The Cabinet has agreed on the definition of social flats and houses, which assumes up 90 sqm and 150 sqm for flats and houses respectively. Social flats&houses would continue to fall into the 5% VAT rate even after 31 December 2007 when the VAT rate of 5% on construction should be moved to 19% VAT. Based on 2004 figures, 94% of completed flats and 96% of completed houses fall into the 90 sqm and 150 sqm category. We believe that the news is positive for Orco, which through IPB Real targets mainly middle class segment, hence most of its flats should be taxed by 5% VAT only and therefore the demand for Orco’s product shouldn’t slow down dramatically after the VAT hike.