불가리아 주요 경제뉴스 (11 - 18 March 2011)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (11 - 18 March 2011)

 

Sections/headline briefs:

 

 

 

MACROECONOMY:

Ø  GDP growth revised up to 2.8% y/y in Q4

Ø  Cabinet to keep excise tax on cigarettes unchanged until 2013

Ø  Bulgaria Registers 7% Consumption Growth 4Q 2010 Y/Y

Ø      BULGARIA : Bulgaria to work with South Korea, Portugal in egov project

Ø      Exports surge by 72.6% y/y in January

 

INVESTMENTS:

Ø  Net FDI rise 86.3% y/y in January

Ø  Switzerland to grant EUR 54.1mn for projects in Bulgaria

Ø  BULGARIA,JAPAN : Toshiba May Invest EUR 350 M in New Thermal Power Plant in Bulgaria

Ø  BULGARIA: Soravia plans to invest in renewable energy projects in Bulgaria

 

COMPANIES:

Ø  Enel to Sell Bulgarian Thermal Power Plant to US Investor

Ø  Bulgargaz proposes 6.61% natural gas price hike as of Apr 1

Ø  Parliament passes in first reading EUR 71.6mn loan to railroad carrier BDZ

 

 

 

 

Articles:

 

MACROECONOMY:

 

GDP growth revised up to 2.8% y/y in Q4

Real GDP (in seasonally and working-day adjusted terms) increased for a second quarter in a row by 2.8% y/y in Q4 speeding from 0.5% y/y in Q3, according to preliminary data of the statistics office. The earlier reported GDP increase in the flash estimate was at 2.1% y/y in Q4. on the supply side, the main positive impact came from the adjustments reflecting better general budget indirect tax revenues. Still, the total value added edged up 0.2% y/y driven by the utilities sector and financial, real-estate, renting and business activities. All other branches had negative contribution. In terms of final use components, exports continued growing at double-digit rate of 16% y/y and total investments turned to a growth of 4% y/y, including 7.2% y/y expansion of gross fixed capital formation. Imports increase sped to 15% y/y from only 3% y/y in Q3. Final consumption is still contracting due to individual spending while collective one turned to growth of 12.7% y/y from 7.8% y/y contraction in Q3. In quarterly terms, GDP in Q4 was higher by 2.1% as compared to Q3. GDP expanded by real 0.2% in 2010 (0.3% in the flash estimate) thus matching our expectations for a small economic growth last year. The latest official government forecast was for a growth in the tune of 0.7% in 2010, which will accelerate to 3.6% this year on domestic demand recovery. The statistical office has revised GDP data for 2009 and the decline is now reported at 5.5% as compared to 4.9% in the previous readings. 

 

Cabinet to keep excise tax on cigarettes unchanged until 2013

The government plans to keep the excise tax rate on cigarettes unchanged until 2013, the council of ministers informed on its website quoting a meeting of PM Boyko Borisov and finance minister Simeon Dyankov with cigarette-producers. The cabinet will draft a long-term plan for the excise tax gradual increase in the period 2013 through 2018, in line with EU legislation. The plan will become part of the excise tax law. PM Borisov said that fighting cigarette smuggling is one of the government programme priorities. 

 

Bulgaria Registers 7% Consumption Growth 4Q 2010 Y/Y

Consumption in Bulgaria in the fourth quarter of 2010 is up more than 7% on yearly basis and has reached BGN 15.6 B. The data has been calculated by the site investor.bg, based reports of the National Statistics Institute, NSI. The calculations account for the inflation which at the end of 2010 was 3.9%, 4.6% and 4.5% on annual basis, respectively for October, November, and December. In the fourth quarter of 2010, the Gross Domestic Product (GDP) went up 2.8% on yearly basis, and consumption now is no longer considered an obstacle for the GDPgrowth, but rather a moving force for it. Increased consumption in the fourth quarter of 2010, is the first increase on annual basis in the last six quarters, according to investor.bg, and is the second largest nominal one, after the fourth quarter of 2008 with BGN 16.7 B. In the last quarter of 2007, consumption has amounted to BGN 15.6 B, slightly less than the one in the last quarter of 2010.

 

 

BULGARIA : Bulgaria to work with South Korea, Portugal in egov project

 

The Bulgarian government will collaborate with South Korea and Portugal government to develop its e-government project, Finance Minister Simeon Dyankov and Deputy Transport and Communications Minister Purvan Roussinov said. The government will allocate about BGN 35 million (US$ 24,937,626) under the European Union s administrative capacity operational programme for the project for this year, Deputy Finance Minister Boryana Pencheva said. Bulgaria will share best practices with South Korea through the Centre for Information Technology Cooperation (CITC), the Transport Ministry said. We will work on four projects, but our main goal is to transfer the best practices of the Republic of Korea to the Bulgarian e-government, the CITC General Director Nedyu Popivanov said. The Korean government will provide CICT with $1.5 million for three years, Popivanov said. Meanwhile, Bulgaria s cooperation with Portugal was agreed during Dyankov s visit to the Southwestern European country, where he was briefed on the Simplex programme, intended to reduce administrative burdens and simplify administrative procedures for citizens. In terms of the EU s requirements, online administration services in Bulgaria should be available to 50 per cent of the population and 80 per cent of business by 2015.

 

Exports surge by 72.6% y/y in January

Exports increased by 72.6% y/y to BGN 3.1bn (EUR 1.59bn) in January, according to preliminary data of the statistical office. The growth rate accelerated from revised 45.5% y/y in December and 33.2% y/y last year. The expansion rates to the EU and the non-EU countries were similar at 71.6% and 74.1% y/y. Imports expansion also sped to 35.6% y/y from 28.8% in January indicating recovery of domestic demand. The foreign trade balance was positive at BGN 218.4mn as compared to BGN 331.3mn a year earlier as a result of a surplus in the trade with the EU countries. It accounted for 0.3% of the full-year GDP projection as compared to 0.5% of GDP in January 2010.

 

INVESTMENTS:

 

Net FDI rise 86.3% y/y in January

 

Net FDI flows reached EUR 95.4mn in January, surging by 86.3% y/y, according to preliminary data of the central bank. FDI inflows went up by 81.1% y/y during the month, driven up only by the item other capital (inflow of EUR 82.9mn in January 2011 as compared to outflow of EUR 4.2mn in January of 2010) which comprises mainly the intra-company loans. Thus the data shows that the upward move of the indicator most likely refers to accumulation of foreign debt of the local companies from the non-banking sector. on the other hand, the equity capital and the reinvested earnings dropped by 88.7% y/y to just EUR 4.8mn and by 16.3% y/y to EUR 16.1mn, respectively. However, the investments in equity capital in real estates have remained practically unchanged on an annual base at EUR 6.07mn and the deterioration was due to lower capital flows to the non-banking companies.

 

Switzerland to grant EUR 54.1mn for projects in Bulgaria

Bulgarian minister responsible for EU funds utilisation Tomislav Donchev and Switzerland's ambassador in Bulgaria Beatrice Maser signed an agreement for financing projects in Bulgaria under a bilateral cooperation programme, the council of ministers informed on its website. Under the programme, Switzerland will provide BGN 105.8mn (EUR 54.1mn) in the next ten years. Four priority areas have been identified: security, stability and support to the reforms; environment and infrastructure; private sector enhancement; and human resources development and social activities.

 

BULGARIA,JAPAN : Toshiba May Invest EUR 350 M in New Thermal Power Plant in Bulgaria

Japanese corporation Toshiba has declared interest in building two new thermal power facilities in Bulgaria's Maritsa East TPP complex, Economy Minister Traicho Traikov has announced. Traikov was in the state-owned Maritsa East 2 plant on Monday with Japanese Ambassador to Bulgaria Makoto Ito where the two of them opened the rehabilitated unit 8 of the TPP, whose repairs were completed by Toshiba 32 days ahead of schedule. The life of the unit has been extended by 25 years. The Economy Minister said a potential Japanese investment in a new TPP in Maritsa East would amount to EUR 350 M. In comparison, US energy giant AES has invested EUR 1.3 B in two new units of the AES-Galabovo TPP in Maritsa East, while Italy's Enel invested EUR 700 M in the rehabilitation of the Maritsa East 3 TPP that it is now selling. He pointed out that the possibility to have Toshiba build two new units in the Maritsa East TPP with a combined capacity of 500 MW is "very attractive". If realized, this would be Toshiba's second investment in Bulgaria's energy sector after at the end of January the Japanese corporation announced a project to invest EUR 37.6 M in a 10-MW solar park near Yambol during the visit of a Bulgarian state delegation in Japan. Toshiba is also the main investor in the American energy giant Westinghouse, which has recently confirmed its interest in investments in the Bulgarian nuclear power plant Kozloduy. There are several possibilities for investments in new coal-fired units in Bulgaria's Maritsa East TPP complex. According to Traikov, if the Toshiba investment is in the Maritsa East 2 TPP, it will be providing electricity at the lowest possible TPP price in Bulgaria.

 

BULGARIA: Soravia plans to invest in renewable energy projects in Bulgaria

 

Soravia, Austrian project development and investment firm will invest in renewable energy sources in Bulgaria, including in the country's food industry, said Valeri Atanassov, manager of the company's Bulgarian division. Soravia also plans to persist to expand its real estate business, with the focus on consultancy services and building management. "Currently, we are drafting a strategy for the renewable energy sector, our plans are to start this year with two photovoltaic projects with a capacity of between five and seven megawatt hours," he said. Soravia has moved toward major European and US companies to build up a wind power project in Bulgaria, Macedonia and Albania, which is valued at over 100 million euro. The company's investments in the sector will be reliant on the adoption of Bulgaria's new bill on renewable energy. "We hope the law will be adopted as soon as possible within reasonable limits, which will give a greater confidence to foreign investors," Atanassov said. Investments in the food sector also bring a chance for Soravia. The company will invest in the present businesses and has plans to allot between 10 million euro and 15 million euro.

 

COMPANIES:

 

Enel to Sell Bulgarian Thermal Power Plant to US Investor

 

London, March 15 (BTA Special Correspondent Mara Bareva) - The Italian energy company Enel will sell its 73 per cent stake in the Maritza East 3 Thermal Power Plant in Bulgaria to the US investment fund ContourGlobal L.P. This transpired when Enel presented its annual financial reports in London on Monday. ContourGlobal will pay 230 million euro for the acquisition. The remaining 27 per cent stake in Maritza East 3 is owned by Bulgaria's National Electric Company. With an output capacity of 908 megawatts, Maritza East 3 has a 10 per cent share in Bulgaria's power generating capacities. In 2010 it earned 231 million euro in revenues and 69 million euro in before-tax profit, Enel said. The transaction is part of Enel's policy to set aside assets in order to reduce its debt to creditors. This particular deal is expected to reduce the Italian company's debt by some 450 million euro. The deal with ContourGlobal will be finalized by July 2011, when the rights to the plant will be transferred to the new owner.

 

Bulgargaz proposes 6.61% natural gas price hike as of Apr 1

Bulgaria's natural gas supplier Bulgargaz asked the state energy commission to allow an increase in the price of natural gas by 6.61% to BGN 543.05 (EUR 277.7) per 1,000 cubic metres VAT excluded as of Apr 1, the company said on its website. Bulgargaz explained its request with the higher alternative fuel prices and added that missed revenues in previous periods as a result of lower approved prices have not been included. A month ago, the supplier projected slightly lower increase of 6.3% and the head of the state energy commission Angel Semerdzhiev said that the price growth will not exceed 5% as of April 1 despite the oil price hikes on the international markets. Semerdzhiev commented also that the oil price level in February may affect the natural gas price in Q3. In case of 5% higher natural gas price, the regulator expects the heating and electricity prices to remain unchanged. Later in the week, Angel Semerdzhiev confirmed that the price hike of the natural gas will not exceed 5% as of April 1 despite the request of Bulgargaz. We remind that the regulator approved a decrease in the natural gas price by 5.7% to BGN 509.61 per 1,000 cubic metres as of January 1.

 

Parliament passes in first reading EUR 71.6mn loan to railroad carrier BDZ

The parliament passed in first reading the proposed by the cabinet draft law for providing aid to the state railroad carrier BDZ in the amount of up to BGN 140mn (EUR 71.6mn), mediapool.bg reported. The company will use the proceeds to cover outstanding liabilities to banks and to repair wagons and locomotives. The loan is guaranteed by the state and shell be returned when the company receives a BGN 460mn WB loan. The latter will be granted only in case of reforms of the railroad carrier and will be used to increase its capital. We remind that in December, the European Commission authorised state financing of BGN 249mn (EUR 127mn) for BDZ. The EC has asked the loan to be repaid in six months and the interest rate to be at 5.15%. The authorities have presented a detailed rehabilitation plan before the EC, which is now pending approval.