OLD AND BEAUTIFUL EUROPE

ROMANIA:

Eximbank and Gazprombank, the division of the Russian group Gazprom in the banking domain, signed early this week a framework agreement of cooperation, informs a press release remitted to our editorial office. The new partnership intends to facilitate the access of the Romanian companies on the market from Russia, offering information to the Romanian exporters about the potential business opportunities and payment methods.

“Through this collaboration, the Export Import Bank of Romania will facilitate the access of the Romanian business operators on the market from the Russian Federation. Our institutions will collaborate for the intensification of the commercial exchanges between the two countries, for the interest of our clients who provide activities in the domain of export,” said in the press release Carmen Radu, President and CEO, Eximbank Romania. The new agreement limits the risks associated with the international transactions, offering the Romanian exporters commercial information about the economic potential, the business environment and the commercial practices from Russia.

The Romanian companies interested in the Russian market will also have the possibility to make exports even if the business partner does not have resources to acquit their equivalent, through a credit line – purchaser at the disposal of the importer, granted by Gazprombank.

BULGARIA:

CEZ, the Czech utility company, said it will merge into one entity from October 1, 2007 the three regional power distribution companies it owns in Bulgaria.

The consolidation of the CEZ power distributors servicing the city of Sofia, the greater Sofia region and the city of Pleven aims to streamline their operation and efficiency while improving management.

The Sofia power distributor will ingest its Pleven and Sofia-region sister companies and the new entity will be called CEZ Distribution Bulgaria. It will be in charge of the distribution network across Western Bulgaria.

MACEDONIA:

The salaries of state and public administration employees will be increased for 34 per cent in the next two years, while the pensions will rise for 20 per cent.

The Government decided this on Wednesday's session, announced prime minister Nikola Gruevski.

He specified that the increase of the administrative workers' salaries will be gradual.

"The increase of administrative workers' salaries will start on 1 October 2007 and will last until 1 October 2009, and they will rise for 10 per cent annually", Gruevski specified.

This will bring about increase of pension of all retired, starting on 1 January 2008 and rising 20 per cent after the two years, Gruevski said.

The prime minister also informed that money for this would be provided from the Budget and will be between MKD 2.7 and 3.5 bn.

Before the end of 2007, MKD 670 mln from the Budget will be spent on increasing the administrative workers' salaries.

Gruevski said that the Budget deficit will remain on the planned 1.5 per cent of GDP and that the inflation will not rise above 2 per cent.

The Government informed the International Monetary Fund about this decision.

This decision encompasses 108 114 employees of all public administration sectors, including civil servants, public workers in education, culture, Interior Ministry, judiciary, health sector, embassies etc.