Topic - Political Risk
Libya - prospects hampered by mixed messages
Despite Libya’s growing internationalisation as being a reasonably stable, tolerate and welcoming environment for investment, a reputation that is bolstered by a variety of customs duties and tax breaks for large projects, some UK investors are not short of criticism about the country’s lack of transparency and at times ambiguous and conflicting announcements from Libya’s key decision and policy makers. These issues, among others, were at times hotly debated at the Middle East Association’s Libya conference held in London on July 23.
Macedonia issues €175mn Eurobond
On July 1, the republic of Macedonia has issued a fixed-rate €175mn Eurobond with a 9.875% coupon which matures in 2013. The money is said to finance the country’s budget gap and prop up the currency.
Europe cuts support for US$32bn project in Turkey
European financing for a hydroelectric plant in Turkey was suspended on July 7 after Turkey failed to offer environmental protections in the area around the Tigris River where antiques from the Middle Ages will be flooded by the dam.
Syria looks to PPP to build airport, motorways
Syria hopes to attract FDI into the country via privatisations and public-private partnerships, says a source at the IFC.
Zuma pledges policy continuity, job creation
As South Africa enters its first economic recession for 17 years, analysts and investors watched closely as new president Jacob Zuma laid out his policies in his inaugural state of the union address.
Gabon's long-serving president dies
Omar Bongo, Gabon's longest serving president, has died of a heart attack on June 8 in a Spanish hospital at the age of 73. He had been president of the African nation since 1967. He is said to have stopped work in May, checking into a clinic in Barcelona, with reports claiming that he had cancer.
UAE pulls out of GGC monetary union project
The UAE has announced it intends to leave the GCC monetary union project, reportedly over concerns about plans to locate the union's central bank in Riyadh. Analysts say its departure leaves the project in disarray.
Vodacom defies critics with listing and sale to Vodafone
Vodacom, the South African mobile phone company, overcame last-minute political obstacles to successfully raise US$3.5bn in its listing on the Johannesburg Stock Exchange on May 18. The company also sold a 15% stake to Vodafone, giving the UK mobile company a 65% controlling stake in the firm.
Latvian PM to axe government spending
The newly-appointed prime minister of Latvia, Valdis Dombrovskis, says his government is prepared to cut government spending by up to 40% in order to reduce the budget deficit and meet IMF austerity measures.
Kremlin looks to capitalise on the crunch in former USSR
There are signs that the Kremlin is looking to capitalise on the relative economic weakness of its neighbours to expand its influence in the region.
Former finance minister becomes Latvia’s new prime minister
Latvia’s president has nominated former finance minister Valdis Dombrovskis as prime minister and asked him to form a new coalition government at the end of February.
Hungary's ex-PM calls for central European alliance against Russia
Viktor Orban, the leader of the opposition party Fidesz in Hungary and a possible future prime minister, has called for a new central European alliance, to protect the interests of CEE countries within the EU.
Speaking at the Euromoney CEE Conference in Vienna in mid-January, Orban said: “I feel that a central Europe alliance is necessary. We need an independent security policy; a means to ensure our energy security; and also an alliance to push forward transport integration in central Europe and to establish a common development policy for the region.”
Credit crunch leads to riots in Riga
Latvia’s capital, Riga, has been the scene of days of riots after a peaceful anti-government demonstration by an estimated 10,000 people turned violent in mid-January.
EU raises concerns about Austria bank bail-out
The EU commission on competition has raised concerns about the Austrian government’s €2.7bn bail-out of Erste Bank at the end of October. Erste Bank is one of the largest banks in Austria and in central and eastern Europe.
IMF says present reserves 'inadequate' to deal with global crisis
The managing director of the IMF, Dominique Strauss-Kahn, has sent a letter to the G-20 heads of government and institutions, saying the IMF’s funds could be perceived as “inadequate” to deal with the global financial crisis, and calling on the G-20 to provide more money.
