By Nicholas Watson of bne
The Albanian government has cancelled the winning bid from a consortium headed by a local businessman in the tender for state oil firm Albpetrol after it failed to come up with a down payment.
The decision ends what was rapidly becoming a national embarrassment for Albania, at a time when it is trying to convince the EU it is raising transparency standards. But, serious questions remain about the conduct of the winner of the tender, local tycoon Rezart Taci’s Vetro Energy, and of the government. Continue reading »
Emerging markets usually warrant a risk premium because they tend to be pretty risky – as CEZ, the Czech utility, is finding out with its troubled Albanian investment.
CEZ is moving to claim a World Bank guarantee on its investment in CEZ Shperndarje, a power distribution company in which it holds a 76 per cent stake (with the Albanian government holding the rest) – and a complete writedown of its total €160m investment is looking increasingly likely. Continue reading »
By Phil Cain of bne
The Albanian government looks on course to complete the $850m sale of state oil company Albpetrol by its December 3 deadline.
Vetro Energy, a US-run consortium controlled by an Albanian businessman seen as an ally of the prime minister, has finalised the financing needed for the ground-breaking privatisation. Continue reading »
In 2009, with the global economy in recession, Albania was one of the few countries in Europe to register GDP growth. While some Eastern European countries saw double-digit negative growth, Albania clocked up an impressive plus- 3.3 per cent.
The country’s economic performance since then has been steady, if unspectacular, as an IMF staff team reported at the end of its visit to Albania. The going is getting tougher, however, with external and fiscal pressures building. Continue reading »
The ongoing crisis in Greece, and the possibility that the country will abandon the euro, is widely seen as presenting an existential threat to the eurozone. But it is also having an impact on Greece’s southeast European neighbours, which are not in the euro but are closely linked to Greece through Greek foreign investment and the financial sector.
But reports differ on the effect of the deepening Greek crisis on the region, and indeed on what would happen in the case of a “Grexit”. The shape and extent of the regional fallout is one of the many “known unknowns” of the unfolding drama. Continue reading »
The eurozone crisis might have left south-eastern Europe in an economic doldrums since 2009 but that has not stopped one company from seeking its fortunes in the region.
Tobacco AD, a fast-growing Macedonian convenience store chain, is betting that even in these times of financial austerity, people will continue to drink, smoke and pay their utility bills.
The Skopje-based company, with 55 stores open already in the former Yugoslav republic, is planning to raise €2m via an initial public offering to fund its expansion around the western Balkans. Continue reading »
With the eurozone in crisis, the small states of the Western Balkans are bracing themselves for another round of pain without gain. For the immediate future, their economic destiny of will be almost totally out of their own hands.
So warns the World Bank in a report released on Tuesday. Albania, Bosnia-Herzegovina, Kosovo, Macedonia, Montenegro and Serbia – dubbed “SEE6” in Bank terminology – can expect to be bruised by every financial tremor in the eurozone and European Union. Continue reading »
By Borut Grgic of the transCaspian project
Turkey and Azerbaijan have signed a historic agreement for the shipment of gas from the huge Shah Deniz 2 field in the Caspian Sea to Turkey, the Balkans and central Europe.
This deal is a win-win for everyone, and it is especially important for the Balkans, which are energy-deficient in every way imaginable. Balkan energy infrastructure is old and inefficient and the whole region is over-dependent on gas from Russia. But the new gas deal won’t solve these problems – unless governments also accelerate long-overdue reforms. Continue reading »
Albania’s local government elections on May 8 are shaping up as a grudge match between the governing Democrats and opposition Socialists – so much so that a European Union envoy has flown in to urge politicians to stay cool and behave responsibly.
Albania’s poor electoral track record is the main reason why the country is stuck on the bottom rung of the ladder that leads to EU accession. Continue reading »