IMF Executive Board Concludes 2022 Article IV Consultation with the Principality of Andorra

On June 10, 2022, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation ^[1] with the Principality of Andorra and endorsed the staff appraisal without a meeting.

The Andorran economy rebounded strongly from the large contraction caused by the COVID-19 pandemic. Growth in 2021 (8.9 percent) was supported by a recovery in tourism, retail trade, construction, and professional services. Headline inflation rose to 4.9 percent in March 2022, the highest reading in the last 10 years. However, price pressures were more limited than in neighboring countries thanks to long-term contracts with foreign energy suppliers that mitigated the rise in electricity prices. Labor market conditions tightened due to declining unemployment and a sharp rise in job vacancies but did not create significant wage pressures. Despite the roll back of most COVID-related measures, the overall policy mix remained supportive in 2021.

With growth projected at 4.5 percent in 2022, activity is expected to return to pre-crisis levels in the second half of 2022. However, downside risks to the outlook are significant, related to the economic impact in Europe of the war in Ukraine, the sharp increase in commodity prices, an unfavorable evolution of the pandemic, weaker recoveries in neighboring countries, and tighter financial conditions. Strong fiscal buffers, a large current account surplus, newly accumulated external reserves, and liquid and well-capitalized banks, will help in this highly uncertain environment. In the medium term, real GDP growth is expected to converge to its 1.5 percent potential. Still, the missed 2020–21 winter season and the sharp contraction in investment during the pandemic caused an estimated permanent income loss of about 3 percent. As in neighboring countries, high inflation will likely persist in 2022 and early 2023 due to still high energy prices but should ease thereafter.

TEXTO PROPIEDAD: https://www.imf.org/en/News/Articles/2022/06/17/imf-executive-board-concludes-2022-article-iv-consultation-with-the-principality-of-andorra

S’esperen més atacs informàtics de hackers, que la policia investiga amb organismes internacionals

In conversation with: Jordi Gallardo, Andorra’s Minister of Economy and Enterprise

Andorra’s Minister of Economy and Enterprise, Jordi Gallardo, discusses the country’s decade-long FDI boom and its plans to shake off outdated perceptions.

Not everyone can immediately locate Andorra on the map, and that is the very thing that the country’s Minister of Economy and Enterprise, Jordi Gallardo, intends to change.

Situated between France and Spain in the Pyrenees mountains, Andorra has a population of approximately 77,500 and an area of 468km2. In 2021, it recorded a GDP of $3.1bn, total imports of $1.57bn and an unemployment rate of 2.5%.

The country’s economy revolves around services, with retail accounting for 17% of GDP, followed by real estate at 15%, the public sector at 14% and financial services at 12%.

In 2012, a foreign direct investment (FDI) law came into force, opening up the country’s economy to foreign investors. Since then, international investors, whether resident or not, may own up to 100% of any Andorra-based company. The law also liberalised restrictions on foreign professionals seeking to work in Andorra.

This change in law has proven to be hugely lucrative for Andorra. FDI went up by 7,600% between 2012 and 2021, and by 540% between 2017 and 2021, accounting for 18.7% of GDP at the end of last year.

Actua promociona el país amb el vídeo ‘Invest in Andorra’

El nou suport promocional, que explica algunes de les principals característiques i dades macroeconòmiques del país, s’utilitzarà en diversos esdeveniments futurs

Actua ha publicat avui ‘Invest in Andorra’, un vídeo que promociona el país explicant algunes de les principals característiques i dades macroeconòmiques del país, com la baixa taxa de criminalitat o la quantitat de turistes que rep en un any. El nou suport promocional s’utilitzarà en diversos esdeveniments com fires, congressos i presentacions,

TEXTO PROPIEDAD: https://www.diariandorra.ad/noticies/nacional/2020/03/17/actua_promociona_pais_amb_video_invest_andorra_158694_1125.html

Protecvall se sent “fustigat” pel grup que controla el sector de la seguretat

El propietari afirma que des que va rebutjar vendre al Grup Menta s’estan fent ofertes a treballadors per “sobre d’allò raonable”

Joan Musarra, propietari de Protecvall, va pronunciar-se ahir sobre el moment convuls pel qual passa el sector de la seguretat privada amb l’aterratge del Grup Menta, que està engolint la majoria de les companyies que funcionen al país camí del que podria convertir-se en un monopoli.

Musarra, que va fundar l’empresa fa 30 anys i que ara té 70 treballadors a la plantilla, va explicar que Protecvall també és objecte del desig del grup que encapçala un empresari manxec, però que no se li ha passat pel cap vendre. De fet, va rebutjar l’oferta de Grup Menta perquè vol seguir al capdavant i fer front a una competència que augura que serà molt perjudicial també per als clients i per als mateixos treballadors, “ja que si tot està en mans del mateix grup no hi haurà alternativa ni opció de canvis per millorar, i si el mercat està monopolitzat també ho estaran les tarifes”, va avisar.

Des que va declinar la venda, assegura que se sent pressionat per no haver cedit a la proposta que tampoc va considerar atractiva econòmicament, i no dubta a parlar que des de llavors és objecte d’un “fustigament que té un clar objectiu d’aconseguir la rendició o enfonsar la nostra empresa”. Musarra es refereix de forma clara que “estan fent ofertes a personal nostre per sobre d’allò raonable, indicant clarament que el que volen no és la qualificació, com hauria de ser, sinó que la fixació és el nostre valor que es fonamenta en el coneixement intern de persones que ocupen llocs claus i que controlen tot el nostre personal, els clients i els preus”.

Musarra, que és l’únic propietari de Protecvall, va afegir que “ja estan fent visites als nostres clients amb tècniques de pressió, com també ho fan amb el nostre personal”. I va remarcar que l’ham són salaris insostenibles, horaris incompatibles amb els serveis que oferim o preus que només condueixen a pèrdues. En aquest sentit, va subratllar que qui aconsegueixi fer-se amb el monopoli “marcarà una línia que s’haurà de seguir i que de ben segur no serà la més òptima per als clients, que hauran d’acceptar el que els proposin tant en forma com en quantitat”.

Musarra és conscient que si ven, un grup dominarà pràcticament tot el sector. Certament, encara funcionen de manera independent empreses com Valira Seguretat, Sepir Seguretat o GSI, però la companyia amb seu a Encamp és la més gran i la que Grup Menta voldria incorporar, encara que també ha fet arribar ofertes a algunes de la resta.

L’empresari es vol mostrar comprensiu amb aquelles inversions foranes “sempre que sigui per aportar novetats, qualitats, tecnologia, i sobretot que ajudin el sector i que en surtin beneficiats els treballadors, clients i la societat en general”. Per això es pregunta quina és l’experiència en el món de la seguretat privada d’aquest hòlding andorrà amb matriu a Espanya, Simarro Holding & Investment. Musarra va tenir l’oportunitat de reunir-se no només amb Joan Gallardo, que és la cara visible al Principat, sinó també amb Javier Póveda, l’accionista majoritari de Simarro Holding i, per tant, qui controla també la societat andorrana.

La trobada va servir per comprovar que les posicions estan molt allunyades. Protecvall vol continuar “creixent de manera independent” i Grup Menta no va amagar el seu objectiu d’acaparar el mercat. Musarra va apuntar que hi ha un interès “purament d’inversió econòmica, ja que no pertanyen al nostre sector, i lògicament voldran recuperar-la a costa del que sigui”. I ja comença a patir les conseqüències amb la marxa d’alguns treballadors que ocupaven llocs claus i amb anys a l’empresa.

TEXTO PROPIEDAD: https://www.diariandorra.ad/noticies/nacional/2022/02/10/protecvall_sent_fustigat_pel_grup_que_controla_seguretat_195102_1125.html

Europe’s banks emerge from the COVID-19 pandemic resolute in their ambitions

High levels of M&A across the UK and Europe, notwithstanding uncertainty ignited by the Russia/Ukraine conflict. Europe’s banks have emerged from COVID-19 turmoil resolute in their ambitions to shed non-core assets, consolidate regional strongholds and rigorously pursue digitalisation strategies.

Our outlook for bank M&A is extremely positive despite current market uncertainty. Many of Europe’s lenders dedicated significant resources towards fine-tuning their development strategies during COVID-19 lockdowns. The result is emergence with clear goals into an increasing NIM environment.

Overview

Top 3 drivers of UK and European bank M&A in the past 12 months:

• Embracing the future: Pruning overcapacity through internal reorganisations and ambitious non-core disposal programmes 
• Banks get match fit: Regional consolidation M&A and opportunistic acquisitions in core geographies/ business lines
• Europe’s challengers dig their heels in: More than five new entrants, more than five consolidation M&A deals and more than 10 successful funding rounds, in the UK alone

Current Market

• Very high activity levels

We Are Seeing

• Focus on internal restructurings:
  • Corporate reorganisations (e.g., Société Générale’s merger of French retail bank with Credit du Nord)
  • Branch closures, as European banks cut costs and migrate to digital distribution models (e.g., Lloyds’ closure of 60 UK branches and NatWest’s closure of 56 UK branches)
• Non-core disposals:
  • Banks concentrate on core markets/business lines (e.g., BNP Paribas sold BNPP Private Banking Spain, Bank of the West, Hello bank! Austria and ClimateSeed in the past 12 months)
  • European banks with Russian exposures respond to sanctions (e.g., Société Générale’s disposal of Rosbank)
  • Russian banks are forced to retreat from international markets (e.g., Sberbank’s disposals of its Croatian, Slovenian and Bosnian banking subsidiaries)

TEXTO PROPIEDAD: https://www.whitecase.com/publications/insight/financial-ma-july-2022/banks

Fitch Ratings Ceases Coverage of Andbank’s CVBs on Repayment

Fitch Ratings-Madrid-26 July 2022: Fitch Ratings will no longer be providing analytical coverage for the covered bonds programme of Andorra Capital Agricol Reig, B.V. as the last outstanding bonds have been repaid and no further issuance will take place from the programme. All assets will be removed from the cover pool. As a result, the covered bonds programme will no longer be included in Fitch’s surveillance data and quarterly covered bonds publications.

All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings. In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch’s rating definitions for each rating scale and rating categories, including definitions relating to default. Published ratings, criteria, and methodologies are available from this site at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the Code of Conduct section of this site. Directors and shareholders’ relevant interests are available at https://www.fitchratings.com/site/regulatory. Fitch may have provided another permissible or ancillary service to the rated entity or its related third parties. Details of permissible or ancillary service(s) for which the lead analyst is based in an ESMA- or FCA-registered Fitch Ratings company (or branch of such a company) can be found on the entity summary page for this issuer on the Fitch Ratings website.
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TEXTO PROPIEDAD: https://www.fitchratings.com/research/structured-finance/covered-bonds/fitch-ratings-ceases-coverage-of-andbanks-cvbs-on-repayment-26-07-2022

All of Andorra’s Ski Areas To Be On One Lift Pass

All three of Andorra ski areas will be on the Grandvalira Pass from next winter, the country’s largest ski resort operator has announced.

The move seems to mark the culmination of six decades of expansion and amalgamation of Andorra’s ski centres, which now cover a large part of the tiny nation’s surface area, sandwiched between France and Spain in the Pyrenees.

Through the 1990s and early ‘noughties’ there was heavy investment in lift upgrades and expansion which led to the formerly separate ski centres of Pas de la Casa and Soldeu el Tarter eventually running into each other’s borders and then merging, with a number of other linked ski villages, to create Grandvalira, the largest ski area in the Pyrenees and one of the 20 biggest in the world with over 200km of slopes.  It also operated more high-speed six-seat chairlifts than any other ski area on earth at the time.

Two other well-known Andorran ski areas, Arinsal and Pal, also merged and joined up with separate ski area and Freeride World Tour stop Ordino Arclais (above) to market as Vallnord, covering closer to 90km of slopes with a lower-priced lift pass.

Ordino Arcalis them started to be marketed as part of Grandvalira from 2018 and now it appears that Vallnord is to disappear as a separate entity (although that has not yet been confirmed) and all Andorra’s centres will be included in a 22-23 Grandvalira pass covering more than 300km (190 miles) of slopes.

TEXTO PROPIEDAD: https://www.inthesnow.com/all-of-andorras-ski-areas-to-be-on-one-lift-pass/

Andorra green lights Bitcoin and Blockchain with Digital Assets Act

A small light of progress shines from Andorra, a tiny European country nestled between France and Spain. The country’s government, the General Council of Andorra, recently approved the Digital Assets Act, a regulatory framework for digital currencies and blockchain technology.

The act is split into two parts. The first regards the creation of digital money, or “programmable digital sovereign money,” which can be exchanged in a closed system. In effect, this would allow the Andorran state to create its own token.

TEXTO PROPIEDAD: https://www.investing.com/news/cryptocurrency-news/andorra-green-lights-bitcoin-and-blockchain-with-digital-assets-act-2848014