SETimes.comWorld Bank: Region faces growth slump
13/06/2012
The World Bank is urging regional countries to undertake fiscal consolidation to stem a growth downturn. Also in business news: Montenegrin companies have a combined debt of more than 400m euros.
Six countries in Southeast Europe face the risk of a sharp slowdown in growth this year amid increasing turmoil in the eurozone, the World Bank warned. The Bank's report -- which covers Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia -- urged sustained fiscal consolidation to reverse the adverse debt dynamics and establish a foundation for more dynamic long-term growth.
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The European Investment Bank (EIB) announced on Monday (June 11th) it has approved a 35m-euro loan to finance the construction of a motorway bypass in Albania. The project involves building 22km of dual two-lane motorway, which is the last remaining section to be improved on the main north-south axis connecting Tirana, Durres and Greece.
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One out of every four corporate bank accounts in Montenegro has been blocked due to debts, the Central Bank in Podgorica announced on Friday (June 8th). The total debt of companies in the small country amounts to 419m euros.
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Greece tops a list of countries facing the risk of a default, published by the Business Insider on Monday (June 11th). Cyprus follows at number three. Cyprus received a 2.5 billion-euro loan from Russia to cover its 2012 financial needs, but it has an extra 2.2 billion euros in debt maturing in 2013.
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The Bulgarian parliament approved on Friday (June 8th) a five-year sovereign bond issue worth 950m euros. The funds are needed to repay a government debt due in January.
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An IMF mission in Kosovo has reached an agreement with local authorities on a package of policies aimed at completing the first review of the country's 106m-euro stand-by arrangement, the Fund said on Monday (June 11th). The completion of the review will allow Pristina access to 46m euros. The IMF praised the country for keeping its macro-economic and financial policies on track, and demonstrating resilience in the current international environment.
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Tourism revenues in Romania have dropped by 16% over the past four years, a study by PwC Romania revealed on Monday (June 11th). Last year, the industry generated 1.5 billion euros in revenue. According to the report, the decline is mainly due to the lower number of foreign visitors amid the global economic and financial crisis.
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Turkey will fully repay its debt to the IMF by April 2013, Prime Minister Recep Tayyip Erdogan said in Istanbul last week. In 2002, the country's debts amounted to $23.5 billion. Currently this amount has been brought down to $1.7 billion.
(Various sources -- 06/06/12-13/06/12)