Financial news

The President, the Prime Minister and the Minister of Finance of Bulgaria will be able to receive tax and insurance information about citizens and companies. This is envisaged in the draft code of taxation and insurance procedure, due to become effective from 2006, when the National Revenue Agency (NRA) will begin operating. According to the draft, tax and insurance information includes data about bank accounts, size of income, taxes and mandatory social insurance contributions, discounts and tax credits used by debtors. It also includes commercial data, data about the value and type of assets and liabilities or property that are trade secret. This information will be considered evidence in court. The NRA officers will also have access to this information upon presentation of a written request.

Bulgaria is to receive EUR 1 bln over the period 2004 – 2006, Deputy Minister of Finance Mr. Lyubomir Datzov announced. The major part of the money (EUR 523 mln) will be granted under the PHARE programme, EUR 439 mln. will come under ISPA, and EUR 219.8 mln. – under SAPARD. The funds for the current year are respectively EUR 157.135 mln and EUR 54 mln.

Bulgaria’s gross foreign debt continued to grow in April, reaching EUR 11.360 bln in the end of the month, BNB announced. This represents 58.6 per cent of the country’s GDP, while in the end of last year this ratio was 58.7 per cent.The debt is EUR 202.9 mln bigger than in the end of March, and EUR 1.03 bln bigger than in the end of 2003, chiefly due to the new financing and exchange rate differences (exchange rate differences account for EUR 277 mln of the debt’s growth over the first four months of the year). New financing over the period January- April is in the amount of EUR 710.2 mln, where EUR 168.3 mln of this amount went to the public sector.

Privatization

Bulgaria's sell-off agency has published in the Official Gazette the list of equity packages in 152 companies that will be offered at a centralised bourse auction that will run between June 28 and July 12. As many as 60 of the packages that will be offered on the non-cash segment of the local bourse represent less than 1 per cent of the capital of the respective company. Only 10 of the earmarked companies will be divested 100 per cent. The equity list was promulgated after it became clear that the validity of investment vouchers issued during the 1990s mass privatisation will be extended by a year.

Shares of the mines in Pernik will be sold through the stock exchange, the mines’ CEO Mr. Alexi Alexiev announced. 3 774 000 shares, distributed in three lots will be sold at a price of BGN 1.08 per share. The sale is to end by July 12.

Companies

The first level of the REFA training course in Management organization and optimization of production processes commences today at the Bulgarian-German Center in Pleven. Specialists from “Palfinger Productionstechnik Bulgaria” Ltd., Festo Production Ltd., SFB Capital Market JSC, Kittner-Bulgaria Ltd., KIM-Bulgaria, Mayer Melnhof-Nikopol and NonWoTex will attend the lectures. The training comprises two basic modules – “Organization of work places and processes” and “Production data management”. The course is organized by the exclusive representative of REFA for Bulgaria - BIC Capital Market Ltd, a company fully owned by the Bulgarian Industrial Association. The trainees shall acquire knowledge and practical skills in the fields of company management and labour process management. At the end of each of the two modules they will take an examination and the successful ones shall be awarded an internationally recognized REFA certificate.

TUV Rheinland, which documents the safety and quality of new and existing products, plans to create a network of office in Bulgaria, focusing special attention on the tourism sector and the food industry, said the company's executive director for Central and Eastern Europe. Bulgaria generates 4 per cent of TUV's turnover in Central and Eastern Europe. The Bulgarian unit of the company is on track to post a profit of EUR 100,000 in 2004.

On June 15 Mr. James Howie, shareholder in Corporate bank,  received permit from BNB to keep his 18.57-per cent stake in the bank’s capital. In December 2002, Mr. Howie became owner of 28 per cent from the shares of the credit institution, by contributing in its capital the building on Garibaldi sq., where its head office is seated. In the end of 2003, when the bank’s capital was increased from BGN 14 mln to BGN 16.82 mln, Mr. Howie’s stake was reduced to 18.57 per cent.

Bulgarian producer of sweeteners, packaged soups, vitamin pills and instant drinks Kendy has teamed up with Dutch investment agency Senter to build a EUR 3 mln factory for medicinal tablets and capsules. The facility, co-financed with EUR 2.5 mln by Kendy, will be located in Sofia's Bozhurishte borough and will start operation in early 2005. The output will be sold in Bulgaria, the Balkans and the Netherlands.

Financial Supervision Commission imposed fines on the Executive Directors of the following pension insurance companies: Allianz Bulgaria, DSK – Rodina, and DZI – Pension Insurance. They were sanctioned for not presenting the companies’ management reports within the deadline given – March 31.

Bulgarian Stock Exchange – Sofia, accepted as new member the investment mediator Positiva. The company has a partial license to operate this activity. Its CEO is Mr. Ivaylo Yordanov.

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

Bertelsmann AG, Germany's largest media company, and Sony Corp. will get unconditional European Commission approval to merge their music units after regulators decided they had no evidence to challenge the deal, people familiar with the situation said. The European Union's Brussels-based regulatory arm won't seek any concessions in return for clearance, said the people, who declined to be identified. The commission last month told the companies the merger of Bertelsmann's BMG and Sony Music would restrict competition, reduce choice and force up CD prices for consumers, people familiar with the situation said then. 

USA

General Motors Corp. clipped the wings of its independent-minded European divisions Friday by concentrating power at its regional headquarters, but the company didn't announce plans to close plants or cut jobs in its efforts to return the European business to profit. Unveiling the plan in a statement, the world's No. 1 automobile manufacturer said it has promoted Fritz Henderson, who became head of European operations only at the start of this month, to the new position of chairman of General Motors Europe (GME). It has made Carl-Peter Forster, now head of biggest division Adam Opel AG, his direct deputy as GME president. 

Asia

Yanzhou Coal, one of China's largest listed coal companies, has bought a coke plant from Germany to be dismantled and transplanted to China, where it will vastly increase the company's coke production.The state-of-the-art factory, capable of producing 2m tonnes of coke per year, will be shipped in pieces to China and rebuilt near the Yellow River, a process considered cheaper than buying new technology on the world market. It will be the biggest or second-biggest coke plant in China.The purchase of the plant from Deutsche Steinkohle, an operating unit of RAG, Germany's largest coal producer, illustrates the rise of China's economy and the relative decline of Germany's. 

Sinite Kamani (The Blue Stones)

Sinite Kamani (the Blue Stones) are located in the highest part of the Sliven Mountain, north from Sliven, on an area of 7094.1 ha. They were declared a natural park on November 28 1980. In 1702, the Krim sultan Selim Gerey called them “the Sliven Alps”. The highest summit in the region is Balgarka (1181 m). The Blue Stones are strewn with picturesque rock groups – Kuklite (the Dolls), Bachvata (the Barrel), Kamilata (the Camel), Kaloyanova Tower, etc., as well as many caves – Zmeevi Dupki (Snake Holes), Orlovi Dupki (Eagle Holes), etc. According to the historical and scientific surveys, conducted in the region, the park was inhabited as early as the new stone age. In the Zmeevi dupki cave, working tools, ceramics from V-III century BC, stone moulds, weapons, as well as other ancient articles have been found. On a number of places in the Blue Stones, ruins of old fortresses, monasteries, ancient roads could be seen. The archeological reserve Tuida (a Roman fortress from III-V century) is located in the Hisarluka region, and the ruins of the St.Spas monastery could be found near the Manastirska river. St. Spas is also known as St. St. Constantin & Helena monastery and is one of the 24 monasteries, built in XII-XIV century, known as the Sliven Small Holly Forest. In 1834, Dobri Jelyzakov built in the defile of the Selishka river the first baize factory in Bulgaria, which is nowadays operating as a National Museum of Textile Industry.