Emerging Europe

The insurance industry needs to consolidate as regulatory pressures build and margins shrink. Yet last year M&A activity in the sector was at a record low. The beginning of 2010 looked promising, but if the Prudential/AIA deal does not succeed, will it signal to the market that it’s still not time? Helen Avery reports.

Despite dropping in several of the regional rankings, AIU, now Chartis Insurance, ranked as the best insurer globally for the third year running in Euromoney’s insurance survey. The majority of last year’s top 10 global insurers remained in the top 10; the exception was Mapfre, which was ousted by Australia-headquartered QBE. Within the top 10, Axa made the most progress this year, jumping from seventh in 2009 to second in 2010.

Amid the threat of competitive devaluations, the US and the eurozone need help from the new emerging market powers.

Egypt’s bonds helped by rarity factor; Both tranches hold ground against Russia

Airport, port deals help expand capacity; Private and public lenders show support

The government of Turkey has plans to turn Istanbul into an international financial centre. The historical, geographic and political reasons behind the plan seem sound but the details suggest that practicalities might put the project out of reach. Nick Lord reports from Istanbul.

Restructurings likely to lead to re-rating of financial sector risk; Domestic markets insufficient for future growth

Bank makes three key hires; Issuance volumes likely to rise across all three regions

Moscow’s attempt to develop as an important financial centre is at the core of a series of capital markets-friendly legislative changes. Euromoney talks to investors, City of Moscow officials, exchange heads and regulators about progress so far and what is to come.

If Azerbaijan lacks foreign banks, it also lacks foreign bankers. Yet a pair of outsiders from very different backgrounds have ended up running two of Azerbaijan’s leading banks.

The Live Riga brand has been developed by German advertising agency Embassy, whose Be Berlin campaign in 2008 was widely recognized as a great success. It is hoped that through promotions such as Live Riga, tourism’s contribution to GDP will increase by 15% to 20% a year – twice the average for the EU – with each additional 1 million tourists helping to create 10,000 new jobs. “Tourism is actually the only sector where relatively fast growth is possible,” says Janis Naglis, president of the LVRA. “That is why, in a time of economic crisis, it is precisely tourism and its economic contribution to the city and its residents that can be good news.”

Having shrunk by almost a third since 2008 the Latvian economy needs a makeover. So it is appropriate that among the small and medium-sized enterprises that it is hoped will create the base for a turnaround in the Baltic state’s fortunes is cosmetics firm Madara. The firm has not only managed to shrug off the effects of the domestic downturn but is also blazing an export trail in more than 20 countries in Europe and Asia. It is proof that given the right product and marketing expertise Latvia can compete with the best.

In a country where the real estate markets have witnessed a spectacular boom followed by an equally spectacular bust – property prices at one point in 2009 were down as much as 75% from their 2007 peaks – it’s no surprise that vendors in Latvia have been pushed to the limits when it comes to trying to drum up much-needed cash.

A proposed merger of the EIB and EBRD has received the endorsement of Michel Camdessus, the former managing director of the IMF, and an advisory EU committee he headed. He speaks exclusively to Nick Lord.

Latvia’s blonde ambition

The economy has gone a double-digit economic boom to a double-digit recession. Guy Norton reports on how the embattled Baltic state is coping.

Privatization and procrastination are inextricably linked in Kosovo. The country desperately needs the revenues that a sell-off of state enterprises would bring but its authorities lack the willpower to execute deals. Elliot Wilson report.

Kosovars feel oppressed by high interest rates and suspect a bank cartel. The banks respond by citing the country’s fragile status as a sovereign, making funding expensive and uncertain. Either way, costly credit is an impediment to growth, and widespread corruption adds its own obstacles. Elliot Wilson reports.

After the turmoil of the past couple of years, many have been surprised by the amount of deal activity. But, having scaled back during the crisis, they’re finding that local rivals are winning more business. Dominic O’Neill reports.

Fidesz party seeks to expand state spending limits; Analyst warns on dangers of political rhetoric

Volatile, opaque market makes for rollercoaster ride; Structural demand/supply levels give grounds for hope

Pioneering issue attracts institutional demand; Proceeds to fund gas project

Emerging market banks should brace themselves for when the coming bubble bursts.

The country is thinking big in technology and finance. But it needs to create a supportive culture first.

Turkish exchange to replicate UK’s AIM; Istanbul looks to expand horizons to Russia, Middle East

In the past year Russian aluminium company Rusal has undertaken a big debt restructuring and a record-breaking IPO. Yet controversy stalks its every move. Sudip Roy talks to one of its senior officials about the firm’s future.

Bond return shows just how much things have changed since Russia’s default in 1998.

Investor sentiment towards Estonia improving; Food company to offer welcome diversification

Rating gets junked by S&P; EU and IMF likely to provide fully-funded support but market increasingly believes a future default is inevitable