Financial news

Bulgaria received a second investment credit rating in 2004 from the Fitch ratings international agency. The Minister of Finance Mr. Milen Velchev announced that. The assessment given by the agency to Bulgaria is BBB-. The Standard & Poor's international agency also gave to Bulgaria an investment credit rating up to BBB- level on June 24, 2004. According to Mr. Velchev this is an unprecedented fact in the history – 12th consecutive increase of the credit rating for a single country for the past 3 years.

A total of 48 projects for development of municipal infrastructure, amounting to BGN 10.5 million, will be financed by Bulgaria's Social Investment Fund (SIF). The agreements were signed Wednesday. The maximum amount provided to a project is BGN 200,000. Agreements on another 84 projects worth BGN 22 million are to be signed shortly, SIF CEO Blagovest Georgiev said. Some 800 projects have applied for financing this year. SIF has been operative since the beginning of 2003. The fund was financed with a EUR 50 million loan from the World Bank and EUR 17 million contributed by the ministry of labour.

Privatization

Privatization Agency gave instructions to the BSE-Sofia for suspending the sale of the share stake in Galatex JSC – Varna, as the company’s securities were attached by decision of the Sofia City Court from July 29. The Court ruled that the Central Depository should transfer 78 866 shares of the Varna-based company to the two rightful owners, successors of Assen Simov. Galatex JSC – Varna’s shares were enlisted in the seventh Centralized Public Auction that began on August 2.

Companies

Foreign trading company Chimimport received permission form Bank Supervision to acquire directly and through connected persons a 95%-stake in Central Cooperative Bank, said Alexander Kerezov, member of Chimimport's board of directors. Representatives of the Bulgarian National Bank confirmed the news. CCB's share capital is BGN 16.169 million. Chimimport itself will acquire 55% of CCB. The joint stock insurance company Armeec will have 5.0%, while Oil and Gas Exploration and Extraction JSC will come into possession of a 35%-stake. All these companies are allegedly connected with Varna's business group TIM.

HVB Leasing is the new name of Biochim Leasing Bulgaria, the company said. The change follows the recent renaming of Bulgaria's Biochim bank into HVB Bank Biochim. HVB Leasing is a Bulgarian-Austrian joint venture, where Bank Austria Creditanstalt Leasing GmbH (BA-CA Leasing) holds 90% and HVB Bank Biochim has 10%. Both companies are part of HVB Group. HVB Leasing deals in financial and operation leasing of moveables and immoveables.

Textile company Markam is building an EUR 2.429 million plant in Rousse, said company's manager, Kamen Obreshkov. The factory is projected to meet all EU standards. The project has been developed in cooperation with the Germany's GTZ and U.S. experts. Through the new plant Markam will increase significantly its production capacity, opening 350 jobs. According to Obreshkov, large corporate clients are more active this year and the volume of orders to Bulgarian textile companies is increasing.

The average insurance income at the 20 most law-abiding companies in Bulgaria, employing up to 15 people, stands at BGN 1,018, first-half data of the National Social Security Institute show (NSSI). Such companies employ 273 people. The leader in the group is the embassy of Spain. Companies with staff of 15 to 50 people have a total of 804 employees. The average insurance income there is BGN 995. The employer paying the highest contributions for its employees is BORICA. Companies with 50 to 100 staff insure a total of 1,579 people with an average insurance income of BGN 902.

Cigarette maker Blagoevgrad BT, one of the SOFIX components with the biggest market capitalization, reported a profit of BGN 9.602 mln in January-June, up 38.5% from BGN 6.931 mln in the like period a year ago. The rise is largely due to higher net sales, at BGN 91.76 mln versus BGN 83.5 mln in the first half of 2003. Expenditures dropped to BGN 84.409 mln from BGN 86.996 mln. Stocks stood at BGN 102 mln by late-June, and short-term receivables at BGN 15.9 mln.

The Supreme Administrative Court decided on Wednesday to grant pharmaceutical company Sopharma exclusive rights for the production of Bulgaria's most popular pain-reliever Analgin (international generic name: Metamizole sodium), confirming its status of sole holder of the Analgin trademark. In the course of five years another pharmaceutical company, Plovdiv-based Biomeda, challenged Sopharma's right to register the trademark. The trademark judgement means that any pharmaceutical company that wishes to make Analgin should request the relevant license from Sopharma.

Hebrosbank was named as the leader in agricultural lending among EU aspirants by the EU/EBRD SME Finance Facility at the annual congress on SME investment in Central and Eastern Europe held in Munich. In May 2004, Hebrosbank signed a 6 mln euro loan agreement with EBRD in support of SMEs in Central and Eastern Europe.

The local Investbank opened a new office in Ihtiman, in the Sofia area, enlarging its nation-wide network to 31 branches, offices and field offices.

Europe

BASF, the world's largest chemicals company by sales, on Wednesday raised its full-year forecast after better-than-expected second-quarter results underlined that the pressures that have been weighing on the sector for the past few years are easing. BASF reported a 44 per cent rise in second quarter earnings before interest, tax and special items to EUR 1.2 bn (USD 1.45 bn) and sales of EUR 9.3 bn, up 12.9 per cent. The group has seen improved demand for its products as the recovery in the sector gathers pace, and its ability to push through price increases in an increasing number of its business units is helping to compensate for high raw material costs. 

USA

Credit Suisse First Boston, the securities unit of Switzerland's No. 2 bank, said second-quarter profit fell 43 percent from the first quarter as it suffered a 38 percent decline in equity and bond trading revenue. Net income dropped to 430 million Swiss francs ($336 million) from 759 million francs in the first quarter, according to the company's Web site. Excluding CSFB's wealth and asset management division, profit declined 79 percent to 129 million francs. Securities firms have reported lower second-quarter results as rising interest rates hurt bond trading profits and a reduction in equity trading volume cut income from buying and selling stocks.

Asia

Clothing designer Tommy Hilfiger on Wednesday posted a quarterly loss versus a year-earlier profit as weakness in its wholesale business bit into revenue. The Hong Kong-based company reported a loss of USD 7.6 million, or 8 cents per share, for its fiscal first quarter ended June 30. In the same quarter a year earlier, it posted earnings of USD 9.8 million, or 11 cents a share, excluding special items. Analysts had expected a loss of 10 cents per share, according to Reuters Estimates. Tommy, which is both a retailer and a wholesaler, stood by its forecast for fiscal 2005 earnings per share, excluding special items, to decline in the mid-teens percentage range, and revenue to decline in the high-single-digit percentage range.

Kaleto fortress – town of Belogradchik

The Kaleto fortress is the most interesting and most significant historical monument in Belogradchik. It was built among the stone rocks when the Bulgarian state was founded, and when the Balkan peninsula was a part of the Roman empire. In its construction, Romans took advantage of the natural inaccessibility of the rocks, and built only two walls, the other two sides surrounding the fortress being two natural rock massifs. A dungeon, most probably built in a later period by the Bulgarians, has been completely preserved in the north-western part of the fortress. Later on, it was further fortified and expanded by the Turks. In 1850, the fotress played a negative role in the Belogradchik Revolt. After the rebels were crushed, some of the town’s most prominent men were taken out of the fortress through a tunnel and were beheaded. Nowadays, a monument in memory of those men has been built near the the place of the execution. The fortress was last used as a military base in the Serbo-Bulgarian war of 1885. Immediately after it was declared a cultural monument of national importance, it was restored and is currently adjusted for mass tourist visits.