Financial news

EBRD and the European bank will provide EUR 480 mln for the financing of 14 local water supply & sewerage companies, included in an ISPA integrated development project, Minister of Regional Development and Public Works Mr. Valentin Tzerovski announced. According to plan, the companies will be divided into two groups. Each group will apply for projects to the value of EUR 180 mln. In the beginning, the scheme will be applied in two projects. The first one will be in Bourgas, and the second one – either in Rousse, Sliven, or Plovdiv.

Credits will not become less expensive because of the drop in the basic interest rate that today from 2.44 per cent became 2.36 per cent. The change is too insignificant to affect the credit interests, finance experts explained. In Bulgaria only a few banks form their interests according to the basic interest rate plus an increment.

Household propane-butane will be tax-exempt, the MPs decided passing the UtdDF excise duties draft bill on second reading in Parliament. The proposal was made by Mr. Peter Zhotev and was passed by a margin of only one vote. It was accepted with loud applause. The proposal was backed by 97 MPs from the UtdDF, UDF, BAPU, BSP and even 3 NMS MPs backed it. Being tax-exempt, the price of propane/butane will go down by 0.15-0.20 lev/liter. However, the MPs postponed the vote of the text which has to specify from when exactly the amendment will come into force.

Bulgaria's ministry of regional development and public works will grant one single concession on the Trakia highway and the stretch between Sofia and Kalotina at the border, Stability Pact national coordinator Mr. Milen Keremedchiev said. This will make the construction of the future Sofia - Nis motorway more efficient and will enhance the return of investments, he explained.  At the latest meeting of the Bulgarian-Serbian committee we suggested the same scheme of concessioning to Serbia and it approved the proposal, Mr. Keremedchiev added. 

Privatization

Blagoevgrad BT, the top profit-making decision of Bulgartabac Holding, will probably be decoupled from Slantse-Stara Zagora BT, two were paired off in July and put up for privatisation, and sold on its own, it emerged after economy minister Ms. Lidia Shuleva submitted to parliament a report on the progress in the denationalisation of the tobacco monopoly's subsidiaries. The Blagoevgrad BT/Slantse BT package failed to attract any buyers but the other equity package, made up of cigarette factories Sofia BT and Plovdiv BT, received an offer from British American Tobacco. What deterred investors from bidding for the Blagoevgrad BT/Slantse BT package was the anticipated high cost of restructuring at the Stara Zagora-based mill.

Several intermediary companies and a construction company are expected to submit documents for the first three heat-supply companies sold by the Privatization Agency (PA). The deadline for submission of documents expires at 2 p. m. on Friday. Energoremont Holding, AKB Fores, and Top-Group filed indicative offers for the heating utility in Gabrovo. Eco Energia Holding and Energoremont Holding submitted preliminary offers for the heating utility in Veliko Tarnovo.

Israeli-based military electronics producer Elbit System is interested in the privatization of certain parts of the local military plant Terem, the vice president of the company’s Aircraft Modernization department Mr. Menahem Bargev said. Elbit Systems in a consortium with the US corporation Lockheed Martine is among the companies, interested in the modernization of the Mi-17 and Mi-24 helicopters used by the Bulgarian Army. Elbit System is the third candidate which has officially stated its interest in the privatization of TEREM.

Companies

SAAB International and Ericsson Microwaves had three-hour talks Tuesday with representatives of Bulgaria's naval staff on re-equipment of the navigation systems of the Chayka helicopter base in Varna. Through its Grippen International, SAAB has contracts with the defence ministries of the Czech Republic and Hungary for supply of fighters. The two Swedish companies propose to sign a contract with the base in Varna as part of their possible participation in offset programmes of the Bulgarian defence ministry. Talks were also held with the owners of the shipyard in Varna, Bulyard.

Gazosnabdyavane Rousse, a unit of local gas supplier Overgas Inc., has installed 17 km of gas supply infrastructure, the company's managerial agent Mr. Stoyan Manolov said on Tuesday. The year-end target of the company is 32 km. The gas distributor has been contract to build networks for 9 administrative clients and 350 households. Another 50 km will be added to the Rousse gas network in 2005, plugging in a total of 2,700 households and 40 industrial customers.

DZU is opening 300 jobs and is planning to make investments worth BGN 10 mln within the next 2-3 years. The company intends to build a new plastic processing production unit in the town of Stara Zagora, Hungary’s Videoton, owner of the former Bulgarian electronics giant, announced.

As much as 30 per cent of Navigation Maritime Bulgare (Navibulgar) should be listed on the bourse in three years; the sale should be bound to the execution of the deal on the remaining 70 per cent, the Bulgarian Association of Ship Owners suggests in a letter to the president, the premier and the parliamentary chairman. The current government's strategy envisages listing 30 per cent of the maritime carrier's shares for trade on the stock exchange before a buyer is found for the remaining stake. 

Over 20 Bulgarian IT firms will attack the Silicone Valey during their 2-week business shuttle which starts Monday. In San Francisco, the Bulgarian IT experts will have meetings with Hewlett-Packard Chief Executive Officer Carly Fiorina, with Cisco Systems CEO John Chambers and with Intel CEO Craig Barrett. The Bulgarian delegation will be led by Finance Minister Milen Velchev. Bulgaria is a serious competitor to India and China in this branch and not only in terms of cost of labor.

Wine brands Chardonnay Blueridge 2003, Merlot and Cabernet Sauvignon of Domaine Boyar were awarded silver medals at the International competition Mundus-Vini Great International Awards 2004. Domaine Boyar products received 89 points out of the maximum 100. The three Bulgarian wines got ahead of other 3,500 wine brands  Merlot and Cabernet Sauvignon 2002 of Domaine Boyar were awarded honourable diplomas. 

Europe

Cendant, the US lodging and travel group whose brands include Howard Johnson hotels and Avis rental cars, is to build mid-priced hotels in Russia and other former Soviet Union countries.Cendant plans to develop 45 of its mid-priced Days Inn hotels in the next five years. It expects to generate more than USD 195m in revenue during that time.The company has signed an agreement with Hermitage Hospitality to franchise Days Inn hotels in Russia, Georgia, Kazakhstan, Ukraine and Uzbekistan.

USA

News and information provider Reuters Group Plc said on Tuesday it was considering strategic options for its U.S. electronic trading subsidiary Instinet, including a possible sale of the business. "Strategic alternatives are being considered by Reuters and Instinet, including a possible sale, merger or other business combination or corporate transaction," Reuters said in a statement, responding to press speculation it is looking to sell Instinet in a deal that could be worth more than $2 billion.

Asia

ZTE Corp., which is reviving its initial public offering after scrapping the plan last year, will use 60 percent of the proceeds from the sale to expand overseas as revenue from wireless communications in China may decline, according to a document linked to the offer. The Chinese telecommunication equipment maker, which plans to raise as much as HKD 3.1 billion (USD 399 million) in the IPO next month, will focus on growing in emerging markets after overseas sales rose to 13.4 percent of the total in the first-half from 8.5 percent a year earlier. 

St. Dimitar Basarabovski rock monastery

The rock monastery St. Dimitar Basarabovski is located in Northeastern Bulgaria, some 15 km away from the city of Rousse, in the region of the Besarabovo village. It is the only active men’s rock monastery in Bulgaria. The name of the monastery was first mentioned back in 1431 in a Turkish tax record. In XVI century it was deserted, only to be restored again in 1937. Nowadays, it is well kept and uniquely beautiful. It was proclaimed archeological monument of culture of local importance in 1978. But its importance stretches far beyond only being an archeological treasure. It is highly valued for its rich architectural, cultural and religious heritage.