Page 26 - bne_newspaper_July_26_2019

Weekly Lists
July 26, 2019 www.intellinews.com I Page 26
bne:Credit Hungary’s new
superbond poses challenge for private bankers
Private banking assets in Hungary increased by 12.2% y/y to HUF5.2 trillion (€15.9bn) in the first half of 2019 as favourable market conditions lifted returns, local media reported on July 24.
First half growth of 6.6% suggests that that the full-year growth could come close to last year’s 14% expansion. The launch of the new retail bond could slow down the inflow of capital, industry sources said.
Private banking services start around HUF50mn on average, but there are big differences between banks. Takarekbank offered the lowest threshold with HUF20mn and Bank Gutmann the highest, at HUF320mn.
The number of customer accounts grew 4.5% y/y to 44,200, which is 2.5% higher than at the end of 2018.
The European Investment Bank (EIB) will not enter into any new lending in Turkey linked to the country’s government until at least the end of the year. The move has been triggered by the European Union’s decision to introduce initial sanctions to deter Turkey from carrying on with “illegal” drilling for gas off Cyprus in the eastern Mediterranean.
The EIB – which said the time period would be spent conducting
a strategy review – is Turkey’s biggest single lender. It has pumped between €0.4bn and €2.2bn into the country in the past three years, although nothing has been invested so far in 2019.
Ukraine is going to resume talks with the International Monetary Fund (IMF) over a new programe in September, Andriy Gerus, the presidential representative in the nation's government, told news agency Interfax on July 22.
"Negotiations on new co-operation with the IMF will resume in September. Ukraine's plan is to continue co-operation with the IMF," he said. "There will be different questions and proposals. We will offer something on our part, what we want to accomplish, what we want to stipulate in the memorandum; they will offer something. We will agree on something, we will disagree on something, there will be a negotiation process."
EIB freezes new lending linked to Turkish government as part of EU’s Cyprus drilling row response
Ukraine seeks to resume talks with IMF in September