In Brief
Bulgaria puts together 4-bln-euro power firm SOFIA (Reuters) – Bulgaria yesterday merged its biggest energy companies into a 4-billion-euro holding structure to strengthen its position in the European market. The move, which Sofia first announced last year, comes at a time when the European Union is pushing for greater energy market liberalization and competition. «Economy and Energy Minister Petar Dimitrov… decided to create the Bulgarian Energy Holding,» the ministry said in a statement. «All necessary documents have been submitted to the Trade Registry.» The new company consolidates the main state power utility NEK, dominant state gas company Bulgargaz, Bulgaria’s largest coal miner Maritsa East, its largest thermal power plant Maritsa East 2 and its sole nuclear power plant Kozloduy. The companies will keep operational and market independence, the ministry said, under the umbrella of a holding company with estimated annual revenues of over 1.8 billion euros and assets of 4.34 billion euros. Turk central bank keeps rates at 16.75 percent Turkey’s central bank kept its benchmark interest rate the highest of any major economy to shore up the lira as the global credit crunch threatens to undermine emerging market currencies. The bank in Ankara kept its overnight borrowing rate at 16.75 percent, according to an e-mailed statement yesterday. The decision was forecast by all 18 economists surveyed by Bloomberg. The bank will release the minutes of its meeting within eight working days. The lira has fallen more than 3 percent against the dollar since the weekend collapse of Lehman Brothers Holdings Inc, threatening to fuel inflation, which reached the fastest pace in four years in July. (Bloomberg) Russian gas The International Energy Agency, an adviser to oil and gas-consuming nations, said Russia may postpone plans to raise domestic natural gas prices, potentially stalling investment in increasing production. «In the context of inflationary pressures, price reform could be postponed,» the IEA said yesterday in its Natural Gas Market Review 2008. Inflation in Russia reached 10 percent in the year through September 15 as food prices rose, the Moscow-based Federal Statistics Service said yesterday. Russia, the world’s biggest gas producer, is seeking to align domestic gas prices with export tariffs by 2011. (Bloomberg) Early days It is too early to say when Bulgaria will join the eurozone, given the double-digit inflation which has hampered entry plans, the Balkan country’s central bank governor, Ivan Iskrov, said yesterday. Consumer price inflation in the EU newcomer hit over 14 percent this year and 12.5 percent at end-2007 due to the global commodity price surge and strong domestic demand, dashing Sofia’s previous hopes of adopting the common currency around 2010. Asked what Bulgaria’s time frame was now, Iskrov said: «We prefer not to respond to such a question. It’s not a unilateral decision. «Having in mind that inflation has peaked… it’s obvious that it’s early to go and knock on the door and say we are ready because we have met five out of six (eurozone entry) criteria,» he told an investor conference of Hungary’s OTP Bank. (Reuters)
