Balkan Business News #10 English Edition
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> Issue #10 .................... 8th of June, 2007
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> Balkan Business News
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> ABOUT THE NEWS
> About Tenders
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> ABOUT THE BALKANS
> Albania
> Bosnia & Herzegovina
> Bulgaria
> Croatia
> F.Y.R.O.M.
> Greece
> Montenegro
> Romania
> Serbia
> Slovenia
> Turkey
ISSUE #10 .................... 8TH OF JUNE, 2007
Alison Andrews
Publisher
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CROSSING THE BORDERS OF BUSINESS
BBN is the primary resource for professionals, investors,
entrepreneurs and key decision makers around the world seeking
business information on the Balkans. Our flagship product, BBN
Electronic News, is a bi-weekly online and email resource, published
in multiple languages, providing the international community with a
full spectrum of business news in the Balkans.
With a strong commitment to create business opportunities and trade,
to and within the Balkans, BBN will launch Balkan Area Tenders (BAT).
BAT provides even more business opportunities by delivering public
and private tenders directly to your desktop in multiple languages.
The BBN team consists of a multinational and multi-lingual group of
translators, journalists, managers, assistants and economist
available at anytime to serve your needs no matter which country you
are in. The timely and objective business news is written by our team
of highly talented, business-oriented and knowledgeable BBN
correspondents who are located throughout the Balkans keeping
constantly aware of all the business happenings in every corner of
the Balkans.
BBN is headquartered in Belgrade, Serbia with satellite offices in
Athens, Greece and Sofia, Bulgaria
Our Mission is to:
# Create a Balkan-wide investment and alliance promotion through
deliverance of information;
# Provide information to foreign investors in order to further open
the door to the Balkans;
# Foster co-operation agreements between different agencies between
each country.
Balkan Business News is a Balkan based business news source providing
news and tenders tailored to corporations, entrepreneurs, investors
and developers interested in expanding or developing business in the
Balkans. BBN serves as a driving force for business information in
the Balkan region.
Get the news today and be more informed for tomorrow!
ABOUT THE NEWS
BBN Electronic News is a bi-weekly online and email resource,
published in multiple languages, providing the international
community with a full spectrum of business news in the Balkans.
Balkans involving at a rapid pace...
With the ever changing business environment, in the Balkans, evolving
at such a rapid pace, BBN is dedicated to providing a comprehensive
source of business information to its readers while maintaining the
highest professionalism in journalism. Our team of accurate, concise
and research-oriented journalists will provide in-depth coverage of
the business environment with important, news-worthy and up-to-date
news stories.
To keep you further informed, BBN, from time to time, will include:
# Industry overviews
# Interviews from the leaders of the Balkans
# Informed perspectives on the changing business environment
# New company developments and restructuring
# Who's who in the Balkans?
# Sector analysis
Trusting BBN with business information needs...
The BBN community of readers and advertisers include highly educated
and well-known leaders in business, trusting BBN with their business
information needs for the Balkans.
ABOUT TENDERS
BN Electronic News is a bi-weekly online and email resource,
published in multiple languages, providing the international
community with a full spectrum of business news in the Balkans.
Balkans involving at a rapid pace...
With the ever changing business environment, in the Balkans, evolving
at such a rapid pace, BBN is dedicated to providing a comprehensive
source of business information to its readers while maintaining the
highest professionalism in journalism. Our team of accurate, concise
and research-oriented journalists will provide in-depth coverage of
the business environment with important, news-worthy and up-to-date
news stories.
To keep you further informed, BBN, from time to time, will include:
# Industry overviews
# Interviews from the leaders of the Balkans
# Informed perspectives on the changing business environment
# New company developments and restructuring
# Who's who in the Balkans?
# Sector analysis
Trusting BBN with business information needs...
The BBN community of readers and advertisers include highly educated
and well-known leaders in business, trusting BBN with their business
information needs for the Balkans.
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ABOUT THE BALKANS
The changes in the Balkans, also known in different country
configurations as Southeast Europe, are remarkable. The countries
referred include Albania, Bosnia and Herzegovina, Bulgaria, Croatia,
Former Yugoslav Republic of Macedonia (FYROM), Greece, Montenegro,
Romania, Serbia, Slovenia and Turkey. Geographically, they serve as
the direct route between Western Europe and Asia...
The success of these countries in the past years is notable. GDP
growth is on the rise with most of the countries reaching or
exceeding over 5% in 2006 and it is forecasted that this new levels
of success will continue in 2007. Corporate profit tax rates are as
low as 10% in some countries and other countries are changing their
corporate profit tax to lower levels. Beneficial investment
incentives have been introduced in all the countries in order to
welcome more foreign investment. Most of these countries are either
already in the European Union or heading in that direction
The Balkan Country marketplace, with its multi-regional personalities
and ethnicity, provides companies the opportunities to source and
supply their products and services to a diverse yet neighboring
population of over 130 million. The free trade agreements, which have
been signed by a vast amount of these countries, offer another
advantage by providing an outlet to an even larger population. In
some counties, the marketplace, with all the free trade agreements in
place, exceed 700 million people. For example, Serbia has a free
trade agreement with Russia; a marketplace of over 140 million
people. F.Y.R.O.M. has a free trade agreement with Ukraine; a
marketplace of almost 50 million people.
Although political situations have risen in some of these countries,
business investments, mergers, acquisitions and development is
continuing at a rapid pace. Almost 20 billion euros of Foreign Direct
Investment was realized in 2005 within the SEE countries and 2006
projections are projected to be even more promising.
The advantages of the Balkans:
It is a new frontier to discover and explore with over a 130 million
population in a relatively consolidated area;
Business cooperation and foreign investment is of intense interest in
the Balkans;
Free trade agreements, incentives and free zones are beneficial and
already implemented;
The Resourceful, skilled and inexpensive labor are available with a
relatively large population of youth;
Tourism is significantly higher in some countries and a few have even
received a projection of being the top ten tourist destination;
Personnel are well trained in their field of expertise possessing
strong mathematical and IT skills;
New products, services and methods are continuously welcomed and
sought-after;
Lack of competition exists in certain industries;
More than half of the countries are in the European Union or
candidates for the European Union;
Privatization programs and tenders are attractive investment
opportunities;
The needs of replacement goods and services are sizeable in these
regions, such as, medical equipment and construction materials;
The purchasing power of the population is increasing and the regions
are producing more and more millionaires.
______________________ALBANIA_____________________
**************************************************
VERY HIGH PRICES FOR REAL-ESTATE IN ALBANIA
The prices of the apartments and properties in the capital city of
Albania, Tirana, have reached the top level for a lot of reasons.
During a survey realized by a real estate agency they found out that
in comparison with last year, the prices in Tirana, both for
apartments and business environments, have been increased with 400
euros per meter square. Even so, if somebody plans to buy an
apartment in Tirana, not only in the center, they should hurry up
because the prices might be increasing again. In fact this warning
came for a long time from the constructors who think that the reason
of the price increase is the lack of construction permits and the
conditions that the owner of the land are asking.
The center of Tirana continues to be the most expensive. In
accordance with the dates taken yesterday from the real estate
agencies the prices per meter square in this area varies from 1300 to
2000 euro while for commercial areas they can be up to 8000 euros per
meter square. The situation in periphery area is different,
nevertheless the prices in this area have increased.
==================================================
ALBANIAN MAIL SERVICE GETS AN INTERNATIONAL AWARD FOR ITS QUALITY
SERVICE
The Albanian Mail Service gets an international award in New York for
its quality of services. The Albanian Mail Service instituted a
reform that proved to be successful, mainly in the services like
delivery, transfers and stamp collections. One of the appreciated
achievements of this institution is the entrance on the money
transfer market.
The Albanian Mail Service has the advantage of the big number of post
offices and the small prices that it offers for the services. The
efficiency of the Eurogiro service includes the transfer in a period
of four days from the moment of the delivery to the moment of the
pick-up of the money (cash to cash, cash to account) with lowest
commissions of the money transfer market. For example a transfer of
one hundred euros, provides for a commission of only six euros, for a
transaction from one hundred to one thousand euros, the commission of
the service is 12 euros and for transactions over one thousand euros
the fare will be twenty Euros while the drawing out of the money is
without commission.
==================================================
ECONOMIC COLLABORATION AGREEMENT BETWEEN POLAND AND ALBANIA
The Minister of Economy, Trade and Energy, Genc Ruli has signed in
Varsovia, Poland, the agreement of collaboration between the Albanian
Council of the Ministers and the Government of the Republic of
Poland. This agreement foresees stimulation of the economic
collaboration in all the economic fields and sectors based on equal
rights and reciprocal benefit.
This agreement will be implemented through: (I) collaboration for the
implementation of projects with reciprocal interests in the fields of
minerals, science, technology, energy, communication, transport,
protection of the environment, sea economy, (II) the development of
the collaboration between the economic institutions, (III)
collaboration in the field of standardization and attestation, and
consumer protection; (IV) the development of the law consulting,
banking and technical services; (V) exchange of experience and
technical personal, trainings, participations at fairs, exhibitions,
economic missions and promotional development, economic collaboration
at a regional level.
==================================================
ALBANIAN GOVERNMENT INTRODUCE TAX ON PROPERTY
The Minister of Finance Ridvan Bode has declared that the new fiscal
law will introduce a tax on property. According to the Minister the
new system will affect only the big owners. This aim of this new tax
is to increase the earnings of the state budget.
The financial effect of this tax, which has not been calculated, is
predicted to produce considerable earnings in the future budget of
Albania Government.
==================================================
ALBANIAN GOVERNMENT WILL INCREASE EARNINGS FROM CHANGE OF TAXES LEVEL
The changing of the level of some taxes foreseen in the new fiscal
law will produce an increase of earnings in the state budget of
Albanian Government. The wealth tax will bring an increase of 200
thousand euros per year. 30 thousand dollars per month will be only
from the increase of the fuel excise level, by increasing it with
four leke a litter. It is also foreseen an increase of almost 12
percent and 15 percent of the excise level for other goods. This
increase of earnings reflects the increase of economic level and the
expansion of the taxable base.
In respect of earnings from national taxes, it is taken into
consideration also an increase of the tax of import on used vehicles,
a 60 percent increase of the current level for oil vehicles and 33
percent for those with gas.
==================================================
GOVERNMENT NEW INITIATIVES STIMULATE BUSINESS ACTIVITY
The measures that the Albanian Government has taken in the taxation
field will allow the creation of a better and more competitive
environment for business activity and for the stimulation of the
economic initiatives. This will create the conditions for the
increase on the level of investments and employment in Albania.
The decrease in taxes by 50 percent on the tax of personal earning,
from 23 percent to 10 percent of the tax on income, the government
will not be able to collect close to 150 millions of dollars. This
will represent an important opportunity for the business community to
invest, to finance the development of their activities, to employ
more people and to offer a positive impact to the development of the
Albanian economy.
Furthermore the initiative of the Government to increase the
percentage of promotion and advertising expenses will make possible
the change of the percentage allowed from 0.3 percent to 1 percent.
However the law is still only on paper and expecting to be approved
by the parliament.
__________________________________________________
**************************************************
________________BOSNIA & HERZEGOVINA______________
**************************************************
THE OUTCOME OF NEGOTIATIONS BETWEEN "VITAMINKA" AND "PODRAVKA" AT THE
BEGINNING OF JULY
The outcome of negotiations on the sale of the "Vitaminka" factory in
Banjaluka to the Croatian company of "Podravka" in Koprivnica will be
known at the beginning of July, Mr.Ilija Sirovina, majority owner and
"Vitaminka" Management Board president, announced, heading the Swiss
company of "Kreis Industriehandel", owning 76.6 percent of the
Banjaluka company. Mr. Sirovina underlined the deadline for reaching
an agreement is end of June or the beginning of July as auditors from
"Podravka" scrutinized the operation of this Banjaluka company.
==================================================
STATE ASSET SALE IN THE B&H FEDERATION: POOR RESULTS
The Steering Board of the Privatization Agency of the B&H Federation,
in its report, sent to the Parliament of the entity for review, finds
that, in the period between July 2005 and July 2006, the
Privatization Agency sold assets originally estimated at some 182
million convertible marks, for only 26.9 million KM in cash and some
560 thousand KM in certificates. Within the so-called "large-scale"
privatization, by means of tender procedures, offered capital whose
originally estimated value had been some 156 million KM was sold for
only a bit over 7 million KM. Other revenue was gained by means of
so-called "small-scale" privatization. The report further states
that, in the course of 2005, the B&H Federation Privatization Agency
had planned to announce 15 tenders for state asset sale, yet that, as
is underlined, is due to unfavorable conditions for privatization
process conducting, it announced merely six tenders, and sold one
company only. Other tenders were proclaimed unsuccessful as there had
been no bids submitted or bids submitted had been found to be of low
quality. In the first six months of 2006, the announcement had been
planned of also 15 tenders, yet only six were actually announced.
==================================================
"TELEKOM SRBIJA" PAID THE FIRST INSTALLMENT FOR "TELEKOM SRPSKA"
On June 3, "Telekom Srbija" paid the first installment out of the
total amount of 646 million euros it must pay to acquire 65 percent
of State-owned capital at "Telekom Srpska". Officials of the
Republika Srpska Government confirm "Telekom Srbija" paid the
installment to the escrow account and that this fund distribution
will be done in line with agreements the Republika Srpska Government
concluded with business banks. Government officials at Banjaluka's
Banski dvori did not say how much money had been paid in the first
installment, yet the fact is underlined that the whole amount is
expected to be paid by the end of the current week.
==================================================
FOUR COMPANIES BIDDING FOR "ALUMINIJA" IN MOSTAR
The right to submit obliging bids for the acquisition of 88 percent
of capital of the "Aluminija" combine in Mostar will be granted to
the companies of "Glencore International AG" from Switzerland,
"Vedanta Resources plc." From India, "Mytilineos Aluminium de Grece"
from Greece, and "En+ Group Ltd." From Great Britain (having been
acquired by Russian "Rusal"), the joint commission announced, which
will be made of representatives of the B&H Federation government and
the "Aluminija" management, leading the privatization process of this
Mostar company. Representatives of the Commission say these four
companies will be able to perform their due diligence of "Aluminija"
in the period between June 11 and July 13, with support from the
"Deloitte" audit company, being the official consultant of the
Commission. The deadline for final bid submission is September 5.
==================================================
"BOSNALIJEK" TO BUILD A MEDICINE FACTORY IN KAZAKHSTAN
The "Bosnalijek" pharmaceutical company in Sarajevo requested that
the Ministry of Industry of the Federation of Bosnia and Herzegovina,
forward a letter of intent to the Government of Kazakhstan on the
construction of a medicine factory in that country. Representatives
of "Bosnalijek" underline the medicine factory, to be most probably
built in Kazakhstan, would be a regional center to supply medicines
to Azerbaijan, Kyrgyzstan, and Uzbekistan. The Kazakhstan state is
expected to finance the construction of this factory, with
"Bosnalijek" to invest its technology and "know-how".
__________________________________________________
**************************************************
______________________BULGARIA____________________
**************************************************
DUNDEE PRECIOUS METALS SAGA IN BULGARIA CONTINUES
International Dundee Precious Metals Inc., engaged in acquisition,
exploration, development and mining of precious metals, plans to move
its metal production abroad if the Bulgaria's government keeps on
putting obstacles in its activity, the company's Director General for
Bulgaria Laurence Marsland said.
In late May 2007 the management board of Dundee's subsidiary
Chelopech Mining introduced to the mayors of the villages of
Chelopech, Chavdar and Karlievo a report on its activities by now and
its plans for the future development of the Chelopech Mine in case
the Ministry of Environment and Water grants the company the
necessary activity permits.
Since Dundee Precious Metals set foot on the Bulgarian market in 2003
its has invested a total of 160 million dollars in its facility, the
financial director of the mine Konstantin Petkov said, adding that if
the ministry gives effect to the company's development program, it
will invest another 130 million dollars by 2009.
The Council of Ministers is expected to come up with an official
position on Dundee's request for extraction expansion in the
Chelopech Gold Mine. The resolution on the issue is not intentionally
late. Rather, the government needs some time to discuss the economic
juridical analyses of the amendments in the concession contract, the
Government Press Office announced.
==================================================
AUSTRIAN SORAVIA SELLS MEGAPARK PROJECT FOR 96 MLN EUROS
Austrian Soravia Real Estates has recently sold one of its largest
projects in Bulgaria Megapark to CA Immo International for 96 million
euros.
At the end of 2006 Soravia announced that it would start the
construction of the large office and commercial complex, which is a
joint venture with Bank Austria-Kreditanschtalt Real Invest (BA-CA
Real Invest).
According to preliminary estimates, the investments stood at 100
million euros, which the Austrian bank was expected to provide.
Soravia will manage the construction project, which will be completed
at two stages by 2009.
Over the last few years Soravia has invested in three large-scale
projects in Bulgaria - International Business Center, Soravia Center
and EUROPARK. Besides real estate Soravia also allocates funding to
food production sector investments in the Balkan country. The company
owns Devin mineral water bottling company via its Soravia equity fund.
==================================================
FOREIGN YACHT COMPANIES PLAN TO OUTSOURCE PRODUCTION IN BULGARIA
Foreign companies, and representatives of famous international yacht
brands, are interested in production outsourcing in Bulgaria and are
currently doing a market research on the opportunities for joint
ventures set up in the country.
"The latter is an excellent opportunity for Bulgarian producers to
increase their capacity and set foot on the international market",
the chairman of Bulgarian yachting federation Stanislav Kasurov said
during Yacht port 2007 specialized conference in the Black Sea resort
of Riviera.
What provokes the interest of foreign investors is the cheap labor
force, representatives from the federation explained. "Some companies
are trying to export Bulgarian labor force which will definitely have
a negative effect on the country's industry", Kasurov warned.
According to data issued by the federation, investors are looking for
opportunities for modern yacht ports construction in Bulgaria's Black
Sea resorts. Kasurov forecasted that over the next three to ten years
Bulgaria will have fifteen new marinas with a total capacity of
between 2,000 and 4,000 yachts.
==================================================
ITALIAN IVECO LOOKS FOR STRATEGIC PARTNERS IN BULGARIA
Italian Iveco, one of the world's leading companies in the transport
sector, plans to set up strategic partnerships with Bulgarian
transport companies, the company's CEO Paolo Monferino announced.
The truck producer is mostly interested in the establishment of
cooperation partnerships in Bulgaria, Poland and Russia.
"We may lay the foundations of a partial cooperation with Bulgarian
companies in 2008 but we are not in such a hurry to sign contracts,",
Monferino pointed out.
Iveco has more than 31,000 employees all over the world and its sales
stand at some nine billion euros.
The company has a total of forty-nine factories and fifteen research
centers in nineteen countries. Iveco operates in more than a hundred
countries via joint ventures, patent and investment companies.
==================================================
TWO KEY MINISTERS LEAVE BULGARIA'S GOVERNMENT
After a corruption scandal, which shook the government, Bulgaria's
Prime minister Sergey Stanishev accepted the resignation of two of
his ministers - the Minister of Energy and Economy Rumen Ovcharov and
the head of Justice Georgi Petkanov.
"I accept Ovcharov's resignation for this is a good political move,
despite the fact that the prosecution said that it did not have
enough evidence to pursue Ovcharov,", Stanishev announced.
According to the Head of Cabinet, the events, which the country has
seen over the last few weeks, showed that Bulgarian society is
extremely intolerant to even suspicion of corruption.
"We have to appoint a new economic minister as soon as possible and
it is most likely that we will not separate the ministry into two,",
the Prime minister added.
After allegations and counter-allegations between Rumen Ovcharov and
other senior government officials, the minister found himself at the
centre of a corruption scandal that erupted in April 2007.
They accused each other of diverting funds from state-owned
companies, blackmail and putting pressure on prosecutors to drop
probes.
__________________________________________________
**************************************************
______________________CROATIA_____________________
**************************************************
CAUTIOUS INVESTORS ON ZAGREB STOCK-EXCHANGE
Mild downfall of the Crobex index (minus zero point six percent), is
an evidence of somewhat more cautious activity of investors.
Exceptions are shares of Civil Engineering Institute of Croatia, that
reached its the best value so far 1,882 EUR, and naturally, as
stock-exchange rules ordain, the sale was suspended until the end of
the day. Value of its share increased by eleven point four percent.
Noticeable daily leap was by 4.8% recorded shares of Hidroelektra.
Although shares of Lavčević were suspended from sales, because its
value increased by 7.8 percent, they reached the highest price so far
- 150.68 EUR. On the other hand, so called blue-chip stocks did not
accomplished encouraging results. Share of INA again disappointed its
owners with the three-day value downfall (by 2.4 percent). Among
shares that recorded loss are shares of Adris Group and Podravka with
decrease of 1.4 percent. Almost 4.3% of IPK Kandit shares switched
owner, but that was not enough to make the price go up, and on the
end of stock-exchange day they amounted price downfall by 3.9
percent. After the stagnation and value downfall, shares of Hrvatska
Poštanska Banka (HPB) increased by ten percent this week. Possible
reason for the bigger interest for this share is the larger activity
of HPB on neighboring markets, especially in Montenegro. One of the
possible reasons is also interest shown by the European Bank for
Reconstruction and Development (EBRD) for HPB whose majority owner is
the state.
==================================================
EXTRA-CAPITALIZATION CONCEDED TO ZAGREB STOCK EXCHANGE
The management of the Croatian Agency for Supervision of Financial
Services (HANAF), at a special meeting conceded the
extra-capitalization of Zagreb Stock-exchange. Based on this permit
Zagreb stock-exchange will increase its basic capital from 400,000
EUR to 5.5 million EUR.
For that reason, 37,500 shares will be issued. Nominal value per
share is 136.98 EUR. The nominal value of shares is one hundred
36.98 EUR. Shares will be registered and paid for in their nominal
value and shareholders of Zagreb stock-exchange, who are already
entered into the register of the Central depository agency, will have
the priority when it comes to registering for new regular shares. On
the day when a decision on increasing the basic capital is made,
these shareholders will be able to register their shares
commensurately with their share in the current basic capital. With
this extra-capitalization, Zagreb Stock-exchange will become an
extremely strong and significant factor in the whole SEE region.
==================================================
PLIVA HAS TO PAY INDEMNITY TO INVENTORS OF ANTIBIOTICS SUMAMMED
The Commercial Court in Zagreb decided that Pliva, a pharmaceutical
company from Zagreb, has to reimburse 5.3 million EUR of the joint
authors award to a group of its former employees because of the
violation of copyrights. Also, Pliva has to repay them the interest
of 5.8 million EUR for the delayed payment. Pliva employees submitted
the law suit in 2001.
With the sales of Sumamed, Pliva earned until now around 1.2 billion
EUR. The only member of this research team who won the case until now
is Dr. Kolja Ivanišević, a member of one of the teams who worked on
developing new molecules in the Pliva Research Institute. He publicly
accused the President of the management of Pliva Željko Čović as the
person in charge of selling the Research Institute of this well known
company to foreigners.
As a response to this verdict, Pliva annunciated that they will
submit appeal to the Commercial Court in Zagreb.
==================================================
RUSSIANS WANT TO ENTER PRIVATIZATION PROCESS FOR INA FROM ZAGREB
Judging by what Georgij Poltavčenko, the authorized representative of
the Russian President Vladimir Putin, said during his visit to
Zagreb, Russia is interested in involvement of Lukoil and Gazpromneft
in the privatization of the Croatian oil company INA. The Croatian
state intents to allot its seven percent of shares to the current and
former employees of INA. Obviously, Russians are ready to purchase
those individual shares right away. Poltavčenko says they were not
only expressing their intentions but discussing the possible range of
their involvement. He alleges that establishing the joint consortium
is also possible. The official Zagreb still have not officially
expressed their attitude regarding this proposition.
Georgij Poltavčenko indirectly confirmed that by the end of this
month President Putin would visit Zagreb, where he would attend an
energy congress.
==================================================
ALTHOUGH THE PACE OF REAL ESTATE SALES IS REDUCED... PRICES ARE NOT
DECREASING
In this period, when profiteers transferred their money (about a
billion EUR) from the real estate sector, to Zagreb stock-exchange
feeling it will bring them higher income, the prices of houses in
Zagreb increased by thirty EUR per square meter. This increase
occured while prices of apartments are recording mild growth and
prices of business premises are still recording downfall. Except in
Zagreb, price of building land is mildly decreasing in other parts of
Croatia. House prices range from ninety-five EUR per square meter in
Lika up to 10,889 EUR on island Hvar. Apartments are still the most
expensive in Dubrovnik - 5,263 EUR per square meter, while a square
meter in Nova Rača costs only 441 EUR.
Business premises are still less expensive in Zagreb. The most
expensive square meter of business premises was in Zaprešić - 6,930
EUR/square meter and the cheapest in Stubičke Toplice - 34/square
meter.
When building land is in question, this week the most attractive and
at the same time the most expensive site is in Karlovac at 703 EUR
per square meter. At the same time, for only one EUR it is possible
to purchase a square meter of building land in Lički Osik.
==================================================
NEW SPATIAL PLAN OF JELSA ENABLES ADDITIONAL TWO HUNDRED TWENTY-SIX
HECTARES OF BUILDING LAND ON HVAR
If the Ministry of Environmental Protection, Physical Planning and
Construction give its approval for the Spatial plan of Jelsa
municipality, the biggest municipality on island Hvar, the current
one hundred ninety hectares of urbanized land will turn into four
hundred sixteen hectares. Besides expanding to the town of Jelsa, the
new spatial plan envisions nineteen new locations of the total area
of two hundred twenty-six hectares. Changes of the spatial plan
should be in the function of sustainable development.
Domestic population is selling the land for which they will get to at
least hundred sixty million EUR total, but after the sales they will
not have any place on the island to invest their money.
According to estimations of the author of this spatial plan, six
billion EUR will be invested on this new building land for building
hotels and apartments, infrastructure and other facilities in the
following ten years.
In accordance with the new spatial plan the additional two million
square meters is provided for building hotels and apartments. The
municipality of Jelsa has very weak infrastructure, without a sewage
system and with very bad roads. Only the construction of a new
substation seeks about fifty million EUR:
Certainly, if the state upholds this spatial expanding of Jelsa
Municipality, investors will hurry to this island with the most
pleasant climate in the Croatian part of the Adriatic.
==================================================
KING ICT ISSUED COMMERCIAL SECURITIES
Commercial securities with a total value 13.7 billion EUR will be
issued consecutively in the following five years. The first tranche
of commercial securities, which will reach the regular market of
Zagreb stock-exchange on June 6, has the nominal value of 5.5 million
EUR.
KING ICT is one of the leading system integrators in the Croatian
market, and since it was established in 1998 it was recording
constant increase of revenues. Except in the Croatian market, this
company also operates in the market of Bosnia and Herzegovina. KING
ICT will use funds gained through issuing commercial bills for
financing its current operations, while part of the money will be
used for the realization of expanding plans in Croatia and Bosnia and
Herzegovina.
==================================================
CROATIA TO SIGN MEMORANDUM WITH EU ON ALLOCATING FINANCIAL ASSETS FOR
ICT PROJECTS
Croatian companies will be enabled to fundraise for projects in the
field of informatics and telecommunication sector (ICT), based on an
agreement with the EU. For the project of the EU FP7 that started in
January this year and that will last seven years, the total budget of
50.5 billion EUR is assigned in which nine point eleven billion EUR
out of which is designated for ICT projects.
Among one thousand eight hundred eighty-three inquiries i.e. projects
of around forty are from Croatia. The second open competition will be
opened in the near future and it will last until October, with the
provided budget of four hundred forty-seven million EUR. Ruđer
Bošković Institute from Zagreb announces that they will inquire for
support from FP7 program for fifty-four projects, four of which are
from the field of Health Care, six from the field of surroundings,
sea and agriculture, three for ICT projects, three for
nanotechnology.
The EU does not want to lag behind the USA, and for that reason its
goals are to promote research for the needs of European industry,
instigation and supporting its competitiveness, support to scientific
and industrial excellence and strengthening of European industry as
the world leader in certain sectors.
__________________________________________________
**************************************************
_____________________F.Y.R.O.M.___________________
**************************************************
THE THIRD FREE ECONOMIC ZONE IN FYROM TO BE DEVELOPED NEAR TETOVO-
STRATEGIC PARTNER WANTED
The FYROM Government intends on establishing the third order free
economic zone, in the Polog Valley, nearby Tetovo, in order to meet
the interest of potential investors.' The "Polog" free economic zone
would have a surface area of some 140 hectares, approximately the
same size of the "Bunardzik" free economic zone, where the "Johnson
Control" company has already been building its facilities, and where
the entry of British "Johnson Meti" is expected. The FYROM Government
also wish to find a strategic partner with which they would jointly
operate the "Polog" free economic zone; plans also include
infrastructure arrangement at the free economic zone in Stip.
==================================================
THE "STANDARD & POORS" AGENCY CONFIRMED FYROM'S CREDIT RATING
The "Standard & Poors" agency (S&P) confirmed FYROM long-term credit
rating to be "BB+" for foreign currencies, and "BBB" for the FYROM
national currency. "S&P" also confirmed the short-term ratings of "B"
for foreign currencies, and "A-3" for the FYROM national currency.
This agency's overall forecast on FYROM is a stable one, also
supported by the country's perspective of joining the European Union.
==================================================
GOVERNMENT REJECTED "HELLENIC PETROLEUM" OFFER FOR LEASE OF
"NEGOTINO" THERMAL POWER PLANT
The Greek oil company of "Hellenic Petroleum" requested, through the
"Okta" Skopje oil refinery, to be granted a lease over the "Negotino"
thermal power plant for a period of three summer months - July,
August and September, yet the FYROM Government rejected this offer as
it had been found to be too low. "Hellenic Petroleum" offered to pay
a two-million euro lease i.e. 20.000 euro per day for taking under
lease the thermal power plant in the course of three summer months,
when electricity consumption reaches its peak due to the tourist
season. Last year, "Hellenic Petroleum" paid 19 thousand euro for
daily lease of this thermal power plant, through the Greek Power
Company. Experts think "Negotino" thermal power plant lease would be
a profitable option for "Hellenic Petroleum" as the generation price
of electricity at this plant is 65 euro per 1MW, with this figure
being some 110 euro in Greece.
==================================================
THE OHRID - TORONTO AIR TRANSPORT LINE TO START AT THE BEGINNING OF
2008
The Ohrid - Toronto direct air transport line will be initiated at
the beginning of 2008; this is the outcome of an agreement reached
between Mr. Gligor Tashkovic, Minister of Foreign Investment, and
representatives of the "SkyService Airlines" company during Minister
Tashkovich's visit to Canada.
__________________________________________________
**************************************************
_______________________GREECE_____________________
**************************************************
CONSTANT GROWTH FOR GEK TERNA
Net profits were up 27.6% for GEK TERNA group during Q1. Sales were
up 68.3% and net profits were 10.4 million euro comparing to 8.1 last
year.
The group is active on construction works, while real estate is going
fairly well. Company's management states that, beside the on going
activities, the group possesses an interesting property portfolio of
construction land the development of which will contribute
significantly in profits both in Greece and in the Balkans.
The Company is partnering to the Ionian road construction which start
this year as well as to the Central Greece highway the contract to be
signed shortly.
In the energy sector GEK TERNA group is going on with the ambitious
investments for constructing a 435 MW power station using natural
gas, while other power production units are already functioning.
Terna is active in developing independent power sources while
projects to be concluded in the first semester amount to 1.6 billion
euro in Greece and abroad.
==================================================
ARE WE GOING TO SEE LESS STRICT RULES FOR DEALS?
The Greek Stock Market authorities are criticized for lessen the
requirements necessary for a company to proceed in a capital increase
in order to buy out another company either listed or not.
Investors in Greece were comfortable with the rules applied by the
Stock Market authorities to govern the capital increase for buy outs
after the 2000-2003 catastrophic period.
During the said period far too many money were lost through
investments in companies increasing enormously their capital and
presenting minimal or no results at all.
After the implementation of the rules, companies are asking money
from investors to proceed in a buy out were obliged to present
extremely analytical evaluations of the target company, release of a
very strict time frame for the investment and experts statements that
the buy out price was fair.
Lately there are objections that the rules are stretched and
reasoning the MARFIN'S popular Bank capital increase there are fears
that other will follow without so strict criteria.
In general, the journalistic criticism focuses on the fact that these
capital increases, for buy outs, take place in a short course and
there is not a general plan on how they will use the funds.
In any case, as the stock market rise is secured now, the funds are
moving easy and this may implement dangers for the investors.
==================================================
FOLIE FOLIE PROFITS GOING UPWARDS
According to Dow Jones Newswires international press agency, the
Folie Folie company profits are increasing.
Based on a company's release to the press the international press
agency reports that the faux jewelry company's unified turn over is
up 96.8% amounting 121.6 million euro comparing to 61.8 million euro
last year.
Net profits were up 5.5% to 17.4 million euro comparing to 16.5 of
last years first quarter, while EBITDA profits (before tax and
devaluation) were 33.8 million euro comparing to 21 million euro last
year presenting an increase of 53.6%.
However, Dow Jones Newswires stress the fact that the results are not
fully comparable. Folie Folie unified step by step last year's
figures of the Duty Free Shops Company (KAE) which was acquired by
52% last year. KAE presented a 26.5% higher turn over during first
quarter this year but less net profits by 7.9% at 5.1 million euro.
Of course this course does not change the overall good standing of
the Greek company who is expanding fast and successfully all over the
Globe.
==================================================
STRONG GROWTH FOR GREECE
Over 4% GNP growth for Greece foreseen by the National Statistics
Agency's analysts based on first quarter's temporary data released.
The revision of the forecast for better results (government's
economic stuff was forecasting a max growth rate of 3.9%) is based on
the temporary data released referring to the first quarter's growth
rate depicting a GNP growth of 4.6%!!
Investments showing a 15.8% increase, contributed significantly to
the final figure, while the end consumption contributed with only
2.8%. The increase on Investments occurred basically as of the
Construction activity and the significant income of European Funds
for payments to the third European Community support context.
Finally, Exports continue to grow showing an increase of +9.8% while
Imports increased by 15.1%
==================================================
MERGER RUMOURS CONTINUE IN THE CONSTRUCTION SECTOR.
Rumors of upcoming deals in the construction sector are continuing in
the Greek market. First was the scenario for an agreement between
"ELTEH" and "PANTEHNIKI" companies, later rumours of "TERNA" and
"ATTICAT" companies and recently the time was mature for "ATHINA
S.A." to be targeted by rumors which state that the company is
discussing a series of merging solutions, either by share exchange or
by share capital increase using funds coming from abroad.
Especially on the second scenario, apart from the 30 million Euro
share capital increase, that the major shareholders are more likely
to decide. Rumors say the want them to have discussions with Arab
investors to obtain investment funds originating from Dubai, since
the company is intensely active in that region. Other information
also suggests an upcoming agreement with the Greek AVAX Group by
share exchange or by another way that the two sides will agree. It is
normal for ATHINA Company, due to their specialization in harbor
construction, to attract the interest of large construction groups
who are interested in joining co-financed projects, and also in the
past there were rumors for an agreement with ELTEH because of
ATHINA's cooperation with AKTOR in many projects.
ATHINA aspires that it will succeed in undertaking the road
construction works which will be on tenders this year, and therefore
will reach a sum of over 600 million Euro construction contracts to
be executed. ATHINA currently denies the rumors about upcoming
changes in the company's share capital composition with a press
release they made confirming that, when and if there are any news
about a strategic partner or any other kind of news, it will
immediately released to the investment public.
==================================================
FIRST RISE IN INTEREST RATES.
The Greek "Eurobank" made a significant move towards savings,
interest rates and bank competition. According to an announcement,
made by the Eurobank Group, savings rate has increased to 3% and as a
result, yields are almost tripled compared to the yields other banks
offer.
As a reminder, Eurobank was the one who suddenly abolished all forms
of commissions applied to their customers' transactions a while ago,
an action that a few other banks followed.
The bank's credit to savings ratio is 130%, whereas other banks',
like the National Bank of Greece and Post Office Bank ratio is around
70%. The bank's refunding mechanisms operate properly which in link
to the capitalization of the credits, feed the bank with cheap money.
Minimal yield in savings accounts, lead to a decrease in savings
accounts capital in favor of long term deposits, the later offering
yields up to 4%.
__________________________________________________
**************************************************
_____________________MONTENEGRO___________________
**************************************************
"PORTO MONTENEGRO": MEGA-YACHT MARINE AS OF MAY, 2009
The "Arsenal" in Tivat, having been acquired by Canadian businessman
Peter Munk, is expected to become, by May 2009, the most competitive
marine for mega-yachts to the length of 50, and even 100 meters, and
to be called "Porto Montenegro", Canadian businessman's
representatives announced. This marine construction is expected to
increase Montenegrin Gross Domestic Product by 80 million euro, and
to directly and indirectly employ 6.000 people.
==================================================
"PRVA BANKA" NEGOTIATING A 137 MILLION EURO CREDIT FOR HOUSING
CONSTRUCTION
Montenegrin "Prva banka" has been negotiating with "J&P Morgan Bank"
a credit line to the total amount of 137 million euro, for the
construction of 10.000 trade union member apartments. Credits on the
basis of this line will be granted for a repayment period of 20
years; monthly installments should have to be lower than monthly
apartment rents, representatives of "Prva banka" say.
==================================================
NEGOTIATIONS BETWEEN "MONTENEGROBONUS" AND "PETROL"
Negotiations between the "Montenegrobonus" Montenegrin State-owned
oil company and Slovenian "Petrol", first-ranked on the tender for
joint venture establishing, will begin this week. According to
announcements from "Montenegrobonus", the agreement will be specified
during the founding of a joint venture to be dealing with oil
derivative sale and storage, and petrol station and gas pipeline
construction, to which Slovenian "Petrol" is willing to invest 154.5
million euro. Slovenian "Petrol" won the tender in front of Hungarian
"MOL" and Croatian "INA". In line with tender procedure rules, the
selected partner will be obliged to develop oil derivative storage
facilities at the Bar Port, with the capacity of 20 thousand cubic
meters.
==================================================
OVER 55.000 USED CARS IMPORTED TO MONTENEGRO IN A YEAR
According to the Custom Administration data, Montenegro imported as
much as 55 thousand used cars from Europe in a period of one year.
Official data says over 12 thousand used cars from other countries
were imported only in the first five months of the current year. The
expansion of used car import to Montenegro has been lasting for
almost two decades now, and it now poses increasing environmental
problems. Regulations in Montenegro do not specify the lowest
threshold in terms of age with cars being imported.
__________________________________________________
**************************************************
______________________ROMANIA_____________________
**************************************************
NEW OFFICE BUILDING IN BUCHAREST
Victoria Properties, a full-service property management company,
spent almost € 7 million to build an office building in northern
Bucharest which will be put up for rent starting July, the project
manager, real estate company Regatta said. The building, called
Biharia Offices, has 7,804 square meters total area and 5,513 square
meters of utility space, basement, ground floor and six floors and
offers 70 parking places. Regatta has been operating in the Romanian
market for 13 years and collaborates with Real Estate Advisory Group
Romania, owned by REAG Italy, a division of the American Appraisal
Group.
==================================================
MORE GOLD IN NATIONAL BANK RESERVE
Gold and foreign currency reserves of the National Bank of Romania
(BNR) rose by € 500 million at the end of May from the previous month
mainly on massive reserve management revenues as well as the
mandatory amounts of commercial banks, BNR said in a release. Gold
and foreign reserves stood at € 23.58 billion at the end of May, up
from € 23.08 billion at the end of April. Foreign exchange reserves
totaled € 21.938 billion at the end of May, up 2.4 percent from the
end of the month before. The gold stock leveled off at 104.7 tons in
April, its value declining to € 1.643 billion following fluctuations
on the international markets. Payments were € 396.7 million while
revenues stood at € 922.2 million. Romania has to service € 664
million of its foreign debt by the end of the year.
==================================================
BUCHAREST IS THE CENTER OF THE BUSINESS
Bucharest is Romania's main attraction when it comes to business
tourism as 80 percent of the events that take place in the country
are held in the capital, according to the head of the Bucharest
Chamber of Commerce and Industry (CCIB). Stefan Popa said Bucharest
has also attracted about 60 percent of total foreign capital injected
in the country. The official explained that promotional services
through fairs and exhibitions and Romexpo, which held 44 such events,
had a major contribution to this result. The establishment of an
information center for tourists visiting Bucharest was proposed by
the vice president of the National Association of Tourism Agencies,
George Sorin Nicolescu, followed by city tours.
==================================================
ROMCAR UP 61%
Romcar, the importer of Ford in Romania, registered a 61 percent
increase in sales in the first five months of the year against the
same period last year, according to a press release. The company sold
1,952 units in May this year. Romcar sold nearly 4,100 Ford
automobiles in the first quarter of 2007. The Ford Fiesta, with 2,514
units sold in the first five months of the year, continues to be the
best-selling model during the period. Ford Fusion sales rose 187
percent against the first five months of 2006, topping 247 units sold
in May this year. Some 30 percent of the total 7,270 units sold in
the first five months were sales to car fleets.
==================================================
BIG RISE IN PRIVATE PENSION FUNDS SYSTEM
Interamerican Romania said the assets for obligatory
privately-managed pension funds (Pillar II) will gradually increase
to € 8.889 billion in the next nine years, as the number of clients
and their contributions will also increase. The company estimates the
number of clients will increase from the current 2.8 million to 4.5
million in 2016, private pensions manager Besim Jawad said.
Interamerican expects 3.3 million clients next year, when
contributions are estimated at € 225 million and assets at € 227
million. Romania has introduced starting May 1 a new pensions system,
made up of three categories. Pillar I consists of traditional
state-collected social security contributions, which will now be
supplemented by obligatory privately-managed pension payments, Pillar
II, and the optional private pension funds, known as Pillar III.
==================================================
MORE REVENUES FROM HIGH EXPORTS
Automobile Dacia, the biggest carmaker in Romania, estimates 10 to 15
percent lager revenues for this year on higher exports and sales of
the high-priced Logan MCV model, company officials announced. The
company's revenues stood at € 1.55 billion last year. This year
exports will exceed sales for the first time in Romania, according to
the general manager of Dacia Automobile, Francois Fourmont. The
company will produce up to 225,000 cars in its factory in Mioveni
(central Romania) and Fourmont expects a maximum of 110,000 cars will
be sold in Romania. Dacia reported revenues totaling € 1.5 billion in
2006, up 29 percent against the € 1.2 billion reported a year before.
==================================================
ALRO SLATINA WANTS TO BE ENERGY INDEPENDENT
Romanian aluminum producer Alro Slatina plans to take part in selling
an energy complex and to buy or build a new power plant in Romania in
order to assure its energy needs, the company said. The company will
conduct a two-month feasibility study for building a power plant that
would have expected capacity of 1000 MW and take two years to
complete, according to Alro general manager Gheorghe Dobra. Alro is
also considering a greenfield project to produce energy in a
neighboring country, using financially "attractive" fuel. Alro has a
share capital of RON 356.89 million (€ 109.4 million euro) and a
market capitalization of RON 5.49 billion ((€ 1.68 billion euro)
based on its RON 7.70 a share value on April 23. The company is
listed on the first tier of BSE as ALR.
==================================================
COMPETITION FROM CHINA ON CAR MARKET
Geely Automobile Romania has begun selling cars produced by China's
largest privately owned carmaker Geely Group Ltd through its 21
dealership network, according to company officials. Geely Automobile
Romania targets sales of 1,000 units this year and 2,500 units for
2008. The company sells the CK and MK models in Romania, with prices
starting from 7,300 euro and 9,300, euro respectively. Geely
Romania is the third company that has started to sell Chinese cars on
the Romanian market. The company is targeting customers with low to
medium incomes, according to the director of Geely Automobile
Romania, Alin Margineanu.
==================================================
INTEREST RATE LOWERED
The reference interest rate for June has been lowered to 7.25 percent
per year, the National Bank of Romania (BNR) announced on its web
site. The reference rate has dropped from 7.50 percent a year in May.
BNR's decision is in line with its statute and takes into account the
country's recent macroeconomic and monetary evolutions. The reference
rate is calculated as an arithmetic mean weighted to the volume of
transactions, of the interest rates on BNR's deposit-taking and
reverse-repo operations in the month prior to that of the
announcement.
==================================================
EIB LAUNCHED ON BUCHAREST STOCK EXCHANGE
The Board of the Bucharest Stock Exchange (BSE) has decided to list a
bond issue launched by the European Investment Bank (EIB). EIB
initially launched a RON 150 million (€ 46 million) bond issue which
was later raised to RON 300 million. The bonds are rated as AAA and
bear a 7 percent annual interest. Banks subscribed 64 percent of the
total issue, insurance companies took up 29 percent, corporations 5
percent and investment funds and investment management companies
accounted for 1.5 percent. EIB has the highest rating granted by
Moody's, Standard & Poor's and Fitch. The paper has a seven year
maturity.
==================================================
RWE PLANS TO BUY
German-based RWE group plans to purchase at least two electricity
distribution companies and a minimum two power complexes on the
Romanian market, the company said. Senior acquisition manager for
Eastern Europe, Klaus Buhl, said RWE may purchase the three
state-owned distribution companies under the name of Electrica, if
the price is reasonable. The price however for Electrica Muntenia Sud
was not reasonable, he noted.
RWE is interested in taking part in the construction of the third and
fourth nuclear reactors in Cernavoda as well as in the construction
of the hydro-electric power station Tarnita-Lapustesti. RWE's main
goal is to take over a power producer, not a Greenfield type of
investment. The group has a strong foothold in central and Eastern
Europe, operating in the Czech Republic, Hungary, Slovakia, Poland
and Croatia. RWE's operational profit in the first quarter of 2007
stood at € 3.2 billion, a 29 percent hike against the same period
last year.
==================================================
BIG INVESTMENTS FROM AUSTRIA
Austrian based Immoeast clinched a deal to develop logistics centers
in Romania and up to ten such centers will be developed together with
European Future Group (EFG) under a € 300,000 million investment
plan, an Immoeast release reads. The total surface offered for rent
should stand at 400,000 to 500,000 square meters. The first logistics
center is located in the Pantelimon area (close to Bucharest), where
Immoeast and EFG acquired a 105,000 square meter plot. The project is
called "Pantelimon Warehouse" and will have a total surface offered
for rent standing at 50,000 square meters. "The new logistics center
network completes our portfolio which before had only focused on
office buildings and malls," said the general manager of Immoeast,
Karl Petrikovics. Immoeast owns 103 properties in Romania with a
total surface of 3.4 million square meters, forming 20 percent of the
company's portfolio at a combined value of € 7.2 billion.
__________________________________________________
**************************************************
_______________________SERBIA_____________________
**************************************************
"BANCA INTESSA": THE BEST BANK IN SERBIA
The London financial magazine of "Finance Central Europe" proclaimed
that the "Banca Intessa" is the best bank in Serbia and the best
medium-sized bank in Southeastern Europe this year. "Banca Intessa"
announces it increased its total release in the last year by 43
percent, to almost 770 billion euro. The Bank's foreign currency
potential was increased for 43 percent as well.
==================================================
AVERAGE PER CAPITA DEBT IN SERBIA: 380 EURO
In the first five months of the current year, average debt level per
capita in Serbia has increased by some 19 percent and now amounts to
380 euro. Total debt level has also increased by companies,
entrepreneurs and citizens, to a bit more than 720 billion dinars; 66
percent of the debt is the share of company debts, and the share of
citizen debts is 32.6 percent. The Serbian Bank Association's
representatives say citizens are mostly taking cash and housing
credits. In comparison to its neighboring countries, Serbia does not
record very high levels of citizen debt. For instance, Croatian
citizen average debt amounts to some 3 thousand euro, with average
salary being approximately 600 euro.
==================================================
THE STABILIZATION AND ASSOCIATION AGREEMENT WITH THE EU BY YEAR-END?
Serbia might sign the Stabilization and Association Agreement with
the European Union by the end of this year, Serbian Government Vice
President Mr. Bozidar Djelic believes. Mr. Djelic says Serbia's
candidacy for EU membership will be delivered in Brussels by
mid-June, and that our country might gain the EU membership candidate
country status as early as in the course of next year. On a
roundtable event called "The Future of Capital Markets in the
Balkans", Mr. Djelic also said the strategy for large public
enterprise privatization would be adopted prior to the beginning of
the summer break in Serbian Parliament's sessions
==================================================
"ENERGOPROJEKT" AND GREEK "BLUEHOUSE" CONSTRUCTING A BUSINESS
BUILDING IN BELGRADE TO THE VALUE OF 60 MILLION EURO
The "Energoprojekt Holding" company and the Greek real estate company
of "Bluehouse" have signed a contract on the construction and sale of
a commercial and business center whose value exceeds 60 million euro.
The "Alpha Bank" from Greece will take part in the financial
supporting of this project. The structure will have a surface area of
50 000 square meters and will be developed within Block 26 - Item 1
in Novi Beograd; the construction period will be 2 years. Having
signed this contract, "Energoprojekt Holding" now maintains a value
of its concluded deals exceeding approximately half a billion euro.
==================================================
"GAZPROM" CEO TO VISIT BELGRADE IN JUNE?
According to unofficial information, the President of the "Gazprom"
Russian energy concern, Mr. Aleksej Muller, was expected to arrive to
Belgrade in June, to discuss economic cooperation with top Serbian
officials, mostly the gas storage facility at Banatski Dvor, as well
as the possibility of setting up a gas heating plant in Serbia.
Serbia also attaches exceptional importance to the implementation of
the already signed Memorandum on gas pipeline development to be
passing through its territory. This international project, called the
"Blue Brook", starting at Turkey and passing through Bulgaria and
Serbia, ending in Austria - may enable to Serbia, in addition to
considerably increased energy security, a huge inflow of new
investment outlays. The fact that the gas pipeline section to be
passing through Serbia is over 1.2 billion dollars worth clearly
points out to the fact that the significance of such structure
development goes much beyond the merely energy aspects of the whole
deal.
==================================================
EIGHT BIDS FOR THE CONSTRUCTION OF A NEW BRIDGE OVER ADA CIGANLIJA IN
BELGRADE
Eight international companies (from Russia, France, Austria, Germany,
Croatia and Italy) have submitted their bids to the pre-qualification
tender for the construction of a bridge over the Sava river, at the
tip of Ada Ciganlija, the Directorate for Construction Land and
Building of Belgrade announced. The construction of the bridge and of
access roads will in total cost 161 million euro. In addition to a
credit from the European Bank for Reconstruction and Development
(EBRD) to the amount of 69.6 million euro, the Belgrade City Budget
will allocate 87.9 million euro, and the European Agency for
Reconstruction will provide three million euro. The acute cable
bridge is planned to be 929 meters long, with six lanes, double
express railway lines, and two pedestrian paths. The bridge will link
Cukarica and Novi Beograd, and is planned to be completed in 2009.
==================================================
INTER-BANKING FOREIGN CURRENCY MARKET TO MEET ONLY WHEN NEEDED AS OF
JUNE 4
The National Bank of Serbia announced that, as of June 4, it will
organize meetings of the Inter-Banking Foreign Currency Market only
when needed; on these meetings so far, the dinar exchange rate has
been determined and the National Bank of Serbia has sold and bought
foreign currency quantities. From now on, the National Bank of Serbia
will organize meetings of the Inter-Banking Foreign Currency Market
only in exceptional cases, in order to prevent too large daily
oscillations in the foreign currency exchange rate and in cases when
market liquidity is disturbed.
==================================================
CEFTA ACCORD TO BE RATIFIED AT SERBIAN PARLIAMENT BY SEPTEMBER-END
State Secretary in the Ministry of Economy and Regional Development,
Ms. Jasna Matic, announced Serbia will, by the end of this September,
ratify the Central and Eastern Europe Free Trade Agreement Accord.
State Secretary Matic stressed that all barriers had been removed in
Serbia's trade relations with Croatia, Bosnia and Herzegovina, and
FYROM, which enables the ratification of this trade accord in the
Serbian Parliament. She added CEFTA signatory countries had agreed to
the Serbian Government's Tobacco Industry Action Plan, foreseeing
equalization of excise taxes for domestic and foreign cigarettes as
of January 1, 2008, and custom duty increase from 15 to 57.6 percent.
==================================================
SERBIA'S GDP GROWTH IN THE FIRST QUARTER: 8.8 PERCENT
Gross Domestic Product annual growth in the first three months of
this year amounted to 8.8 percent, which is by some 4 percent higher
than the figure recorded in the last quarter of 2006, experts at the
High Economic Study Center (CEVES) estimate. Experts at this Center
believe economic growth acceleration has mostly been affected by
considerable increase in domestic demand caused in turn by high
realistic increase in incomes and credits, as well as by the warm
winter which caused the absence of seasonal work in construction and
in other related fields. Center experts conclude economic growth rate
decrease may be expected by the end of the year, yet it will remain
on the level beyond mid-term average.
==================================================
AUCTION SALE OF THE "ZASTAVA - REZERVNI DELOVI" COMPANY: FOR THE
SECOND TIME
Serbia's Privatization Agency announced it will, for the second time,
offer in an auction-sale the "Zastava - rezervni delovi" company in
Kragujevac, at the same initial price of approximately 142 million
dinars (approx. 1,738,835 million Euros)The auction will take place
on June 28, and prior deposit payment to the amount of 14.2 million
dinars is a participation requirement.
Applications for participation in the auction may be submitted by
June 21; the subject of the sale is the share of the "Zastava vozila'
Group in Kragujevac, representing 100 percent of capital to the
company of "Zastava rezervni delovi" in Kragujevac
==================================================
SERBIA'S FOREIGN DEBT IS INCREASED BY THE PRIVATE SECTOR
The greatest danger to Serbia's excessive debt has been posed by the
private sector whose March foreign debt amounted to 11.5 billion
dollars, which share in the total foreign debt has been 58 percent,
experts at the Market Survey Institute say. According to their
estimates, the greatest danger is posed by business banks entering
debts in foreign countries in order to meet increased credit demand
on the part of citizens. Serbia's private sector's debt has been in
continuous growth since 2000, when it amounted to only 2 billion
dollars and had a share of 18.8 percent in Serbia's total foreign
debt. At the same time, public sector's foreign debt has been
decreasing; in this March, it amounted to 8.2 billion dollars: this
is less than in 2000, when this figure amounted to 8.7 billion
dollars.
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NBS GOVERNOR JELASIC: "SERBIA'S INFLATION BY YEAR-END TO BE
APPROXIMATELY 6 PERCENT"
Total inflation at the end of this year will amount to some 6
percent, with base inflation approximately 3 percent, National Bank
of Serbia's Governor, Mr. Radovan Jelasic, said. Governor Jelasic
adds inflation trends by year-end will depend on fiscal policy,
correction of state-controlled prices, as well as on oil prices on
the international market. The National Bank of Serbia has foreseen
base inflation increase in the course of the current year to vary
between 4 and 8 percent; base inflation in the first quarter amounted
to 1.2 percent, mostly due to regulated price increase, with
inter-annual retail price increase having amounted to 5.6 percent.
The May base annual level of inflation amounted to three percent with
total inflation amounting to 4.4 percent on an annual level.
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______________________SLOVENIA____________________
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E-CONFERENCE ON BLED
The twentieth international e-Conference on e-association of
companies, the government and university started on Monday June 4th,
on Bled. On the three-day conference, organized by Center for
electronic operations of the Univeristy of Kranj in cooperation with
European Parliament, two hundred researchers and businessmen
participated from thirty-five countries, joined by ambassadors of
Germany, Croatia, Finland, Italy, Spain, Turkey, Portugal, Hungary
and Chargé d'affaires of the Embassy of Serbia in Slovenia. On this
conference, the above mentioned experts will seeks solutions towards
lowering expenses and encouraging operations of companies and
governmental organizations by using e-technologies in such a way that
operations become more customer-friendly. This year, the
e-Conference discussions will be aimed especially towards development
of e-region, and firstly on introducing e-accounts and e-supplying in
borderless e-region.
Right before the beginning of e-Conference, University forum held a
meeting where rectors of universities from USA, Australia, Ireland,
Croatia, Germany, Poland and Finland discussed about future
development of university and mutual cooperation. On that occasion,
University of Novi Sad and University of Toronto were admitted to
university association ALADDIN that cooperates in the fields of
electronic operations and development of educational and research
programs.
==================================================
SLOVENIANS AND AUSTRIANS INVESTING IN RAILROAD NETWORKS
Until 2020, Austria will invest twenty billion EUR in railroad
network, while Slovenia will invest half as much until 2023.
On Monday, Werner Fayman - Austrian Minister for Transportation,
Innovation and Technology talked with Slovenian Minister for
Transportation Janez Božič. The main topics of their discussion were
investments and modernization of the railroad network and
accordingly, redirecting of cargo transportation to the rail ways.
According to Slovenian Minister, the traffic in the whole Fifth
corridor is increased, especially since Bulgaria and Romania accessed
the EU. Božič added that facilities that Austria is planning to
invest in modernization of railroad infrastructure prove
sustainability of the transportation policy that envisions
redirecting of cargo transportation to railroads.
The Austrian Minister, Fyman, on this occasion stated that main
concern of Austria is exactly the displacement of cargo
transportation towards the railroad, especially because of increase
of expenses of roads' traffic. Fyman added that the change is
necessary when it comes to European directives on tolls and travel
expenses.
According to what Fyman said, the building of two tracks connection
between Šentilj i Maribora is of high importance while the Slovenian
Minister assessed the importance of building two tracks from
Ljubljana, through Jasenice to Klagenfurt. Fyman also stressed the
importance of the port of Koper, which is together with Rotterdam the
most important for Austria, and for that reason the building of
northern railroad network is particularly important.
==================================================
DEPOSED FERKO 'BOUGHT' BY MIšKOVIĆ
The deposed president of Slovenian Droga Kolinska was 'bought' by
Miroslav Mišković to work for the company Delta.
The Slovenian magazine Finance, on Tuesday confirmed the news that
they speculated with earlier, that the ousted president of the
management of Droga Kolinska, Robert Ferko will transfer to Serbian
company Delta. Recently, in place of Ferko the position of the
president of management of Droga Kolinska took Slobodan Vučićević,
General Director and former owner of Serbian company Grand Prom.
According to the information confirmed by Delta, Ferko will become
the Vice President for food production in the company Delta.
The majority owner of Droga Kolinska, which is the owner of Grand
Prom, Soko Štark and Palanački kiseljak, is Slovenian company
Istrabenz.
==================================================
MERCATOR EARNED THE MOST
Mercator realized the revenue of five hundred thirty-seven million
EUR, while Pivovarna Laško noted loss.
In Q1 this year, according to Slovenian newspaper Dnevnik, the
biggest success among Slovenian companies quoted on stock-market
recorded Slovenian chain Mercator earning five hundred thirty-seven
million EUR, second ranked is an oil company Petrol with four hundred
twenty-six million EUR and third place took household appliances
manufacturer Gorenje with three hundred thirteen million EUR revenue.
Forth place on the list took chain Merkur with revenue of two hundred
fifty-nine million EUR.
The only Slovenian company that in the given period recorded more
loss is Pivovarna Laško, but that loss is three times smaller than in
Q1 06.
As the positive trend amongst Slovenian companies, analysts stated
pharmaceutical company Krka, which successfully managed to amortize
downfall of sales on the Russian market, that have happened last year
as an outcome of the reforms of the Public Heath insurance conducted
in Russia. With thirty-eight point one million EUR net profit in Q1
Krka is the best ranked company on Ljubljana stock-exchange.
==================================================
TRIGLAV BOUGHT VARDAR
Slovenian insurance company Triglav signed the contract on purchasing
Vardar, the biggest insurance company in FYROM.
Andrej Kocič, the President of the management of Triglav and
President of the Supervisory Board of Triglav, Damjan Mihevc, signed
the contract in Belgrade, on Monday, with Stojanom Klopčevskim,
General Director of Vardar, on purchasing Vardar, the biggest
insurance company in FYROM. It is yet not known how much will Triglav
pay for Vardar, but Tirglav released that with this purchase they
would be present on eight markets in the region. The letter of intent
on strategic connection between Triglav and Vardar was signed last
November.
Vardar has twenty seven percent share on market of FYROM, twenty five
million calculated insurance premiums and 1.49 million EUR profit.
==================================================
GLORY OF LAS VEGAS IN SLOVENIA
After long negotiations, representatives of Slovenian government,
Slovenian Hit
and American Harrah's Entertainment presented project to the new
tourist and entertainment center in Nova Gorica.
After the negotiations, that lasted a year and a half, the Secretary
General of the Slovenian Ministry of Finance - Andrej Šircelj,
President of the management of the Slovenian Hit - Niko Trošt, and
President of the management of the American company Harrah's
Entertainment - Chuck Atwood, on Tuesday presented the project of the
new tourist and entertainment center that will be build in Nova
Gorica. The project envisions building of the hotels of the highest
class with one thousand five hundred rooms, congress center and
ceremony center, wellness center and swimming pools, gambling-house,
entertainment, shopping and sports facilities - all of the highest
quality.
The value of the above mentioned project is estimated to be seven
hundred fifty million EUR, and it will be build by a newly founded
Slovenian-American company where Hit will have fifty-one percent
ownership and Harrah's E. forty-nine percent.
The president of the management of the company Hit, Niko Trošt, on
this occasion publicized that the aim is to build the center which
would be integrator of tourism in the region, and it would be aimed
to the world market. He also said that it is expected that operations
of this center would have positive effects on numerous sectors of
Slovenian and regional economy.
Planned center was supposed to be build already in 2008 but the
negotiations between Slovenian government and companies Hit and
Harrah's Entertainment lasted longer than it was planned, mostly for
the reason that for the implementation of this project Slovenian
legislation related to the games of chance and taxes on them needed
to be changed and supplemented. The current Slovenian law envisions
thirty eight percent taxes on games of chance while the Americans
were ready to pay only ten percent taxes.
On its regular assembly, last Thursday, Slovenian government was
dealing with the above mentioned project that was also included in
the Resolution of national development projects until 2023.
On building of the center remonstrated the Roman-Catholic Church,
ecological organizations, and disagreement with this project
expressed also Slovenian President Janez Drnovšek.
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_______________________TURKEY_____________________
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MAJOR INVESTMENTS ON THE PRESS IN TURKEY AND WORLDWIDE
The World Association of Newspapers, WAN, convened in South Africa;
with approximately 1200 journalists from around the world in
attendance. The WAN announced for the very first time, the results of
its very important year 2006 studies which were implemented in 232
countries.
According to 2006 data, the total advertisement share for newspapers
increased 15.8 percent in the last five years, and 4 percent in the
recent year. In 2010, this figure is expected to increase 17 percent,
and this is expected to continue for many years. In 2010, newspapers
will earn 140.1 billion dollars from advertising. The total amount
spent throughout the world in the last 17 months to develop
publishing has reached 6 billion dollars.
There is an increase in only 10 percent of newspaper sales in EU
countries. Estonia, Slovakia, Portugal, and Turkey are amongst these.
With an increase of 55.57 percent in the last five years, Turkey is
at the top of the list of countries experiencing the highest
newspaper sale rate. The growth rate in Turkey's advertising market
in 2006 reached 26 percent. Turkey is amongst the countries in which
the most advertising expenditure is made.
On the other hand, Turkey is establishing a mutual television channel
with Balkan countries which Greece is also amongst. The name of the
channel is going to be Balkan TV. The TV channel is expected to
commence broadcast towards the end of 2007. On the channel, which
will be providing service under the name Balkan TV, each country is
going to broadcast the films, music, documentaries and other programs
of their choice within the broadcast time allocated to them in their
own language. It was found that the final preparations for the
commencement of Balkan TV's broadcasting are complete.
==================================================
THE 55TH BILDERBERG CONFERENCE TOOK PLACE IN ISTANBUL
The Bilderberg Conferences brought the world's most powerful and
wealthiest people together in Istanbul between May 31st and June 2nd.
This year's Bilderberg attendance record was broken by Turkey with 13
people. The participants from Turkey are as follows: State Minister
and Chief Negotiator Ali Babacan, former Foreign Affairs Minister
Hikmet Çetin, Kemal Derviţ the President of the UN Development
Program, TUSIAD President Arzuhan Dođan Yalçýndađ, TUSIAD's former
President Erkut Yücaođlu, Koc Holding's Board President Mustafa Koç,
Bogazici University's Chancellor Prof. Dr. Ayţe Soysal and Coca-Cola
Company's Chief Executive Officer Muhtar Kent, and also Ümit Boyner,
Cem Duna, Emre Gönensay, Cengiz Çandar and Mehmet Ali Birand. Major
participants from various countries are as follows: Queen Beatrix of
the Netherlands, Queen Sofia of Spain, Crown Prince Philippe of
Belgium, Greece's Economy and Finance Minister George Alagoskufis,
Portugal's former Prime Minister Francisco Pinto Balsemao, France's
former Foreign Affairs Minister Michel Barnier, Sweden's Foreign
Affairs Minister Carl Bildt, Sweden's Finance Minister Anders Borg,
the Netherlands' Foreign Trade Minister Frank Heemskerk, Finland's
Finance Minister Jyrki Katainen, former US Foreign Affairs Minister
Henry Kissinger, France's Agriculture Minister Christine Lagarde,
Ireland's Justice Minister Michael McDowell, IMF President Rodrigo De
Rato, EU's Enlargement Commissioner Olli Rehn.
Despite the non-disclosure of the contents discussed during the
conference to the press, it is said that the matters discussed are
the energy issue, global warming, the recent state in the Middle
East, and Turkey's EU membership, and the NATO, Iran and Iraq issues.
==================================================
REAL ESTATE GIANT COLDWELL NOW IN TURKEY
Real Estate Company Coldwell Banker, with an annual turnover of 350
billion dollars in the US and Canada, is now carrying its experience
of over 100 years to Turkey. Coldwell Banker operating under Realogy,
which is amongst the world's leading groups provides service with
approximately 4 thousand widespread franchise offices and over 130
thousand real estate consultants in 35 countries.
Coldwell Banker's World President Jim Gillespie, associated the
reason for their coming to Turkey with the stability in economy in
the recent periods.
Gillespie said, "We came to Turkey, because Turkey gives the
impression of an economically settled and stable country. In this
state, it promises hope and future. Being an EU candidate country is
an indication of the confidence in Turkey. As long as this vision
remains mutual, many more foreign companies will come to Turkey.
Furthermore, the mortgage act being on the agenda has had a positive
impact on our procedure for coming to Turkey."
==================================================
TURKEY-GREECE NATURAL GAS PIPELINE TO OPEN ON JULY 14TH CEREMONY
The natural gas pipeline laid between Turkey and Greece is almost
complete. It is going to be inaugurated on July 14th with the
attendance of Prime Minister Recep Tayip Erdođan, and Greece's Prime
Minister Kostas Karamanlis. The construction of the natural gas
pipeline was initiated on July 3rd, 2005 with the attendance of the
prime ministers of both countries.
Turkey's Energy Minister Hilmi Güler and Greece's Energy Minister
Dimitris Sioufas had a bilateral discussion at the National Energy
Council Ministers' Conference in Paris on June 1st, 2007.
Preparations regarding the opening of the pipeline were also reviewed
at the conference. The final state regarding the amount and price of
the natural gas to be supplied to Greece was evaluated.
The objective of the Turkey-Greece natural gas pipeline project is to
carry the natural gas, which is to be procured from the Caspian
region, the Middle East and Russia, and other sources neighboring our
country to Europe over Turkey and Greece. The length of the pipeline,
starting from Karacabey within the borders of Turkey, reaches 300 km.
211 km of this in Turkish land. After passing under the Marmara Sea,
a 17 km section of the line enters Greece from the Ipsala border
point, and reaches Gumulcine/Komotini.
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THE ISTANBUL INTERNATIONAL AUTOMOTIVE CONGRESS "AUTOMOTIVIST" TO BE
HELD IN ISTANBUL
The Istanbul international automotive congress "automotivIST" is
going to be held in Istanbul on November 27th, 2007. This congress is
called 'the Davos of the Automotive Sector'.
AutomotivIST which is going to bring the authorities, the movers and
shakers, and directors of the Turkish and world automotive sector,
together in which platform is within the context of the "Made in
World" concept formed from the 'Turkey: builds in the world, sells to
the world' idea. Speakers attending the congress from abroad are
going to communicate their knowledge of the sector through
presentations on many subjects like the Turkish automotive sector,
security tests, pres, consumer satisfaction, advertising and
marketing, motor sports, etc relating to the automotive sector.
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