Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
Croatia and Montenegro have large and growing tourism industries. While Montenegro has seen a range of major resort investments from foreign companies, developments backed by foreign direct investment in Croatia have been held up by bureaucracy and poorly conceived projects. Nonetheless, opportunities in Croatia and downside risks in Montenegro should not be discounted.