Financial news

In the period January - November 2014 Bulgarian exports to the EU increased by 2.1% compared to the corresponding period of the previous year and amounted to BGN 24.9 billion, shows the preliminary data of Bulgaria’s National Statistical Institute. Main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium which accounted for 71.0% of the exports to the EU Member States. In November 2014 the exports to the EU decreased by 0.4% compared to the corresponding month of the previous year and amounted to BGN 2.4 billion. Bulgarian imports from the EU in the period January - November 2014 increased by 3.5% compared to the corresponding period of the previous year and added up to BGN 28.6 billion at CIF prices. The largest amounts were reported for the goods imported from Germany, Italy, Romania, Greece and Spain. In November 2014 the Bulgarian imports from the EU Member States increased by 5.7% compared to the corresponding month of the previous year and amounted to BGN 2.8 billion at CIF prices.

According to the preliminary data of Bulgaria’s National Statistical Institute, the Industrial Production Index, seasonally adjusted, has increased by 1.1% in December 2014 as compared to November 2014. In December 2014 working day adjusted Industrial Production Index rose by 0.9% in comparison with the same month of 2013. In December 2014 as compared to November 2014, the seasonally adjusted Industrial Production Index increased in the mining and quarrying industry by 2.1%, in the electricity, gas, steam and air conditioning supply by 1.1% and in the manufacturing by 1.0%. The most significant increases of production in the manufacturing were registered in the manufacture of basic metals by 11.4%, in the manufacture of basic pharmaceutical products and pharmaceutical preparations by 8.6%, in the manufacture of tobacco products by 7.3%, in the manufacture of textiles by 5.6%, in the manufacture of motor vehicles, trailers and semi-trailers by 5.2%. There were decreases in the repair and installation of machinery and equipment by 26.1%, in the manufacture of machinery and equipment by 11.2%, in the manufacture of computer, electronic and optical products by 7.2%.

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

Privatization

14 companies with state participation are expected to be put up for privatization in 2015, according to a plan of the Privatization and Post-Privatization Control Agency, which will be discussed at the next meeting of the Supervisory Board of the body. Six companies are included in the list of priority projects. These are ADIS, Audiovideo Orpheus, Bulgarian Stock Exchange, BDZ-Freight Services, International Fair - Plovdiv and Ovcha Kupel. Other privatization projects on which APPC will work in 2015 are NITI Kazanlak, Bulgarplodeksport Ltd. Sofia, VMT Orbita JSC, Military Publishing House Ltd. Sofia, Free Zone Burgas JSC Burgas, Rusalka Ltd. Varna, Agricultural Market Information System Ltd. Sofia, Sortovi Semena Elite JSC. The Privatization Agency has already received letters from the Minister of Finance Vladislav Goranov and the Minister of Transport Ivaylo Moskovski, who give their consent for the start of the privatization process, or the Bulgarian Stock Exchange and BDZ-Freight Services.

Companies

Building a gas distribution centre in Bulgaria to serve South Eastern Europe and the EU would cost EUR 2.2 bln, Prime Minister Boyko Borisov said on Monday. Addressing the first meeting of the high-level group on the construction of gas links in Central and South Eastern Europe, Borisov said that Bulgaria is offering a number of advantages that make it suitable for becoming a gas hub. “Bulgaria has a well-designed national gas transmission grid, a gas depot, and domestic oil and gas fields, which are being developed. These are just some of the advantages and opportunities that our country offers,” Borisov said. According to the European Commission, “timely implementation of infrastructure is particularly important in view of the vulnerable situation of the Central Eastern Europe and South East Europe region.”

Bulgarian business looks with hope to the ambitious investment plan of the European Commission. According to the so-called "Juncker plan" EUR 315 billion will be invested for the revival of the industry, leading to economic growth sectors and jobs in Europe. The chance of small Bulgaria is to join the approved megaprojects with subcontractors or suppliers. Economy Minister Bozidar Lukarski recently outlined the priority sectors - electronics, information technology, outsourcing, chemical and pharmaceutical industries, mechanical engineering, transport and logistics, food and agriculture, tourism and health. The high-tech sector "Electronics and Electrical Engineering" is one of the key industries that determine the level of the economy in each country. Product development of the sector requires research and development, which strongly influences the innovation processes in almost all industries.

Port Complex Ruse JSC will operate a regular block train line between Bulgaria and Germany, according to a media statement of Bulgaria’s Transport Ministry. The pilot project envisages intermodal road-rail combined transport. The block train has a capacity of 68 trailers and will make one round trip per week. By end-2015, around 3000 trailers of cargo are to be processed. This happens after the joint work of four companies in the project - the port complex, Schenker Ltd., DB Schenker Rail Bulgaria Ltd. – with a license for railway transport and road transport PIMK Ltd. Since July 2014, a regular container line has been functioning between Bulgaria’s Ruse and Romania’s Curtici. The containers are transported by water and rail. Nearly 4 tonnes of cargo were transported along that route in the period July-December 2014. In 2014 Port Complex Ruse JSC reported a profit of BGN 1.2 M and 670 000 tonnes of processed cargo. The profit of Port Ruse doubled from 2013.

Banker Tsvetan Vasilev sold key assets of his business empire - glassworks Rubin JSC - Pleven. The deal is worth BGN 25 million. In the end of 2014, buildings, equipment and land were acquired by the newly established company Rubin Property, after which were apported in its capital. Shareholders in it are Capital Investment (99% share) and the individual Joseph Leon Wisel, who holds one share. 99% of Capital Investment is held by 33-year-old Anthoni Ivanov, who is executive director of Rubin Property. The records show that Ivanov appears only as the owner of Pro Trade Bulgaria - a company with no revenue and BGN 8,000 of assets. The sale of Rubin means that the bank's liquidators will find it hard to raise the money of the creditors in the forthcoming insolvency proceedings. Factory Rubin worked well in the last year, had orders and employed nearly 500 people.

Europe

Ireland will insist that any new or better deal secured by Greece will also apply to Ireland, Minister for Agriculture Simon Coveney has said. Greek prime minister Alexis Tsipras yesterday ruled out requesting an extension of the Greek bailout when meeting his European counterparts at a summit in Brussels this week. Rather than an extension of the bailout when it expires on February 28th, Mr Tsipras reiterated his demand for a bridge programme to tide the country over until June, when a more long-standing loan arrangement can be established. He expressed confidence that agreement could be reached between Greece and its international lenders. Mr Coveney said the same rules must apply to Greece as to all other European Union countries. “What we would encourage Greece to do is exactly what Ireland has done. Which is to restructure and change the way that their debt is to be repaid so they can reduce that debt burden,” Mr Coveney said.

America

Big U.S. banks say that a proposed Federal Reserve rule on higher capital requirements would penalize them if the dollar remains strong against the euro, as it would make their dollar-denominated assets and operations look larger relative to their European peers. Last December, the U.S. Federal Reserve proposed that eight of the largest U.S. banks would be required to hold an extra capital cushion and the firms will need more equity if they rely on risky types of debt. Officials from banks including Citigroup Inc, Goldman Sachs Group Inc, Bank of America Corp and Morgan Stanley raised concerns about the rule during a Jan. 7 meeting with Fed officials, the newspaper said, citing people familiar with the gathering. Under the Fed's proposal, which would take effect in 2016, U.S. banks would calculate cushions using both the Basel method and a separate score that weighs short-term wholesale funding. They would have to meet whichever charge is higher.

Asia

China released its January trade performance, which was far worse than analysts had expected. According to the General Customs Administration, the total trade volume in January was about 2.1 trillion yuan, more than 10 percent less than a year ago. In the same period, exports fell 3.2 percent year-on-year, while imports tumbled nearly one-fifth. As a result, China also posted a record monthly trade surplus of 60 billion U.S. dollars. Analysts say the shrinking imports were mainly caused by the weak demand in coal, oil and major commodities. The latest trade data raised worries on China's economy, especially compared with a better-than-expected performance in December. In 2014, China's total trade value increased by 3.4 percent, which was much less than the official target of 7.5 percent. Investors are now expecting more easing, and supporting policies could restore confidence and a boost in demand in China's manufacturing industry.

The opening of the Constituent Assembly

On February 10, 1879 the Constituent Assembly was opened in the city of Veliko Tarnovo. It was convened on the basis of the Berlin Treaty, composed of 229 deputies: 117 representatives of the electoral administrative and judicial councils, 88 elected and 24 members - appointed by Knyaz Dondukov. Metropolitan Antim I Vidinski was elected chairman and Petko Karavelov and Todor Ikonomov deputy chairmen. Officials from Macedonia, Edirne Thrace and East Roumelia participated in the one-month private meetings of the deputies about the national unification issue. The Constituent Assembly continued to work until April 16, 1879 and initiated the parliamentary life in liberated Bulgaria. Instead of the Authority Statute prescribed by the Berlin Congress, the deputies of the Constituent Assembly worked out the Tarnovo Constitution, and signed it unanimously on April 16, 1879. It includes 169 articles, arranged in 22 chapters. The Principality of Bulgaria was defined as a hereditary and constitutional monarchy with a popular representation, as the National Assembly was divided into grand and ordinary.

On that day:  St. Haralambos (Charalambos) the Martyr Tatyana Lolova’s Birthday