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increases in turnover, but lesser increas- es in profits. Profits were constrained by rising costs, including wage growth and the higher costs of inputs – as confirmed in accelerating producer price indexes,” he added.
In Croatia, the surge is explained by the current bankruptcy law, under which the National Financial Agency (FINA) is obliged to start bankruptcy proceed- ings for any company whose accounts have been blocked for more than 120 days. Coface expects insolvencies to rise 1.3% this year in Croatia.
In Poland, statistics are still affected by legal changes that were implemented in 2016, when separate laws were intro- duced to cover insolvencies and the restructuring of companies which are experiencing payment problems. Next year, Coface expects insolvencies to rise 20.2%, the highest hike in the region.
However, although changes in legisla- tion made the total number of proceed- ings higher than a year before, Poland still recorded the lowest insolvency rate in the CEE region, of just 0.04%.
By contrast, the strongest decrease of insolvencies were recorded in Slovakia and the Czech Republic, by 27.1% and 26%, respectively. The drop in the Czech Republic was supported by legislation changes as well as by the economic environment. Similarly, Slovakian profited from supportive economic developments.
Despite the economic acceleration, insolvencies still remain above the pre- crisis levels of 2008 in most countries, the study showed. Only Romania and Slovakia enjoy lower levels of company insolvencies than before 2008.
“Companies frequently experienced increases in turnover, but lesser increases in profits”
Further delay to Paks nuclear power plant expansion
bne IntelliNews
The tender for the extension of the cooling canal system at the Paks nuclear power plant, a key safety investment, has been declared invalid, which will further delay the project, already behind schedule by at least two years, Hungarian local media reported on September 28.
Hungary is expanding its sole nuclear power plant in Paks, which accounts for 40% of the electricity produced in the country. Based on a 2014 intergovern- mental contract, Hungary picked Rosatom for the largest ever investment. The €12.5bn project is being financed from a €10bn Russian loan.
Parbeszed MEP Benedek Javor reported on his blog that Russia’s Rosatom, the main constructor of the project, had received no valid bids to extend the cooling canal system.
There are numerous other procurement tenders that have been rendered invalid due to the lack of interest or the failure to meet criteria.
"The series of unsuccessful procurements show that market participants are simply not interested in the project, and it may prove to be difficult to get the right companies and professionals engaged in the construction,” Javor said.
Expanding the cooling-water discharge capacities at Paks is one of the most important projects environmentally. In the summer the temperature at spots where cooling water is discharged to the Danube almost exceeded regulatory limits. If they had been breached, the power plant would have had to be shut down.
As the capacity of the Paks nuclear power plant will double from 2,000Mw to 4,400Mw by adding two new blocks, the cooling-water discharge capacities will rise from 100 m3/s to 232 m3/s.
The delay at Paks was discussed during Prime Minister Viktor Orban’s talks with Russian President Vladimir Putin in September. The Hungarian PM blamed “the bureaucratic practices of the European Union” for the delay, but in fact the Hungarian authorities have also been late issuing licenses.
The minister without portfolio for the Paks expansion told the parliament’s economic committee in May that the project is 22 months behind schedule because of the earlier challenges launched by the European Commission and because of amendments to contracts, therefore the two new units will not be completed before 2026 or 2027.
In related news, block three of the nuclear power plant has been running at reduced capacity for a time because of scheduled repairs. The event has no impact on nuclear safety and on the operation of the other blocks, according to information on MVM Paksi Atomeromu's website.
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