Investor compensation: up to 30m HUF

According to index.hu the National Bank of Hungary (MNB) is about to initiate a law amendment to increase the compensation paid by the Investor Protection Fund (Beva) from its current EUR 20 thousand (approx. HUF 6 million) to EUR 100 thousand (approx. 20 HUF million). This would also mean that investment services providers should pay significantly larger contributions towards this fund than before.

According to the MNB the EUR 20 thousand is in line with the minimum requirements of the EU but the legislation of individual member states are free to provide stronger and more comprehensive protection to investors.

Another initiative of the MNB involves the merger of the Investor Protection Fund with the National Deposit Protection Fund.

Property market trends in the CEE region

According to hvg.hu in Hungary and Romania office rental periods average at 3-5 years, those in the Czech Republic and Poland at 5 years. In the first two countries the average vacancy period is 1.5 months per year, while in the Czech Republic and Poland it is 1-1.5 months and 2 months, respectively.

The economic crisis had grave effects on the property market but it did not hit rental fees of premium office premises as hard as the prices of properties offered for sale and of secondary financial instruments. Warsaw is the most expensive city (average rental fee of premium office premises: EUR 22-24/sq. m./month), followed by Budapest and Prague (EUR 20-22/sq. m./month) and Bucharest (EUR 18-19/sq. m./month). In an international survey of 50 cities globally, Budapest ranked 17^th and was among the Top 5 most economical European rental markets.

CEE banks still more profitable than those in Western Europe

According to hvg.hu the economic upswing of the region may result in a moderate expansion of banks’ loan portfolios and even the level of bad debts can decrease in some countries, a recent analysis by UniCredit Bank revealed. Before the 2008 crisis return on assets in the region averaged at 2 per cent. In 2015-2016 it may reach 0.8 percent, as opposed to German, Italian and Austrian banks’ ROE of 0.4, 0.2 and 0.4, respectively.

Net interest income (i.e. traditional banking activities) are responsible for two thirds of total revenues collected by CCE banks but it will be vital to increase the share of other income sources, mainly those that are based on fees and commissions. According to the analysis loans will continue to be the most important banking product.

Delegation of German businessmen examines Hungarian investment climate

According to hvg.hu in the course of their two-day trip more than 20 German businessmen visit German sister companies in Budapest and in the country and review the opportunities offered by the cooperation of universities and companies. The Hungarian host from the Ministry of Commerce and Foreign Relations is confident that the visitors will gather impressions and information that will help them prepare new investments and reinforce their existing relationships with Hungary.

2014 was an exceptionally successful year for German-Hungarian business relations. Germany’s share in Hungarian exports has grown to 27.7 per cent so Germany is still Hungary’s most important export market and also the biggest investor in Hungary – almost 25 per cent of direct investments in Hungary come from Germany.

Largest Hungarian company database of all times

According to napi.hu the Hungarian Chamber of Commerce and Industry (MKIK) is about to merge the company databases of eight separate authorities by January next year. As a result, the data currently stored about individual entrepreneurs or companies by the Tax Authority, the Competition Authority, the Company Information Service of the Ministry of Justice, the Public Procurement Authority, the National Food-Chain Safety Office (Nébih), the National Office of Vocational Education and Training (NSZFH), the National Consumer Protection Authority and the Central Office of Administrative and Electronic Public Services will be available from one single source. The Chamber of Commerce is authorised to collect these data pursuant to various government decrees. After the merging process has been completed there will be no need to wait until late May or early June to obtain information about the previous year’s business results of your business partners.

Small apartments sell like hot cakes in Budapest

According to resourceinfo.hu postponed purchases started to appear on the property market in 2014 and the increase of demand even resulted in price increases in certain areas. There was a 24 per cent increase in demand for residential properties compared to the same period of the previous year and sales went up by 30 per cent. Properties in Budapest were sold 25 days faster than in the country. In the capital small apartments (35-40 sq. m.) were in highest demand and sold for an average price of HUF 150-240 thousand/sq. m. In the country, slightly larger apartments (50-55 sq. m.) were the most popular and sold for at about HUF 100-200 thousand/sq. m.