Financial news

The Producer Price Index on Domestic Market in Bulgaria in November 2013 remained at the level of the previous month, according to the country's National Statistical Institute, NSI. The domestic prices fell in the mining and quarrying industry by 1.8% and in the electricity, gas, steam and air conditioning supply by 0.2%, while in the manufacturing the prices increased by 0.2%. In the manufacturing, compared to the previous month, prices went up in the manufacture of tobacco products by 3.0% and in the manufacture of paper and paper products by 0.3%, while a price decrease was observed in the manufacture of other transport equipment by 2.1% and in the manufacture of chemicals and chemical products by 0.5%. The Producer Price Index on Domestic Market in November 2013 decreased by 4.0%, compared to the same month of 2012. The domestic prices fell in the mining and quarrying industry by 12.7%, in the manufacturing by 3.0% and in the electricity, gas, steam and air conditioning supply by 5.1%.

Bulgaria's government debt by end-November 2013 amounted to EUR 6.78 B. Bulgaria's government debt consisted of internal debt of EUR 3.13 B and external debt of EUR 3.65 B. In nominal terms, the debt grew by approximately EUR 59 M compared to the level registered in end-October. At the end of the reporting period, the government debt-to-GDP ratio stood at 16.8%, with 9% internal debt and 7.8% external debt. The share of internal debt amounted to 46.2% and the share of external debt stood at 53.8%. By end-November, the share of government debt denominated in EUR was 53.2%, that in BGN 32.8%, in USD 12.6%, and 1.3% in other currencies. Government debt payments in November amounted to BGN 39 M. Government guaranteed debt reached EUR 407.8 M in November 2013.

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

Companies

A joint venture of Vienna-based chemicals company Borealis and First Energy Bank of Bahrain acquired 20.3% of Bulgarian fertiliser producer Neochim. The Bulgarian-registered joint venture called Feboran bought the stake in Neochim on December 21. “This investment is again in line with our strategy to grow our fertilizer business and to maintain our number one position in Central and Eastern Europe,” the statement quoted Borealis CEO Mark Garrett as saying. Cooperation with First Energy Bank allows Borealis to further strengthen its position in the growing Bulgarian market. Borealis will be distributing part of the Neochim production through its distribution network. Neochim is Bulgaria’s leading producer and distributor of fertilisers and accounts for a significant share of Bulgaria’s ammonium nitrate output. It operates one ammonia plant, two nitric acid plants and an ammonium nitrate plant in Dimitrovgrad, in southern Bulgaria.

Economic minister Dragomir Stoynev awarded management of Alfred C. Toepfer International Bulgaria Logistics with a certificate for an investor class A. The company will build a transportation port in Aydemir (near Silistra) for BGN 10 million. The facility will start operation at full capacity in 2016.

Bulgarian oil refinery Lukoil Neftochim Burgas, a subsidiary of Russian oil company Lukoil, has received an EUR 420 million credit line from several European banks to finance upgrades. The ten-year loan, which will be 95% covered by the Italian agency, SACE, was provided by Societe Generale, acting as global coordinator, mandated lead arranger (MLA) and lender, BNP Paribas, acting as facility agent, MLA and lender, ING Bank, acting as environmental agent, MLA and lender, UniCredit Group acting through UniCredit Bank Austria acting as MLA and lender and UniCredit SpA acting as MLA and SACE agent. The Bulgarian refinery is being upgraded under a lump sum turnkey contract that it has concluded with Paris-based oil and gas engineering services supplier Technip.

Bulgarian Energy Exchange applied to the State Energy and Water Regulatory Commission for a license for an independent transmission operator of electricity. The request was lodged on 27 December. Independent transmission operators play important role in balancing the market. Under the legislation, those participants in the energy market, as well as operators of distribution networks, buy electricity only to cover the cost of technology networks for each interval of delivery. However, the independent transmission operator activates the balancing power sources to maintain balance and ensure reliable and safe operation of the power system. It also administers the balancing energy market. Bulgarian Energy Exchange applied for a license for an energy exchange in early November.

Bulgaria's Bourgas Shipyards, an once iconic ship builder, has been put on sale for EUR 207 million on a Russian site. The ads were placed on the website of the Rossiysky auktsionny dom (RAD) auction house. They make clear that the assets of the shipbuilding company are to be sold in three separate parts: the main plant area of 97.6 acres for the initial bidding price of EUR 130 million, the 15 acres repair workshop of Bourgas Shipyards for an initial price of EUR 65 million and Bourgas Shipyards' 120 acres part of Port of Burgas for the starting price of EUR 12 million. Thus, the total initial cost for the enterprise was established at EUR 207 million. As the RAD website recalls, during its 65 years of existence, Bourgas Shipyards has launched 850 ships. So far, the ads do not list dates for the auctions and/or deadlines for the submission of the tenders. The once shipbuilder giant has stopped its production at the end of last year due to bankruptcy. On December 6, in just one day, all the 150 workers of the enterprise were made redundant.

Europe

The Italian motors giant Fiat has agreed to buy the remaining 41% of Chrysler it does not own in a move that will create the world's seventh-largest car company. Fiat has owned a majority stake in the US company since 2009. The agreement ends long negotiations with the current owners, Veba, the healthcare trust affiliated to the United Auto Workers' union (UAW). Chrysler and Fiat will pay the trust an initial $3.65bn. Once the deal is signed off, Chrysler will pay Fiat another $700m. Fiat's chief executive, Sergio Marchionne, plans to widen the company's global reach. The Veba trust looks after medical benefits for 117,000 retired Chrysler workers and their dependents. Robert Naftaly, chair of the committee that governs the trust said: "This agreement is in the best interests of the trust's UAW Chrysler retiree members and their families who rely on the trust to provide vital health care benefits."

America

Members of Boeing’s machinists union on Friday voted by a slim margin to accept the company’s proposal of a long-term contract that will guarantee construction of a new long-range wide-body aircraft in the Puget Sound region, in exchange for significant wage and retirement benefit concessions. The new contract means Boeing will build a composite wing for the new 777X plane and will assemble the final product in its Everett, Wash., plant. Boeing already has about 80,000 employees in facilities around the Puget Sound region, and the new contract means the 20,000 or so who will work on the 777X will be located in Washington state for at least the next decade. The vote came two months after the International Association of Machinists and Aerospace Workers (IAM) rejected an earlier offer from the company by a two-to-one margin. Angry protests erupted at union halls, and one union leader tore up copies of the contract in front of the media.

Asia

Against the backdrop of RBI warning the public over highly speculative virtual currencies, a bitcoin traders' body has sought clarity on the legality of the instrument, conceding that this business is extremely volatile and common people should stay away from it. "If you are getting into serious business (of trading/ investing in bitcoins), it is very volatile, and ordinary people should refrain from doing it," leading lawyer Nishith Desai, who has been engaged by a group of bitcoin traders, said here over the weekend. Desai was accompanied by the Bitcoins Alliance India's founder-members. "The Reserve Bank has already warned people and this is most welcome. But it is not saying whether bitcoins are legal or not; that is the clarity that these 30,000-odd bitcoin investors are looking for," Deasi said. He claimed that his eponymous law firm has set up a bitcoin practice and has carried out a techno-legal analysis on the subject which did not throw up any illegality.

The Kurilo Monastery St. Ivan Rilski

The Kurilo Monastery St. Ivan Rilski is situated at the beginning of the Iskar Gorge, on the right bank of Iskar River, 15 km away from Sofia. It was founded in 9-10th century, near the old Bulgarian fortress Beligrad. The Monastery is one of the oldest in the Sofia Eparchy. In 15th century – the beginning of the Ottoman slavery, it was destroyed. The Kurilo Monastery was rebuilt by monks in 1593 and was painted by Pimen Zografski Sofiyski in 1596. Today you can see the pictures of the Virgin Mary, Jesus Christ, John the Baptist, Constantine and Elena, the scenes – the New-testament Trinity and the Slaughter of the Infants. The small church has one-hall, measurements - 15 x 5,5 meters. Аccording to the legend, the relics of St. Ivan Rilski stayed there for a while during their transportation from Tarnovo to the Rila Monastery in 1469. In the beginning of the 20th century the monastery was in its prime, and there were 40 nuns in it. During the same period, a printing-press for Christian literature was operating there. The monastery was declared a monument of the culture. Today it is open, but with limited access for visits.

On that day:  Epiphany