불가리아 주요 경제뉴스 (8 - 15 April 2011)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (8 - 15 April 2011)

 

Sections/headline briefs:

 

 

 

MACROECONOMY:

Ø  Bulgaria's Exports to Non-EU Countries Grow by 65.5% y/y Jan-Feb 2011  

Ø  Bulgaria's industrial output grows 3rd fastest in EU in Feb 2011   

Ø  IMF improves 2010 GDP forecast for Bulgaria  

 

INVESTMENTS:

Ø  Railroad carrier BDZ to invest EUR 61.4mn in three years

Ø  Industry, Energy Investments 50% of Bulgaria's 2010 FDI

Ø  EC may finance large infrastructure projects

 

COMPANIES AND INDUSTRIES:

Ø  Bulgaria registers record-high growth in hardware exports

Ø  Bulgaria's New Car Market Starts to Crawl Up 2011 Q1

Ø  Environment ministry launches EUR 63.2mn water infrastructure projects

Ø  Eltrade Company wires price for bankrupt steel mill Kremikovtsi

Ø  Bulgaria's Sopharma expands presence in Belarus

 

 

 

 

 

 

 

Articles:

 

MACROECONOMY:

Bulgaria's Exports to Non-EU Countries Grow by 65.5% y/y Jan-Feb 2011

In the period January - February 2011, Bulgaria's exports to non-EUcountries increased by 65.5% year on year and amounted to BGN 2.4 B. The data was released by the National Statistics Institute Monday. Bulgaria's main trade partners outside the EU in this period were Turkey, Russia, Serbia, The former Yugoslav Republic of Macedonia, South Africa and China, that formed 54.5% of the total exports to non-EU countries. The exports to South Africa, India, Croatia and Turkey increased significantly. Falls were reported on the exports to Peru, Iran, Syria, United Arab Emirates, Egypt and Japan. In February 2011 the exports to non-EU countries increased by 56.6% compared to the corresponding month of the previous year and amounted to BGN 1.1 B. Bulgaria's imports from non-EU countries in the first two months of 2011 increased by 49.6% compared to the corresponding period of the previous year and amounted to BGN 2.6 B (at CIF prices). The most significant growths were reported on the imports from South Africa, United Arab Emirates, Kazakhstan, Albania, Singapore, Egypt and Ukraine. The largest decreases were observed in the imports from Canada and Peru. In February 2011, Bulgaria's imports from third countries increased by 65.8% compared to the corresponding month of the previous year and amounted almost to BGN 1.3 B. Bulgaria's foreign trade balance (export FOB - import CIF) with non-EU countries in the period January - February 2011 was negative and amounted to BGN 267.0 B. The trade balance at FOB /FOB prices (after elimination of transport and insurance costs on imports) was also negative and amounted to BGN 66.8 M. In February 2011, the foreign trade balance of Bulgaria (export FOB - import CIF) with non-EU countries was negative and amounted to BGN 172.8 M

 

Bulgaria's industrial output grows 3rd fastest in EU in Feb 2011

Bulgaria's industrial production rose by 15.2% on the year in February 2011, marking the third largest annual growth in the European Union (EU), data by the bloc's statistics bureau Eurostat showed on Wednesday. Estonia registered the biggest jump in industrial output in the period, of 31.3%, followed by Sweden with 15.9%. Industrial production in the euro zone went up by 7.3% on average in February, while the annual average increase in the EU countries came in at 7%. Thanks to a rebound in exports, European manufacturers managed to offset the negative effect of measures aimed at reducing budget deficits that were introduced in most European states, news agency Bloomberg said. "The recovery of the industry will definitely contribute to economic growth in the first quarter, " Martin van Vliet, economist at ING, said. "If production remains stable in March, which is even a rather conservative estimate, the region's GDP will probably increase by about 1% on a quarterly basis, " he said. The stable development of the European industry, however, is threatened by the high petrol prices, the expensive euro, as well as measures to strengthen public finances in some countries and further interest rates increases by the European Central Bank this year.

 

IMF improves 2010 GDP forecast for Bulgaria

 

INVESTMENTS:

 

Railroad carrier BDZ to invest EUR 61.4mn in three years

State railroad carrier BDZ is to invest BGN 120mn (EUR 61.4mn) in the period 2011-2014, the chairman of the board of directors of the company told the transport parliamentary commission while presenting the plan for restructuring of the holding company, Pari Daily reported. BDZ will invest BGN 20mn this year and BGN 50mn in each of 2012 and 2013. The holding will sell its cargo unit and the EC may finance the deal and find a consultant. However, the company should be remedied first. Last year, the cargo transporting subsidiary of the holding has raised its market share by 1.5pps despite the decrease in revenues.

 

Industry, Energy Investments 50% of Bulgaria's 2010 FDI

The structure of foreign investments in Bulgaria has changed in 2010, according toBorislav Stefanov, executive director of the InvestBulgaria Agency. Speaking at a closing conference devoted to the investment climate in Northwest Bulgaria, Stefanov said that investors seeking quick profit have moved out of the country but the stable and reliable entrepreneurs have remained in the context of the effects of the global economic crisis. "2010 was a very important year for investments in Bulgaria because it brought about a shift in focus on the part of investors and a change in the structure of investments. Following a few years of huge investments, when it somehow went unnoticed that they were channeled almost exclusively into finance, trade and real estate, in 2010 the share of these sectors dropped below 30% of the total FDI inflows for the first time in 10 years," the InvestBulgaria Agency head explained. He did point out, however, that investments in industry and energy in 2010 exceeded 50% of the total FDI, which had not happened for 5 or 6 years. "This trend shows that investors who are after quick profits may have left the country, freeing up space for investors in more sustainable sectors. The task all of us are facing now consists of further increasing precisely this type of investment, especially in a region like Northwest Bulgaria, which could be achieved through better marketing and improved cooperation between the central and the local authorities and a more efficient administration on all levels", Stefanov commented. In 2010, FDIs in Bulgaria totaled EUR 1.6 B, down by only 30% , according to revised data of the central bank, which denies gloomier estimates for a 50-60% slump. 2007 was a record year for Bulgaria with a total of EUR 9 B of FDI, followed by EUR 6 B of FDI in 2008. The global economic and financial crisis led to what was considered a collapse of FDI in Bulgaria in 2009, as the foreign investments barely reached EUR 3 B.

 

EC may finance large infrastructure projects

The EC has pre-approved possible EU financing for five Bulgarian road infrastructure projects during the technical negotiations for updating the trans-European road network, investor.bg informed quoting a statement of the regional minister Rosen Plevneliev. The projects include the Hemus Motorway linking the capital city of Sofia to the northern Black Sea city of Varna and four speed roads: between Ruse and Shumen and Varna and Durankulak in the northeast part of the country, between Plovdiv and Rudozem in southern Bulgaria and between Dupnitsa and Ihtiman in southwest Bulgaria. The total amount of all the projects is estimated at EUR 2.5bn and the EU financing is expected to reach at least EUR 2bn. The completion of the final road maps and the final decision of EC for approving the expanded road network are expected by June 30, 2011. A political decision of the European Council will follow afterwards. Minister Plevneliev expects the financing of the said projects in the next programming period 2013-2020 from the EU cohesion fund under the country’s transport operational programme. 

 

 

COMPANIES AND INDUSTRIES:

 

Bulgaria registers record-high growth in hardware exports

Bulgaria's hardware sales registered a record-high growth in the last quarter of 2010, market analysis and research agency CBN-Pannoff, Stoytcheff & Co said. Local hardware makers such as Datecs and Eltrade, which also manufacture electronic cash registers, also ended the last quarter of the past year with a rise in orders from abroad. "Exports of computer hardware in 2010 reached 82 million euro, which is an absolute peak in the 19-year period for which data has been available," the analysts told Dnevnik. Apart from computer components, Bulgaria also sells abroad other hardware such as motherboards, cash registers, Evelin Stoev, analyst at market research firm IDC, said. Exports of processors and computers slowed during the crisis in line with the overall trend in imports and exports, but companies such as Datecs and Eltrade, however, performed well, he said. According to Datecs CEO Pencho Iliev, exports increased in the past year in contrast to the local market, which remained subdued, with orders from abroad in the fourth quarter 2010 rising by 50 per cent on an annual basis. Nikolai Kitov, manager of electronics retailer Technomarket, said the increase in hardware exports was a result of the contraction in sales on the domestic market.

 
Bulgaria's New Car Market Starts to Crawl Up 2011 Q1

The market of new cars in Bulgaria has registered a modest but nonetheless tangible year-on-year growth in the first quarter of 2011. A total of 4 638 new cars were sold in Bulgaria in January-March 2011 vs. 3 956 sales in the same period of 2010, a growth of 17%, according to data of the Association of Car Importers. In March, a total of 1 816 new cars were sold, compared to 1 358 in February and 1 464 in January. Bulgaria's all time record first quarter in terms of new car sales was in 2008 when a total of 15 224 new cars were sold in the country, just months before the economy got into a depression and the market collapsed. The total number of vehicles, including cars, trucks, buses, and motorcycles, sold in the first quarter of the year is 4 888 vs. 4 116 in 2010 Q1. The most popular brand in the first quarter of 2011 in Bulgaria was Volkswagen with 567 new car sales, followed by Toyota with 427 sold vehicles. Ford is third with 414 sales, Peugeot comes in fourth with 369 sales, followed by Dacia with 357 and Skoda with 302. Mercedes is the leader in the sales of new buses and trucks – a total of 45 in the first quarter. Peugeot has the lead in the sales of new motorcycles – 42, or 67% of all motorcycles sold in Bulgaria in this period.

 

Environment ministry launches EUR 63.2mn water infrastructure projects

Environment minister Nona Karadzhova signed contracts for water management projects at the total amount of BGN 123.7mn (EUR 63.2mn) in the towns of Radomir and Levski, the environment ministry informed on its website. Country’s environment operational programme and the state budget will provide the financing. The municipality in the western town of Radomir will invest BGN 80mn in the rehabilitation of 52km of sewage and 38km of waterpipes and the construction of 6km of sewage and also a new wastewater purification station. Levski municipality will invest BGN 43.7mn in new wastewater purification station and will finish the sewage and fresh-water supply system in the town. Both projects should be completed by the end of 2014.

 
Eltrade Company wires price for bankrupt steel mill Kremikovtsi

Locally registered Eltrade Company has wired BGN 284.4mn (EUR 145.4mn) to the Bulgarian Development Bank in addition to the initial deposit of BGN 31.6mn thus paying the full price of the bankrupt steel mill Kremikovtsi, Dnes.bg reported quoting the receiver of Kremikovtsi Tsvetan Bankov. We remind that on April 12, 2011 Eltrade Company won the tender for the sale of the producing assets of Kremikovtsi promising to pay the initial tender price as it was the only company, which took part in the competition. Later in the week, country’s sixth largest First Investment Bank (FIB) informed that it has provided a EUR 59mn loan to Eltrade Company for the purchase of the steel mill. FIB said also that Eltrade has reached preliminary contracts for the sale of some of the non-operating assets of Kremikovtsi. Kremikovtsi was declared insolvent at the end of May 2010 after several unsuccessful attempts to sell it. The plant shut down its main production lines after filing for bankruptcy in late 2008. Indian Global Steel Holding controls 71% of the debt-laden company and the government holds 25.3%. 

Bulgaria's Sopharma expands presence in Belarus

Bulgarian pharmaceuticals maker Sopharma said on Wednesday it has acquired Belorussian pharmacy chain Tabina through its Latvian subsidiary Breeze. Sopharma has bought 99% of Tabina's capital, which has 14 pharmacies operating under the Doctor Do brand. The chain had a turnover of EUR 3.78 million (USD 5.5m) in 2010. Earlier this year, Sopharma's Latvian unit took over another Belorussian pharmacy chain, Interfarm, which runs 19 pharmacies. Breeze now operates a network of 33 pharmacies in the eastern European country, which generate annual turnover of EUR 7.5 million, according to Sopharma's statement to the Bulgarian Stock Exchange. "This makes Breeze the third largest privately-owned pharmacy chain in Belarus," Sopharma added.

 

 

Reported by:

Georgi Iliev

KOTRA Sofia

Korea Trade-Investment Promotion Agency

Commercial Section of the Embassy of the Republic of Korea