Page 10 - bne magazine September 2020 russia melting

10 I Companies & Markets bne September 2020
Czech brewing industry posted loss of almost €180mn during coronavirus lockdown
bne IntelliNews
The Czech brewing industry recorded a loss of over CZK4.7bn (€179mn) in March to May due to the coronavirus (COVID-19) and related government measures, as stated in a study conducted by the Center for Economic and Market Analysis (CETA), published on July 28.
The most negatively affected were restaurants and bars, which were forced to close overnight. Beer sales in this segment decreased by 55% (728,000 hectolitres) between March and May. The losses of the breweries in terms of sales exceeded CZK1.104mn. Sales of bottled beer, which was sold more in stores, increased by about CZK794mn.
“The hospitality and beer industries suffered significant losses during the coronavirus crisis. Most pubs reopened in June, but the coming weeks will decide whether they survive. The most critical situation is in Prague, Karlovy Vary and other localities dependent on tourism,” said executive director of the Czech Association of Breweries and Malthouses Martina Ferencova, quoted by the Czech News Agency.
The coronavirus lockdown meant the immediate closure of bars and restaurants, and the cancellation of beer festivals and other events.
“For the next period, it will be crucial for the government to continue to support the most affected sectors, including the hospitality industry, and at the same time not burden them with new administrative and regulatory measures,” Ferencova stressed.
In connection with possible concerns about the second wave of the coronavirus pandemic, restaurants fear further possible closures and further losses.
“Although the pubs and restaurants are open, we definitely have not won. Demand is still subdued in many places, while costs are returning to their original levels. Especially in
tourist locations, restaurants need help as well as hotels and spas. Following the example of the tourism agenda, also the National Gastronomy Support Program should be established. With a clear agenda and action plan,” said co-founder of the Hospodska restaurant group Lubos Kastner.
VTB Capital sees complications with viability of Tajik eurobond amid weakening sovereign profile
Kanat Shaku in Almaty
Tajikistan’s sovereign profile has weakened more significantly than would be expected from a “standard 2020 narrative” for a small, remittances-based economy, according to a note to investors from VTB Capital, the analytical arm of Russian investment firm VTB Group. The impact of this would be felt by the Tajik eurobond issued in 2017, “TAJIKI bond”, it added.
VTB argued that there were three building blocks underlying its view, including hydrology issues; the evolving energy
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situation in Pakistan; and the ‘no new commercial
debt’ commitment. The three factors add to the already complicated situation with the construction of the huge Roghun hydropower dam. The bond was originally issued to finance part of that construction. Tajikistan raised $500mn from the bond issuance in 2017, which priced at 7.125%.
“Together with the rest of the market, the TAJIKI bond has by now fully pared the losses from the March selloff,” the VTB Capital noted. “As elsewhere, this run-up in prices was driven