Financial news

Bulgaria’s trade balance for November 2014 is negative to the amount of BGN 166.9 million with a deficit of BGN 185.3 million. The export for November is EUR 1 967.2 million, as it drops by EUR 63.1 million as compared to a year ago. Imports is assessed to EUR 2 134 million, which declines by EUR 81.5 million, as compared to November 2013. The balance of services was positive at the end of November and amounted to EUR 22.8 million, as compared to EUR 48.8 million in November 2013. Overall balance for November 2014 is positive to the amount of EUR 463 million, as compared to a negative total balance of EUR 85 million for November 2013. For the period January-November it is negative to the amount of EUR 1 497.1 million, compared to a negative result to the same period of last year with a balance of EUR 796.3 million.

Direct foreign investments in Bulgaria for the first eleven months of 2014 are lagging behind over 20% compared to the same period of 2013, preliminary Bulgarian National Bank (BNB) data shows. For the period they amounted to a total of EUR 1.224 billion. In November 2014 alone they rose to EUR 417 million. Foreigners invested EUR 112 million in Bulgarian real estate in 2014, compared to EUR 139 million in 2013, the statistics of the BNB for the January – November 2014 period shows.

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

Concessions

The tender for the sale of properties at the site of the former Pioner train station, located in the Bulgarian capital Sofia, has been cancelled because no bids were submitted. Ownership of the properties, located along the railway of former Pioner, will be transferred to Sofia municipality. A concession offer for the state-owned train station was also received, but it has also been cancelled. In September last year, the transport ministry put premises of the train station, which has a total area of 37,078 square meters, up for sale in a sealed-bid auction. Proceeds from the sale would be used for the rehabilitation of the national railway network.

Companies

Sales in Sofia have gone up by 12.4% in the fourth quarter of 2014. The acceleration for the entire 2014 is by 7.4% up to 20 863 sales, which is the greatest increase for the last three years. It reinforces the argument for sustained recovery on the market in Sofia. For the last three months of 2014 6 975 deals have been registered in the capital city, which makes about 115 sales daily as related to the number of working days for the period. As far as the other cities are concerned it should be pointed out that sales in Varna have increased slightly in the second half of the year. Plovdiv ends the year with pretty positive trend, active market and growth of sales in the city by 3.6% on an annual base.

Arbitration case brought by Worley Parsons Services Nuclear against the National Electricity Company (NEK) is worth EUR 54 mln, Deputy Minister of Energy Anton Pavlov said to energy committee in parliament. The information was disclosed in connection with the discussion of the proposal for the resumption of construction of NPP Belene. The arbitration case was brought a little more than half a year ago. According to Bogomil Manchev, who is a major shareholder in Risk Engineering, former subcontractor of Worley Parsons as a consultant for the Belene project, the cause of the case is the unilateral termination of the contract for architect-engineer by NEK.

Todor Batkov sold to the owner of PFC Ludogorets Kiril Domuschiev 50 percent of his shares in Football Pro Media. "In fact, the deal was done at the end of November, but no one announced it. I sold the shares for BGN 500,000. We have to somehow survive. Percentages that I owned were originally 45. Such was Domuschiev’s share as well and the remaining 10% were held by the former owners of CSKA Dimitar Borisov and Ivo Ivanov. Subsequently, when the representatives of Titan withdrew, Domuschiev and I gained 50%. He is now the sole owner of Football Pro Media,” Batkov said.

In 2018 in Sofia will see the opening of the first hotel of the luxury Swisshotel chain, part of FRHI Hotels & Resorts. The modern complex is expected to welcome guests in 200 rooms and 81 suites. The hotel will be part of the "Grand Canyon Sofia" by Turkish investors Garanti Koza, the specialized tourist portal ehotels.com reports. The contract between the hotel chain and funders of the project was signed on Thursday. Swisshotel has already presented its vision for the new facility which will rejuvenate Sofia's highrise district Mladost. The chain promises guests three restaurants with local and international specialties and that the new facility will become a center of attraction for the high-life circles in Bulgaria thanks to the ballroom designed for VIP events.

Europe

The European Central Bank (ECB) said that the dual circulation period of litas and euro ended on January 15, 2015 and litas banknotes and coins can be exchanged for an indefinite period at Lietuvos Bankas, the nation's central bank. “The smooth changeover in Lithuania has been the result of cooperation among numerous stakeholders at national and European level,” said Yves Mersch, member of the Executive Board of the European Central Bank. “It is not only an enormous logistical achievement, but it is also a significant milestone for Lithuania, strengthening the ties between the country and its European partners, and highlights the continued attractiveness of the euro.” The ECB and Lietuvos Bankas conducted an extensive communications campaign to inform the public about the changes.

America

U.S. consumer prices recorded their biggest decline in six years in December and a gauge of underlying inflation held steady, which could bolster the case for delaying the first interest rate increase from the Federal Reserve. The Labor Department said on Friday its Consumer Price Index fell 0.4 percent last month, the largest drop since December 2008, after sliding 0.3 percent in November. In the 12 months through December, CPI increased 0.8 percent. It was the weakest year-on-year reading since October 2009, and followed a 1.3 percent rise in November. Last month's readings were in line with expectations. U.S. Treasury debt prices held gains, while the dollar trimmed gains versus the euro and U.S. stock index futures pared losses. "It seems nearly certain that further declines in headline inflation rates will be seen in coming months.

Asia

China's Alibaba Group Holding Ltd is in talks with the South Korean city of Incheon for a 1 trillion won (about $923 million) joint investment on a new business complex, the Dong-A Ilbo daily reported on Monday. The paper, without citing direct sources, said the complex would include a major shopping mall as well as a hotel and a logistics center. Alibaba and Incheon would contribute equal funding for the complex, according to the report. "Alibaba Group sees great potential in the South Korean market, however the media reports on the 'Alibaba town' investment are purely speculative," an Alibaba spokeswoman said by email. "Any disclosures regarding our investments will be announced through the proper channels." An Incheon city spokeswoman said she was checking on the veracity of the report.

Hisarlaka Fortress

The Hisarlaka fortress is situated some 30 minutes away from the center of the town of Kyustendil (Western Bulgaria) and lies on the highest flat of the Hisarlaka hill. The hill is a northeastern offshoot of the Osogovska Mountain. Once the Romans built here the acropolis of the ancient town of Pautalia. The fortress itself was built at the end of 4th – the beginning of 5th century, and was reconstructed in 6th century. The fortress existed during the First and the Second Bulgarian State, but was destroyed by the Ottomans in 15th century. It had the shape of irregular polygon 230 m long and 125 m wide. The most important and widest gate was located at the eastern wall, near the main road. The fortified wall, depending on the terrain, had different width – from 1.60 to 3 m. The walls are supposed to have been 10 m high, and the towers – 12 m. The Hisarlaka fortress is one of the most significant in Bulgaria and is a monument of culture of national importance.

On that day:  Simeon Radev