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Gross electricity production in Bosnia jumps 21.3% m/m in December
Question: Is hydropower production back to pre-flood levels? Or are some plants still in need of repair or functioning below capacity?
Answers: According to data of Bosnia’s statistics office, the electricity generated by hydropower plants has not been seriously affected by the mid-May floods. Comparing data for each month after May, the output of hydropower plants has reached nearly the same level in July 2014 (344 GWh), as in the same month in 2013 (350 GWh) and started increasing y/y since then. In December, the gross electricity production of hydropower plants stood at 708 GWh compared to 438 GWh in November and 455 GWh in December 2013.
Show Full AnswerRomania’s government considers cutting VAT rate, excises before end-2015
Question: What exactly did Iohannis say regarding the proposed tax changes? Have other members of Iohannis' party said anything about the proposed tax changes?
Answers: In brief: Iohannis and his party did niot say NO to the fiscal reform, but said that Ponta's reform plans are unrealistic while PNL (president's party) is preparing a genuine, sustainable and wiser fiscal reform package that would generate 5% p.a. growth rate. In the interview for Digi24, mentioned in the article, president Iohannis said that cutting taxes is a good idea -- and that he actually has advocated for such steps during his presidential campaign. But he warned that such radical steps are unrealistic on short term. He also was surprised that the government has not discussed with him about such a broad fiscal reform before making it public. Finally, Iohannis said that he has not rejected ab initio government's plans but at this stage of the discussions (no detailed draft was released yet -- only some general ideas in a pdf file) he has serious doubts that the plan is realistic. His party's comments were largely negative and in line with president's statements, only much more radical. It is a hypocrite promise made by a government that is anyway not going to stay in office to implement it, Eugen Nicolaescu -- formerly finance minister (at some time) and currently head of the budget-finance parliamentary committee said. PNL prepares his own fiscal reform, which also includes a detailed estimate on the fiscal impact and measures to balance the tax rate cuts, he announced. This will be part of the PNL's ruling strategy, he explained. But PNL's criticism was predictable given the current political situation. Specifically, PNL (president's party) is striving to take power in parliament, and a first step would be to replace Senate's speaker Calin-Popescu Tariceanu. Reportedly, PNL expected to rach this target this week. The parliamentary elections are scheduled for autumn 2016, but PNL hopes to overthrow PM Ponta sooner than that. Much more relevant are the comments of Ionut Dumitru -- head of independent Fiscal Council. He stressed that the positive direct impact is heavily overvalued and he also said that even for such overvalued positive impact the government has not explain how the drop in revenues would be offset. As a last-minute comment: PM Victor Ponta expressed surprise (?) today in regard to opposition's negative remarks to his fiscal reform agenda. The very fact that he did not anticipate the weak points of the fiscal reform project indicates that the program itself might not have been drafted in detail. Or his surprise was expressed on a political note.
Show Full AnswerTransnistria’s exports shift towards EU markets
Question: Hi, thanks for the very interesting article. Do you have quarterly or annual data for Transnistria's exports by destination? I suspect that for such a small entity the monthly data might be a bit too volatile to draw many conclusions from.
Answers: Yes indeed, monthly data might be misleading even for larger economies. For such a small [and not recognized] region we do not regularly compile detailed databases, but still i have ran some calculations to answer your question. And the answer is yes -- there is a visible shift in Transnistria's exports from Russia to Romania. Poland also gained ground as an export destination. Raw data [only in Russian] is available in the monthly bulletins of Transnistria here: http://www.mepmr.org/gosudarstvennaya-statistika/informacziya/74-informaczionnyj-statisticheskij-byulleten latest bulletin is for November 2014 -- which is quite in line with the reporting of most European countries. The statistics of the region are quite detailed and timely updated, but the quality [accuracy] of reporting might not be the best. Still, it is official data. What i did is i have compared the structure of the foreign trade in the latest available 3 months [Sep-Nov 2014] with the same period one year earlier. [i am also sending the xls file by email] Share of exports to Russia: Sep-Nov: from 17.2% in 2013 to 10.3% in 2014 Share of exports to Romania: Sep-Nov:from 6.3% in 2013 to 11.1% in 2014
Show Full AnswerCroatia presents draft bill on consumer bankruptcy
Question: Have the banks or the IMF said anything about the proposed bankruptcy bill?
Answers: Following the meeting on February 11, the head of the Croatian banks association, Zoran Bohacek, said the proposed change in legislation is good. Yet, he added that bankruptcy is an “undesirable outcome” and having many insolvent people is not the banks’ aim. However, it is not expected that many people would benefit from the new legislation. The draft shows that only those with less than HRK100,000 debts can apply for bankruptcy. This might suggest that the government plans to avoid a large number of personal bankruptcies. The Justice Minister Orsat Miljenic himself has said he expects no more than 3,000 people to end up in bankruptcy from the 20,000 cases to be mediated by FINA. As for IMF, there has not been any recent comment on the matter. However, in March last year the fund said the orderly debt restructuring for over-indebted corporations and households provide the main prospect for accelerating the normalization in demand. At that time the IMF commented that the corporate pre-bankruptcy procedure introduced in 2012 was a useful tool that should be strengthened, including by encouraging broad and balanced participation by creditors. Moreover, it suggested that Croatian authorities should give consideration to a personal bankruptcy regime, while being mindful of fair burden sharing between debtors and creditors.
Show Full AnswerBelarus to sell state-owned shares of Belarusian MTS, Transaviaexport
Question: So is 51% of MTS valued by the govt at $863 mln? Or is that the total value of the company? How much is Transaviaexport worth?
Answers: The 51% of MTS (owned by Belarus govt) is valued at $863mn. Transaviaexport offers 6,543,050 shares (99.9% of the authorized fund) with the face value of BYR13,000 each or around $5,559,454
Show Full AnswerKyrgyz central bank carries out new interventions to support currency in January
Question: I have several questions regarding the Central Bank policies and regulations. What is the current situation with Central Bank reserves? If the reserves are not sufficient to keep the exchange rate for a long time, there may be either a larger depreciation, or other measures (apart from sale of FX reserves by the central bank) Has there been any indications that the Kyrgyz Central Bank may impose some form of capital controls, as part of measures to deter currency deterioration and capital outflow? Secondly, any news or indications of the Central Bank increasing reserve requirements for banks taking on FX loans? Finally, with rising of the policy interest rate, and rising hedging costs, the expectation is that the banks may have to increase the interest rates - but there is an (indirect) interest rate cap in place. Was there any news on that front?
Answers: The central bank’s reserves amounted to $1,874bn at the end of 2014. At the same time, the M2 money supply is about KGS67bn, or slightly over $1bn. So even if the central bank buys all the soms in the economy, there will be over 40% of its reserves left. So the central bank seems able to withstand any indigenous shock. From a different perspective, the central bank reserves are currently enough to cover import for over three months, a level the IMF defined as “comfortable” in a 2014 country report. There is no fundamental economic reason for capital controls. The government pledged to liberalise the capital market to improve the country’s infamous business climate and joining the Eurasian Economic Union is a step in this direction. Authorities expect big capital inflows in 2015, mainly from Russia – the Kyrgyz and Russian governments have just established a joint $1bn investment fund for the development of the local economy and Gazprom has announced new investment for a total of $760mn until 2017. Interest rates on loans are very high (30-35% annual rate). But the central bank is pushing to increase reserve requirements to restrict the monetary base and support the som's exchange rate. So there is this dualism between monetary policy and currency policy, with the central bank choosing to support the currency despite the fact that local business is suffering from expensive loans. There is a cap on the interest rate on loans calculated as the average weighted rate plus 15%. This cap will still gives some leeway to commercial banks to cover their costs. At the same time, with Kyrgyzstan's membership of the Eurasian Economic Union Kazakh and Russian banks may enter the Kyrgyz market and boost competition.
Show Full AnswerICD signs agreement with VisionFund AzerCredit to develop Islamic financing
Question: Do you have any info on the date of this agreement, how recent is the announcement? I was also wondering in general about Islamic Banking in Azerbaijan, is that encouraged or deterred by the secular government?
Answers: Islamic financing has been growing slowly, but steadily in Azerbaijan. Last August the International Bank of Azerbaijan (IBA), the only state-owned bank with 50.2% shares controlled by the Ministry of Finance, set up a stand-alone Islamic banking unit with the aim of quadrupling the bank’s Islamic financing business in the country. IBA’s director of Islamic banking said in an interview with Reuters last year that the bank, which holds 40% of Azerbaijan's banking assets, had by mid-2014 extended 180mn dollars of Islamic financing in the country. By launching Sharia-compliant financial services, IBA is also seeking to bridge relations with investors in the Gulf Cooperation Council (GCC). The country is working on a new legislative framework on Sharia-compliant financing which is slated to be approved this spring. That said, as for whether this is at odds with Aliev's secular regime, the rationale for pursuing such services is purely economic aimed at catering customers in a country where estimated 93% of a population of 9 million are Muslim. Islamic banking has experienced higher growth than traditional banking in recent years so the idea is to adapt the financial services to a new trend. Nowadays, countries all over the world are experimenting with Takaful and Islamic banking; even non-majority Muslim countries, like the UK, and some sub-Saharan African countries, like Uganda. So there is no discrepancy between the secularism of the current administration in Azerbaijan and the launch of Islamic banking. As for the agreement signed between the Islamic Corporation for the Development of the Private Sector (ICD) and VisionFund AzerCredit, it was announced on February 10.
Show Full AnswerSeveral Belarusian companies resume beef exports to Russia
Question: What is the current state of import restrictions that Russia has imposed on Belarus? I have seen a lot of news items about various restrictions, but I am not sure which restrictions have lapsed, which were reported but never really enforced, and which are imposed and enforced. Presumably there are still customs posts set up on all the border crossings to inspect everything that crosses?
Answers: As you know, in early October 2014 Russia imposed a ban on food supplies from more than 20 Belarusian meat processing companies. Nine of them were banned from supplying to Russia because the African swine fever virus genome was allegedly found in their products. Another 17 companies were banned from supplying to Russia because hazardous substances were reported to be detected there. Some of the restrictions were lifted by the start of 2015. The remaining nine companies could partially resume their supplies to Russia on 24 January. The products in question include beef that underwent heat treatment. At the end of January Rosselkhoznadzor specialists conducted audits at four meat processing companies, namely those from Minsk, Slutsk, Bobruisk and Mogilev. Leonid Zayats told reporters that no serious violations were detected during the audits. At the same time, on November 30th, the Russian agricultural regulator decided to prohibit the transit of products on the sanctions list from Belarus via Russia to third countries without being inspected at Russian checkpoints. You can see the list of sanctioned items here: http://ec.europa.eu/food/safety/international_affairs/eu_russia/russian_import_ban_eu_products/index_en.htm The Russian veterinary and phytosanitary watchdog Rosselkhoznadzor was reported to have detected re-export though Belarus of banned apples, peaches, plums and tomatoes without the country of origin stated or with tags of Turkey, Serbia, Macedonia and some African countries, including Zimbabwe. Moscow has accused Minsk of supplying food from the European Union to the Russian market under the guise of transit from Belarus to Kazakhstan, Russia’s Federal Customs Service Public Relations Department head, Mr Smelyakov, underscored that exports of goods from the sanctions list from Belarus had increased by 80% (up to 354 600 tons) since the sanctions had been enacted in October 2014. However, Russia does not have direct evidence that Belarus has violated her agreements within the Customs Union and the Common Economic Space.
Show Full AnswerKazakh uranium producer's profits rocket in 2014
Question: Is there any indication as to why profits were so high this year? Was it to do with increased spot prices for uranium? Are there any projections for future Kazatomprom profits/losses?
Answers: Kazatomprom's profit last year is not out of order compared to its profit in 2012 when it totalled KZT52bn (against KZT29.3bn in 2014). It is just Kazatomprom's financial statement shows that in 2013 there was a spike in the company's "other non-operating expenditure" which totalled KZT41.7bn compared to KZT3.9bn in 2014. This spike may be explained by the fact that the 2008 KZT28bn ($234mn) sale of a 49% stake in Semizbay-U enterprise to Beijing Sino-Kaz Uranium Resources Investment Co Ltd was revised in July 2013. Because the joint venture didn't receive a government resolution on the sale by 2011 the sides started litigations at a London arbitrage. According to a settlement reached by the sides Kazatromprom paid Sin-Kaz a difference between the initial contractual obligation and a fair market value of the 49% stake in Semizbay-U to the tune of KZT20bn ($132mn). At the same time, the parties agreed to cancel guaranteed minimum dividends paid by Semizbay-U for 2012-2033 and decided the depreciating value of financial obligations was KZT46.7bn ($308mn). In return, Kazatomprom lost control over the joint venture which is now managed by both parties. The cancellation of minimum guaranteed dividends was considered by Kazatomprom as as redemption of financial obligation. As a result, Kazatomprom demerged investment in Semizbay-U and accepted its remaining stake at fair value at the time of losing control. As a result of these operations, Kazatomprom showed revenue worth KZT24bn as gross earning. Because Kazatomprom lost control over Semizbay-U it had to declassify its investment in it as investment in a joint venture. All these fiddling with figures seems to have brought "other non-operating expenditure" up, resulting in losses in 2014. As for your other question regarding future profits, it is hard to predict because, as you rightly point out, it will depend on the global price of Kazatomprom's main product - uranium. However, as general belt-tightening in Kazakhstan because of the low price of oil the government has ordered all national companies to cut spending (Samruk-Kazyna fund, which runs Kazatomprom, has announced, for example, the companies it runs will be suspending their sponsorship programmes). Samruk-Kazyna is also carrying out its "transformation" programme under which national companies should streamline their activities and get rid of non-core assets. These measures are believed to improve business practices at national companies. Kazatomprom is also expected to float part of its shares by selling them to the population under the "People's IPO" programme next year. Following power grid operator KEGOC's failure to successfully sell its share to the population (supply outstripped demand by five times) last year, the government will make sure the sale of Kazatomprom's shares is successful by stressing how profitable and efficient Kazatomprom is.
Show Full AnswerTurkey’s Konya Seker places best bid of $685.5mn in 990MW Soma B thermal plant tender
Question: Has there been any information from the OIB related to privatization of Eti Mines? In October the Eti Mine Works sulphuric acid and boric acid factories were mentioned as possibly slated for privatization. What about the actual boron mines?
Answers: Finance minister Mehmet Simsek in October 2014 suggested that Eti Maden’s sulphuric acid and boric acid production facilities would be slated for privatisation. He did not provide any details at that time but Simsek’s statement led to speculations that the privatisation of Eti Maden’s sulphuric acid and boron acid facilities would also pave the way for the privatisation of boron. However, energy minister Taner Yildiz denied such claims and told parliament on October 14, 2014 that the AKP government would not privatise boron as it is regarded as a strategic asset. The Privatisation Administration (OIB) has not made any statements or provided information yet regarding the possible privatisation of Eti Maden’s sulphuric acid and boric acid production facilities.
Show Full AnswerBosnia’s Federation sells €20.4mn of three-year T-bonds
Question: Do you think that you could send me the link to the press release of the finance ministry?
Answers: You need to open the finance ministry's website: http://www.fmf.gov.ba/ and then scroll down the home page in order to get the statement. It's dated Dec 2.
Show Full AnswerAlbania’s CPI inflation decelerates further to 1.6% y/y in May 2014
Question: Albania's CPI y/y has remained below the lower target band during a year with the exception of March 2014 (2.2%). However, in the item "others", CPI is relatively high (often in the double digit territory). Would you know what is exactly included in "Others" ?
Answers: Most likely the high rise in price of "others" earlier this year was caused by mandatory car insurance prices. Insurers claim that the price hikes were needed to cover expenses, after they cut the prices for instance in march 2013 seeking market shares. [detailed data in the table at the end support such statements]. Similar price hikes were operated last October. Since Albania uses UN’s COICOP classification of goods in CPI methodology [as stated here: http://www.instat.gov.al/en/themes/prices/methods/cpi-method.aspx it is obvious that the “others” section mentioned in this discussion can be only Auto insurance rates drop after alleged price-fixing [ Tirana Times February 24, 2014 ] TIRANA, Feb. 17 - Government intervention in the insurance market through state-owned INSIG insurer which holds a minority market share has somehow stabilized motor insurance rates after a sudden overnight hike by all companies sparked price-fixing allegations. The drop in insurance policy rates came after the Finance Ministry fired the director of the only state-owned insurer over his unilateral price increase without consulting the company's supervisory board. Tomorr Kalaja was fired on Feb. 12 only one day after the sudden price hike in compulsory motor insurance rates in what seemed a price-fixing deal. All insurance companies were forced to reduce prices last weekend in order to maintain their market shares after INSIG cut rates by around 20 percent to 16,000 lek (Euro 112). INSIG's market share in the compulsory motor insurance dropped to 6.14 percent in 2013, down from 7.41 percent in 2012, according to the Financial Supervisory Authority. On Feb. 11, compulsory motor insurance policies, known as Motor Third Party Liability (MTPL) and accounting for around 40 percent of the insurance market rose by 6,000 lek (Euro 42) to an average of 20,000 to 21,000 lek (Euro 140 to 147) by all nine companies operating on the market including state-owned INSIG insurer. Compared to the same period last year when they traded at 5,500 to 6,000 lek, motor insurance rates have trebled. The increase by almost one-third in a single day irritated citizens who described the new tariffs unaffordable at a time when fuel prices stand at a record high under new tax increases ranking Albania with the highest diesel and petrol prices in the region.
Show Full AnswerRussia's Gazprom cancels Ukraine's gas discount, instead offers USD 2-3bn loan.
Question: There has been speculation Russia would increase Ukraine’s debt obligations via this mechanism. How would this affect the Ukrainian balance sheet?
Answers: The overall effect on Ukrainian balance sheet will depend on few things: 1. The gas price that Russia will set for Ukraine starting Apr 1. Most likely, it will be back to USD 400 per 1,000 cubic meters. However, since Ukraine’s economy remains dependent on imports of Russian energy and the Kremlin has in the past not hesitated to manipulate prices and cut off supplies to exert political pressure, we cannot exclude that this time gas price will be higher. 2. The conditions of the Russia loan and how the Ukrainian government uses the funds, i.e. pay off the debt straight away, put some funds aside on a special account, etc Ukraine’s Naftogas is obviously struggling with USD 400 price. Naftogas imports Russian gas and then sells it to domestic householders for much less under a system of state subsidies. The previous government refused to increase gas prices for population since it feared a public reaction that might hurt its popularity. If the new government agrees with IMF to gradually increase prices for population, this might improve the overall balance sheet in the long run. Also, the previous government had plans to reform Naftogas and divide it into several companies based on which a public limited company will be created in the near future. The plan was never implemented however. If the reformation takes place, it will give a new impetus to the development of these newly created companies and promote investment, taking to the account that public finances are limited.
Show Full AnswerEU to provide EUR 64mn to support key reforms in Albania.
Question: Hi, do you maybe have the overview of the IPA funds allocation per country for the period 2014-2020 for the countries of the Western Balkans?
Answers: Hello, We could not find precise figures for the planned allocations per country (in the Western Balkans) for the 2014-2020 period. However, the latest annual enlargement strategy document*, published in the autumn of 2013, says "the EU will continue to provide substantial support to the enlargement countries in their preparation for accession, with a comparable level of funds for the period 2014-2020 (€11.7 billion in current prices) as in the current financial framework". This suggests the funds allocated to each country could remain more or less at the level of 2007-2013, which for the Western Balkans** (including Albania, Bosnia, Kosovo, Macedonia, Montenegro and Serbia) stood at an overall EUR 4.06bn. [The EUR 11.7bn figure given by the EC includes Turkey, Island and Croatia along with the Western Balkans.] Another fact that supports this guess is the Jan 2014 statement made by the head of the EU delegation in Macedonia, Aivo Orav, that the funds the EU will allocate to the country for the period 2014-2020 will be in an amount comparable with the one of the first seven-year programme.*** Furthermore, in the latest Progress Reports for each Western Balkan country, also published in the autumn of 2013, the EC says it is in discussions with the local authorities on the country strategies for 2014-2020, which will provide the framework for the IPA funding allocations. It is very likely that these discussions are still undergoing, or finished only recently - therefore an overview with the IPA 2014-2020 for each country might not be published by the EC yet. You probably have the country IPA data for 2007-2013. In case you do not - you can find them enclosed in the table below. *http://ec.europa.eu/enlargement/pdf/key_documents/2013/package/strategy_paper_2013_en.pdf ** excluding Croatia since it will not participate in IPA 2014-2020 ***http://eeas.europa.eu/delegations/the_former_yugoslav_republic_of_macedonia/documents/press_corner/key_speeches/20140130_speech_orav_ipapressconference_en.pdf IPA in EUR mn 2007 2008 2009 2010 2011 2012 2013 2007- 2013 Albania 61 73,8 81,2 94,2 94,4 94,6 95,3 594,5 Bosnia 62,1 74,8 89,1 105,4 107,4 107,9 47,26 593,96 Kosovo 68,3 184,7 106,1 67,3 68,7 68,8 71,4 635,3 Macedonia 58,5 70,2 81,8 91,7 98 101,9 113,2 615,3 Montenegro 31,3 32,6 34,5 33,5 34,2 35 34,6 235,7 Serbia 189,7 190,9 194,8 197,9 201,9 202,1 208,3 1386,6 Total 4061,36 Source: EC Note - 2013 IPA financing to Bosnia was cut from EUR 108.8mn to EUR 47.3mn
Show Full AnswerAuditors evaluate equipment and buildings of Montenegro's KAP at EUR 55mn - report
Question: Hi can you give me any more analysis on the valuation vs the KAP privatitivation price registered in 2005?
Answers: As of today there is even more accurate information – according to daily Vijesti, KAP will be offered for sale at EUR 52.46mn. The daily quotes the insolvency management, which is due to hold a press conference on the issue today (so we will have a story about it in tomorrow’s daily). You maybe saw that yesterday the parliament adopted a draft law on the protection of the state interest in the metals and mining industry, saying the sale of KAP should be approved by parliament to be valid. This draft law, proposed by the opposition, also stipulates that KAP should be sold as a legal entity – and not just its assets.
Show Full AnswerTurkish finance minister presents 2014 budget at parliament commission.
Question: The budget projects a GDP growth of 4%, end-year inflation of 5.3% for 2014 while exports and imports are seen at USD 166.5bn and USD 262bn, respectively Are there any more details ?How do these projections compare with other forecasts and are they realistic and what does that depend on? WIll there be any new tax revenues, privatisations...
Answers: The forecasts (GDP and inflation) in the 2014 budget draft are not the finance ministry’s own predictions; they are from the government’s revised medium-term programme (MTP), covering 2014-2016. In the MTP -released earlier this month-, the government cut its 2013 GDP growth estimate to 3.6% from 4% and next year’s growth estimate was trimmed to 4% from 5%. For comparison, the IMF expects the Turkish economy to expand 3.8% this year and 3.5% next year while the market consensus forecast (the Central Bank’s monthly Expectations Survey) currently stands at 3.5% for 2013 and 3.9% for 2014. The government’s GDP forecasts seem realistic. We reported the government’s new macroeconomic forecasts/targets in our Turkey Today report dated October 9, (here is the link to the this report: http://www.securities.com/php/search/doc?pc=TR&dcid=420164749&sv=EMIS&langs=en&pubs=EMD_INTELLIDAILY&pcid[]=EMD_INTELLIDAILY&abstract=1&unhide_post_articles=&range=4000&query_entry=pubsearch&keyword=medium-term+programme&submit=Go&sort_by=date&rpp=25&first_load_rpp=10 The government’s track record on inflation has been rather poor: here is the historical data on inflation target versus actual end-year inflation rates: end-year 2008 2009 2010 2011 2012 2013 2014 Target 4 7.4 6.5 5.5 5 5 5 Actual inflation rate 10.1 6.5 6.4 10.4 6.2 Source: Central Bank The government’s end-year inflation estimate for 2013 is 6.8% and 5.3% for 2014 (the Medium-Term Programme). The IMF forecasts a CPI inflation rate of 6.6% for this year and a 5.3% for 2014. Exchange rate volatility and exchange rate pass-through (via input & energy costs) will be the main factors determining inflation. Global capital inflows and investor appetite for emerging markets will determine the direction of exchange rates. The government expects Turkey’s exports to increase to USD 166.5bn next year from USD 153.3bn at the end of 2013. Considering the fact that Europe is Turkey’s main export market (the EU’s share in Turkey’s total exports was 41.4% in August) all will depend on Europe’s economic performance. The IMF expects the Euro Area to grow 1% in 2014 after a contraction of 0.4% this year while the Fund expects world trade volume to grow 4.9% in 2014, up from 2.9% this year. Budget targets wise speaking; the government had initially forecast a budget deficit of TRY 34bn but after the strong budget performance witnessed this year, it revised the end-2013 budget deficit target to TRY 19bn (or 1.2% of GDP). In January-September, the central government budget produced a deficit of TRY 4.5bn. Next year’s budget deficit is expected to TRY 33.2bn (1.9% of GDP). The government expects TRY 6.9bn of privatisation revenue next year. Recall that, local elections will be held next year thus expenditures should be expected to increase but finance minister Mehmet Simsek has repeatedly stressed that the government would not fall into the populism trap ahead of the elections and it would maintain fiscal discipline next year. Budget Targets (TRN bn) 2013 2014 Expenditures 406.6 436.3 Revenues 387.2 403.2 Budget deficit 19.4 33.2
Show Full AnswerDiaspora transfers to Kosovo citizens expected to go down - UNDP
Question: I would be glad if you could tell me the name of that report that you've mentioned in the text "According to a report written by Artane Rizvanolli of the UNDP..." Or if you have the link for the report it would be even better.
Answers: Thank you for your question. The conclusions of Artane Rizvanolli regarding the future of diaspora transfers to Kosovo are included in a chapter named Migration as a force for development, which is part of an UNDP report on human development in Kosovo. The report is not published in full yet but pieces of it were made public at its official presentation. You can read the article of Telegrafi about the presentation (which we used as our source) here: http://www.telegrafi.com/ekonomi/te-hyrat-nga-diaspora-nuk-do-te-jene-te-qendrueshme-46-16008.html We have asked UNDP for the date the report will be made available. Previous reports can be accessed here: http://www.undp.org/content/kosovo/en/home/library/human_development.html
Show Full AnswerGazprom to purchase new licenses in Tajikistan.
Question: Hi...Do you know what is it worth in dollar terms now and the future. what are gazprom's investments in Tajikistan worth?
Answers: Hi, no figures were provided in this particular piece of news. However, according to Gazprom's website, it invested more than RUB 5.6bn (USD 173mn) in geological exploration in Tajik licensed areas.
Show Full AnswerTurkish Deputy PM Babacan sees 2013 growth above 3%.
Question: Why is Tukey importing so much gold this year? Thanks
Answers: Thank you for your enquiry. The main reason for Turkey’s sizeable gold imports in 2012 was Iran. Turkey was paying for the oil and natural gas it is importing from Iran in gold. Iran accepted payments in gold in order to bypass international sanctions over its nuclear program. Turkey’s gold imports, consequently, jumped to 120.8 tonnes in 2012 from 79.7 tonnes in 2011, according to data of the Istanbul Gold Exchange. However, gold exports to Iran have fallen in 2013 after the imposition of new sanctions. As for this year, Turkey’s gold imports have increased in volume especially since April due to the sharp fall in gold prices. In August, however, the country’s imports declined 63% m/m to a seven-month low as prices surged again. Local companies have bought gold at lower prices in order to increase their inventories with the anticipation that they would export them next year, the head of the Jewellery Exporters’ Association recently explained. There are also seasonal, combined with cultural, reasons behind the increase in gold imports in recent months; summer is the wedding season and this precious metal is given as present. Thus, local jewellers increased their imports ahead of summer. Turkey's gold imports (in volume, tonnes) 2012-January 2,957 February 2,063 March 2,909 April 7,781 May 19,470 June 23,942 July 34,994 August 11,314 September 3,841 October 3,702 November 4,223 December 3,583 2012 Total 120,780 2013-January 11,272 February 17,345 March 18,264 April 45,487 May 43,505 June 44,019 July 37,021 August 13,658 2013 Total- Jan-Aug 230,570 Source: Istanbul Gold Exchange
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