Financial news

Annual deflation slowed down to 0.1% in November, compared with 0.3% in October, data of the National Statistical Institute (NSI) show. Monthly inflation last month was the same as in September and stood at 0.1%. November was the second month to see year-on-year deflation in 2009. Annual deflation has not been registered for ten years. Cumulative inflation since the beginning of the year was 0.1% in November. In December prices will rise due to increased consumption around the Christmas holidays. The average annual inflation for Dec 2008-Nov 2009 was 3.3% year on year. Household spending dropped 0.7%. Restaurant, hotel and communication prices were on par with the ones in September.

"Bulgaria sticks to the right course," said Herman Van Rompuy, President of the European Union, after his tete-a-tete meeting with Bulgaria's PM Boyko Borissov. "We recognize the economic difficulties and the great efforts of the new government to cope with the financial crisis, to regain Bulgaria's prestige and to open new perspectives for membership in the European Zone," Herman van Rompuy encouraged the measures, undertaken by Bulgaria's cabinet. Boyko Borissov and his high guest discussed the earliest possible date for the euro introduction in Bulgaria. Mr. Rompuy's next meeting was with President Georgi Parvanov. Bulgaria's head of state confirmed Bulgaria's interest to the construction of the Nabucco and South Stream pipelines, as well as this of Belene Nuclear Power Plant.

	Mineral Fuels, Tailoring Products, Canning, Perfumery and Cosmetics, Furniture, Meat Products, Wine, Wood-processing Industry

Companies

Bulgarian Post SPJSC faces major restructuring, said chief executive Milen Keremedchiev and added that the 11 levels of hierarchy would be abolished and the accounting system would be fully centralized. proper operation of cash flows is what will help Bulgarian Post, considers Keremedchiev. Bulgarian Post will be targeting the largest customers of the past, from which the company can earn about BGN 5 million annually. Milen Keremdchiev was categorical that there would be no mass lay-offs and redundancies. Currently 14 200 people work at Bulgarian Post. The staff will be reduced by 1200 people, 900 of them going into retirement.

EVN begins building in Plovdiv the first super modern heating plant in Bulgaria, the chief of the company, Joerg Zolfelner said. The construction will begin in May next year. The facility is unique and will be the first such in the country. The heating plant will have gas and steam turbine for double burning. There will be no smoke, only steam. The investment of EUR 50 million will create one of the most modern facilities in Europe for the next 15 years.

Bulgaria’s blue-blooded infrastructure group Trace Group Hold was awarded contracts worth BGN 15.4 million by the Road Infrastructure Agency to clean up and maintain streets during the winter season. Pen was put to paper last week by subsidiaries of the holding company on a combined 88 kilometres of roads in Kardjali, Yambol, Kazanlak and Gurkovo regions. The contracts have a one-year term.

Intercompany debts in Bulgaria increased dramatically in 2008, even though banks were still willing to lend money to businesses during most of the year, the traditional survey of the Bulgarian Industrial Association (BIA) shows. Debts in 2008 amounted to BGN 90 billion, up 24% year on year. Companies' net debts rose 43% in 2008 to BGN 65.3 billion. Outstanding tax and social security payments went up 33.5% to BGN 4.7 billion. Total company debts reached BGN 160 billion in 2008, up 31% year on year. At the same time the state, municipalities and state-owned companies continue generating debts to businesses, BIA chairman Bozhidar Danev pointed out. Their dues are currently about BGN 2 billion, including outstanding VAT refunds.

Japan's Toshiba Corp. has reportedly voiced its interest in the building of a seventh unit at Bulgaria's Kozloduy nuclear power plant, the closure of which was one of the conditions for the country's EU accession. Representatives of the company are expected to visit Bulgaria this week to launch the negotiations. Toshiba holds a 67% stake in the American Westinghouse Electric Company, which builds nuclear power generator units. During their visit to Bulgaria the company representatives are expected to propose the building of Westinghouse Electric Company's AP1000, a Generation III+ reactor, on the site of the nuclear power plant.

Bulgaria's competition regulator said on December 14 2009 that it approved the acquisition of telecom services provider Vivacom by Caiman Islands-registered Bridge Partners LP. Bridge Partners and its parent company, Hong Kong private equity firm Pacific Century Group, have no other operations on the telecommunications market in Bulgaria and the ownership change would not market structure, the Commission on Protection of Competition said in a statement. In September, Vivacom's previous owner, troubled US insurer AIG, agreed to sell parts of its asset management and investment advisory businesses to Bridge Partners.

Europe

UK confectioner Cadbury has defended its decision to reject a hostile takeover bid from Kraft Foods. It repeated its claim that Kraft's "derisory" bid was an attempt to "buy Cadbury on the cheap". It cited its strong trading record over the last year, together with its "exceptional growth opportunities". The Cadbury board first rejected Kraft's £10bn bid in November, and is in talks with US rival Hershey about an alternative takeover deal. Cadbury owns brands such as Wispa, Dairy Milk and Flake, as well as Trident Gum and Hall's Sweets.

America

The Senate passed a $1.1 trillion spending bill with increased budgets for vast areas of the federal government, including health, education, law enforcement and veterans' programs. The more-than-1,000-page package, one of the last essential chores of Congress this year, passed 57-35 and now goes to President Barack Obama for his signature. The spending bill combines six of the 12 annual appropriation bills for the 2010 budget year that began Oct. 1. Obama has signed into law five others. The final one, a $626 billion defense bill, will be used as the base bill for another catch-all package of measures that Congress must deal with in the coming days.

Asia

Suzlon Energy Ltd, India’s biggest maker of wind-turbine generators, plans to complete $2.8 billion of refinancing by the end of January, Chairman Tulsi Tanti said. Suzlon is consolidating its short and long-term loans, working capital and other borrowings into a single loan that’s already been agreed by State Bank of India and IDBI Bank Ltd. Another 25 banks will join the group. The Ahmedabad-based company is reworking its debt taken to acquire 91 percent of Hamburg-based Repower Systems AG after orders slowed because of the global recession.

Petlyuka Fortress

Among the otherwise round and grassy ridges of Viskyar mountain, one alpine place is situated. The small river has engraved an imposing gorge, which despite the fact that its length is only 60 m impresses with its vertical rocks. Even more impressive is the eastern ridge where is the peak Pekljuchki stone. Here is where actually the fortress was. There are preserved fortress walls of up to 1,20 height and 1,50 m width. There could be seen a water tank revealed to 8 m depth. People say that at the beginning of the century one “enterprising” man took out from the water tank big lead sheet iron that he transported in four carts. Near the fortress in the south foot of Pekljuchki peak is the Petljuka cave. A few kilometers from the fortress is situated the village of Gurgulyat. From its narrow entrance down there leads a narrow gallery that leads to another one, which is impassable. It is considered that once there was a way to small underground rock that had connection with the defense of the fortress.

On that day:  Kadin Bridge