Cigarettes in Bulgaria will be more expensive
Lithuanian Energy’s Vilnius CHP plant with EUR150m financing from EU
Poland wants to get connected to Norwegian gas deposits
Fitch Ratings downgraded the City of Kyiv’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to ‘CC’ from ‘CCC’. The company wrote in its press release:
„The downgrade of Kyiv’s IDRs follows the city’s decision to extend the maturities of domestic bonds (series G), scheduled to mature on December, 19th, 2016. Kyiv’s administration has decided to postpone the repayment of UAH1.915bn senior unsecured domestic bonds for another 360 days. The city remains current on the bond’s interest payments”.
Interfax informs Fitch would expect to classify such an extension as a default in accordance with its distressed debt exchange (DDE) criteria. According to the city, the proposal does not involve any write-down of principal, and coupons payable on the bonds will not decrease, Fitch said.
According to the city government the decision to extend the bond’s maturity is still a subject to approval by Ukraine’s Ministry of Finance.
In 2018 Bulgaria will introduce changes to the excise tax. „The date mentioned is when Bulgaria will be obliged to introduce the minimum EU excise tax on cigarettes which is EUR90 per 1,000 pieces (a goal that is also fulfilled if the current timetable is kept in force),” Novinite.com informs.
This will result in an increase of cigarettes’ prices. According to Novite.com more expensive cigarette brands will cost BGN0.15 (EUR0.07) more, while for a pack of more affordable ones will increase around BGN0.10.
The overall increase would be around BGN0.20-30 by the end of 2017. The current rate is BGN70 per 100 pieces (the “specific excise tax”), plus 38 per cent of the sale price (the so-called “ad valorem excise tax”), but its minimum total value is BGN161 per 1,000 pcs (EUR82.2).
The European Commission will support with EUR150m the construction of biomass and waste cogeneration plant built in Vilnius by Lietuvos Energija. The total cost is estimated at EUR345m.
The CEO of the state-owned energy group, Dalius Misiunas, informed that the Commission’s approval was important for the financing of the plant, „which is one of the largest projects in the country’s largest heating sector in recent years”.
The plant is expected to be built by the end of 2018. It will have two units: one fuelled by non-recyclable municipal waste and the other by biomass. The waste-fired unit will be able to produce 18 megawatts of electrical power and 53MW of thermal power, and the biomass unit will have a capacity of 70MW of electrical power and 174MW of thermal power.
Norwegian gas will be transported directly to Poland, if Poland complete its part of the project called „The Baltic Pipe”. The Polish Radio informed that Piotr Naimski, the government’s representative for energy infrastructure, has been very optimistic. The “Baltic Pipe” is a proposed underwater gas pipeline linking Denmark and Poland. As a part of it also a gas link between Denmark and Norway is envisaged, thus allowing Norwegian gas to be transported directly to Poland.
Naimski said: “The plans to link deposits in Norway with the Polish gas transmission system will definitely succeed this time. There is a favorable political and economic situation.” The Polish Radio reminds two previous attempts have failed. In 2001 the first proposal was shelved due to worries about the cost of Norwegian gas, while a second attempt in 2007 never materialized.
What’s up in indexes
BUX (of Budapest) was up 1.66 per cent – increasing from 28097.66 index points Friday, September 16th to 28564.54 index points Monday, September 19th. From year-end it’s up 19.41 per cent.
BET (of Bucharest Stock Exchange) dropped by 0.12 per cent d/d and by 0.46 per cent from yea-end. It decreased from 6979.15 index points Friday, September 16th to 6969.95 index points Monday, September 19th.
PX (of Prague Stock Exchange) was up 0.12 per cent – increasing from 860.81 index points Friday, September 16th to 861.83 index points Monday, September 19th. It dropped by 9.88 per cent.
WIG20 (of Warsaw) was up 0.89 per cent d/d – increasing from 1734.26 index points Friday, September 16th to 1749.78 index points Monday, September 19th. From year-end it dropped by 5.88 per cent.
OMXT (of Tallinn) dropped by 0.27 per cent d/d – falling from 993.49 index points Friday, September 16th to 990.81 index points Monday, September 19th. From year-end it’s up 10.21 per cent.
OMXR (of Riga) was up 0.05 per cent d/d and up 17.18 per cent from year-end. It decreased from 696.09 index points Friday, September 16th to 696.44 index points Monday, September 19th.
OMXV (of Vilnius) was up 0.44 per cent d/d and up 11.56 per cent from year-end. It increased from 539.79 index points Friday, September 16th to 542.19 index points Monday, September 19th.
SAX (od Bratislava) was up 0.43 per cent d/d and up 9.97 per cent from year-end. It increased from 320.11 index points Friday, September 16th to 321.50 index points Monday, September 19th.
SOFIX (of Sofia) increased from 475.62 index points Friday, September 16th to 476.81 index points Monday, September 19th. So it’s up 0.25 per cent d/d and up 3.45 per cent from year-end.
UX (of Kyiv) was up 1.03 per cent d/d and up 13.31 per cent from year-end. It increased from 769.16 index points Friday, September 16th to 777.12 index points Monday, September 19th.
CROBEX (of Zagreb) was 0.22 per cent – increasing from 1875.90 index points Friday, September 16th to 1880.06 index points Monday, September 19th. From year-end it’s up 11.27 per cent.