Financial news

The Bulgarians buy 107 new cars a day; 22,445 brand-new limos have been sold in seven month alone, according to data of the Union of Car Importers (UCI). For comparison, only 18,405 were sold over the same period of last year. Peugeot is the most popular make in Bulgaria. The company has sold 2,641 cars in Bulgaria since the beginning of the year, 843 of which are Peugeot Partner. The most popular van of Peugeot costs BGN 22,000. The French carmaker holds a twelve-percent share on the Bulgarian market. 

Property prices are rising faster in the buoyant economies of eastern Europe than anywhere else in the world, according to a global index compiled by Knight Frank, the UK estate agency, the Financial Times reported on Monday, August 14. Overall, the index shows global property price inflation running at 8.5 percent in the year to June, below the 12.3 percent in the year to June 2005 but sharper than the 6.1 percent inflation rate recorded in March. 

According to data of Bulgaria's Ministry of Finance, slightly over twelve percent of the funds allotted under the ISPA program of the EU had been absorbed until last month. The signed financial memorandums under the ISPA program were for EUR 1.5 billion and the signed contracts were for EUR 362.67 million, which makes 24 percent of the funds. Fifty-three percents of the negotiated sums ( EUR 192 million) had been paid off. The delay in the absorption of ISPA funds is mainly due to some large infrastructure projects. 

Substantial growth in POS terminal turnover is registered by most large bank in Bulgaria in the summer. The inflow of foreign tourists, who prefer card payments, contributes to the increase in non-cash payments. The turnover of First Investment Bank's POS terminals increased by 27% in July, compared with June, the bank said. The growth is also due to the campaign that the bank launched in early July to encourage the use of credit cards. Nevertheless, Bulgaria is still lagging behind the European countries in this respect. 

Privatization

Bulgaria's Privatisation Agency (PA) announced a public auction for 67% of the capital of Balkancar ZFI. Bidding will start from BGN 740,000, increments are set at BGN 70,000. The deadline to submit documents for participation in the procedure is August 28. The very auction will be held three days later. Balkancar ZFI manufactures various spare parts for lift trucks. The equipment was made in the 1980s and delivered from Russia and Italy. Balkancar ZFI's capital amounts to BGN 255,640, distributed in shares with a par value of BGN 1. For the first nine months of 2005 the company posted a BGN 50,00 profit.

Concessions

The allegations of environmental organisations that mines make huge profits are inconsistent, the chairman of the Bulgarian Chamber of Mining and Geology, Lachezar Tsotsorkov, said. Commenting on the dispute between Dundee Precious Metals and the state over the Canadian company's mining projects at Chelopech and Popintsi, Tsotsorkov explained that the crisis on the global metal markets two years ago affected Bulgaria, too. The attempts of concessionaires to receive some reliefs have failed to meet with understanding from the institutions, he added. Between 30 and 50% of the metal in ore does not bring profit to mines. 

Companies

The construction of the first mall in Bulgaria's coastal city of Varna starts next week. It will be fully financed by Raiffeisenbank, said Krassimir Uzunov, CEO of project investor Interservice Uzunovi. The investment exceeds EUR 30 million, the project is expected to be finished by November 2007. The complex will be located on 65,000 sq. m, including 25,000 sq. m of commercial area. It will also house a parking lot for 700 cars, as well as six cinema halls with 1,300 seats.

The Port of Varna will leave behind its biggest competitor the Romanian port of Constanta and will rank next to the second biggest port in Europe - the Port of Hamburg. This conclusion was reached by the participants in the public discussion about the future of the port organized by the Standart Daily. The reconstruction of the Bulgarian port will start as yearly as next year, reads the national program for the development of Bulgarian ports for the period 2006-2015, prepared by Bulgaria's Ministry of Transport.

The 2006 investment programme of the heating utility in Rousse, Toplofikatsia - Rousse, includes environmental projects worth a total of BGN 7 million, the company said. The most important projects will be carried out at the Rousse-East power plant. These include upgrades to reduce dust emissions and improve water treatment. Risk Engineering has been chosen as contractor following a public procurement procedure.

Coca-Cola's production in Plovdiv will be undertaken by the company's facilities in Kostinbrod. The plant in the western Bulgarian town will be furnished with new-generation equipment, corporate finance manager Petya Djoneva said. It is emerging as the company's most modern production facility in Bulgaria, which is certified under the international quality and environment standards ISO 9001 and ISO 14,000. The transfer of production is expected to be finalised by March 2007.

Loop, the new cellular brand of Telekom Austria-owned wireless carrier Mobiltel, has attracted some 20,000 subscribers in its first month on the market, the parent company said on Monday, August 14. The rate of brand recognition for Loop has reached 65 percent, said Mobiltel. Loop offers mobile phone users aged 14 to 26 a tariff of 0.01 levs/min if they sign up by the end of August. The tariff for calls to non-Loop phone users is 0.39 levs/min. The text message charge is 0.14 levs.

THE 4TH INTERNATIONAL CONFERENCE ZINC 2006

UNICE Day "Why do companies care about Europe?" - 17 October 2006

Europe

US Federal prosecutors have raised the amount that former Enron boss Jeffrey Skilling should pay for his part in one of the largest fraud scandals ever. Prosecutors want Skilling to pay the sum demanded by the court both from him, and from his now-deceased former co-defendant, Ken Lay, Enron's founder. They want Skilling to hand over USD 183 mln (GBP 96m), the combined sum the two were set to pay, not just his USD 139 mln sum. In May, they were found guilty of fraud and conspiracy in Enron's collapse.

America

Department store chain Dillard's Inc. on Monday posted a quarterly profit, helped by strong demand for furniture in areas recovering from last year's hurricanes. Dillard's posted net income of USD 15.7 million, or 20 cents per share, in the second quarter ended on July 29, compared with a year-earlier loss of USD 12.3 million, or 15 cents per share. Results in the latest period included a slew of unusual items, such as gains from the sale of the company's interest in a mall joint venture, proceeds from litigation, a tax benefit and a charge from another legal matter.

Asia

Oversea-Chinese Banking Corp., the owner of Singapore's biggest life insurer, said second-quarter net income more than doubled after the company sold non-banking assets to comply with government regulations. Profit surged to S$795 million (USD 503 million), or 99.8 cents a share, from S$304 million, or 36.1 cents, a year earlier, Oversea-Chinese said in a statement today. The bank raised the proportion of profit it will pay to shareholders in dividends to at least 45 percent, up from a previous target of 35 percent.

The Assumption of the Holy Mother

On August 15, the Orthodox Church celebrates one of the 12 greatest Christian holidays – the Assumption of the Holy Mother, the day, in which God’s mother was taken bodily to Heaven after her death. The Blessed Virgin Mary cult is one of the most popular among Bulgarians, to whom she is a symbol of mercy and charity. She is also seen as protector of all sinners, women, mothers, and children. Today all the Bulgarians named Maria celebrate their name day.

On that day:  August 15 – the day of Varna Nessebar public holiday