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CBR may cut refinancing rate by 0.25-0.5pps. CBR may cut the refinancing rate by 0.25-0.5pps, CBR Deputy Chairman Alexei Ulyukayev said during a meeting with State Duma’s committee on economic policy. He said the reduction is possible if CPI inflation will not exceed 8.5% y/y in 2006. Another required condition is that real RUR appreciation will not exceed 9% in 2006. Ulyukayev said that according to CBR’s estimations, inflation may reach more than 8.5% however would not exceed 9%. Presently, the refinancing rate is set at 11%. The last reduction was made in Jun 2006, when the rate was cut by 0.5pps.

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First there was Pop Idol, then American Idol, and now, Internship Idol.

Akenerji plans USD 73mn investment in Akocak power plant. Akenerji announced it plans to invest USD 73mn for its Akocak hydroelectric power plant in Trabzon , until the end of 2008. Akenerji started the investment in September and aims to produce electricity by the end of 2008. When completed, the plant will have an annual electric production capacity of 257 GWH. Akenerji had shut down part of its power plants in Agust due to rising costs for natural gas inputs.

Head of Global Currencies and Commodities at JPMorgan has suddenly resigned.

Czech CEZ to replace Orbis in blue-chip WIG 20 index after Dec 15. The Czech energy group CEZ is to enter the blue-chip WIG 20 stock exchange index after the Friday session on Dec 15, so de facto on Dec 18. It will replace Orbis on the WIG20, the stock exchange announced in a communique on Friday. There will also be changes in the MID-WIG index from that date. CEZ debuted on the Warsaw bourse on Oct 25 and boosted the capitalization of the WSE by approximately 15%. The value of foreign companies' shares on the WSE thus increased by more than 70%. ISB, tom

Head of Global Currencies and Commodities at JPMorgan has suddenly resigned.

Tax revenues rise 11% y/y in Jan-Oct. Net tax revenues collected in the first ten months of the year amounted to ALL 64bn (EUR 522mn), translating into an annual growth of 11%, showed the latest statistics of the General Taxation Directorate. October alone added some ALL 7.4bn to overall revenues, showed the data. VAT and the tax on corporate profit each contributed by the largest 29% share to the total, while excise and personal income tax accounted for 12% and 10% share, respectively. These taxes also grew steadily over the 10-month period, with profit tax recording a nearly 20% increase on an annual basis. The 26% decline in the amounts collected from small businesses can be attributed to the 50% reduction of the levy since the beginning of the year. This drop has been matched by a rise in the profit tax collections, as a result of the better enforcement of the rules for small businesses. It became harder for companies to register as small businesses in order to evade paying the corporate tax. The government also reduced the 23% rate charged on the corporate profit to 20% since January. Finally, the considerable 60% surge in the amount of insurance contributions paid to the state budget should also be mentioned. The government collected a total of ALL 31bn in the ten months of the year. The outstanding performance is the result of the various fiscal stimuli applied this year by the government with the purpose of reducing the shadow economy. Tax revenues, ALL mn Oct % y/y Jan-Oct % y/y Total Tax Revenue (collected) 7,444 6.7 65,420 10.4 From which: - - - - VAT (gross) 2,604 15.0 19,752 9.3 - VAT (net) 2,474 12.8 18,548 11.2 - VAT (currently reimbursed) 130 80.9 1,204 -13.7 Excise Tax 794 0.2 7,484 15.3 Profit Tax 1,967 5.7 18,567 19.6 Personal Income Tax 660 11.9 6,565 16.1 Small Business Tax 397 -33.5 2,292 -26.3 Land Tax - - - - Building Tax - - - - National Taxes (fees) 657 4.2 6,591 -9.1 Road Circulation Tax 237 37.9 2,990 5.0 Solidarity Tax (debtors 31.12.02) 2 1769.0 7 89.2 Gambling & Casinos 121 90.2 1,124 304.4 Others 1 50.3 16 9.7 Administrative Fines 3 53.2 32 289.6 Total Tax Revenue (net) 7,314 5.9 64,215 11.0 Insurance Contributions 3,280 6.1 30,933 59.9 Source: General Taxation Directorate

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FinMin to place two, three and five-year bonds on Monday. FinMin will sell bonds on Monday, Nov 13 with the circulation period of two, three and five years. The ministry did not indicate the value of the bonds. On Nov 9 FinMin issued bonds worth UAH 88.307mn (USD 17.487mn). The securities worth UAH 52.785mn have two-year maturity period and yield 9%. UAH 35.523mn 3-year bonds yield 9.4%. Five-year bonds were also offered, but there was no demand for them. In total in 2006 FinMin placed bonds worth UAH 528.142mn.

Tax administration revenues go up by 5.8% y/y in Jan-Oct. The revenues of the tax and customs administration amounted to SKK 201.7bn in Jan-Oct, increasing by 5.8% y/y, the Tax Directorate spokeswoman Adriana Pleskova reported. This represented 90.7% of the annual target, compared to a 91.7% collection rate for the same period of last year. The tax revenues increased by 5.7% y/y, boosted by strong indirect tax and corporate income tax revenue. The revenues from the VAT were up by 6.8% y/y due to the higher-than-expected growth of the private consumption spending. At the same time, the excise tax rate hike on tobacco products was already registered in the budget revenues, raising the proceeds from the tax by 6.5% y/y for the period. In total, the indirect tax revenues met the plan at 87.9%, which suggests that some overperformance might be expected for the year as a whole. The revenues from the corporate income tax already exceeded the annual plan by 3.2% as they were up by 9.2% y/y, reflecting the strong profitability of the real sector companies. The non-tax revenues amounted to SKK 5.2bn for the period, rising by 10% y/y and representing 78.3% of the plan for the year.

BiH attracts EUR 350mn FDI in Jan-Sep. BiH has attracted EUR 350mn (KM 684.5mn) worth of FDI in Jan-Sep, which is higher than the FDI volume attracted in full-2005, BiH Foreign Investment Promotion Agency director Haris Basic announced as ONASA informed. Basic expects that the FDI amount in full-2006 could plausibly reach KM 1bn with the finalisation of investments in progress, Basic said alluding at the privatisation of telecommunication and oil segments in RS. In the meantime, the Organisation for Economic Development and Cooperation (OECD) has pointed out that in order for BiH to attract larger investments with greater value-added, BiH authorities should continue their rigorous fight against corruption and organised crime, encourage competition, as well as regional trade and cooperation with its neighbouring countries. Furthermore, Bosnian institutions and administrative capacity should be reinforced so that a fruitful business environment is established.