Financial news

Capital expenditure, envisaged by 2005 budget, came to BGN 1.598 billion, up by 20 per cent compared to 2004. They represent 3.9 per cent of the country's GDP, which has been the highest figure since 1996, finance minister Mr. Milen Velchev said. Bulgaria allocated BGN 12.6 million to capital expenditure in 1996 which then represented 0.7 per cent of the country's GDP. The main projects to be financed by the budget next year are the second bridge over the Danube river, the Plovdiv-Svilengrad railway and the Sofia airport.

50,000 decares of vineyards will be planted every year, Farm Minister Mr. Mehmed Dikme released. This trend has to persist by this country's EU accession. Under the agreements in Agriculture chapter, vineyards here have to reach 1.535 million decares by 2007. A great deal of the vineyards are old and have to be replaced. For the purpose, the Cabinet will allot subsidies amounting to BGN 150 per decare. The same sum will be allotted per decare for planting roses. Over the last three years, the rose gardens here expanded by 80 per cent reaching some 27,000 decares, Minister Dikme elaborated. 

The share of the non-banking financial sector in Bulgaria's 2004 gross domestic product is expected to be 14.64 per cent, or BGN 5.574 billion, Financial Supervision Commission (FSC) chairman Mr. Apostol Apostolov said. The commission's forecast is based on market indicators and finance ministry's GDP projections. The data show that the non-banking financial sector has quite a potential to increase its share in the country's economy, Mr. Apostolov commented.

Privatization

A total of four companies (two of them Bulgarian and two foreign) have submitted tentative offers for the privatization of the Pernik-based metallurgical company Kamet. The companies are E.T.E. European Trading Energy GMBH, TeproSteel, TrueForge Global Machinery Corp., and Albena-Transstroy. The Danieli production line has been removed from the company's assets - a few weeks ago it was sold for BGN 4 mln.

Companies

Yesterday, Bulgaria’s Commission for Regulation of Communications (CRC) allowed Viva Ventures to acquire 49 per cent from the capital of the Radio Telecommunication Company Mobikom from Cable & Wireless Inc. Previously, BTC used to hold 39 per cent in Mobikom, while 12 per cent were owned by RES, a company owned by the local Ministry of Interior. Thus, Viva Venture’s stake in Mobikom reached 88 per cent.

The international consulting company Deloitte&Touche has been hired to develop a project for the priorities of our country’s development over the next five years. This decision was made during yesterday’s meeting of the Council for Economic Growth, which was attended by representative of the local labour unions, employers and the state. The Council also adopted a strategy for encouragement of investments in Bulgaria over the period 2005 – 2010.

Bulgaria attracts around 30 per cent of all the directs foreign investments to the Central and Eastern Europe, deputy prime minister Ms. Lidya Shuleva said. The total amount of FDI to the country is expected to reach EUR 2.0 billion by the end of 2004. Thus, the country has attracted USD 4.5 billion in foreign capital inflow, up by USD 1.5 billion than all financial resources injected t the local economy fort he period between 1997 and 2001. This year, economy ministry awarded the prize Investment of the year for the first time. It selected Socotab Group among the nominees , Lindner, Petreco Bulgaria Galata and Mirolio.  Socotab Group opened in Bulgaria one of the largest plants for processing of oriental tobaccos in the world. A total of 170 permanent jobs were opened in addition to some 1000 seasonal positions.

Local tourist agencies reported record bookings for this year’s Christmas season. More than 4000 Bulgarian citizens have chosen to spend the holidays abroad, which represents a 30-per cent growth from last year. The main players in the local tour operator market are Alphatour, Alma Tour BG, Astral Holidays, On Travel, Alsamur, Alma Holidays, Easy Travel, Marbro Tours, Aqua Tour, and Philip Tour.

The Greek company Tehilius Domi will execute the project for the building of a waste water purifying station in Blagoevgrad. The project is under EU’s ISPA programme. Some EUR 7 mln will be invested in the facility.

Lovech municipality will cut its stake in the capital of the local company Lovechgas 96 JSC from 26 per cent to 5.5 per cent by decision of Lovech Municipal Council. The company was associated back in 1996 and was responsible for the town’s gasification. 74 per cent of its BGN 50 000 capital were held by Overgas Inc. JSC, and the remaining 26 per cent were controlled by the municipality. Since 1996, Overgas Inc. has invested more than BGN 4.8 mln in the town’s gasification network and is planning the total amount of investments to reach BGN 8.8 mln.

Another special purpose vehicle was licensted  by Bulgaria's Financial Supervision Commission. The name of the new company is ERG Capital 1 and it is specialized in securitisation of real estate properties. This is the fourth company of this type in our country. The other four are TBI BAK Real Estate, BenchMark Fund Real Estate, and Kolos 1. 

Europe

Russia sold its stake in OAO Magnitogorsky Metallurgichesky Kombinat, the country's second- largest steelmaker, to investors friendly to top management for USD  790.2 million, exiting the industry. A venture of United Financial Group, a Moscow-based brokerage, bought the 23.8 percent stake at the starting price in yestertoday's auction. Four other prospective buyers showed up and didn't bid. Another UFG venture bought Mechel Steel Group's 17 percent stake in the steelmaker yesterday. 

USA

General Mills reported a 19 per cent rise in quarterly earnings as price increases and stronger sales of Pillsbury products helped offset higher ingredient and energy costs. Profit for the fiscal second quarter ended November 28 rose to USD 367m, or 97 cents per share, from USD 308m, or 81 cents a share, a year ago.

Asia

The Tariff Policy Commission of the State Council has announced that China will further cut import tariffs on more than 900 products beginning January 1 of 2005.  This will lower the general level of import tariffs to 9.9 percent from the current level of 10.4 percent.  Meanwhile, China will resume the collection of export tariffs on resource-related products from January 1, 2005, which analysts say is a move to meet strong domestic demand. 

Christmas Eve and Christmas

Christmas Eve is the night before Christmas, when the whole family gathers on a festive dinner. Only lenten fare is served on the table. The number of the dishes should be odd – the more dishes, the richer the coming year will be. After the end of the dinner, the table is not cleared, because people believe their dead relatives and friends come to have dinner and take care of the prosperity of those alive. Christmas Eve marks the celebrations connected with the Birth of Christ, or Christmas – one of the greatest and most loved Christian holidays. People believe that on Christmas the sky opens and all of a sudden all turns into light; however, only righteous people can see this light. On Christmas, everyone can make a wish and this wish will come true. In XX century, Bulgarians added another element to their Christmas festival traditions – the Christmas tree. This tradition came from Western Europe. The bright Christmas tree is an element in many ancient mythologies and has gradually turned in their symbol. Jesus came on earth to bring light to all people and their kingdom. With his coming, he brought a part of the sanctity of Heaven – the beautiful heavy with fruit Heavenly Tree. Therefore people richly decorate the Christmas tree, as a symbol of Christ’s brightness, knowledge, purity, and truth.