Financial News

CEE-7 countries' fiscal balaces will improve in 2012; Hungary still in a fragile position

The central governments of the larger Central and Eastern European (CEE) countries will need to borrow EUR 94 billion in 2012 to finance deficits and roll over existing debt, equivalent to an estimated 10% of their combined GDP, forecasts FITCH in a recent report published by the agency. This puts CEE-7 countries (Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia) on a par with their peers in the eurozone's healthy core.

2012 Aon's Political Risk Map: 2 upgrades and 3 downgrades for the CEE&CIS countries

In the CEE and CIS regions, Republic of Moldova and Ukraine's political risk lowered, while Azerbaijan, Belarus, Croatia are bearing a higher political risk as compared to 2011, according the 2012 Aon Political Risk Map. Although EU and OECD member states were not rated in the 2012 edition of the map, Romania and Bulgaria were still taken into consideration and assigned a Low-Risk rate.

Weak demand for Hungarian bonds at February 9th auctions

Hungary's Government Debt Management Agency (AKK) has received HUF 62.2 billion worth of bids from primary dealers on a HUF 43 bn lot of bonds and in response to the muted demand it sold only HUF 40 bn worth of debt at auctions on Thursday, February 9th. The average yields were set close to yesterday's benchmark fixings, while they were considerably below the average yields at the previous bond auctions a fortnight ago thanks to the marked drop in yields during this period.

S&P: Affirmed ratings for 7 European insurers, but the bias of agency's insurance ratings in Europe remains negative

Standard & Poor's Ratings Services affirmed on January 17th the ratings on the following insurers and removed them from CreditWatch, while the outlooks remained negative: ALLIANZ PLC, AVIVA Insurance (Europe) SE, AXA Insurance Ltd., Irish Public Bodies Mutual Insurances Ltd. (IPB), RSA Insurance Ireland Ltd. (RSA Ireland), Pozavarovalnica SAVA d.d. and TRIGLAV Group.

FITCH: EC Ruling shows fiscal measures being put into practice

Fitch Ratings says that the European Commission's efforts to enforce fiscal discipline on five EU member states show that the measures adopted to tackle the eurozone debt crisis last year are being put into practice, although this does not alter the European authorities' gradualist approach to resolving the eurozone sovereign debt crisis.

S&P's: 15 European Insurers Placed On CreditWatch Negative Following Recent Sovereign Rating Actions

LONDON (Standard & Poor's) Dec. 9, 2011--Standard & Poor's Ratings Services today placed its ratings on the following insurers (and certain related operating subsidiaries and certain holding companies) on CreditWatch with negative implications: ALLIANZ Group (including the Euler Hermes group), AVIVA Group, AXA Group, CAISSE CENTRALE de REASSURANCE (CCR), CNP Group, GENERALI Group, Irish Public Bodies Mutual Insurances Ltd. (IPB), MAPFRE Group, MILLENNIUM bcp - Ageas Group, NACIONAL de Reaseguros S.A. (Nacional), Pozavarovalnica SAVA d.d. (SAVA), RSA Insurance Ireland Ltd (RSA Ireland), Societa Cattolica di Assicurazione (CATTOLICA), TRIGLAV Group, UNIPOL Group.

HUNGARY: Growth expectation lowered at 0.5%, while HUF exchange rated must be raised

Hungary's economic growth forecast will have to be lowered to maximum 0.5%, while projected forint exchange rates must be raised; fiscal planning will be based on the new figures after an upcoming budget overhaul which will mainly target the key areas of the public sector, from education to the judiciary to the pension system, said Hungary's PM Viktor ORBAN in an interview aired by the public television on Sunday evening and whose main ideas were reproduced by Portfolio.hu.

POLAND announces tough reforms, but rating agencies are not yet convinced

After Polish Prime Minister Donald TUSK set out a program of tough reforms, in his Friday policy speech, the coalition of his centre-right Civic Platform and the agrarian Polish People's Party won a vote of confidence from Parliament's lower chamber on Sunday, November 20th. According TUSK, Poland will focus pending policy initiatives on tax policy, fiscal policy and pension reform as it focuses its efforts on areas it believes can insulate Poland from the global financial crisis to build Poland's position in Europe.