Financial news

Ministry of Economy is preparing a project Support for Improvement of Bulgarian Companies Competitiveness, which will receive a EUR 30 million financing under the PHARE/2004-2006 programme. EC is expected to grant EUR 22.8 million, and the national co-financing will be in the amount of EUR 7.25 million. The project Development of the Bulgarian Eco-tourism , financed under PHARE 2002 and the project Introduction of Cluster Method in the Establishment of a Pilot Cluster Model, financed under PHARE 2003. So far, projects to the value of EUR 30 million have been implemented under the PHARE programme in Bulgaria.

Privatization

The hospitals with over 50 per cent state-owned share will be sold by PA after the approval of the Government, according to change in the Privatization Law, prepared by the Ministry of Economy. The agency will also sell the municipally-owned hospitals but the decision for them will be taken by the local authorities. The texts are expected to be submitted in the Council of Ministers in a month.

The heat supply plants in Sliven and Pravetz won’t be sold on the stock exchange. This was expected for the plant in Sliven – during last week Sliven District Court declared the company in procedure of insolvency. The Minister of Energetics Mr. Milko Kovachev and the syndicates are also against the privatization. The motive is that the plant would not keep its activity after the privatization through BSE. The cancellation of the privatization of Heat supply-Pravetz was a surprise but probably PA is not willing to involve in the consecutive scandal.

Companies

Sugar Plants JSC implemented its investment program, included in the company’s privatization contract, one year ahead of schedule. According to the program, the buyer MEBO Zacharinvest JSC had to invest in the plants’ technological modernization USD 5.520 million within a period of 5 years. Yesterday the company’s Executive Director Eng. Rumen Ivanov submitted in Post-privatization Control Agency its 2003 report, according to which this year in the plants will be invested BGN 5 million premium to the initially planned investments. The funds will be invested in the modernization of the old equipment, as well as in the building of a new facility – a plant for manufacture of alcohol through processing of wheat and corn.

Black sea bank for trade and development, in which Bulgaria holds 13,5 per cent of the capital, received its first rating from Moody's - Baa 2 long-term investment and Prime 2 short-term investment rating with stable prospective, was reported from BNB. According to Moody's analyzators, the rating of the bank is in accordance with the privileged credit status of the bank and its capital structure. In the strategy for Bulgaria in the period 2002-2004 the bank plans to continue its support for increase of the export, financing of the energy sector, telecommunications, transport, tourism and agriculture and also for promotion the development of the small and medium-sized companies through credit lines.

Communications Regulation Commission (CRC) is going to start a procedure for the licensing of the third GSM operator, two independent sources announced. On a meeting, which lasted until late last night, five of its members discussed whether the procedure should be held through tender or competition, according to the provisions of the Long Distance Communications Act, or to follow the provisions of Art. 49 from the Privatization and Post-Privatization Control Act. The decision of CRC is not expected earlier than today.

Bulgaria’s national air carrier Bulgaria Air 2003 profit is expected to reach BGN 1.5 million, the company’s Executive Director Mr. Konstantin Taskov announced, explaining the good financial result with the good management, lower aviation fuel prices, the weaker US dollar positions, etc. For the period January-December 2003, the incomes of Bulgaria Air amount to BGN 76.2 million, which is 19.5 per cent premium to the figures mentioned in the company’s 2003 business plan. Yesterday, Mr. Taskov had a meeting with the management of Al Italia in Rome. The number of joint flights between Bulgaria Air and Al Italia in the summer is expected to reach 15 a week.

The gas supply of Sofia starts with the complex of Ovcha kupel. The Mayor of the complex Mr. Plamen Jordanov and the Executive Director of Sofiagas Mr. Svetoslav Ivanov signed a report for their joint activity on the gas supply of Ovcha kupel. Overgas plans to invest in Sofia over EUR 38 million. The gas supply will include regions with more than 150 000 households.

The activity of two consultants from BIC Capital market SP Ltd. in Artex Bulgaria SP Ltd. finished successfully. The latter is one of the biggest producers of men and women underwear in Bulgaria and its production is thoroughly for export. The purpose of the consulting was the efficient application of confirmed methods on REFA system for optimization of the working systems, labour standards and analysisi of production data.

Velex Oil was imposed a BGN 50 000 fine for offering petrol products, which brand was identical to that of Italy’s E.N.I.S.P.A., Competition Protection Commission announced. E.N.I.S.P.A. owns seven internationally-registered brands. The company owns two brands, registered in Bulgaria’s Patent Office.

On April 14 - 15, in Sofia is giong to take place the "Bulgaria Investment Forum - Projects and Financing"

Europe

Royal Dutch/Shell, the embattled European oil group, on Thursday signed an agreement establishing a long-term strategic partnership with Libya's state oil company to explore for oil and gas. The landmark agreement, which marks the re-entry of Shell into Libya's oil industry after more than a decade, coincided with British prime minister Tony Blair's visit to Tripoli to meet with Libyan leader Colonel Muammar al Qadhafi.  Shell did not disclose any financial details but said it would continue to negotiate on specific projects during the year.  However, British officials said Shell was expected to announce a USD 200m gas exploration deal with Libya, the value of which could rise to USD 1bn in the long term.  Shell wants to expand its gas business and has long been keen to enter Libya, where many of its smaller European rivals already hold exploration deals.  The company, which recently saw the departure of Sir Philip Watts as chairman, has been under great pressure since downgrading its proved reserves by about 4.15bn barrels in less than three months.  Shell T&T shares, which have fallen 13 per cent since the first reserve downgrade in January, were 1 per cent higher at 359p. Royal Dutch shares, which have fallen 7 per cent in the same period, were 0.7 per cent higher at EUR 40.67.

USA

Avon Products Inc., the world's largest direct seller of cosmetics, boosted its net earnings per share outlook to 59 cents for the first quarter because of rising sales in Latin America and Europe.   The company said last month it expected to earn 50 cents, compared with 42 cents a year earlier. Avon raised its yearly forecast to USD 3.18 to USD 3.20 a share, higher than its previous estimate of profit growth of 10 percent to 12 percent, the New York-based company said in a statement. It earned USD 2.78 in 2003. Demand for anti-aging creams in the U.K. is boosting first- quarter sales, expected to rise 19 percent, the company said. Avon forecast gains of 30 percent in Europe and more than 20 percent in Latin America. In the U.S., the company's largest market, sales are expected to rise 7 percent.   It was expected to earn 51 cents in the first quarter and USD 3.13 in 2004, according to the average estimate of eight analysts surveyed by Thomson Financial. Shares of Avon fell 40 cents to USD 70.57 yesterday in New York Stock Exchange composite trading. The shares have climbed 27 percent over the past year.

Starosel Tomb

In August 2000, a sensational discovery occurred near the village of Starosel, in central Bulgaria. Archaeologists found the enormous temple/grave of what is believed to be a Thracian ruler, possibly Sitakes I, the first king of a combined Thracian empire. The site, 100 miles east of Sofia, has been dated as from the fourth or fifth century BC. The grave and its surroundings are thought by archaeologists to have been an important religious site for Thracians dating from the stone age. The two-chamber tomb is approached by stairs and a corridor. It is surrounded by a 263-yard long wall made out of some 4,000 stone blocks and was hidden under a 20-meter high mound of earth. The stone blocks of the surrounding wall/facade were largely undisturbed because they were fastened on the other side with iron clamps, which had lead poured over them. To the south it is crossed by a parade staircase flanked by two smaller staircases, climbing to an 11-yard roofless doorway with 5.5-yard high walls leading to the facade. The round stone wall symbolises the Sun, while the temple itself stands for the goddess of Earth who lived in a cave, according to Thracian beliefs. The interior consists of a rectangular entrance and a round vaulted main hall, whose ceiling is supported by 10 Doric semi-pillars, each carved with 10 vertical flutes. The inner walls are covered by ornate stone plates. The dome is decorated with a stone frieze in red, black, green and blue colours.  Within, archeologists found a magnificent trove of relics, including a large gold funerary wreath, other gold jewelry, bronze shields, helmets and swords, and two sets of silver decorations for horses. The grave and its surroundings are also thought to have been an important religious site for Thracians