Hungary

A total of 250 large and medium-sized French companies have so far invested Ђ2.8bn in Hungary.

Hungary may be the most attractive in the regional contest to provide the lowest corporate tax rates, according to a survey by professional services firm KPMG.

According to the governor of the Hungarian National Bank (MNB), the MNB and the European Central Bank (ECB) have started informal talks concerning Hungary's membership in the ERM II mechanism.

The Lбnchнd (meaning chain bridge) Factoring Programme, a new subsidy scheme created by the Ministry of Economic Affairs and Transport, was announced at a press meeting yesterday (9 October) by deputy state secretary, Ms Apatini.

Yesterday the monetary council of the National Bank of Hungary left the central bank base rate, which equals the key two-week depo rate, unchanged at 9.50%.

A new Hungarian receivables finance company, AKKORD VF Venture Finance, has been launched by Dr Kбroly Martinkу.

Following several weeks of fierce debate within the ruling coalition, the government has finalised its proposal for tax changes in 2004.

Osterreichische Volksbanken AG (OVAG) will grant a ten-year Ђ10m subordinated loan to its Hungarian subsidiary, financed by a loan from the European Bank for Reconstruction and Development (EBRD), the bank announced.

Foreign direct investment (FDI) inflows into the transition economies of eastern Europe this year are expected to be similar to, or even exceed, the record total of US$34 billion achieved in 2002, according to a study by the Economist Intelligence

The Cabinet approved plans on Wednesday (17 September) to reduce company profit tax by 2% to 16% and to raise the revenue ceiling for entitlement to simplified business tax status from an annual Ft15 million to Ft25 million next year.