불가리아 주요경제 뉴스 (11 - 18 February 2011)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (11 - 18 February 2011)

 

Sections/headline briefs:

 

 

MACROECONOMY:

·         EC takes steps against Bulgaria over delay of renewable energy bill

·         GDP grows 2.1% y/y in Q4.

 

INVESTMENTS:

·         European Economic Area to provide EUR 126.6mn until 2014

·       Net FDI fall 64.1% last year

·       World Bank prepares new partnership strategy with Bulgaria in 2011-2015

 

 

 

COMPANIES:

·         Four candidates reportedly interested in Bulgartabac sale.

·         LED producer Octa Light Bulgaria opens USD 5mn plant.
Power plant Maritsa East II completes unit upgrade ahead of schedule

·         Transneft denies rumours Russia may exit Burgas Alexandroupolis oil project

·         CBA to lease supermarket in Dobrich

·         German discount retailer Lidl expands network to 24 units

 

 

 

 

 

 

Articles:

 

MACROECONOMY:

 

EC takes steps against Bulgaria over delay of renewable energy bill

 

The European Commission has opened an infringement procedure against Bulgaria because of the delay of the country's new law on renewable energy, the press service of European Energy Commissioner Guenther Oettinger said on February 11 2011. All members of the European Union were obliged to transpose the bloc's Renewable Energy Directive into national legislation by December 5 2010. After twice skipping the vote on the draft law, the Bulgarian Government sent the bill to Parliament earlier in February. "The Bulgarian authorities have not sent us any information. We want to see the national legislation transposing EU requirements stipulated in the directive," EC officials said. Bulgaria has committed to a legally-binding EU target to have a 16 per cent share of renewable energy in gross energy consumption by 2020. The Ministry of Economy did not respond to inquiries by Dnevnik related to the procedure. Meanwhile, Oettinger's press service said, without naming them, that two other member states were falling behind the deadline for implementing legislative measures on renewable energy.

 

GDP grows 2.1% y/y in Q4

 

GDP (in seasonally and working-day adjusted terms) expanded by 2.1% y/y in Q4 accelerating from 0.2% y/y in Q3, according to the flash estimate of the national statistical institute. It was by 1.7% higher as compared to its value in the previous quarter. on the supply side, the agriculture and the industry contributed positively driven mainly by rising exports. The services remained weak with declining value added to reflect still poor domestic demand. Unlike the previous quarters when adjustments had negative contribution, in Q4 they rose by 4.4% showing better indirect tax revenues of the state budget as compared to a year earlier. on the demand side, final consumption decrease narrowed to 1.3% y/y in Q4 from 7.3% a quarter earlier. The investments kept on contributing negatively but in Q4 the only reason was the change in inventories while the expenditures on fixed capital were by 4.7% higher on an annual base. Still, the main impact came from exports, which has been rising by double-digits in the last three quarters. Imports of goods and services confirmed the upward trend rising by 6.9% y/y in Q4 as compared to 2% y/y and 0.3% in Q3 and Q2 respectively. The annual GDP growth, obtained as sum of quarterly figures, increased in real terms by 0.3% compared to 2009, below the latest government forecast for a 0.7% GDP growth in 2010.

 

INVESTMENTS:

 

European Economic Area to provide EUR 126.6mn until 2014

The non-EU countries from the European Economic Area (EEA) - Iceland, Lichtenstein, and Norway - will provide EUR 126.6mn to the country in the period 2009-2014, the government informed on its website. The financing is under the Financial Mechanism of the EEA and the Norwegian Financial Mechanism. The negotiations between Bulgarian authorities and the counterparties from the EEA are to be completed by April.

 

Net FDI fall 64.1% last year

Net FDI flows reached EUR 255.7mn in December and EUR 1.2bn last year, down by 46.1% y/y and 64.1% y/y, respectively, according to preliminary data of the central bank. FDI inflows went down by 46.5% y/y during the month, mainly driven by a reduction in the equity capital allocated to local companies with greatest contribution of those firms, which are not part of the real estate business or the banking sector as well as decrease in the intra-companies loans of the same kind of firms. In the full-year readings, the decline of the intra-company loans was the greatest contributor followed by equity capital, including banks and real estates. The net FDI covered CA gap at 427.9% last year, rising from 97% in 2009, as a result of the improved CA balance.

 

World Bank prepares new partnership strategy with Bulgaria in 2011-2015

The WB is preparing a new strategy for partnership with Bulgaria in the period from 2011 through 2015, the council of ministers informs on its website. The new strategy will back the country to achieve sustainable growth focusing on policy reforms and strengthening the institutional capacity in specific sectors. The WB will provide technical and analytical assistance. The institution will grant if necessary supplementary financing to EU grants from the structural and cohesion funds. The executive directors’ board is to discuss the new strategy in May. 

 

 

COMPANIES:

 

Four candidates reportedly interested in Bulgartabac sale.

A total of four companies have reportedly shown interest in the privatisation of the state tobacco holding Bulgartabac, Dnevnik Daily reported quoting unnamed sources from the privatisation agency. The companies are Korea’s KT&G, Japan Tobacco International, and investment funds from the Czech Republic and the UK. The method for selling the state stake in the holding should be unveiled this week and economy and energy minister Traycho Traykov expects the procedure to be completed by the middle of the year. Bulgartabac Holding ended 2010 with a profit of BGN 6.34mn (EUR 3.24mn), up 98.5% y/y. The company also reported a continuing growth in net sales revenues, which stood at BGN 4.2mn in the first quarter of 2010 and reached BGN 20.1mn in the last quarter of the year. The company controls some 50% of the domestic tobacco market, according to economy ministry estimates.

LED producer Octa Light Bulgaria opens USD 5mn plant.

 

Local LED producer Octa Light Bulgaria opened a production line for high-power LEDs in the north-western town of Godech, a note on the website of the government read. The company has invested USD 5mn in the facility, which is first of its kind on the territory of the EU. Nearly 100 employees will work in the plant, 26 of which highly qualified. In June last year, Bulgaria's largest car battery producer Monbat informed that it bought 51% (25,500 shares) in Octa Light Bulgaria from Octagon International at the price of BGN 2.35mn (EUR 1.2mn).

 

Power plant Maritsa East II completes unit upgrade ahead of schedule

Coal-fired power plant Maritsa East II, part of state-owned Bulgarian Energy Holding (BEH), put back into operation one of its units after repairs 32 days earlier than planned, the company informed on its website. The rehabilitation started at the beginning of July. The capacity of the unit increased to 230 MW and its operational life was extended by 25 years. Maritsa East II produced 8.3mn MWh of electricity in 2010, up by 1.2% y/y. The eight units of the coal-fired plant had a combined production capacity of 1,576MW before the upgrade was completed. The plant was commissioned in the period 1963-1969 and is located at the Maritsa East lignite coal mining complex in southern Bulgaria. It is the largest thermo-power plant on the Balkans.

 

Transneft denies rumours Russia may exit Burgas Alexandroupolis oil project

Russia does not plan to exit the project for building a pipeline for transportation of Russian oil from the Black Sea port of Burgas to the Greek Aegean Sea port of Alexandroupolis but only to cut the expenditures of the project company, mediapool quoted a statement of Transneft representative Igor Demin for RIA Novosti. Earlier in the week, the Russian press reported that Russia intends to stop paying its share after Bulgaria and Greece did so. State-run entities of Bulgaria and Greece control 24.5% of the project each, against 51% for Russia, whose stake is controlled by Rosneft, Transneft and Gazprom Neft. The pipeline construction has been placed under serious scrutiny by the Bulgarian government due to insufficient economic foundation and a lack of a clear and systematic approach to its financing. Its decision is expected after the revised environmental impact assessment (EIA) is ready, which is to take place by the end of this month. The 258-km pipeline is estimated to cost EUR 1.6bn. It will transit 35mn tonnes of oil annually with an option to increase supplies to 50mn tonnes in the long run. 

 

CBA to lease supermarket in Dobrich

Local retail chain CBA Asset Management signed a 10-year lease contract for a new supermarket in the northern city of Dobrich, the company informed in note on the website of the local bourse. The store is located on 700 sqm area in the city centre. CBA Bulgaria runs more than 200 stores all over the country, according to information on its website. The company invests more than BGN 50mn (EUR 25.6mn) in its stores each year.

 

German discount retailer Lidl expands network to 24 units

German discount retailer Lidl opened four new supermarkets thus expanding its network to 24 units located in 17 cities and towns all over the country, the retailer informed through its website. The new stores are located in Sofia, Pernik, Gotse Delchev and Razlog. Lidl opened its first 15 stores in Bulgaria on November 25, 2010. Also, Lidl opened a BGN 56mn (EUR 28.6mn) logistics hub in Ravno Pole, near Sofia, in early October 2010. The retailer, which is part of Schwarz Group, received permission from the anti-trust watchdog to buy local chain Plus, owned by German Tengelmann. Plus operates 23 stores in the country.