Financial news

Bulgaria will issue government securities worth up to BGN 1 billion on the domestic market in 2011, down by some BGN 500 million compared with a year ago, data by the finance ministry showed. Net proceeds, or the difference between new issues and those to be repaid during the year, is expected to come in at some BGN 430 million. As to debt sales abroad, the ministry only stated it would continue monitoring the development of international markets and investor appetites. The economy started to improve in the second quarter of the previous year, which, together with the fiscal stability, broke ground for a more optimistic fiscal framework for 2011, Boryana Pencheva, Bulgaria's deputy finance minister, told. Therefore, we believe that we will need less funding, she added. As at end-2010, Bulgaria's state debt accounted for 14.6% of the gross domestic product (GDP), which is one of the lowest rates among EU members.

Bulgaria ranks 35th among 42 European countries in terms of purchasing power, a survey of GfK shows. The index for our country is estimated at EUR 2,618, or nearly five times lower than the average for the continent’s EUR 11,945. The purchasing power is calculated on the basis of per capita income, additional remuneration included, after deduction of due taxes. Slovenia tops the ranking among Balkan countries, with EUR 10,045 per capita, followed by Croatia occupying the 29th place with EUR 4,808, Montenegro - 32nd, with EUR 3,206, Romania - 3rd, with EUR 3,070, Serbia – 34th, with EUR 3,033. Macedonia is behind Bulgaria, with EUR 2,492 per capita, followed by Bosnia and Herzegovina, with EUR 2,435. The small Alpine country of Liechtenstein ranks 1st among the countries in Europe, with the EUR 49,014 per capita, and Moldova is last, with only EUR 832.

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

Companies

A delegation of the Chinese Energy Corporation visited Kozloduy NPP after a meeting they had this week with Bulgaria’s Deputy Prime Minister, Simeon Djankov and the Minister of Economy, Energy and Tourism, Traycho Traykov when the Chinese declared their interest in the Bulgarian energy sector. The Chinese delegation talked with the nuclear power plant’s management and were made familiar with the plant’s history, its contemporary status, the recent large-scale modernization of the functioning 5th and 6th units and the prospects of the Kozloduy NPP. On their part, the Chinese invited the management of the Kozloduy NPP to visit China and get acquainted with the experience and capacity of the corporation.

The Bulgarian stock exchange (BSE) saw three transactions jumbling up the shareholders' structures of Railway Infrastructure Holding Co, Holding Roads and Moststroy, the infrastructure companies controlled by businessman Vasil Bozhkov. The shares that changed hands on Thursday corresponded to stakes in the three entities held by Orlin Hadjiyankov, former executive director of Holding Roads and Railway Infrastructure Holding. The deals were carried out on the over-the-counter (OTC) market and concerned the sale of 19.13% in Railway Infrastructure Holding, 5.02% in Holding Roads and 6.79% in Moststroy. The shares were sold at a price far below their current value on the regulated market.

The Bulgarian government and syndicates met to discuss the program for the restructuring of the country's ailing railways, which is crucial in order to get an already promised World Bank loan of BGN 600 mln. The government and the unions made an agreement that no people will be laid off at BDZ, the company that handles passenger and freight transport, and NRIC, which handles the railway infrastructure, until February 14, 2011. In the meantime, the ministries of finance, transport, and labor, the syndicates and the management of the two state companies are supposed to form an inter-institutional group to hammer out a compromise on the restructuring of the Bulgarian railways. The restructuring program is the major condition for Bulgaria to receive a badly-needed BGN 600 mln loan from the World Bank.

The National Electric Company (NEK) will start the export of power to Turkey as of April. Sources of the Electricity System Operator confirmed that Turkish power distribution system would be harmonized with the Bulgarian one in about two months. This is the last obstacle before the start of electricity export from Bulgaria to Turkey, which was supposed to start end-2010. Meanwhile, the Turkish national electric company published a report, according to which, the power consumption in Turkey will increase by between 5% and 7.5% year-on-year till 2019. Thus, even in 2016, Turkey will face a serious shortage of power, which increases Bulgaria's chances to get better revenues from power export, Bulgaria energy experts reckon.

The National Revenue Agency closed a total of 269 gas stations across the country in the course of two days. The reason for shutting the stations is the fact that they failed to connect their cash registers with the NRA information system, as mandated. The agency informed that some of the stations did not even open for business because they knew they would violate the law over the failure to send electronic data for their sales. Tax agents are carrying out 400 such checks in Bulgaria now. Starting Tuesday, each gas station should automatically transmit data for the daily revenues without the knowledge of the owner at what exact time this is done. In addition, NRA will have real-time access to each cash register installed at any gas station. On Tuesday, the tax agents closed 76 gas stations and 90 closed voluntarily. On Wednesday, 47 gas stations were closed and 56 closed voluntarily.

PUBLIC DISCUSSION OF THE EU SINGLE MARKET ACT. DEADLINE FOR SUBMITTING PROPOSALS AND COMMENTS – 28 FEBRUARY 2011

Europe

Renault SA’s investigation into alleged leaks of electric-car secrets by company executives uncovered links to several Chinese companies and one in another country, a French official with knowledge of the probe said. The official, who declined to be named because the investigation is confidential, would not identify the companies or the second country involved. Renault said yesterday it held final interviews with the three suspected executives prior to their likely dismissal for “serious misconduct.” The case, which has sparked concern about industrial espionage in France, resulted from a five-month investigation by the carmaker. Renault traced payments by State Grid Corp. of China, the state-owned power distributor, into accounts in Liechtenstein and Switzerland held by two of the three executives, the official said, confirming a report yesterday in Le Figaro. China rejected the reports.

America

The U.S. trade deficit unexpectedly narrowed in November to the lowest level in 10 months as faster growth overseas and a weaker dollar boosted demand for American- made aircraft and industrial supplies like cotton. The gap shrank 0.3 percent to $38.3 billion, less than the $40.5 billion median estimate of economists surveyed by Bloomberg News, Commerce Department figures showed today in Washington. Exports climbed to the highest level in more than two years. Companies like General Electric Co. and Boeing Co. are benefiting from growing demand abroad and a lower dollar that is making American goods more competitive, propelling a factory-led economic recovery. The gain in exports exceeded an increase in imports that mainly reflected a price-driven surge in purchases of crude oil.

Asia

Chinese yuan has strengthened beyond 6.6 against the dollar, the one-week high. The People’s Bank of China set the central parity rate for the yuan at a record high of 6.5997 per dollar in early Asian session on Thursday, compared with Wednesday’s rate of 6.6128. The Chinese currency has gained against the dollar for the second consecutive trading day, regaining ground lost in the previous four trading days. The current appreciation, however, was not accompanied with a decrease in dollar index, which was unusual; while China released worse-than-expected December trade data during the same time. Therefore, some view yuan’s strengthen as a political signal, which is used to express goodwill before Chinese President’s state visit to the United States in late January.

The Teteven Monastery St. Elias

The Teteven Monastery St. Elias is situated in a secret gorge at the foot of Ostrech Peak. It was built before the fall of Bulgaria under Ottoman slavery. According to the legend, the Bulgarian Tzar Ivan Shishman gave the monastery a wooden cross, plated with silver and depicted with evangelic scenes. The books from the 16th century, consisting of prayers, wisdom, lessons and chronicles, are still kept in the monastery. In 1799, Sofroniy Vrachanski (famous Bulgarian bishop) hid twice there during the kurdjali (bandit groups) invasions. The monastery church has interesting architecture. The walls of the altar are semicircular, forming a trefoil. The church was built at two stages, because in 1869 it was almost destroyed, after that it was completed. The icons are built up in the iconostasis. The decorations are with plant subject, and their makers were from the famous wood-carving school in Tryavna. The oldest survived icon in the church is of St. Archangel Michael. The Teteven Monastery St. Elias is a monument of the culture.

On that day:  First Bulgarian Secular School – Gabrovo