Business Roundup

03/06/2005

A review of business news and developments from the Balkans since 27 May.

(Various sources -- 27/05/05 – 03/06/05)

Telekom Austria signed the acquisition contract on Wednesday (1 June) for Bulgaria's leading GSM operator MobilTel, finalising a 1.6 billion-euro deal -- the biggest corporate deal ever in Bulgaria. [AFP]

The EBRD announced on 2 June that it extended a 35m-euro sovereign loan to Albania for the rebuilding and modernisation of a 70km section of the Fier-Tepelene road. The project is being co-financed by the European Investment Bank with a 50m-euro credit.

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A new plant that will manufacture products for the Greek Alumil Group was launched in the industrial area of Tirana on 30 May. The investment project, worth an estimated 11m euros, is part of the Greek government's plan for the economic reconstruction of the Balkans.

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The number of jobless people in the Federation of Bosnia and Herzegovina (FBiH) rose by 7 per cent year-on-year in April 2005, according to the latest data from the FBiH employment bureau. The unemployed rate was 0.07 per cent higher month-on-month in April.

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The Slovene company Livar bought 65 per cent of the Banja Luka-based steel foundry Jelsingrad, under a sales contract sealed between Livar and the Republika Srpska (RS) Privatisation Directorate on 1 June. Livar paid around 51,000 euros for the stake.

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Croatia, Serbia-Montenegro and Romania plan to establish a new joint venture, related to construction of a 1,319 km-long oil pipeline from Constanta, Romania to Trieste, Italy via Serbia and Croatia. The venture will be in the form of a public-private partnership and will include the three countries' state oil companies.

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The Macedonian government announced on 1 June the establishment of a state guarantee fund for small- and medium-sized enterprises (SMEs) in August. The concept was stipulated in the government's economic programme for 2005.