Page 19 - BNE_magazine_bne_September 2019

bne September 2019 Companies & Markets I 19
Frontera entered a 50-year deal to search for oil and gas in southern Moldova in 2017, pledging to invest $500mn, but has not reported conducting any activity in the country since then.
Ponomarev has responded to Groysman’s indication that the award will be rescinded by suggesting that Trident seek out a large international company as partner for the Dolphin area.
He has also made lofty claims about the project’s potential, suggesting it could unlock $1bn in foreign investment. Under the terms of the Dolphin PSA, however, its chosen operator
will be required to spend only UAH1.5bn ($55.5mn) during an initial exploration phase, which will involve the completion of at least five wells.
In an August 1 statement on Facebook, Ponomarev went on to say that Dolphin’s development could lead to an increase in Ukrainian gas production by 10-15%, citing its 40-50bn cubic metres of potentially recoverable gas resources. But the area does not contain any proven commercial gas fields, making its value difficult to gauge until drilling has been undertaken. A final decision on the contract award will be taken by Ukraine’s cabinet.
Macedonia gets first ratings upgrade in 13 years
Valentina Dimitrievska in Skopje
Fitch Ratings upgraded North Macedonia's long-term foreign and local-currency ratings (IDRs) to 'BB+' from 'BB' with stable outlook on June 14.
This is the first time in 13 years that Fitch has upgraded the rating of the country, known as Macedonia until it was renamed North Macedonia under the name deal with Greece in order to solve the long-standing dispute between the two neighbours.
Fitch praised improved governance standards and reforms in the country saying that this provides greater reassurance that North Macedonia “will not revert to the political paralysis of 2014-2017.”
This "facilitated further progress towards Nato membership and the opening of EU accession negotiations, which support
“North Macedonia will not revert to the political paralysis of 2014-2017”
investor confidence and act as policy anchors for sustained reform and macroeconomic stability,” Fitch said.
Fitch forecasts that North Macedonia’s GDP growth will accelerate to 3.4% in 2019 and 3.6% in 2020, from 2.7% in 2018 and just 0.2% in 2017.
The country's central bank expects GDP growth of 3.5% this year.
The country’s gross general government debt is expected to increase 2.0pp in 2019 to 42.5%, before falling to 42.2% in 2020, close to the 'BB' median of 42.5%.
Fitch foresees that general government gap will widen to 2.4% of GDP in 2019 and 2.2% in 2020, driven by higher expenditure as well as arrears clearance this year.
In 2018, general government deficit narrowed by 1.7pp in 2018 to 1.1% of GDP on the back of a large under-execution of public investment projects, 9.4% tax revenue growth, and improved local government balances.
“The improved credit rating will have a positive impact on investing decisions in the country, which will further result in higher economic growth, increased exports, more jobs and higher salaries,” North Macedonia’s Finance Minister Dragan Tevdovski commented on the improved rating.
www.bne.eu