Tuesday, May 21, 2013

Wall Street Journal: Eastern Europe is for SALE

The Wall Street Journals considers that many investors see Central and Eastern Europe (Romania included) as a region full of opportunities, emerging markets alternative to "traditional" ones such as Brazil or Asia, the countries of the offering for privatization assets ranging from film studios in Poland to CFR Marfa in Romania (lately described as a flop in the country).

Given as an example by Wall Street Journal were the last year auction of the Polish government which auctioned two studios that deal with animated films and documentaries, with prices ranging between 100,000-200,000 USD.

The tudios in Poland appeared but "trifles" against the assets offered for sale by other governments. In Romania, the government tried to sell the national rail company catalog for 81 million dollars, while the national postal company (Posta Romana) is selling for $ 112 million, WSJ notes, illustrating the privatization of CFR Marfa through an image with a the tram line 32 in Bucharest ?!

"The list is endless because the governments in the region develops aggressive privatization programs, including health centers, manufacturers of ceramic and even farm animals," notes the US Publication.

Sales of this type are considered to be loaded with risks and difficulties for foreign investors continues newspaper said. Low yields offered in other parts of the world, and gain 2% associated with U.S. Treasury securities, increased investor interest but Central and Eastern Europe, analysts say.

But we consider the reason why Eastern Europe to be the most important in the article by the American Publication, respectively: For many investors, Eastern Europe, with investment opportunities, low debt and a low cost of labor, it seems more attractive than the western continent, mired in a sovereign debt crisis and prolonged recession.
 

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