Current issue:
ABOUT BUSINESS - 05.2008
Traffic in Polish skies
The summer flying season is beginning. By October, when the winter flying season comes into effect, carriers will have opened 40 new connections in Poland. The hit of the season is LOTís return connection to Beijing, which is to be the start of its expansion into the Asian market. This fall, connections to Hong Kong may also be expected, and after getting the Boeing 787 Dreamliner there will be other routes. Lufthansa, SAS and British Airways are also planning new routes for Poles. However, the discount airlines, WizzAir and Ryanair, are planning the most flights. Poland is a tempting market for carriers. Alongside China and India, it is one of the countries that is experiencing a boom in air travel and is maintaining a two-digit growth dynamic, whereas passenger numbers in the world are growing by 6-7%.
Foreign funds in Poland
Western investment companies have moved into Poland. Two important players are getting ready to enter our market: French BNP Paribas, which has already begun to sell its funds directly in Poland, and DekaBank, one of the largest financial institutions in Germany, is planning to start business activity in our country during the last quarter of this year. In December of last year, notification was given by the giant HSBC that it was planning to offer funds which fulfilled EU requirements in Poland. In January of this year, another strong player, Schroder Investment Management, did the same - it announced more than one hundred of its funds all at once.
Ford with Fiat in Tychy
American Ford is investing 94 million euro in Poland. That is how much the company is going to spend on machinery which will stand in the Fiat factory in Tychy. They will be used to produce the new Ford K model, which will be built on the same chassis as the Fiat 500. Ford is planning to release 120,000-125,000 cars per year from its assembly line. Cooperative production of the two car models is the companiesî way of lowering costs. Ford will receive a grant amounting to 5 million euro from the Polish government in support of the investment. This is by virtue of the fact that locating the production of the new Fiat 500 and Ford K in Poland a thousand new jobs will be created in the Tychy factory.
A billion dollars from Norway
As much as a billion dollars from the Norwegian national sovereign wealth fund (SWF) may be invested in the Polish market, say experts after the government of that country agreed on the proposal made by the financial administration and changed the strategy of the fund, in which money is collected from sales of energy resources. Of the 400 million dollars that have been collected so far, only 5% has been invested in developing nations. Now, the percentage will increase to 10%. The geographic spread of SWFís activities will also expand. Among 18 main directions of investment, the Czech Republic, China, Russia, Turkey, Hungary and Poland have been mentioned.
Money flowing into the country
Poles working abroad are sending more and more money to Poland. Last year, they transferred around 20.4 billion PLN to Polish bank accounts, which is 2.8 billion more than in the year before. In 2004, which was the first year (beginning from May 1st) of Polandís membership in the European Union, the sum amounted to just 10.5 billion PLN. The most money comes from Great Britain, which is where Poles sent 5 billion zloty from last year. The second most popular destination for earning money has turned out to be Ireland. Poles sent 4.6 billion PLN to their homeland from the Green Isle. However, emigration for wages on the other side of the Odra River is becoming less and less popular ñ 3.9 billion PLN flowed to Poland from Germany in 2007.
Poles and taxes
A majority of Poles (82%) are in favor of tax reform, according to data published by Centrum Badania Opinii Społecznej (CBOS - Public Opinion Research Center). Two-thirds of those surveyed (65%) would like the wealthy to pay higher taxes than they do now. The Polish government is planning to lower personal income tax in 2009. Instead of three rates of 19, 30 and 40%, there are going to be two ñ 18 and 32%. In the future, the government wants to introduce linear taxation which includes a tax-free income threshold and tax breaks for those with children.
Polish investment funds
The number of Polish investment funds exceeded 400 products by March of this year, according to Analizy Online. Last year, 131 funds and subfunds were created. There were 71 new ones the previous year, whereas 30 appeared in the first quarter of this year alone. When taking all of the available units and currencies into consideration, the 35 Polish investment funds presently offer more than 700 possibilities. The most numerous group consists of mixed funds which invest abroad, of which there are 79 altogether. 61 foreign stock funds come second. According to Analizy Onlineís estimates, there may be as many as 500 domestic funds next year.
Thailand in Warsaw
The Warsaw Thailand Expo fair will take place for the first time in Poland from the 7th to the 10th of May. Around one hundred Thai companies representing various industries will take part in the event. Thailand is a net exporter of food products. 'We would like Poland to become the distribution center for Thai food in all of Europe,' said the ambassador of Thailand in Poland during a press conference. The fair in Warsaw will be the first step in this direction.
The summer flying season is beginning. By October, when the winter flying season comes into effect, carriers will have opened 40 new connections in Poland. The hit of the season is LOTís return connection to Beijing, which is to be the start of its expansion into the Asian market. This fall, connections to Hong Kong may also be expected, and after getting the Boeing 787 Dreamliner there will be other routes. Lufthansa, SAS and British Airways are also planning new routes for Poles. However, the discount airlines, WizzAir and Ryanair, are planning the most flights. Poland is a tempting market for carriers. Alongside China and India, it is one of the countries that is experiencing a boom in air travel and is maintaining a two-digit growth dynamic, whereas passenger numbers in the world are growing by 6-7%.
Foreign funds in Poland
Western investment companies have moved into Poland. Two important players are getting ready to enter our market: French BNP Paribas, which has already begun to sell its funds directly in Poland, and DekaBank, one of the largest financial institutions in Germany, is planning to start business activity in our country during the last quarter of this year. In December of last year, notification was given by the giant HSBC that it was planning to offer funds which fulfilled EU requirements in Poland. In January of this year, another strong player, Schroder Investment Management, did the same - it announced more than one hundred of its funds all at once.
Ford with Fiat in Tychy
American Ford is investing 94 million euro in Poland. That is how much the company is going to spend on machinery which will stand in the Fiat factory in Tychy. They will be used to produce the new Ford K model, which will be built on the same chassis as the Fiat 500. Ford is planning to release 120,000-125,000 cars per year from its assembly line. Cooperative production of the two car models is the companiesî way of lowering costs. Ford will receive a grant amounting to 5 million euro from the Polish government in support of the investment. This is by virtue of the fact that locating the production of the new Fiat 500 and Ford K in Poland a thousand new jobs will be created in the Tychy factory.
A billion dollars from Norway
As much as a billion dollars from the Norwegian national sovereign wealth fund (SWF) may be invested in the Polish market, say experts after the government of that country agreed on the proposal made by the financial administration and changed the strategy of the fund, in which money is collected from sales of energy resources. Of the 400 million dollars that have been collected so far, only 5% has been invested in developing nations. Now, the percentage will increase to 10%. The geographic spread of SWFís activities will also expand. Among 18 main directions of investment, the Czech Republic, China, Russia, Turkey, Hungary and Poland have been mentioned.
Money flowing into the country
Poles working abroad are sending more and more money to Poland. Last year, they transferred around 20.4 billion PLN to Polish bank accounts, which is 2.8 billion more than in the year before. In 2004, which was the first year (beginning from May 1st) of Polandís membership in the European Union, the sum amounted to just 10.5 billion PLN. The most money comes from Great Britain, which is where Poles sent 5 billion zloty from last year. The second most popular destination for earning money has turned out to be Ireland. Poles sent 4.6 billion PLN to their homeland from the Green Isle. However, emigration for wages on the other side of the Odra River is becoming less and less popular ñ 3.9 billion PLN flowed to Poland from Germany in 2007.
Poles and taxes
A majority of Poles (82%) are in favor of tax reform, according to data published by Centrum Badania Opinii Społecznej (CBOS - Public Opinion Research Center). Two-thirds of those surveyed (65%) would like the wealthy to pay higher taxes than they do now. The Polish government is planning to lower personal income tax in 2009. Instead of three rates of 19, 30 and 40%, there are going to be two ñ 18 and 32%. In the future, the government wants to introduce linear taxation which includes a tax-free income threshold and tax breaks for those with children.
Polish investment funds
The number of Polish investment funds exceeded 400 products by March of this year, according to Analizy Online. Last year, 131 funds and subfunds were created. There were 71 new ones the previous year, whereas 30 appeared in the first quarter of this year alone. When taking all of the available units and currencies into consideration, the 35 Polish investment funds presently offer more than 700 possibilities. The most numerous group consists of mixed funds which invest abroad, of which there are 79 altogether. 61 foreign stock funds come second. According to Analizy Onlineís estimates, there may be as many as 500 domestic funds next year.
Thailand in Warsaw
The Warsaw Thailand Expo fair will take place for the first time in Poland from the 7th to the 10th of May. Around one hundred Thai companies representing various industries will take part in the event. Thailand is a net exporter of food products. 'We would like Poland to become the distribution center for Thai food in all of Europe,' said the ambassador of Thailand in Poland during a press conference. The fair in Warsaw will be the first step in this direction.
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Information published at 18 May 2008