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Trakiya Motorway concession would have a significant fiscal and macroeconomic effect in Bulgaria.
Privatization and deregulation in Bulgaria are often subject to obstacles imposed by the Judiciary. From the recent history we know that, although the formal justification of the judicial intervention is always check of procedures and their consistency with the law, in most of the situation expediency is the leading argument.The...
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Credit stood unchanged in May, despite increase in monetary base.
Credit to private sector remains at BGN 16,421 by end May, revealing stabilization of banking lending.The M3 aggregate grew by 2.1% to BGN 22,490 million; most of the expansion was due to increase in monetary base. The latter grew by BGN 238 m in May, or 3.5% up from April. The fiscal policy continued to be restrictive, by pilin...
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Privatization of the biggest power plants opens smoothly.
The initial offers for three of the biggest thermal power plants in Bulgaria revealed a huge interest by international players. From a macroeconomic standpoint it is generally unimportant who the owners will be. Moreover, from the privatization tradition in the country we know that it is too early to speculate on the name of the...
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Housing Market in Bulgaria/April 2005 is available to subscribers.
The April update of our regular report was released today. For more information and subscription, please click the product button on the right....
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Sales in industry surprisingly grew by a modest 0.5% in February compared to January.
In 2004, the growth rate for February was 9.7%.The size of the growth rate is not in line with traditional seasonality – after the decline in January each year, February marks a revival of business activity. In 2005 this did not happen, mainly due to the following:1. Garment and textiles production starts to feel the competitive...
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The government decided to grant the Varna & Bourgas airport concession to Copenhagen Airports.
The decision is expected to have impact on Bulgarian Black Sea tourism development.The changes will affect both the physical infrastructure and the business operations model of the two airports. Up to now, we know of the following plans of the selected concessionaire:1. Construction of a new terminal in Varna and reconstruction ...
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IMF Mission to Bulgaria and the revision of fiscal policy.
The agreement between the IMF mission and Bulgarian government will affect mainly public investment expenditures. The listed capital of ‘Public Investment Projects’ corporation will be reduced from BGN 340 million to 220 million. Additionally, the government committed itself to cut another BGN 117 million in expenditures. This r...
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Sales and growth in industry for 2004 and prospects for 2005.
The previous year of 2004 was by all means favorable to the Bulgarian industry. A series of factors had a beneficial impact, including: 1. A global rise in investment demand. 2. Expanding access to capital. 3. A growing domestic demand.We expect that short-term and one-time favorable factors that fostered the growth in industry ...
