Financial news

The Bulgarian government has decided to allot additional resources from the republican budget this year with the aim to finance various activities on the territory of Bulgaria. The planned amount is up to BGN 263 million. The ministry of public works will receive BGN 100 million to construct infrastructural projects and to carry out major and ongoing repair and maintenance of highways, second-class and third-class roads. The ministry of education will be granted up to BGN 40 million for reconstruction of public schools. Municipalities will be allocated up to BGN 10 million. 

Chinese trousers are being imported in Bulgaria at the price of USD 1. This import at knockdown prices is going to flood the world from January 2005 on, when the quotas on clothing are slated to be scrapped, eight associations of producers and exporters of apparel warned yesterday. They insist on postponing the deadline for scrapping all quotas that has been agreed upon by the members of the WTO 11 years ago. Organizations from the textile field from 50 countries appealed for that. China-produced clothing is being allotted average state subsidies of 30 per cent and even of 100 per cent, said Mr. Peter Shishkov, chair of the Association of Bulgarian Exporters of Apparel and Textiles.

Privatization

Municipal councillors decided to sell some of Sofia municipality's shares in Municipal bank, leaving its stake in the financial institution under 50 per cent. The exact amount of the stake to be sold has not been determined as yet, but the selling method has been specified – through auction or competition. Sofia Municipal Council’s chair Mr. Vladimir Kisyov, however, presumed the municipality is to keep at least 10 per cent of its shares. The special municipal commission of economic policy was assigned to determine the selling method, the amount of the stake, as well as to study the possible consultant in the privatization no later than October 31. Currently, Sofia municipality holds 67 per cent of Municipal bank.

Pirgosplod JSC – Bourgas won the open-bid auction for the sale of the Pomorie-based Marine Club, self-contained part of Vointech SP Ltd., Sofia, paying a price of BGN 980 000, PA reported. The initial auction price was BGN 350 000.

Companies

Bulgaria's Pazardjik BT posted a BGN 49,000 profit for the first half of 2004, compared to a BGN 176,000 loss for the year-ago period. The net sales revenues amounted to BGN 3.950 million. A total of 1,070 tonnes of tobacco at BGN 3.50 per kg were sold in the first six months of the year.  Pazardjik BT sells mainly tobacco of the Virginia, Burley and Oriental varieties. The price is competitive on the domestic and foreign market.  

The Commission for the Protection of Competition (CPC) fined on Tuesday the Bulgarian Energy Company (BEC) and Atomenergoremont a total of BGN 10,000 for concluding without its sanction last year a deal that resulted in the concentration of property in the hands of one party, BEC. All deals involving the transfer of property between corporate entities with an annual turnover of over BGN 15 mln should be reported in advance to the CRC.

Bulgaria’s aviation market will be renewed through the launching of 11 new airplanes, which are to be hired by local companies in 2004, Bulgarian Aviation Operators Association reminded. In May, Bulgaria Air hired 4 Boeing 737-300s, two MD-82s will be hired by Bulgaria Air Charter. Hemus Air bought three UK-made BAI-146, and Balkan Holidays Air is to transport its passengers by two Airbus aircrafts.

The Bulgarian Communications Regulation Commission (CRC) decided to issue a TETRA licence to the only candidate to have submitted an offer, Bulgaria's Pro Wave Ltd., the company said. A co-owner in the company with 50 per cent is Mr. Maxim Behar, owner of M3 Communications. Currently only the ministry of interior has built a TETRA network, equipped by Nokia. The term of the licence is 15 years. 

The Riu chain is to take up the management of three more hotels, located in Bulgarian resorts, Ms. Karmen Riu, granddaughter of the founder of the chain Mr. Juan Riu, said upon her visit to our country. Riu has been operating on the Bulgarian market since 1999 and currently manages 6 hotels in the Golden Sands and Sunny Beach resorts. Two of them were opened this summer. Since 1993, the Majorca-based chain has been managing hotels jointly with the German tour operator TUI.

The biggest coal consumer in Southwest Bulgaria, the Bobov Dol thermal power plant (TPP), has temporarily cut off raw material supplies from five mines in the region. Directors of the plant informed their partners from Bobov Dol Mines JSC, Pirin Mines JSC, Beli Breg Mines JSC, Chukurovo Mines JSC and Causto-Gold Mine JSC that there is an oversupply of 400,000 tonnes of coal in storage and they find it impossible to accept more. This problem has arisen because mine supervisors do not observe the specific supply quotas. 

Sole-proprietor Nikolai Nedelchev will invest through the company of the same name EUR 3.5 mln in a new vegetable and fruit processing facility in Veliki Preslav. The plant will have an annual capacity of 3,500 tons and refrigeration facilities. The project has been approved by SAPARD and the EU program will reimburse 50 per cent  of the implementation costs.

Europe

Turkish Airlines, the country's state-run carrier, has announced plans to buy 51 new planes to expand its fleet. The company is looking to benefit from accelerating domestic economic growth and a subsequent pick-up in air travel. Turkish Airlines did not reveal details of what it will pay, but press agencies estimate that the deal may be worth as much as USD 4bn (GBP 2.2bn). It still has to talk with lenders about financing the purchase but said it was confident of getting the cash. Under the agreement, Turkish Airlines will buy 36 planes from Toulouse-based manufacturer Airbus and 15 from its US rival Boeing. 

USA

American International Group Inc. (AIG), the world's largest insurer, said second-quarter profit rose 26 percent after it increased life insurance and annuities sales in Asia and investment losses narrowed.  Net income rose to USD 2.86 billion, or USD 1.09 a share, from USD 2.28 billion, or 87 cents, a year earlier, the New York-based company said in a statement. Profit excluding investment losses rose 19 percent to USD 3 billion, or USD 1.14, higher than the USD 1.12 average estimate of 21 analysts surveyed by Thomson Financial. 

Asia

British American Tobacco's plans to build a factory in China faced the possibility of going up in smoke, after the country's tobacco monopoly denied that the UK group had been given permission for the GBP 800m (USD 1.5bn) venture. The State Tobacco Monopoly Administration, which controls the tobacco industry, said that all projects to do with tobacco were subject to its approval and it had not given its permission.Commenting on the possible smoking ban, BAT said while there was some confusion it still had "approvals from the highest levels".

Radoi Ralin (April 22 1923 – July 21 2004)

The legendary Bulgarian satirist, poet and translator Radoi Ralin departed from this life. The author of the emblematic book “Hot Peppers” passed away on July 21, around 16:00 p.m., defeated by a heavy illness he’d been fighting over the past few months. Bulgaria lost one of its most unappeasable and keen minds. He will be deeply missed. May he rest in peace…