OMRI DAILY DIGEST
No. 196,  9 October 1996

HUNGARY'S PRIVATIZATION SCANDAL CONTINUES. According to the daily
Nepszabadsag, such unjustified payments as the record-high consultant
fee that recently erupted a major privatization scandal are not unique
in Hungarian privatization practices. The paper reveals that the
management of the privatization agency (APV) on 25 September approved a
draft contract with the company Dunaferr on assets management,
establishing that APV will pay a 1 billion forint ($6.3 million)
"incentive fee" to Dunaferr for an equity increase between 1997 and
2001. Dunaferr's management seeks to increase the company's capital by
about 8 billion forints during this period, but observers say the 1
billion forint fee is disproportionate to the equity rise. -- Zsofia
Szilagyi

PARLIAMENT SETS DATE FOR HUNGARIAN-ROMANIAN BASIC TREATY
RATIFICATION.
The Hungarian parliament is expected to begin debate on ratifying the
Hungarian-Romanian basic treaty on 28 October, Magyar Hirlap reported on
9 October. The treaty, signed by Hungarian Prime Minister Gyula Horn and
his Romanian counterpart Nicolae Vacaroiu in Timisoara on 16 September,
has been ratified by the two houses of the Romanian legislature. The
Hungarian parliamentary vote is likely to take place before the Romanian
parliamentary and presidential elections, set for 3 November.-- Zsofia
Szilagyi


[As of 12:00 CET]

Compiled by Chrystyna Lapychak