HungaryTrends – The week in business and finance

Budapest, August 21 (MTI) – See below MTI’s main business and financial news from the previous week:

ECONOMY MINISTRY MULLS PAYROLL TAX REDUCTION

Hungary’s economy ministry is weighing a possible reduction in payroll taxes, the head of the portfolio said in an issue of daily Magyar Idők. “Payroll taxes [in Hungary] are higher than the European Union average, which could put the country at a competitive disadvantage,” Mihály Varga told the paper. “On this basis, it appears that deliberation on a reduction in payroll taxes is inevitable,” he added.

[button link=”https://dailynewshungary.com/proposed-payroll-tax-reductions-possible-implications/” color=”purple” newwindow=”yes”] Related article: THE PROPOSED PAYROLL TAX REDUCTIONS AND THEIR POSSIBLE IMPLICATIONS[/button]

LOWER PROVISIONING LIFTS RAIFFEISEN PROFIT IN HUNGARY

After-tax profit of Raiffeisen Bank International’s business in Hungary came to 28 million euros in the first half, improving from a 5 million euro loss in the base period on lower provisioning, an earnings report showed. Net provisioning for impairment losses came to just 2 million euros, down from 37 million in the base period. RBI attributed the decline to improvements in the ratings of corporate clients.

FHB H1 LOSS NARROWS ON PROVISIONS RELEASE

FHB Mortgage Bank booked a first half loss of 1.5 billion forints (EUR 4.8m), narrowing from 5.3 billion forints in the base period on a release of provisions, an earnings report showed. According to the report, the provisions release related to the “lawsuit due to the previous [National Bank of Hungary’s] resolution subject to the financial transaction levy, and the effects of settlement law due to the 2016 year tasks” caused the loss on the “other results” line to narrow to 1.6 billion forints from 9.0 billion forints.

TRIGRÁNIT SEALS DEAL TO SELL BONARKA CITY CENTER

Hungarian property developer TriGránit said it reached a preliminary agreement to sell the Bonarka City Center in Krakow to Rockcastle. TriGranit built the shopping centre on 19 hectares of abandoned area in the city’s Podgorze district that was re-cultivated. The 92,500sqm Bonarka City Center opened in 2009.

[button link=”https://dailynewshungary.com/tesco-prepares-sell-hungarian-business/” color=”orange” newwindow=”yes”] Surprise of the week: TESCO PREPARES TO SELL HUNGARIAN BUSINESS?[/button]