Bulgaria’s Banks Riding the Storm

As daily doses of negative economic news are dispensed from Wall Street, certain areas of the investment landscape continue to do good business. Bulgarian banks, for example, are still doing remarkable commerce even in the face of the global economic crisis.

Bulgarian banks posted a 10.5% increase in assets during the second quarter of 2008, continuing the excellent growth that they have had over the last year. As with other eastern and central European countries, the banking system is somewhat underdeveloped in comparison to the West. Bulgaria’s banking needs were less complex and because of this, banks that expanded into the region did not need to involve themselves in higher risk arrangements like those that occurred on Wall Street. In retrospect, it was a perfect case of “less” being “more”.

Christoph Rosenberg, regional representative for the International Monetary Fund, summed it up this way: “The new EU member states have been holding up well in the global financial turmoil.” “Banking systems in countries with a relatively low loan-to-deposit ratio… are less exposed to the risk that foreign funding dries up,” he recently told Reuters.

James Gonzalez, Market Analyst at Obelisk, does not see foreign funding in Bulgaria waning any time soon. “Bulgaria is an attractive emerging market with a great future. Its banking system should remain immune to the monetary contraction that is affecting so many other markets. Bulgaria should continue to provide great return on investment.”

The need to maintain the high level of foreign direct investment (FDI) remains paramount to Bulgaria’s economic outlook and the latest data does not indicate that a decline is imminent. Stoyan Stalev, chief executive of Invest Bulgaria Agency, recently announced that Bulgaria received €2.84 billion of FDI between January and July, 2008, representing a year-on-year increase of €200 million.

He also announced that in 2006 and 2007, there was a total of €11.2 billion invested in Bulgaria, a figure that represents more than one-and-a-half times the total sum of FDI in the 16 year period after 1992. He attributed this growth to the country’s low taxation and the currency arrangement that pegs the leva to the euro, adding to economic stability.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com.

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.

Sicily: Land of Culture and Investment Opportunities

Sicily has been historically important for centuries due to its strategic Mediterranean location. The island, located just off the 'toe' of the Italian 'boot', has a population of roughly 5 million people. With a land mass of over 25,000 square kilometres, it is the largest island in the Mediterranean.

However, Sicily is now garnering attention from many people who are interested in investing in its history and natural beauty.

There are many reasons to invest in Sicily but the first one is basic. Property in Sicily provides the best value anywhere in Italy. Both apartments and villas are priced well below that of other regions on the mainland. For example, a 3 bedroom property can still be found inland in Sicily for a fraction of what it would cost to buy in the rest of Italy.

This viewpoint is supported by James Gonzalez, Obelisk’s Market Analyst. “For those who are looking to invest in the Italian market, Sicily has to be the place. Reasonable prices, excellent infrastructure and a growing popularity as a tourist destination for Italians and foreigners alike make Sicily a definite investment hotspot.”

Sicily has sand, sea, mountains and even an active volcano. It also has a wealth of cultural attractions that make it a desirable port of call for tourists with a wide range of interests. It is a magnet for not only sun worshippers but it is also a Mecca for art connoisseurs, history enthusiasts and lovers of fine architecture.

These are not only important selling points for the lifestyle buyer but also for the straight investor because a market with a strong tourist industry will afford the investor with a long term investment strategy as well as possible exit strategies (thereby reducing risk).

Another reason that many investors are turning to Sicily is the expansion of low cost flights to the island, especially from the UK. Ryanair now has direct flights to Sicily from London Stansted. The improved transport links will raise the island’s profile and also increase tourism.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com.

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.

Buenos Aires Property Goes Upmarket

Argentina is again showing signs of economic recovery. The tourism sector has exploded and at times it is difficult to find flights to Buenos Aires. The city’s best hotels are operating at nearly full capacity and 3,000 new jobs were created in the tourism sector over the last year. Most importantly, Argentina’s economic growth is estimated to be 8.7% for 2008, a far cry from the negative numbers registered just six years earlier.

The crisis period of 1999 to 2002 saw an actual decrease in the country’s GDP as well as a massive devaluation of the peso. Unemployment ballooned and because of skyrocketing inflation, the number of Argentineans under the poverty line exploded to nearly 60% of the population.

Those dark days now seem firmly in the past. The solid recovery has been noticed by investors both inside and outside of Argentina and major property investment is again growing. One such example is now occurring in the Puerto Madero neighbourhood of Buenos Aires, an area that is described as akin to London’s Docklands. Until recently, there were only run-down warehouses at Puerto Madero. However, since a local developer constructed a luxury boutique hotel, major hotels have followed. The area is now becoming “gentrified” with numerous upscale shops and restaurants opening their doors before the property values continue to climb.

The developer followed up his hotel success with the launch of an exclusive housing development in Puerto Madero. Designed by renowned British architect, Norman Foster, prices will range from €183,000 for a 1-bedroom apartment to €4.40 million for a penthouse.

When completed, it will be the most luxurious apartment development in Buenos Aires but the developer believes they still represent great value for the money, especially for a European investor. “With the apartments you are getting a respect for design and architecture,” the Times Online was told.

The project is already proving to be a success with local buyers making up 60% of the purchasers. The remaining 40% is comprised by foreigners who include mainly Britons, American and Spaniards. Financing still remains a problem—an unfortunate hangover from the earlier economic problems—however, the property market in Argentina is still an investment possibility well worth considering.

James Gonzalez, Market Analyst for Obelisk, believes that after its earlier period of crisis, Argentina may very well be ready for serious examination. “Argentina has had its period of dramatic downturns but it may now have turned the corner. Residential prices on resale properties rose by 13% in 2007 while residential rents rose at an even faster rate. With high yields on luxury properties and high economic growth, investing in Argentina may well be worth considering.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

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For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.

Fight Inflation First: Morocco

While much of the world remains preoccupied with the crisis sparked by the volatile credit market, the governor at Morocco’s central bank, Abdellatif Jouahri, was recently quoted as saying that he is more concerned about fighting inflation.

“For the time being, inflation remains a cause of concern because despite efforts to keep it in check, imported inflation has an impact,” Mr Jouahri said.
According to the latest figures, year-on-year inflation rose to 5.1% in July and 4.7% in June. The annual inflation figure for May was 5.4%. These figures are higher than government predictions, which in June were between 2.7-2.9%, up from an earlier estimate of 2.0%. These increases are attributed to higher transportation costs brought on by rising international food prices.

“Inflation through costs has an impact and creates, with wage rises, a vicious circle, Mr. Jouahri added.

The central bank governor downplayed the possible effects the worldwide credit crisis could have upon his nation’s economy. “We are not affected by the international crisis because we do not have sub-prime loans in our banks. We are not concerned by the mortgage crisis and our banks do not have such assets,” he said.

Government officials believe that strong growth of the domestic property market ensures that Morocco will be cushioned from international downturns for some time to come. “Where is the crisis when credits to the property market had risen 33% in July?” asked Finance Minister Salaheddine Mezouar, when questioned about the recent decline in the Moroccan stock market earlier this week and the general nervousness of many investors worldwide.

James Gonzalez, Market Analyst at Obelisk, also believes that Morocco will continue to offer excellent investment opportunities well into the future. “Property in Morocco is attractive to the foreign investor and with such a favourable exchange rate between the Moroccan dirham and major currencies like the pound and euro, the investment climate in Morocco should prove tempting for some time to come.”

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com.

For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.

Egypt World's 10th Best Business Reformer

In the World Bank’s recently released “Doing Business 2009 Report”, Egypt was found to have reformed its business regulations more than any other Middle East country. Once again, it was ranked among the top 10 global reformers for the third year in a row.

The country streamlined the process of starting a business by reducing the capital requirement by over 80%. It also introduced an automated system of tax registration, something that will cut endless delays and red tape.

Egypt has introduced changes in the rules concerning listings on its stock exchange. This move was made to strengthen protection for minority shareholders. Procedures to register properties were simplified and a new system has also been introduced to speed up custom clearances at the port of Alexandria.

Although the country ranked first in last year’s survey, the drop in ranking should not be seen as a negative mark against the rate of reforms in the country. Ziad Bahaa El-Din, a member of Egypt’s General Authority for Investment and Free Zones states, “We are not reforming alone. Other countries are reforming too.”

The report seems to echo these sentiments. Its co-author states, “Ranking lower than last year [on the world’s top 10 reformers] does not necessarily mean that this country is stagnating with its reforms. But it means that there are other countries outpacing its reform process.”

James Gonzalez, Market Analyst for Obelisk, sees the report as good news. “Being so highly ranked on the global reformer list for three years running shows a real long-term commitment to modify their system and make substantial change. Investors should take note.”

His point is reflected in other figures. For example, Egypt rose 11 places in the aggregate rankings on the ease of doing business, ranking 114 out of 181 countries, up from 125th place.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

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For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.

US Mortgage Bailout Good News for Investors?

The recent news of that the US government is taking over control of the country’s two largest mortgage companies, the Federal National Mortgage Association (better known as Fannie Mae) and the Federal Home Loan Mortgage Association (Freddy Mac) is being seen by many as positive news for the general worldwide investment climate.

On 8 September the US Treasury Secretary, Henry Paulson, announced that the government would be placing the two agencies under "conservatorship", which is closely related to bankruptcy protection.

The two entities were created to provide liquidity to offer affordable mortgage loans to Americans. Over time Fannie Mae and Freddy Mac both grew in importance and now it is estimated that combined, the two corporations own or have guaranteed about 50% of the United States' US$12 trillion home loan market. However, both entities were caught up in the sub-prime loan debacle and have seen their share values plummet to levels which now bring into question their ability to cover the losses on the mortgages they hold.

Keith Shaughnessy, a mortgage market insider, believes that the move by the government will aid the suffering housing and credit sector. He states, "The government seizure of Fannie Mae and Freddie Mac will restore credibility to the mortgage market and encourage investors..."

James Gonzalez, Obelisk's Market Analyst, agrees, "The incertitude created by the sub-prime loan affair in the US and its after effects, have had detrimental consequences for money markets around the globe. Hopefully this move will be the first step in helping investors turn the corner and return some confidence to the international credit market."

If the intervention does re-kindle confidence in the American mortgage market, it could have the effect of lowering interest rates and relaxing credit worldwide. This, in turn, would spark investment and thereby increase the number of investment opportunities available. Every canny investor should pay close attention to this developing story, no matter where they reside.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).

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For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.

Cluj-Napoca to Meet Chelsea in Champions League Tie

Premier League giant, Chelsea, takes a step into the unknown on 1st October, when the team travels to Cluj, in north west Romania, to play the city’s football team, CFR Cluj, in the UEFA Champions League group stages. Experts agree that the Romanian team will be the least of Chelsea’s worries - they are more likely to be concerned about their matches against Italian giants, Roma and French side, Bordeaux, but perhaps they would be wise not to underestimate CFR Cluj.

James Gonzalez, Market Analyst at Obelisk comments, “If the city’s football team is half as successful as its economy, Chelsea had better watch out. Chelsea fans may be beating a path to Cluj for this game, but foreign investors have also been turning their sights to the area and they are definitely here to stay.”

Cluj – a previously little-known city in the Transylvanian region of Romania was recently voted the Number 1 place to invest in the world, while the Financial Times called it a “hot new investment prospect.” The region has one of the most vibrant economies in the country and is one of Romania’s most important academic and business centres. The city has already attracted a number of high profile investors, such as US company, Emerson Electric, and the mobile phone giant, Nokia, which has invested €200 million in Cluj, creating thousands of new jobs in their new factory and research centre.

Chelsea’s Club Secretary, David Barnard admitted after the draw that the CFR Cluj team was something of a mystery to them, “Obviously the Romanian team is of interest to us as I'm not aware of them at all,” he said. “but any team that reaches the group stages of the Champions League deserves respect so we won't underestimate them but we will have to do a bit of additional homework on them."

When Chelsea do their homework, they will discover that CFR Cluj deserve their respect. The team won the Romanian league (Liga 1) for the first time last season and, like Chelsea, their rise to fame has been funded by a rich patron. Transylvanian tycoon, Arpad Paszkany, took over the club in 2002 when the team languished in the third division. Paszkany vowed then that Cluj would be in Liga 1 within 4 years, much to his critics’ amusement. Happily, the critics have been proved wrong; not only did the team reach Liga 1, they finished the 2008 season unbeaten and 11 points clear at the top of the table.

When the Chelsea team arrives in October, CFR Cluj may yet surprise them with their footballing skills and their wives and girlfriends will undoubtedly be surprised to find the brand new Polus Center in Cluj. When the footballer and their fans go home after the big match, the investors will remain, keeping Cluj well and truly in the limelight.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)

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Slovakia Basks in Sunshine

The FT’s most recent ‘economic weather’ map showed some poor climatic conditions for many parts of Europe. Rain clouds cluster over Ireland and storms gather over the UK and Denmark. The economy’s ‘weather’ generally improves as you travel east and Scandinavia, the Netherlands and Poland are enjoying some sunny spells. But there is only one place to go if you want full-blown sunshine –Slovakia.

This central European state basks in the sun because it is the only European country to meet the FT’s criteria for total sunshine – economic growth and falling unemployment. According to FT figures, Slovakia’s predicted GDP growth for this year is 7.6%, a figure many of Slovakia’s fellow EU members can only dream of. The FT predicts unemployment of a mere 3.9% for 2008, a level that is not far off full employment, again wishful thinking for some European countries.

Slovakia, once one of the continent’s poorer nations and under the shackles of communism, now finds itself at the forefront of the world’s fastest growing economies. Since joining the EU in 2004, Slovakia has seen great changes. The world’s biggest per capita car producer, Slovakia is enjoying new-found affluence, mainly created by the plentiful job opportunities in the west of the country, particularly in and around the capital, Bratislava.

Hand-in-hand with the new prosperity and job creation goes a booming property market. Since joining the EU, Slovakia – in common with most new member states – saw massive hikes in property prices with housing in some areas doubling in value. 2007 saw the impressive increase of 25% with 2008 set to witness an impressive rise of 20%. “A combination of excellent economic conditions and the strong demand for quality properties means the Slovakian property market can be expected to continue to perform very well. I would say that Bratislava and its outskirts represent one of the best investment opportunities in emerging markets,” comments James Gonzalez, Market Analyst at Obelisk.

There is plenty of potential for further market growth, particularly in Bratislava. Set to see a huge rise in population as increasing numbers of migrant workers move to the capital, Bratislava suffers from a shortage of housing – some analysts quote a shortfall of over 200,000 units. Unsurprisingly, the capital is one of Slovakia’s hot spots and is currently enjoying a very sunny property market.

At a time when many countries are bracing themselves for the stormy weather that accompanies the effects of the global credit crunch, Slovakia is in a class of its own. Set to join the euro in January 2009, the future – as well as the present – certainly shines brightly for Slovakia.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)

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Financial Integration for Central American Markets

The Central American stock markets are making new moves towards financial integration to increase trading volume and attract foreign direct investment. Panama, Costa Rica and El Salvador may have an integrated stock exchange as early as the first half of 2009.

The three countries have been taking advice from Scandinavia’s integrated stock exchange about the best way forward and it is hoped that once regulatory and technical obstacles have been removed in the next few months, the path will be clear for a single trading platform. The project has been funded by the Inter-American Development Bank and single trading platforms across South America are also in the pipeline. In addition, Chile, Mexico and Brazil are in discussions about removing barriers to cross-border trading and Colombia and Peru may integrate their markets next year.

James Gonzalez, Market Analyst at Obelisk says, “This is very positive news for the region and will promote economic growth. Each of the countries have their own strengths and combining them will form a formidable financial force.”

At a conference organised by the Association of Central American and Caribbean stock exchanges (Bolcen), the Chairman of Panama’s stock exchange, Ricardo Arango, said, “We expect to generate significant interest and revenues once we become a more liquid and significant market.” He added that the Central American markets have also held preliminary talks in Peru and Columbia and are attracting considerable interest from companies in those countries who are keen to list shares in Central America.

An economist from the International Monetary Fund (IMF), Hemant Shah, said that such a move may spur the region’s expansion, and added that although full financial integration may take several years, it would contribute to financial development which will have a profound effect on economic growth. Rupert Stebbings, Head of International Sales at Interbolsa, Columbia’s largest stock brokerage said, “These markets are a new frontier, individually, they've lacked the scale and liquidity needed for foreign investors to enter, but combined they'll move onto Wall Street's radar screen.”

The United Nations Economic Commission for Latin America and the Caribbean reported that the Central American economies are expected to grow around 5% this year, despite the fact that the region faces rising inflation and is beginning to feel the effects of the ailing US economy, its main trading partner. Although growth has reduced across the region, the Central American economies are holding their own and the financial integration of their separate stock exchanges may be the answer.

For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)

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For press enquires, please contact Obelisk’s Marketing Department on (+34) 952 820 319 or email press@obeliskinternational.com

US Retail Giant Invests in Brazil

The world’s largest corporation, US retail giant, Wal-Mart, gave Brazil a massive vote of confidence recently when it unveiled plans to invest more than US$ 1 billion in the country. Wal-Mart is no stranger to Brazil; it opened its first store in the country in 1995, but this latest expansion is its largest investment yet in the country.

Wal-Mart currently has a total of 318 outlets in Brazil, employing around 70,000 people. So far in 2008 they have spent just under US$ 1 billion to open 36 new stores and have generated more than 7,000 new jobs. Their latest announcement followed a recent meeting of Wal-Mart bosses with Brazilian President, Luiz Inacio Lula da Silva, to seal the deal. Craig Herkert, President and CEO of Wal-Mart’s Americas division, said,
“Wal-Mart Brazil plans to invest between US$1 billion to US$1.12 billion and open 80 to 90 new stores. The investment and store openings, scheduled for 2009, are expected to generate 9,000 new jobs.”

James Gonzalez, Market Analyst at Obelisk, says this latest news shows continued confidence in Brazil by a big-name investor. “Wal-Mart is providing basic goods in a rapidly expanding country and their previous investments have more than paid off. They know the potential is there.”

Wal-Mart has become one of Brazil’s largest retailers after acquiring several local chains and over the past four years it has invested more than US$1.9 billion in Brazil. Wal-Mart has seen what many other high profile investors have already noticed; Brazil, Latin America’s largest economy, has made a dramatic economic turnaround in recent years and the Brazilian currency, the real, is performing strongly which is making imports cheaper. In addition, expanding consumer credit, with more affordable mortgages available to Brazilians, has driven a spending boom in the country.

The government’s economic reforms have succeeded in making the country a highly favourable fiscal and political environment for investors. Brazil’s economy grew by 5.4 percent in 2007, there is a strong demand for the country’s commodities and inflation is down to 5.7%. Even better, it is expected to stay that way, according to the Economist Intelligence Unit - an amazing achievement for a country that once suffered from hyperinflation. Standard & Poor, the financial ratings agency, has recently increased Brazil’s credit rating to BBB minus, a further sign of increased confidence in the country and one which supports Goldman Sachs’ 2003 ‘BRIC’ theory that Brazil will become one of the most dominant economies in the world by 2050.

Wal-Mart is just one of many big investors being attracted to the country. Hector Nunez, the company's President in Brazil commented that “Brazil is a highly strategic country for Wal-Mart and we are going to continue growing in the country. This is a country with high growth, with much economic, political and social stability ... and a growing middle-class.”