Financial news

Bulgaria will receive a total of EUR 733 mln in the form of financial aid from EU for the development of rural areas within a period of three years (2007-2009), according to the agreements reached in the negotiations on the Agriculture chapter. EUR 183 mln will be granted in 2007, EUR 244 mln – in 2008, and EUR 306 mln - in 2009. According to the initial financial framework for Bulgaria, the money were supposed to be in the amount of EUR 67 mln. Bulgaria’s total financial framework for the period 2007-2009 is in the amount of EUR 1.436 bln for agriculture. According to it, the funds for direct payements (subsidies) are in the amount of EUR 431 mln.

Minister of Finance Mr. Milen Velchev, and the head of the IMF mission for Bulgaria, Mr. Hans Flickenschild, discussed a possibility for inviting a new mission of the International Monetary Fund to Bulgaria. At the prospective visit, final adjustments to the agreement between Bulgaria and the fund will be made. The IMF board will decide on the case today.

Privatization

New scandals arose at the very end of the privatisation of BTC on Friday. The same day Austria's Viva Ventures paid EUR 280 million for the 65 per cent stake in BTC, and the state transfered the shares to the buyer. The Supreme Administrative Court instituted legal proceedings against the decision of the Commission for Protection of Competition (CPC) that allowed the concentration between the two entities, giving a green light for the finalisation of BTC's privatisation. The European Commission allegedly asked Bulgaria's anti-monopoly watchdog in writing to carry out an independent investigation of the case with the granting of the third GSM licence without a tender, its price of EUR 54 million as well as to decide if all this can be considered as state aid. CPC denies to have received such a letter, but the PARI daily has obtained a copy of the document. The parliamentary group of the Union of Democratic Forces (UDF) send an open letter to the European integration minister, Ms. Meglena Kuneva, stating their worries that the BTC deal may turn out to be an obstacle in front of the country's entry to the union.

Blagoevgrad municиpal councillors rejected the evaluation of complex Volga in the amount of BGN 3 009 800, made by a licensed evaluator. Advisors from different political groups were firm the facility could not be sold at this price. During the debates, local parliamentarists reminded no candidates appeared on the tender, held only three months ago. Back then, Volga was offered at a price of around USD 600 000.

Companies

Local company VSK Kentavar SP Ltd. has invested BGN 3.5 mln in Drianovo, the procurator Mariana Pacheian announced. The money has been invested in the Dinamika instrument factory and in the working clothes factory.

Air carrier Viaggio Air started regular flights between Sofia and Varna, company's representatives said. Viaggio Air will fly the destination three times a week on Mondays, Wednesdays and Thursdays. The two 48-seat planes ATR-42 will service the line. The price of a return ticket has been set to EUR 95. In a month's time the company will buy another ATR-42, the manager Viktor Valkov said.  Viaggio Air will also fly to Athens three times a week, the price of the return ticket being set to EUR 160. 

Veliko Tarnovo-based beer maker Bolyarka VT, owned by the local Mel Invest Holding, put into operation late last week a technological line manufactured by Germany's Steinecker which will produce 4,500 hectoliters of malt grist daily. The company, which controlled 9 per cent of local beer sales in 2003, did not name the price of the German equipment but said it brings the tab of recent modernisation and reconstruction activities to BGN 25 mln. The brewer is expected to produce 45,000 hectoliters in 2004.

Central Cooperative Bank is waiting for the permission of Swiss Central Bank to open a branch in Zurich. According to the Procurator of Central Cooperative Bank Mr. Tihomir Atanasov all the necessary documentary for the permission has been sent to the Swiss Bank. The employees of Bank Supervision department of the Swiss bank have received additional information about the Bulgarian credit institution from BNB.

Bulgaria’s Bulvesta Holding has raised its capital from BGN 600,000 to BGN 719,703, or 20%. The decision was taken at a general meeting June 11. The capital will be boosted with the holding's 2003 profit. The new issue will also be offered for trade on the bourse. The amount will be used to finance projects under the PHARE programme. A majority shareholder in Bulvesta Holding is Vi-Vesta Holding (52 per cent). The holding does not deal with production and trade but manages its subsidiaries. It has packages in 15 companies, six of which are majority packages.

A substantial number of Bulgaria's publicly listed corporations suffer from low liquidity while only a small portion of their stock is actively traded, said representatives of Slovenian investment fund Kapitalska družba who are here to size up the current shape of the Bulgarian equity market and its near-term potential. Kapitalska družba is especially interested in how Bulgaria will fare in the run-up to its presumptive 2007 accession in the EU and how close it will get to the investment criteria of the Slovenian company, said Mr. Meta Skok, manager of Kapitalska družba's biggest pension insurance companies. The Kapitalska družba reps said they are interested in companies that have listed the majority of their shares and not in corporations whereof only 10 per cent or so are traded on the exchange while a majority shareholder controls 70 per cent of the equity. This proportion should be reversed if the Bulgarian companies want to hook a serious investor, the Slovenians advised.

Avtoremont JSC – Dupnitza joined the biggest competition for repairing 4 buses, announced by Public Transport Company - Sofia. The amount of the order is BGN 4 mln. The Dupnitza factory managers hope to make more than BGN 2 mln profit.

The former Chief Executive Director of Saglasie - Pension Insurance Company JSC – Sofia (part of the group of Orel G holding) Mr. Grigor Dimitrov was appointed as a Deputy Chief Executive Director of the biggest Bulgarian pension insurance company – Doverie. Mr. Dimitrov filed his resignation in Saglasie JSC during May. On his new position in Doverie pension insurance company Mr. Dimitrov will be responsible for the territorial structures of the company.

Elatsite-Med JSC is launching a new technological line for over EUR 15 mln. The equipment is  Europe’s biggest hydraulic electric-operated excavator, manufactured by Terex Mining – Germany, and the highest class production trucks.

Bulgarian Industrial Association and the Official Chamber of Commerce, Industry and navigation of Gijon, Spain, signed a Cooperation Agreement on June 10, 2004. According to the Agreement, the both parties will exchange information on the legislation and commercial and business possibilities. The business associations will support their members in the mutual contacts, business missions and  joint participation in European Union projects.

On June, 23 and 24 2004, at Albena resort, Dobruja hotel are going to take place two seminars for the branch and regional associations, members of BIA, on the topics "Healthy and safe labor conditions" and "Home market, regional politics and structural funds". The two forums are organized by BIA, the Movement of the French enterprises (MEDEF) and the Federation of the Greek industry (SEV), in the framework of the PHARE Program project - A Program for business support (2) - BOSMIP.

Europe

European plane maker Airbus won a Chinese order on Friday for 20 of its A330-300 wide-body jets, its second large deal with a Chinese carrier in as many months. The order, announced during a visit to France by Chinese Vice Premier Zeng Peiyan, is valued at over USD 2 billion based on catalog prices. Airbus said that deliveries of the aircraft, which are destined for Shanghai-based China Eastern Airlines Co Ltd, will start in the first quarter of 2006. No decision has been taken on which engines will be used on the planes. Back in April, the country's largest carrier, China Southern Airlines Co Ltd, signed a deal for 21 narrow-body A320 and A319 jets. 

USA

US aerospace giant Boeing signed a deal with Chinese parts suppliers on Thursday that could be worth several hundred million dollars, and said it hoped to take orders from China for its new 7E7 jet this year. Foreign firms have increasingly turned to China to supply parts or make products, and such deals have been a hot political topic in the run-up to the U.S. presidential elections as industry groups worry about losing ground to low-cost Chinese competitors."We expect that over the life of the programme there will be several hundred million dollars of 7E7 parts produced in China," said James Morris, a Boeing vice president who oversees suppliers for commercial planes.

Asia

Malaysia International Shipping Corp., the world's biggest owner of tankers shipping liquefied natural gas, will on Wednesday offer global bonds for the first time, a sale rating company Standard and Poor's estimated at USD 1 billion. The notes, maturing in five years and 10 years, were rated BBB+, the sixth-highest investment grade, by Standard and Poor's, which cited the company's steady income from liquefied natural gas contracts. Malaysia International, controlled by state oil company Petroliam Nasional Bhd., or Petronas, will use the money to pay a 2003 loan of USD 830 million and build ships with the remainder, the rating company said. 

Borovo Silver Treasure

The Borovo Silver Treasure was discovered by change in late December 1974 by a tractor-driver, who was working on the Belene hill, near Borovo. A total of five luxurious drinking vessels, made of gold-gilted silver, were found: three rhytons, ending in the protomes of a horse, a bull and a sphinx; one two-handled bowl in the center of which a deer attacked by a griffin is depicted in relief; and one richly ornamented silver jugglet, with two bands in relief depicting scenes connected with the cult of Dionysus.  On two of the rhytons, inscription in Greek letters were found, connecting the treasure to the Odryssaean king Kotys I, who reigned the Odrysseaean Kingdom from 383 to 359 BC. The vessels are thought to have been made in the town of Beos, located on the shore of the Marble Sea, in Southeastern Thracia. Later on, further archeological excavations were made at the spot, where the treasure was found, revealing there were no buildings or tombs nearby, which made specialists conclude the treasure had most probably been hidden. Some scientists believe the Rogozen and Borovo treasures are a part of one big royal treasure, whose owner was forced to hide it. He buried most of it near Rogozen, but kept the rhytons (the royal vessels). Later on, he was forced to bury them too near Borovo. The treasure is dated to IV century BC.