From hungary-report-owner Sun Apr 30 07:05:15 1995 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id HAA20289; Sun, 30 Apr 1995 07:05:15 -0700 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id HAA20278; Sun, 30 Apr 1995 07:04:58 -0700 Received: from bruner@ind.eunet.hu () via =-=-=-=-=-= for hungary-report@hungary.yak.net (20276) Received: from ind.eunet.hu (root@ind.eunet.hu [192.84.225.42]) (fnord) by nando (8.6.5/8.6.5) with SMTP id HAA20272 for ; Sun, 30 Apr 1995 07:04:14 -0700 Received: from [192.84.226.92] (bruner.dial.eunet.hu) by ind.eunet.hu with SMTP id AA12178 (5.67a8/SZTAKI-4.01 for ); Sun, 30 Apr 1995 16:04:14 +0200 X-Sender: pop029@ind.eunet.hu (Unverified) Message-Id: Mime-Version: 1.0 Content-Type: text/plain; charset="us-ascii" Date: Sun, 30 Apr 1995 15:59:47 +0100 To: hungary-report@hungary.yak.net From: bruner@ind.eunet.hu (Rick Bruner) Subject: The Hungary Report No. 1.05 X-Charset: US X-Char-Esc: 0 Sender: owner-hungary-report@hungary.yak.net Precedence: bulk Reply-To: hungary-report@hungary.yak.net ============================= The Hungary Report Direct from Budapest, every week No. 1.05 April 29, 1995 ============================= ====== BRIEFS Copyright (c) 1995, Sarah Roe ------------ GENERAL NEWS Privatisation in the spotlight The issue of privatization has been dominant in parliament, with the start of the week seeing disagreement on amendments to the Privatization Law. According to Nepszabadsag, Privatization Minister Tamas Suchman blamed the Alliance of Free Democrats (SZDSZ) for delaying the law, which should help boost privatization revenue to a planned Ft 150 billion this year. The minister also announced that 20 privatization committees are to be formed for promotion of key state companies to the private sector. He plans that two thirds of compensation bonds will be converted into private property by the end of 1995. By the end of the week, bank and energy privatization had become a key topic. It was decided at a cabinet session that Finance Minister Lajos Bokros will make strategic decisions on bank privatization, although Suchman will take charge of transactions, whilst a committee was established to iron out legal problems which are holding up privatization of the energy sector. The post of state commissioner for bank privatization, recently quit by Istvan Farkas, was abolished. Suchman was instructed to establish a range of offers for those who received compensation coupons from the state as opposed to purchase. The Foundation for Political History will be given Ft 36 million, whilst Ft 11 million will be allocated to the Federation of Former Recsk Prisoners. In addition, beginning in 1998, four of the 16 Israeli-Hungarian MagyarSat telecommunications project's satellite channels will be reserved by the government for 11 years at an annual fee of $2.7 million, to be paid in forints. Privatization figures were also released this week, revealing that around Ft 51.8 billion of state property has been put up for tender. The two agencies, State Holding Company (AV Rt), and State Property Agency (AVU) have called 244 tenders between them, 236 by the AVU. Rail strike ends Hungary's longest rail strike since 1904 was called off at 2am on Sunday. A collective agreement was signed by representatives of trade unions and Hungarian Railways (MAV). The 86-hour action, which involved around 70,000 workers, cost MAV Ft 663 million, whilst the domestic economy lost Ft 2.5 billion, according to Karoly Lotz, minister for transportation, water and telecommunications, who was cited in Hungary Around the Clock. The most controversial aspect of the collective contract was that of conflicts relating to work schedules. The agreement has allowed for the process to remain the same as previously; that conflicts between local managers and employees will be referred to trade union leaders and high-ranking MAV officials, and decided within 30 days. The next discussions relating to a collective agreement will begin in September, when negotiations on salary raises for January 1996 will start. ---------------------- BUSINESS AND ECONOMICS MOL signs million dollar contracts Primagaz Hungaria and MOL, the Hungarian Oil and Gas Company, have signed a ten-year contract for $400 million worth of gas at current prices. According to a report in Econews Primagaz will buy 200,000 tonnes of propane-butane gas per year from MOL. The contract is a renewal of a similar agreement which will run out in a few days. Also this week MOL has taken a 19.25% stake in the Adria Liquid Natural Gas (LNG), a natural gas consortium with six others. The move is part of a scheme for the government's long-term business strategy, and involves partners from Austria, the Czech Republic, Croatia, Slovenia, Slovakia and France. It has been concluded that Algeria, Qatar and Nigeria are the most suitable sources for liquid natural gas, as transporting the gas over long distances is too costly. Malev plunges into the red Hungarian national airline Malev has recorded consolidated losses of Ft 380 million and unconsolidated losses of Ft 728 million in 1994. The result comes despite plans for Ft 69 million profits last year. The company has a subscribed capital of Ft 15.5 billion, and accrued Ft 34 billion in net revenues from ticket sales, in addition to Ft 3 billion from other activities. The 1.56 million passengers represents a 17.7% over 1993 and the 9.5% increase in passengers on European flights is equivalent to the average of members of the Association of European Airlines. Malev Air Cargo, with 56% of the Hungarian air freight transport market also grew by 40.5% compared to 1993. Low interest loan for Matav Hungarian telecommunications company Matav is to take a $300 million loan from a group of international banks at an interest rate of less than 1.75% over LIBOR (the rate that international banks in Europe charge each other for loans, and use as a benchmark for lending). It is a lower interest rate than that paid by the National Bank of Hungary on its debt, according to an article in the Budapest Business Journal. The National Bank pays around two per cent LIBOR for similar borrowings. This is the third international syndicated loan, which will have maturities for between five and ten years and is a floating-rate dollar loan. It is being arranged by Deutsche Bank, the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC). Whilst the national government generally has the lowest risk in most markets, the telecommunications sector in Hungary offers significant opportunities and Matav is not perceived as a typical emerging market creditor, experts say. ----------- SHORT TAKES Hungarian TV (MTV) will be allocated resources from the first half of 1996 on a lump-sum settlement for those set to lose their jobs there. The amount will be deducted from MTV's state subsidy in the second part of the year. The two young founding fathers of owners of New York Bagels, one of Budapest's success stories, plan to return to the US because of personal reasons and the current economic climate in the country, the Budapest Sun reports. The Herend China factory, along with its American legal representative has won a case against Diamond and Gem Trading company, which used the trademark of Herendi on fake porcelain products. MHB-Daewoo Bank is now 100% owned by South Korea-based Daewoo, with Magyar Hitel Bank (Hungarian Credit Bank) losing its 50% stake. It will be renamed Daewoo Bank on May 1st. ---------------- NUMBERS CRUNCHED * January-February growth of industrial production compared to 1994.(Central Statistics Office, Hungary Around the Clock): 11%. * Number of unemployed in Hungary rises in first quarter of 1995 compared to last quarter of 1994.(Central Statistics Office, Econews):10.1% : 9.7%. * Tourism deficit in Hungary during January 1995.(National Bank of Hungary, Econews):$ 57 million. * Budget deficit on April 27th compared to March. (Finance Ministry, Hungary Around the Clock). Ft 152 billion: Ft 146 billion. ------------- EXCHANGE RATE April 28, 1995 (National Bank of Hungary) US Dollar 119.67 (buying), 121.81 (selling) Deutschemark 87.34 (buying), 88.76 (selling) -------------- WACKY AS USUAL No smiles at Supreme Court A January decision by the Supreme Court to refuse registration of the Pato Pal Party (PPP) has led the organisation to file a petition to the court. According to Hungary Around the Clock citing Nepszabadsag, PPP aims to rehabilitate Pal Pato ( a traditional figure of indolence in Hungarian literature), Ilia Ilich Oblomov, and the kings of Sodom and Gomorra. These aims were 'demoralising and destructive', the court said. However PPP says that a democratic Hungary should allow for humorous criticism and sarcastic phrasing. But the Supreme Court has stated that only those democratic organizations which represent civilian interests and values can be accepted as political parties, allowing them to receive state funding and be elected to parliament. ======= FEATURE Budapest's young Jews discover their heritage By Adam LeBor Copyright (c) 1995 <73171.11@compuserve.com> From the latest batch of Orthodox students at Budapest's Rabbinical Seminary to the young non-religious Jews that proudly wear Stars of David as they dance the night away in Budapest's nightclubs, Hungary's more than 80,000 strong Jewish community, the biggest in eastern Europe, is enjoying a renaissance unrivaled since the Holocaust. After four decades of atheist Communism -- which while not actively anti-semitic stifled Jewish freedom under the dead hand of Marxist-Leninism and forbade trips to Israel -- Hungary's Jews, especially the young, are rediscovering and celebrating their religious and cultural heritage. The community runs its own primary and secondary schools, youth groups, social organisations, publishes newspapers and magazines while Budapest university offers courses in Jewish studies and literature. It's a development warmly welcomed by the older generation that kept the flame of faith burning through the years of Nazi terror and Communist oppression. "The signs are there, people that have been far from the community are coming back, especially the young ones. Even more than their parents they want to be Jewish and they want Jewish knowledge," said Dr Jozsef Schweitzer, Hungary's first chief rabbi for 50 years. Under Communism Jewish activism, particularly if it was related to Israel, could bring problems, but now young Jews such as student Dora Czuk, 22, say they are not afraid to be identified as being Jewish. "I feel much more confident now because there is a revival of Judaism. It's OK to go to synagogue or go to Israel. I first started wearing a Star of David four years ago after the old regime collapsed, because I felt it wouldn't be a problem to wear it. People are surprised sometimes and say that I don't look Jewish, but I haven't had any anti-semitic remarks." Last October the new Budapest Balint Jewish community center, supported by Jewish charities as well as the Hungarian government opened in downtown Pest. Complete with computers linked to the Internet, a kiln and a library, the center, the biggest of its kind in eastern Europe, aims to be the focus of Jewish life, offering everything from religious education and art exhibitions to computer training for the unemployed and the Shalom Club for Holocaust survivors. "For the last 45 years there was a process of assimilation and many families didn't even know of their Jewish origins and families tried to hide the events of the Holocaust. But after the political changes you could talk about religion openly and Jewish people gravitated towards each other. There is definitely a renaissance in Jewish culture, with more interest among young people seeking out Jewish company," said center coordinator Miklos Fischer. The mini-renaissance is a regional phenomenom. In Berlin the hippest part of town is the old Jewish quarter in the east, now partly renovated and crowded with bars and restaurants, jammed with German intellectuals wearing wire-rimmed spectacles on a mission to atone for the sins of their fathers by eating Jewish food. In Prague, record labels such as Multisonic release CDs with titles like "Lekhaym, Yidn" (To life, Jews), that celebrate Yiddish melodies. But while everyone in the community is applauding the revitalisation of Jewish consciousness some are asking what exactly does it now mean to be a Jew in Hungary. For those such as Gabor Szanto, editor of the magazine Szombat (Saturday), there is a danger that many Jews are merely giving themselves a quick fix of Israeli folk-dancing and attendance at one of the many Holocaust memorial ceremonies the community is organising to mark the 50 anniversary of the Nazi extermination. "It's very easy to be a Jew at a Holocaust commemoration or sing Israeli folk songs, but to study Hebrew or Yiddish, or keep a Jewish home is much more difficult than folk dancing." That, he says, is not enough to build, or rebuild a healthy community. "The problem is that the Jewish community has not gained many of the Jewish intellectuals. It is a community without heads, because after the Holocaust and Communism it is still not easy for many to say that they are Jewish, because they are integrated into Hungarian cultural life. There are over 80,000 Jews in this country but it's always the same 2,000 at film festivals, or Chanukah celebrations or who send their children to Jewish schools. There are another 78,000 Jews out there somewhere in Budapest," says Szanto. Many community leaders have no real conception of a Jewish future in Hungary, says Szanto, perhaps placing too much emphasis on remembering the Holocaust. "After 40 years of Communism there is nothing on which to base Jewish life. The emphasis on the Holocaust is not so good for the young generation because it transmits fear rather than a positive feeling or a real connection with the past." But other say that building a community on even a small base is the start of something more permanent. "It's difficult to be a Jew all of a sudden when you weren't allowed to be one before. Maybe this is just the beginning. Some of the young generation are just Jewish out of fashion, but their children will be more religious and in the next generation will have a healthier identity," said Dora Czuk. ================ PARLIAMENT WATCH By Tibor Vidos Copyright (c), 1995 Piles of undelivered mail, a Ft 663 million loss - these are the most immediate costs of the railway strike that paralyzed the country last week for 86 hours. Unlike in December, when at least three trade unions and the management of the state-owned Hungarian Railways (MAV) could not agree on wages, this time around it was discord over the new collective agreement that led to the industrial action. The number of idle hours that could be counted as working hours and benefits for night and weekend shifts were among the most disputed issues. The matter at the heart of the conflict was much more symbolic, however: Should unions have the right to be involved in a company's restructuring, or is this the sole responsibility of the employer? In other words, how much in-house unemployment should the ailing railway company tolerate? According to management, MAV does not need 20,000 of its 70,000 employees. Tough issues indeed. But not ones that could wait another year or two to be resolved. During the strike, workers had to report to their place of employment to declare in writing whether they were striking or not. Those on strike could leave after four hours - and received no wages. Those who declared themselves working received their salaries, but had to stay for eight hours. No wonder that, according to published reports, only about 20%-25% of the railway workers walked out. The only profession that almost uniformly supported the strike was the highest-paid and best-organized 6,000-strong engine drivers. Without drivers willing to drive the trains, the others had no problem collecting their pay and still not doing anything. The drivers were uncompromising to the last minute: This last minute came when a non-public agreement was struck that redundant engine drivers would not be sacked but transferred to other jobs within MAV. In a matter of hours the strike was over. Lesson for employees and organizers of future industrial actions: solidarity has its limits. Especially in the case of bankrupt companies. * * * Tibor Vidos is a lobbyist and political consultant in charge of the Budapest office of GJW Government Relations. His e-mail address: VIDOS@ind.eunet.hu, Compuserve: 76702,2227. A version of this article appeared in the Budapest Business Journal. =========== FINAL BLURB The Hungary Report is free to readers. To subscribe, send an email message to the following Internet address: hungary-report-Request@hungary.yak.net containing (in the body of the message, not in the headers) the single word subscribe Conversely, to stop receiving Hungary Report, simply send to the same address (in the body of the message) the single word unsubscribe The entire contents of The Hungary Report is copyrighted by the authors. Permission is granted for not-for-profit, electronic redistribution and storage of the material. If readers redistribute any part of The Hungary Report by itself, PLEASE RESPECT AUTHORS' BY-LINES and copyright notices. Reprinting and resale of the material is strictly prohibited without explicit prior consent by the authors. Please contact the authors directy by email to enquire about resale rights. For information on becoming a corporate sponsor of The Hungary Report, contact Rick E. Bruner or John Nadler by email. Feedback is welcome. Rick E. Bruner John Nadler Tibor Vidos For its briefs, The Hungary Report regularly consults the news sources listed below -- for information about subsriptions, contact them by email: The Budapest Business Journal <100263.213@compuserve.com>; Budapest Sun <100275.456@compuserve.com>; Budapest Week and Hungary Around the Clock (same email address) <100324.141@compuserve.com>, and Central Europe Today (free online) . ================ END TRANSMISSION