불가리아 주요 경제뉴스 (2 March - 11 March 2011)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (2 March - 11 March 2011)

 

Sections/headline briefs:

 

 

MACROECONOMY:

 

Ø  Public debt falls 2.3% m/m to EUR 5.26bn at end-January

Ø  Bulgaria Ranked 48th Globally in Tourism Competitiveness

Ø  Bulgaria Sees Minor Decrease in Retail Trade Turnover y/y January 2011

Ø  New car sales rise 14.9% y/y in Jan-Feb

 

 

INVESTMENTS:

 

Ø  Overgas to Persist in Expanding Bulgaria's Gas Network

Ø  BSTDB may provide up to EUR 50mn in credit lines annually until 2014

Ø  Italiy's OMS Saleri To Build 15 Mln Euro Ball Valves Plant in Bulgaria

 

COMPANIES:

 

Ø  Finland's Amer Sports Expands Bulgarian Ski Plant

Ø  Lukoil Eyes Wind, Solar Energy Plants in Bulgariа

Ø  Fourteen firms want to build Dimitrovgrad-Harmanli section of Maritsa Motorway

 

 

 

 

 

 

 

Articles:

 

 

MACROECONOMY:

 

 

Public debt falls 2.3% m/m to EUR 5.26bn at end-January

The general government debt, excluding state guarantees, declined by 2.3% m/m but added 7.4% in a year to EUR 5.26bn as of the end of January, finance ministry data showed. The annual expansion decelerated from 11.5% a month earlier. Domestic government debt went up by 22.9% in annual terms and contracted by 4.8% during the month. External government debt edged up by 0.1% y/y to 63.6% of the total, up by 1pp during the month. The total public debt accounted for 13.7% of the full-year GDP forecast. Additional 1.6% of GDP are booked as state guarantees, slightly lower than a month earlier. The fiscal reserve covered 52.6% of the public debt at the end of January. The ratio was reported at 81.2% at end-2009 and 88.5% at the end of 2008 and 119.3% at end-November 2008.

 

Bulgaria Ranked 48th Globally in Tourism Competitiveness

Bulgaria is 48th in terms of travel and tourism competitiveness out of 139 countries, according to a report of the World Economic Forum. The WEF ranking evaluates the countries according to 14 different criteria – from infrastructure and safety to regulatory framework and human, cultural, and natural resources. Switzerland, Germany, France, Austria, and Sweden take up the top five spots. Tunisia and Israel are right in front of Bulgaria, while Turkey and Poland are right after it. Bulgaria fares pretty bad in terms of tourism competitiveness in Europe – it is only 27th out of 42 European states surveyed. In the overall rankings, Bulgaria 99th in environmental sustainability, 81st in safety, 10th in hygiene and health, and 51st in terms of human, cultural, and natural resources. The WEF report focuses on the competitiveness of travel and tourism after the global economic crisis. According to the report, Bulgaria's tourism has benefited from the global crisis. "Most major destination economies clearly suffered during the crisis, but some have managed to weather the downturn successfully and have grown in spite of the global contraction of thetravel market. Bulgaria has kept its growth momentum partly because (and not despite) of the crisis attracting budget-orientated tourists from Western Europe seeking low-cost alternatives to traditional sun-and-beach destinations in the euro zone," explains the report of the WEF.

 

 

 

Bulgaria Sees Minor Decrease in Retail Trade Turnover y/y January 2011

In January 2011, the working day - adjusted turnover in Bulgaria'sretail trade, except of motor vehicles and motorcycles fell by 0.4% in comparison with the same month of the previous year, according to the country's National Statistical Institute. The turnover in January 2011 as compared with the same month of the previous year increased in the three main groups of activities - in 'Retail sale of automotive fuel' by 3.0%, in 'Dispensing chemist; retail sale of medical and orthopedic goods, cosmetic and toilet articles' by 1.7% and in 'Retail sale of food, beverages and tobacco' by 0.8%. The 'Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances', the 'Retail sale of textiles, clothing, footwear and leather goods' and the 'Retail sale of computers, peripheral units and software; telecommunications equipments'decreased respectively by 5.9%, 4.0% and 3.8% respectively. By preliminary seasonally adjusted data, the retail trade turnover increased by 2.1% compared to the previous month. In January 2011, as compared with the previous month the turnover increased in the 'Retail sale of automotive fuel' by 3.4% and in the 'Retail sale of food, beverages and tobacco' by 0.2%. A monthly decline was observed in 'Dispensing chemist; retail sale of medical and orthopaedic goods, cosmetic and toilet articles' by 6.2%, in 'Retail sale of textiles, clothing, footwear and leather goods by 6.0% and in 'Retail sale of computers, peripheral units and software; telecommunications equipment' by 0.4%.

 

 

New car sales rise 14.9% y/y in Jan-Feb

New car sales increased by 14.9% y/y to 2,969 units in Jan-Feb, according to data of the local car importers association quoted by Dnevnik Daily. The upward move sustained for a fourth month in a row but the rate decelerated to 3.9% y/y in February. In the passenger segment, Volkswagen had largest market share of 13.1% in Jan-Feb, followed by Toyota with 9.6% and Ford (8.5%). Car dealers have sold 146 trucks, 1 bus, and 46 motorbikes in Jan-Feb. Sales of new cars, buses and trucks in Bulgaria fell by 25% on the year to 20,085 in 2010, as the market was still facing a slump in demand due to the financial crisis. Sales in the last two years plummeted 65.3%, after rising for nine straight years

 

 

 

 

 

 

 

 

INVESTMENTS:

 

Overgas to Persist in Expanding Bulgaria's Gas Network

The Overgas company has announced plans to continue in 2011 its investment in Bulgaria's infrastructure for delivery of natural gas to homes.For the year Overgas plans to construct 75 km of new gas pipes, almost half of them in capital Sofia (36 km). New gas pipes leading to homes are also projected for Stara Zagora, Veliko Tarnovo, Kyustendil, Ruse and elsewhere. In 2010 Overgas has constructed 50 km of pipes, 19 of which in Sofia, followed by Kyustendil with 7 km. Overgas is the major supplier of natural gas to Bulgarian homes, covering close to 100% of the market. It also sells some gas to industrial consumers. Overgas is owned by Russian gas giant Gazprom.

 

BSTDB may provide up to EUR 50mn in credit lines annually until 2014

The Black Sea Trade and Development Bank (BSTDB) may provide between EUR 40mn and EUR 50mn in credit lines annually for projects in the country in the next three years, the finance ministry informed on its website. The president of BSTDB Andrey Kondakov said that more projects could be financed depending on the initiative of the local business. A BSTDB delegation visited the country to present the activities of the Bank and the draft strategy for Bulgaria until 2014. The strategy will focus on priority projects such as energy with special focus on energy efficiency, road infrastructure, waste management, and small and medium enterprises development. In the past 11 years, BSTDB has financed 23 projects in the country valued at EUR 211mn or some 10% of the total credit portfolio of the Bank.

 

 

Italiy's OMS Saleri To Build 15 Mln Euro Ball Valves Plant in Bulgaria

Italian engineering company OMS Saleri plans to invest over 15 million euro ($20.8 million) in the construction of a ball valves plant near Vratsa, in northwestern Bulgaria, the Vratsa city hall said on Thursday. OMS Saleri on Thursday bought a 25,000 square metre land plot for the plant for 500,200 levs ($355,330/255,750 euro), VAT excluded, the Vratsa city hall said in a statement. The company will spend 3.0 million euro during the first stage of the project and another 12 million euro during the next two stages. The plant, which will employ 150 people, is expected to start operating at full capacity within six years. This is OMS Saleri's second investment in Vratsa. Five years ago it established a sewing firm which currently employs 135 people.

 

 

COMPANIES:

 

Finland's Amer Sports Expands Bulgarian Ski Plant

Bulgaria will be making between 15% and 20% of the total annual production of skiin the world thanks to the investment in a local factory by Finnish company Amer Sports. World ski producer, Finnish company Amer Sports, received a "Class A" investor status from the Bulgarian government for its project to expand the skifactory in Bulgarian mountain resort Chepelare. Bulgarian Economy Minister Traicho Traikov presented Stefan Leberbauer, a senior executive of Amer Sports, with the Class A investor certificate at a special ceremony. Leberbauer has pointed out that thanks to the Finnish investment Bulgaria is to become the largest ski producer in the world. In his words, by the end of 2011, Amer Sports will have invested BGN 40 M in theski plant in Chepelare, which already employs 640 people. Amer Sports plans to invest BGN 7.8 M in the expansion of the "Pamporovo Ski" factory, which it bought in 2008 for EUR 5 M (BGN 10 M). The Finnish company Amer Sports a market share of about 30% on the global skimarket. "It is great to be number one in some kind of industry, especially when it comes toski equipment because this is the kind of sport practiced by wealthy and intelligent people," Economy Minister Traikov commented upon presenting the Class A investor certificate to Amer Sports Bulgaria.

 

Lukoil Eyes Wind, Solar Energy Plants in Bulgaria

Russian oil company Lukoil wants to build wind and solar energy plants in Bulgaria and Romania, according to company representative Vasily Zoubakine. The company is interested in both new projects and in acquiring existing ones. The plans for the new energy plants are expected to be ready by the end of 2011 when negotiations with local partners can begin, Zaoubakine told RIA Novosti. "As Russia did not have a system to support energy alternatives, the Lukoil investments are focused abroad, including on countries where Lukoil is present, such as Bulgaria and Romania, where the company plans to build wind and solar energy farms," he said. In his words, this is part of the government's strategy to get involved in the business with renewable energy sources. Lukoil is the biggest private oil company in Russia and it owns Lukoil-Neftohim Burgas and the Lukoil gas station chain in Bulgaria.

 

Fourteen firms want to build Dimitrovgrad-Harmanli section of Maritsa Motorway

A total of 14 companies and consortia have filed documents to participate in the tender for additional planning and construction of the 34.4km segment of the Maritsa Motorway between Dimitrovgrad and Harmanli, the state road infrastructure agency informed on its website. The tender commission should select the winner in 50 days. The indicative value of the project is estimated at EUR 105mn. Construction works are to begin in June-July this year and to be completed in June-July 2013. Maritsa Motorway will link Trakia Motorway with the Turkish border. Its total length will reach 117 kilometres.