Bulgarian chamber of commerce forecasts GDP growth of 3 per cent in 2016
In Hungary government deficit is the lowest in 15 years
Vitkovice Power Engineering files for “reorganization” bankruptcy
Oleksandr Danyliuk, Ukrainian Minister of Finance, informed the fully functioning launch of electronic declaration before September 1st, 2016. Lack of such system was one of the obstacles on Ukraine’s way to receive the third tranche of the IMF-funded Extended Fund Facility (EFF) program.
Interfax quotes Danyliuk: “If the system is fully launched from September 1st, there would not be any problems. We could expect to get the tranche in September”. The Interfax also reports that there are some other conditions for the provision of the third tranche, along with e-declaration, but Danyliuk refused to reveal them before the end of the negotiations.
Without the resumption of the IMF program Ukraine would fail to receive USD1bn of U.S. credit guarantees, EUR1.2bn of EU macro-financial support and credits to buy gas from European partners.
According to the Bulgarian Chamber of Commerce and Industry, the country’s GDP will grow by a real 3 per cent in 2016 and the average wage will exceed BGN1,000 (EUR500) in 2016.
Novinite.com reports the data after Tsvetan Simeonov, the chairman of the Chamber.
According to the article Simeonov also said that high-tech, outsourcing, car and machine parts manufacturing, pharmacy and cosmetics continue to be the engines of the Bulgarian economy. At the same time the main obstacles to doing business in Bulgaria are still the same: red tape and frequent changes to legislation.
„Hungary’s cash flow-based general government deficit, excluding local councils, reached HUF464.8bn (approx. EUR1.5bn) at the end of July, the lowest deficit for that month in 16 years,” Budapest Business Journal reports after the Ministry of National Economy. The data released by the Ministry also shows the deficit is at 61 per cent of the full-year target.
“The central budget ran a HUF585.8bn deficit, while social insurance funds and separate state funds had surpluses of HUF52.5bn and HUF68.5bn, respectively. By comparison, January-July 2015 figures showed a deficit of HUF894.1bn,” BBJ quotes the ministry.
The difference of results in 2016 vs. 2015 comes from higher tax income from the whitening of the economy and different central budget spending allocations.
Vítkovice Power Engineering has filed for „reorganization” bankruptcy, as the company owes about CZK2bn (EUR73m) to over 700 creditors. Radio Praha informs the regional court in Ostrava, which was due to deal with a proposal for bankruptcy against the firm by one of its biggest creditors, Westag Invest, has cancelled the hearing.
VPE belongs to the engineering conglomerate Vítkovice of a businessman Jan Světlík. No details of the proposed reorganization have been released. Radio Praha writes that “Světlík merely says that a reorganization bankruptcy would benefit everyone: the company, its employees and its creditors”. Now the request for reorganization bankruptcy will have to be approved by the Ostrava court which is likely to take several weeks to deliberate the issue.
What’s up in indexes
BUX (of Budapest) dropped by 0.10 per cent – falling from 27599.77 index points Friday, August 19th to 27572.95 index points Monday, August 22nd. From year-end it’s up 15.27 per cent.
BET (of Bucharest Stock Exchange) dropped by 0.48 per cent – decreasing from 6907.86 index points Friday, August 19th to 6874.44 index points Monday, August 22nd. From year-end it dropped by 1.85 per cent.
PX (of Prague Stock Exchange) decreased from 847.60 index points Friday, August 19th to 846.29 index points Monday, August 22nd. So it dropped by 0.15 per cent d/d and by 11.51 per cent from year-end.
WIG20 (of Warsaw) was up 0.01 per cent – increasing from 1800.17 index points Friday, August 19th to 1800.34 index points Monday, August 22nd. From year-end it dropped by 3.16 per cent.
OMXT (of Tallinn) increased from 995.12 index points Friday, August 19th to 995.72 index points Monday, August 22nd. So it’s up 0.06 per cent d/d. From year-end it’s up 10.76 per cent.
OMXR (of Riga) was up 0.48 per cent d/d – increasing from 638.49 index points Friday, August 19th to 641.53 index points Monday, August 22nd. From year-end it’s up 7.94 per cent.
OMXV (of Vilnius) decreased from 540.35 index points Friday, August 19th to 536.88 index points Monday, August 22nd. So it dropped by 0.64 per cent d/d. From year-end it’s up 10.47 per cent.
SAX (of Bratislava) was up 0.66 per cent – increasing from 311.19 index points Friday, August 19th to 313.23 index points Monday, August 22nd. From year-end it’s up 7.14 per cent.
SOFIX (of Sofia) increased from 466.60 index points Friday, August 19th to 470.56 index points Monday, August 22nd. So it’s up 0.85 per cent d/d. From year-end it’s up 2.10 per cent.
UX (of Kyiv) dropped by 0.81 per cent – falling from 699.21 index points Friday, August 19th to 693.53 index points Monday, August 22nd. From year-end it’s up 1.12 per cent.
CROBEX (of Zagreb) increased from 1792.81 index points Friday, August 20th to 1795.36 index points Monday, August 22nd. So it’s up 0.14 per cent d/d. From year-end it’s up 6.26 per cent.