Two separate World Bank reports recently gave the Bulgarian government and business community ample food for thought. While one praised the country for a year of reforms that have had a positive effect on the domestic business environment, the other sounded strong warnings about the possible long-term consequences of the country's slow rate of productivity growth. In late September, an annual report…
As mutual funds grow in popularity among Bulgarian retail investors, so do the options available to them. A 19% rise in assets during August saw the total mutual fund market in Bulgaria surpass the 1bn lev mark ($720m). New funds are preparing to enter the market and on October 3 five new funds received the necessary licences from the local financial regulator to begin share offerings within a month.…
"Brain drain", the loss of a country's most talented and skilled workers to more attractive overseas employment, is a common challenge for developing economies. In Bulgaria, however, the private sector is taking the initiative to reverse this process and bring skilled Bulgarian migrants back home. A study on human capital released on October 16 by the Lisbon Council, a Brussels-based think tank,…
The EU's new tougher restrictions on Bulgaria's greenhouse gas emissions have the potential to slow the country's economic growth and burden heavy industry with increased costs. EU representatives said cuts are necessary to ensure Bulgaria helps uphold the bloc's commitment to the Kyoto Protocol. On October 26 the European Commission (EC) declared that Bulgaria's greenhouse gas emissions quota for…
The strong appetite for initial public offerings (IPO) in Bulgaria recently has forced authorities to create new legislation to quell over-exuberant investors. The popularity of the late October initial public offering (IPO) for the local construction firm Trace led to a change in the rules regarding offerings in Bulgaria. Following the offering, the Financial Supervision Commission, Bulgaria's financial…
Bulgarian New Year's Eve revellers had good reason to celebrate the coming of 2007 as their country joined the EU on a day President Georgi Parvanov described as one of the most important in the country's history. The significant boost in economic confidence and political sentiment by gaining membership in the bloc and the subsequent challenges were central themes of the past twelve months. Those…
Dubai enters 2008 after a year of significant economic growth, continued expansion of its economy and the increasing transparency of its challenges. Nominal GDP exceeded 16% for 2007, according to the ministry of economy, beating International Monetary Fund (IMF) projections. While the IMF had anticipated a GDP of 679.1bn AED ($185bn), the ministry said it expects it to have reached 698bn AED ($190bn).…
What looked like a soon-to-be-signed deal for the sale of Bulgaria's biggest steel maker, Kremikovtzi, has become a drawn out affair. The factory's majority owner, Global Steel Holdings (GSHL), announced on February 1 that it would postpone the deal and consult with a financial adviser on the best course of action to take. The government, mill workers, several bidders and bond holders are now being…
A major deal between Bulgaria's two biggest fuel retailers has redrawn the domestic fuel market and demonstrated the determination of Russian oil giant Lukoil to gain a stronger foothold in South Eastern Europe. On April 24 the Bulgarian Commission for Protection of Competition gave the go ahead to the sale of 75 petrol stations from state-owned gasoline retailer Petrol to Lukoil Bulgaria, the local…
Bulgaria is expected to experience leaner economic times over the coming year, but reports of an impending crisis appear to be somewhat unfounded. On November 3, the European Commission (EC) issued a warning that Bulgaria is set to face slowing growth, consumption and investment over the coming year, while the current account deficit and inflation will remain high. The commission expects Gross Domestic…
