Financial news

Bulgaria may rely on EUR 1.3 billion financing from the European Union during its pre-accession period that is expected to end in 2007, Bulgarian Deputy Minister of Foreign Affairs Mr. Petko Draganov said. After Bulgaria's accession into the Union another EUR 4.5 billion worth of financing are supposed to come.  Our country will receive the largest financing from the pre-accession funds in terms funds per capita, Mr. Draganov added. The largest amounts will be allocated to the agriculture sector.

29.7 thousand tons of mineral water have been exported from Bulgaria over the first half of 2004, which makes a 5.6-per cent increase y/y. Exports was mainly destined to USA (12.7 per cent), followed by Germany (5.9 per cent), Greece (5.6 per cent), and the Netherlands (5 per cent). Imports of natural mineral water over the review period amounted to 0.2 thousand tons, the biggest part of it coming from France (43.3 per cent).

The Governor of Bulgarian National Bank (BNB) Mr. Ivan Iskrov demanded on the speeding of the Euro introduction as an official national currency in Bulgaria. This would eliminate the risk calculations that now make the trade with the EU more expensive, and the interest rate is to decrease as well, Mr. Iskrov announced. Bulgaria is to introduce the Euro as a national monetary unit by the middle 2009 but no later than January 1, 2010.

Privatization

World tobacco giants British American Tobacco, Imperial Tobacco, and Philip Morris have been qualified by Bulgartabac’s Supervisory Board to take part in the further procedure for the privatization of the local four best performing tobacco plants. The decision has been made late on Friday, Bulgartabac’s press center announced. The approved candidates will receive the auction documentation following the signing of a confidentiality agreement and payment of a EUR 25 000 fee for each one of the two stakes no later than August 13 2004.

100 decares of uncultivated municipal lands located in the town of Balchik are to be sold through auction. The auction procedure has been initiated following offers submitted by the Greek company Panos Ltd., headed by Mr. Dimitrius Hristopolus. Interest by other candidates, however, is also expected. The businessman intends to build a tourist village. Balchik municipality also intends to sell an Olympic-sized pool based on the seacoast. Investors from Denmark, Norway, and Russia have demonstrated interest in it.

Companies

The first of the kind initial public offering, started by the Internet company Investor.bg attracted investors from abroad. The event was unique also because a private company succeeded to increase its share capital more than twofold on the stock exchange.  At the end of the IPO, the company already has 209 shareholders, 182 of which are individuals. 

Spain's Detea Grupo, which does business in construction and engineering, energy and environment, real estate and agriculture, will invest EUR 50 mln in the construction of a shopping mall that will bring under one roof major retailers of foods, clothing, furniture, home decors, white goods and consumer electronics, said the Bulgarian Foreign Investment Agency. The mall will be Detea's first investment in Bulgaria. 

Agency for Government Claims (AGC) called an open tender for five self-contained parts of Chimco's property. This is the third consecuive time this year that the agency tries to sell company's assets. The company's xenon-krypton installation, that was assessed at BGN 3.7 million in February is now put for sale at a price lower by BGN 900,000 than the initial assessment.

Group Plus Ltd. and Etap  Adress JSC will not raise the prices of bus tickets by the end of August despite the increase of diesel prices. Biomet  also reassured its clients that the prices would not be changed during the summer.

The economic police discovered documents signed by deceased individuals for sale of shares, made during the first wave of privatisation in Bulgaria. Investment mediation company Ex-Pit&Co. Ltd. was inspected, and the confiscated documents show that transactions were carried out on behalf of around 50 dead shareholders for a total amount of approximately BGN 2,000. The information about illegal financial operations involving bonds was received by economic police on July 30, and the measures taken in this regard clarify certain elements of the scam. 

BGN 11 mln were invested in the construction of a new hotel in the Riviera holidays club – Riviera Beach 2. CEO of the resort Ms. Lyudmila Nenkova and the chairman of the DZI Bank Board of directors Mr. Emil Kyulev officially opened it at the end of last week. The hotel is intended for summer holidays and to the business with three modern conference rooms, convenient for conference tourism. DZI Bank was to invest in the Borovetz Resort, Mr. Kyulev said.

BULGARREKLAMA Agency and the Association of apparel and textile exporters in Bulgaria have the pleasure to invite you to “BGate 2004” – Balkan Gate Apparel and Textile Exhibition (08-10 October 2004, Inter Expo Center, Sofia)

Europe

Russian oil major YUKOS has no money in its bank accounts after bailiffs seized USD 900 million on Thursday to cover its back-tax bill, a financial source said on Friday. "They have no money to fund their basic operations. Production needs can still survive for a few weeks, but the time is coming to pay transportation fees," the source said, adding that the money was seized from Russian bank accounts. YUKOS, which has repeatedly warned it needs at least $400 million in its Russian bank accounts to fund core operations such as transportation fees to ensure oil exports, declined to comment on the report.

USA

Burger King Corp., the No. 2 U.S. hamburger chain, said Thursday July sales at comparable U.S. restaurants jumped 12.9 percent, marking its sixth consecutive month of U.S. same-store growth. Privately held Burger King said comparable sales at U.S. franchise restaurants were up 12.4 percent, while same-store sales at U.S. company restaurants climbed 18.4 percent. Miami-based Burger King has more than 11,220 restaurants worldwide, with 91 percent owned and operated by independent franchisees.

Asia

Axa SA, Europe's second-biggest insurer, offered AUD 3.1 billion (USD 2.2 billion) to take full control of its Asian business, seeking to speed up growth in a region that is home to 60 percent of the world's population. Paris-based Axa made a bid with cash and shares for the 48.3 percent of Axa Asia Pacific Holdings Ltd. it doesn't own, valuing the stock at AUD 3.75, 14 percent more than the closing price yesterday (Aug 5).

Raisko Praskalo waterfall

The Raisko Praskalo waterfall (“raiski” in Bulgarian language means “heavenly”, and “Praskalo” means a place, where water sprinkles), is located in the Jendema natural reserve. The name of the reserve comes from the Turkish word “jendem” which means “hell”, though it is a true paradise for its numerous inhabitants – wolves, bears, deers, wild goats, eagles, etc. The reserve covers the area between the Botev and Ravnetz summons in the Stara Planina mountain, as well as the upper stream of the Tundja river and the gorge of the Tuzha river. It is one of the hardest to access Bulgarian natural reserves. “Raiskoto Praskalo” is the highest waterfall not only on the territory of Bulgaria, but also on the whole Balkan peninsula (125 m). It can only be reached on foot. The walk to it usually takes some 4 hours starting from Panitzite near Kalofer. The waterfall springs almost from the very Botev summit.