Financial news

There will be free zones on the territory of Bulgaria after our country becomes a member of the European Union, minister of European affairs Ms. Meglena Kuneva said in Rousse. These zones are a prerequisite for establishing stable business relations with prestigious companies in the country. Apart from making direct investments and creating new jobs, these companies will also secure opportunities for cooperative production and receive supplies and services from Bulgarian firms. The results of the Rousse free zone for the first six months of 2004 indicate an 80% execution of annual financial plans, the zone's CEO said.

Bulgaria’s foreign debt has increased with EUR 846.6 mln (8.1 per cent) year to date. This data is as of the end of May, when our country’s GDP totaled EUR 11 322.8 mln (58.4 per cent of GDP). 6 per cent (EUR 49 mln) of the increase is due to currency diferrences. Bulgaria’s long-term debts are in the amount of EUR 8838.8 mln (78.1 per cent of the total debt), and the short-term ones – EUR 2484 mln (21.9 per cent). The debts of the private sector reached EUR 4056.8 mln, EUR 682.5 mln up compared with the end of 2003.

Bulgaria’s unemployment rate continued to go down, reaching 12.2 per cent in June, social minister Ms. Hristina Hristova announced. This represents a 0.4 per cent decrease from May. Traditionally, jobless rate goes down in the summer. According to data from the Employment agency, the level of unemployment remains highest in the regions of Targovishte, Montana, Vidin, and Razgrad., and lowest in the regions of Gabrovo, Bourgas, Blagoevgrad, and Varna.

Privatization

Yesterday, the candidates that were not approved in the procedure for the privatization of TPP Varna, TPP Bobov Dol, and Toplofikatzia-Rousse accused PA of holding an unfair competition for selection of a consultant in the sale of the three companies. PA’s director Mr. Atanas Baganchev, however, argued there was nothing wrong with the procedure. Last week, PA selected the investment bank Credit Suisse First Boston as a consultant. Offers were also submitted by the banks ABN Ambro, France’s Lazard Freres Banque, London’s Citigroup Global Markets, and Dresdner Kleinwort Wasserstein Limited. According to the rejected candidates, the bank wanted higher remuneration than all others and thus, the state was going to pay EUR 3-5 mln more. 

Companies

Bulgaria’s state railway carrier BDZ has started a procedure for supply of passenger trains, the company announced. The order is for the purchase of 25 diesel train engines. If the company has sufficient finances, it will also purchase up to 25 electric engines, 15 of which with three carriages, and 10 – with four. They will be used for transportation to the suburbs and nearby regions. The deadline for submission of offers expires 45 days following the publishing of the announcement in the State Official Gazette. The main criterion for the selection of the winner will be the offered price.

Representatives of Japan’s giant Mitsubishi Corporation and France’s Societe Industrielle de l’Atlantique won the competition for the right to build a wind generator near Kavarna. The names of the Bulgarian representatives of the two international companies are Bulgarian Wind Centrals SP JSC (100-per cent owned by the French group), and Inos – 1 Ltd., which has a contract for cooperation with Mitsubishi Corporation.

EcoPack Bulgaria is the first Bulgarian organisation licensed to recover and recycle packaging waste. The document was officially presented on Tuesday by environment minister Ms. Dolores Arsenova to Mr. Paul Mulligan, executive direct of Coca Cola Bulgaria and EcoPack chairman. Eighteen local companies co-founded EcoPack, including Coca Cola Bulgaria, Danone, Unilever, Tetra Pak, Carlsberg Bulgaria, Pepsi importer Agrima, and brewer Shumensko Pivo. Each of them will be allowed to use the so called Green Dot on their labels, denoting that they use separate collection, sorting and recycling of commercial packaging placed on the market.

Encouragement Bank was granted EUR 14 mln by the European Investment Fund. The money will be used as guarantees on credits for small companies, which will be granted under relieved terms. In July last year, the fund granted to the bank a EUR 7 mln guarantee line.

The Supreme Administrative Court confirmed on Tuesday its decision to throw out a complaint by Belovo Paper Mill SA, the biggest local tissue paper producer, against a decision by the Commission for the Protection of Competition (CPC) regarding an imitation of its popular toilet paper brand Belana. The ruling is unappealable. 

Bulgaria's ProCredit Bank is reducing interest rates on company loans, mortgage loans, and consumer loans, it emerged at the opening of a new bank office in downtown Sofia. The decrease will be 2 per cent on average for all types of loans. The interest rate will depend on the denomination currency, the loan term and amount, a bank official announced.

Europe

Russian oil major Yukos said on Tuesday it expected bailiffs to sell its main operating unit Yuganskneftegaz for USD 1.75 billion by July 30. "According to certain information, the valuation of Yuganskneftegaz ... has been determined at USD 1.75 billion. This is despite the fact its reserves alone are valued at USD 30.4 billion," Yukos said in a statement. Yukos criticised the impending sale, announced by the justice ministry to collect a USD 3.4 billion tax debt, as a "direct violation of the law". It also said it expected Yuganskto be sold directly to a buyer, and not via auction.

USA

Continental Airlines on Tuesday sank into a quarterly loss burdened by high fuel prices and lower fares against a year-ago profit boosted by a hefty U.S. government payment.  The airline posted a loss of USD 17 million, or 26 cents per share, compared with a profit of USD 79 million, or USD 1.10 a share, last year. In second-quarter 2003, Continental received a one-time government payment of USD 111 million, after taxes, for security costs. The Houston-based company said it had an expense of USD 19 million, after taxes, in the latest quarter due to the retirement of leased MD-80 aircraft. Excluding the aircraft retirement charge, Continental reported a profit of USD 2 million, or 3 cents a share. 

Asia

Toyota Motor Corp., Asia's biggest vehicles maker, said it will produce 11 percent more cars, trucks and vans this year, helping it close the gap with Ford Motor Co. as the world's second-largest automotive producer.  Toyota, based in central Japan's Toyota City, expects production to rise to 6.74 million units, 230,000 more than a December forecast. Global vehicle sales, such as for its Camry cars and Sienna minivans, will rise 9 percent to 6.61 million units, 280,000 more than the company's December forecast for 2004. 

Vasil Aprilov (July 21 1789 – October 2 1847)

Vasil Aprilov is one of the most prominent educationists and writers of the Bulgarian Revival period. He was born in a rich family of traders in Gabrovo. He started his education in his hometown’s monastery school, and when he turned 11, went to study in Russia. Later on, he graduated a German high school in Brashov. He studies medicine in Vienna, but did not complete his education because of his health problems. In 1811, he settled in Odessa permanently and started commercial activity. Following 1826, Vasil Aprilov abandoned trade and became absorbed with his literary activities. At that time, Odessa began playing an important role in the national liberation struggle of the Balkan people, particularly of the Bulgarians. With the help of his fellow-townsman Nikola Paluzov and some other patriots, Aprilov managed to collect some money and to carry out his idea of building the first secular school in Gabrovo, which was opened on January 2, 1835. The school became popular as the first school, where subjects were taught in Bulgarian language. All through his life, Vasil Aprilov dreamt of publishing a history of Bulgaria. In his personal life, he was always sick and lonely. He died in Galatz in 1847.