The future of Bulgaria’s proposed Belene nuclear power plant (NPP) once again hangs in the balance after the decision formally to suspend the project while reassessment takes place. The 2000-MW station is seen as central to meeting Bulgaria’s energy needs and has strong government backing, yet questions of financing and safety remain. A new plant should also help boost the economy as Bulgaria is…
With demand for domestic hardware and software recovering and renewed interest in the potential of high-value outsourcing operations, the outlook for Bulgaria’s information and communications technology (ICT) sector appears to be considerably brighter.Domestic IT market is expected to grow 5% in 2011, reaching a total value of $947m, up from $902m in 2010, according to Business Monitor International…
Bulgaria’s agricultural sector is coming out of a two-decades-long rough patch and has pulled out of the recent recession more strongly than the economy as a whole, with regulatory changes and growing export potential contributing to a stronger outlook.Agriculture has been one of the quiet successes of the past few years, according to a 2009 report by Food Policy, a food sector journal, which noted…
Prospective investors took note when it was announced in late July 2010 that Bulgaria's largest steelmaker, Kremikovtzi, will be up for sale in mid-September 2010. The news comes four months after the company went into liquidation and a year after major creditors refused to approve a rescue plan for the ailing company.While the steelmaker is saddled with debts of Lv1.9bn (€971.22m) and the…
Though Bulgaria’s economy is likely to remain in the slow lane for the rest of this year, the country’s banking sector continues to show resilience in the face of global economic contraction. There are concerns, however, that increasing levels of bad loans carried by some lenders could add to pressures on the sector.Most analysts, including the European Bank for Reconstruction and Development the…
Approval of Bulgaria's handling of its economic reform programme this week by the International Monetary Fund (IMF) was welcome news for the country's leaders, as they square up for next month's general elections. Meanwhile, the main opposition group unveiled its economic plans, with ideas for an expansion of social spending - a programme unlikely to find great favour with the Fund. The IMF board…
Several electricity companies have announced investments in Bulgaria this year, with renewable sources increasingly attracting interest. Bulgaria's electricity generation sector is reaching a crucial stage. The only nuclear power plant, which produces almost half the country's power, is the subject of much EU debate as two of its reactors are listed for closure this year. Opponents of the move say…
On July 19, the Bulgarian National Bank (BNB) increased the minimum mandatory reserve requirement (MRR) in a move intended to slow lending growth. The BNB governing council announced that, from September 1 this year, the MRR of banks in Bulgaria will be 12%, up from 8% at present. Banks' MMR is held in the central bank, tied up in non-interest-bearing deposits. Bulgarian businesses and consumers…
Abu Dhabi made major advances this year in terms of government policy, structure and economic initiatives. Changes in 2007 were focused on the government's continued effort to diversify and build a sustainable economy bolstered by foreign direct investment in multiple industries. In the beginning of the year, Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, revamped…
Bulgaria's government is expecting inflation to drop significantly this year as supply shocks ease, after a worrying rise at the beginning of 2008. Nonetheless, many of the current inflationary pressures will remain and Bulgaria's ability to address them is limited. Year-end inflation should slow to 6.9% in 2008 after last year's spike to 12.5%, Finance Minister Plamen Oresharski told the local press…
