claimed it may be twice as much: reaching PLN67bn. About 550.000 Poles hold Swiss franc-denominated mortgages. The CHF loans total EUR30bn.
Bulgarian economy grew y/y by 2.9 per cent in Q1’16 – the National Statistical Institute (NSI) informs (it released its preliminary data on June 7th). From Q4’15 it’s up 0.7 per cent.
As the data shows, the GDP exceeded BGN18.5 B (EUR9.4bn) and BGN 2589 (EUR1323) per capita. Gross Value Added (GVA) grew by 2.6 per cent y/y – exceeding BGN15.8bn (EUR8.07bn),
Compared to Q1’15, final consumption grew by 2.1 per cent, the exports of goods and services was up 0.3 per cent, while the imports dropped by 1.3 per cent.
Investments in the first quarter amounted to 16.3 per cent of GDP and the trade balance of goods and services was positive.
Croatian gross domestic product (GDP) grew 2.7 per cent in Q1’16. It’s up 1.9 per cent Q/Q. „On a seasonally adjusted basis, Croatia’s economy expanded by 2.3 per cent year-on-year and 0.6 per cent quarter-on-quarter, following a 2.0 per cent annual growth and a 0.6 per cent quarterly contraction in the Q4’ 2015,” the country’s statistics office informs.
SeeNews Corporate Wire adds that at current prices, „Croatia’s national output stood at HRK77.4bn (EUR10.3bn) in January-March, down from HRK83.6bn in October-December 2015”.
Postimees publishes an interesting interview with Taavi Veskimägi, the CEO of Elering – a state-owned transmission system operator. Veskimägi recommended the Estonian government not to ensure the electricity supplies of 110 per cent of peak consumption. He claims nowadays such requirement sounds „obsolete”.
In his opinion, the cabinets of the countries in the region shall elaborate common policy of supplies. „The regional market with strong cross-border connections requires regional solutions of supply guarantee,” he said. „The concept that in Europe exists one market and one network leads us to a situation where there is no such thing as Estonian electricity market. Together with the Nordics and Baltics, Estonia makes for a well-integrated Baltic Sea electricity market which in turn is a part of pan-European electricity market (…) Wishing to maintain the 110 percent capacity requirement in Estonia the price for customers would be dearer by EUR6 per megawatt an hour. We support the idea that Estonia is an electricity exporting nation, but our export potential cannot be built on subsidies,” he adds.
What’s up in indexes?
BUX (od Budapest) was up 1.13 per cent – increasing from 27089.00 index points Monday, June 6th to 27394.19 index points Tuesday, June 7th. From year-end it’s up 14.52 index points.
BET (of Bucharest Stock Exchange) was up 1.03 per cent – increasing from 6561.15 index points Monday, June 6th to 6628.49 index points Tuesday, June 7th. From year-end it lost 5.37 per cent.
PX (of Prague) increased from 892.27 index points Monday, June 6th to 895.20 index points Tuesday, June 7th. So it’s up 0.33 per cent d/d. From year-end it dropped by 6.39 per cent.
WIG20 (of Warsaw) increased from 1797.27 index points Monday, June 6th to 1832.79 index points Tuesday, June 7th. So it’s up 1.98 per cent d/d. From year-end it dropped by 1.42 per cent.
OMXT (of Tallinn) was up 0.25 per cent d/d and up 11.11 per cent from year-end. The index increased from 996.34 index points Monday, June 6th to 998.86 index points Tuesday, June 7th.
OMXR (of Riga) increased from 648.88 index points Monday, June 6th to 645.98 index points Tuesday, June 7th. So it dropped by 0.45 per cent d/d. From year-end it’s up 8.69 per cent.
OMXV (of Vilnius) decreased from 514.43 index points Monday, June 6th to 513.66 index points Tuesday, June 7th. So it lost 0.15 per cent d/d. From year-end it’s up 5.69 per cent.
SAX (of Bratislava) decreased from 324.39 index points Monday, June 6th to 319.64 index points Tuesday, June 7th. So it’s dropped by 1.46 per cent. From year-end it’s up 9.33 per cent.
SOFIX (of Sofia) was up 0.61 per cent – increasing from 444.08 Monday, June 6th to 446.79 index points Tuesday, June 7th. From year-end the index lost 3.06 per cent.
UX (of Kyiv) was up 0.42 per cent – increasing from 662.24 index points Monday, June 6th to 665.01 index points Tuesday, June 7th. From year-end the index dropped by 3.04 per cent.
CROBEX (of Zagreb Stock Exchange) was up by 0.10 per cent, increasing to 1699.77 index points Tuesday, June 7th.