At first glance the announcement in Turkey’s Official Gazette on Tuesday that Turkey’s State Supply Office has issued a tender to buy 250m instant win lottery tickets might look like a cunning plan to help cover Turkey’s burgeoning current account deficit.
A second glance might conclude that the unusual tender is related to the privatisation on behalf of Turkey’s national lottery, Milli Piyango. Continue reading »
By Pavel Morozov of State Solutions
Russia’s heavily trailed privatisation programme, the scale of which has not been seen since the controversial loans-for-shares privatisations of the 1990s, has so far not delivered on expectations. Assets worth $13bn were set to be sold in this year alone, but now it looks like the Federal Treasury will be receiving $1bn at most. And according to treasury figures, just 4 per cent of privatisations planned for the first half of 2013 were implemented, with only $500m in assets sold.
Officials have blamed recent global market conditions. But the reality is more complex. Continue reading »
Poland’s new treasury minister is casting doubt on the model of pressing cash-rich state controlled companies to get involved in areas distant from their own expertise – the best example being the participation of KGHM, the copper miner, in a consortium financing the hunt for shale gas.
In his first interview with the foreign press, Wlodzimierz Karpinski, who took the post six months ago, distanced himself from the idea. Continue reading »
It was the biggest initial public offering in Romania’s history, and the latest of several big IPOs in eastern Europe. But will Friday’s part-privatisation of natural-gas utility Romgaz reinvigorate Romania’s stalled liberalisation programme? Continue reading »
Just days before Serbia unveils its rebranded flag carrier in partnership with the UAE’s Etihad, Croatia has announced that it is seeking a strategic investor with ambitious plans for its own national airline. Where national carriers seemed to be dying off, killed by competition from budget carriers and western European rivals, there is now real hope of revival. Continue reading »
Sechin: he seems friendly
The cash-strapped government of Belarus is preparing to re-start its privatisation programme, stalled since last year. It plans to sell stakes in a few dozen state-owned companies and Mozyr refinery, one of two in the country, is the jewel in the crown.
It seems that Russia’s Rosneft, which already partly controls Mozyr with Gazpromneft, the oil arm of Russian state gas giant Gazprom, is among the biggest potential bidders.
Continue reading »
A long-running Czech corruption scandal has ground to a conclusion in Switzerland, with a Swiss court convicting five Czechs and one Belgian for their role in the privatisation of a Czech coal company in the late 1990s.
The Swiss had accused them of money laundering and fraud in a scheme to gain control of Mostecka Uhelna Spolecnost (MUS), now part of Czech Coal, that saw the state-controlled company bought by its managers, financed by the company’s own assets. Continue reading »
By Jean-Marc Peterschmitt of the EBRD
Slovenia is facing its most serious economic crisis since it joined the European Union in 2004 – a crisis that has shattered previous convictions and conventions about how the country ran its economy. This is welcome. Even more welcome is the determination of the current government to implement decisive measures that aim to put the country on a path of sustainable and stable growth. Continue reading »
To nobody’s great surprise, Russia on Thursday revealed that it was cutting in half its target for privatisation revenues for 2014-16.
The government blamed the financial markets. But the truth is that Russian assets are hard to sell at the best of times. The country needs the economic reforms that president Vladimir Putin has often spoken about, including at the recent St Petersburg Economic Forum, but has so far largely failed to deliver. Continue reading »
So, Mexico will indeed enact constitutional reform to open its oil industry to the private sector. That is what Enrique Peña Nieto, the country’s president, told FT journalists during a visit to the newspaper on Monday.
“There are different options on what the reform should be, but I am confident… It will be transcendental,” he said, adding that the reform would include “the constitutional changes needed to give private investors certainty”.
This may be news to many readers in Mexico.
Continue reading »
Question: What’s the link between a national airline, a global-brand ski factory and an organic flour producer?
Answer: none at all, except in Slovenia, where any half-aware citizen would immediately recognise them as state-owned companies being prepared for privatisation to raise the cash to bail out Slovenia’s heavily indebted banks and balance the national budget. Continue reading »
Kosovo’s government has hailed the sale of the territory’s most profitable enterprise as a breakthrough for investment. And as if to vindicate the optimists in Pristina, the sale of a 75 per cent stake in state telecom company PTK was followed days later by a landmark deal with Serbia that gives the Kosovan government control over the whole territory and opens the door to a deepening of relations with the EU.
But it remains to be seen whether the controversial sell-off will pave the way for lasting success. Continue reading »
Slowly but surely, Romania is limbering up for its next sell-off of state-owned companies. Under IMF duress, the country may be about to shed some of its weighty burden of strategically important but failing enterprises.
On Friday, Reuters reported that Romania was launching the sale of a majority stake in CFR Marfa, the country’s rail freight operator. The starting price was set at 797.1m leu ($234m). Continue reading »
By Jake Maxwell Watts and Nguyen Phuong Linh
Vietnam’s prime minister, Nguyen Tan Dung, is arguably a better Communist than he is a match-maker, judging by a recent spate of enforced bank mergers. The latest, between Western Bank and PetroVietnam Finance Corp, the finance arm of state-owned oil and gas giant PetroVietnam, was confirmed by the former and denied by the latter. Judging by an announcement on the central bank’s website, it looks likely to go ahead anyway. Continue reading »
By Luka Orešković of Provectus Capital
Last week, political change captured the global headlines. Pope Francis took over leadership of 1.2bn Catholics, matched by Xi Jinping, with his official ascendance to the presidency over 1.3bn in the People’s Republic of China. In between Beijing and the Vatican, and somewhat less noticed, the 2m people of Slovenia were also facing a change in government, with the center-right premier Janez Janša set to be replaced by Alenka Bratušek, the center-left head of Positive Slovenia.
With the European Commission forecasting an economic contraction of 2 per cent this year, and increasing talk of a bailout, the new government will face a challenging 12 months. Continue reading »