Financial news

Official data of BNB confirmed forecasts that as the global economic crisis deepens, the country’s current account deficit will shrink. In the first two months of the year, the gap contracted to EUR 649.3 million compared with EUR 1.464 billion for the same period of last year, which makes a 55.6% decrease. The fall was most strongly driven by a shrinking trade deficit, which fell by EUR 501.8 million. Imports slowed by 32.3%, as import was EUR 2.389 billion in January and February 2008 against EUR 3.528 billion for the same months of last year. Exports, on the other hand, were estimated at EUR 1.689 billion in comparison with EUR 2.326 billion.

The State Agriculture Fund (SAF) starts the payments to flawless projects under SAPARD, as announced by the Ministry of Agriculture and Food yesterday. Back on 30 March the government gave the green light to SAF to spend BGN 100 mln on implemented SAPARD projects. The money is to be spent under a special target account of the State Agriculture Fund in BNB in conjuncture with all transparency and accountability SAPARD requirements. The National Authorizing Officer Dimitar Ivanovski has already approved of the changes to the regulations for the SAPARD Agency’s ‘European Funding’ department.

The share of consumer loans in Bulgaria has shrunk fifty percent, according to information of the National Statistical Institute. In February, the consumer loans fell to 6.80 levs from 11.59 levs y/y. At the same time, the households incomes have increased by 12% in a year?s time, statistical data show. In February, the average income of the Bulgarian was 274.74 levs and of the Bulgarian household - 686.66 levs. On monthly basis, however, the incomes of the Bulgarian citizens are shrinking and this is not only due to the global financial crisis.

	Mineral Fuels, Tailoring Products, Canning, Perfumery and Cosmetics, Furniture, Meat Products, Wine, Lumber

Companies

Net profit of First Investment Bank in 2008 is BGN 49.2 mln as compared to BGN 51.1 for the previous year. Pre-tax profit is BGN 54.3 mln. The bank holds a market share of 6.1 per cent concerning the credit loans, while it holds 7.9 per cent in terms of deposits. Interest income of the group reached BGN 335.9 mln, which is a growth of 24.2 per cent. As to December 31, 2008, customer deposits in First Investment Bank are to the value of BGN 2.8 bln.

There is still some lingering hope that a contract for coke processing at the troubled Bulgarian steel mill Kremikovtzi could be signed. The statement was made by Bulgaria's Economy Minister, Petar Dimitrov. The Minister further said that when all hopes to revive the mill die, the gas supply to Kremikovtzi will be fully halted. Dimitrov spoke to reporters upon conclusion of his meeting with the Minister of State of Turkey, Kursad Tuzmen. Regarding the Belene Nuclear Power Plant project, the Minister said the financing structure for the project would not be ready anytime soon and will fall on Bulgaria's next Cabinet.

Raiffeisenbank (Bulgaria) and the European bank for reconstruction and development signed a second credit line, amounting to 10 million euro, which will be used for the funding of projects of farmers and entrepreneurs from the private sector, working in the rural regions of the country. The credit is part of a total line for financing of small and medium enterprises (SME) under the program of the European union and the EBRD, which is added by subsidies from the European commission. The credit line will ease the access of SME to financial resources, which will help the expansion of their activities.

Trakiyski Pamuk JSC - Stara Zagora reported 95.95% less sales for the first quarter of 2009, the non-consolidated report of the company shows. Sales contracted to BGN 39,000 compared to BGN 962,000 for the same period in 2008. Total turnover dropped by 95% year on year to BGN 49,000. By the end of March 2009 the company announced a loss of BGN 2,000, while the first quarter of 2008 profit was BGN 490,000.

Bulgaria’s Black Sea airports of Varna, in the north, and Burgas, in the south, registered busier passenger traffic in the first quarter of 2009 compared to the year-ago period, showed figures of the operator, Fraport Group. Traffic at Varna Airport surged by 163% and at Burgas Airport by 1.7%, due to lower passenger volumes in the winter season. The Bulgarian airports account for just 0.5% of the total number of passengers serviced by Fraport.

Private company Plovdiv Airport SPJSC, which manages the passenger terminal, would be expropriated. Valuation is ready, said the Minister of Transport, Petar Mutafchiev, who declined to announce the sum. Holder of 59-percent share in the company is Alpha Finance Holding JSC, owned by Ivo Prokopiev. Minister Mutafchiev said that the expropriation would be accelerated as modernization of the airport should start in June. The Government granted BGN 40 mln for the overhaul. The building will not be used by the airport any longer as passengers would go through the new terminal.

The Italian company Sorgenia has signed an agreement for mutual exploration of potential gas deposits in northeastern Bulgaria with the British companies GKX Oil and Gas and Aurelian Oil and Gas. The Italians are going to invest in USD 3,1 million in exploration which is expected to begin by the end of this or in the beginning of next year.

07 May 2009 - BUSINESSEUROPE is organising a conference in the framework of the Commission's first SME Week in Brussels

Europe

Air France-KLM has said it plans to cut between 2,500 and 3,000 jobs over the next two years. Europe's biggest airline will cut jobs by not renewing contracts or replacing retiring employees, the carrier said, avoiding compulsory lay-offs. The airline has been hit by the global economic slowdown, with passenger traffic down 9.4% in March. Airline around the world have been hit by falling demand for flights as the global downturn takes hold. The UK Civil Aviation Authority reported that passenger numbers at UK airports have fallen last year for the first time in 17 years.

America

EBay Inc. plans to spin off its Internet communications service Skype through an initial public offering, undoing a $2.6 billion acquisition that puzzled analysts and eBay struggled to justify. San Jose, Calif.-based eBay said it expects to complete the IPO in the first half of next year, though it said the timing will be based on market conditions. EBay bought Skype for $2.6 billion in 2005 — and later had to pay some of Skype's investors $530 million because the division met certain targets for profit and growth.

Asia

Acer Inc. may overtake Hewlett- Packard Co. “I look at our competitors as being very passive in the netbook segment,” Chairman J.T. Wang said said in an interview. The company expects to become the top notebook seller before its 2011, helped by new models that are being released six to nine months before rival products, he said. Acer widened its lead over Dell Inc. and narrowed the gap with Hewlett-Packard last year. Wang declined to specify when the company will take the lead in the notebook market.

Maryanski monastery The Holy Transfiguration

The Maryanski monastery The Holy Transfiguration is located some 4 km away from the town of Elena, Veliko Tarnovo district. A monastery has erected here yet in 8ht-9th century, which is evidenced by the six capitals of columns found here, four of which are now in the National museum of history, and two are kept in the monastery. The today’s church was built in 1835. During the diggings, the foundations of an old Christian temple were found, and a marble sarcophagus was found in the altar, were lied a skeleton with a Gospel and crown. Some people think that this may be the grave of the King Boris. According to another story the Queen Mara, the sister of King Ivan Shishman, stayed in the monastery before leaving for Constantinople to marry sultan Murad. After the sultan died she came back in the monastery. Probably the monastery was named after the Queen Mara. The nowadays monastery is active from 1992. Some of the biggest and most beautiful icons from the Elena clerical district, painted by the old masters from the Tryavna School, may be seen here.

On that day:  Tarnovo constitution