Financial news

Employers threatened to quit the National Council on Tripartite Cooperation (NCTC) if the government does not immediately give up its practice of getting around NCTC in dealing with crucial matters of social and economic development. In an open letter published by the Bulgarian Industrial Association (BIA), employers said that NCTC, which is the main social dialogue institution in Bulgaria, has not convened for two and a half months, while at the same time the government has been making important decisions in the field of social and economic affairs. A blatant example was the end-December adoption of amendments to the Social Insurance Code giving socially insured persons the right of free choice between universal pension funds and the National Social Security Institute, said the letter, which, in addition to BIA, was also signed by the Bulgarian Industrial Capital Association, the Bulgarian Chamber of Commerce and Industry, and the Confederation of Employers and Industrialists in Bulgaria (KRIB). Proposals for important new regulations are submitted to the Council of Ministers without being discussed in NCTC, the letter said.

In December 2014 the turnover in ‘Retail trade, except of motor vehicles and motorcycles’ at constant prices has increased by 0.9% compared to the previous month, shows the preliminary data of Bulgaria’s National Statistical Institute. In December 2014 the working day adjusted turnover in ‘Retail trade, except of motor vehicles and motorcycles’ grew by 6.4% in comparison with the same month of the previous year. In December 2014 compared to the previous month the turnover increased in the ‘Retail sale via mail order houses or via Internet’ by 8.0%, in the ‘Retail sale of computers, peripheral units and software; telecommunications equipment’ by 3.6%, in the ‘Dispensing chemist; retail sale of medical and orthopedic goods, cosmetic and toilet articles’ by 3.5%, in the ‘Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances’ by 2.0%, in the ‘Retail sale in non-specialised stores’ by 1.5% and in the ‘Retail sale of food, beverages and tobacco’ by 0.9%. A decrease was registered in the ‘Retail sale of automotive fuel’ - 1.1%.

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

Concessions

Bulgaria will invite major global companies to explore two new deep water oil and gas blocks in the Black Sea in a bid to reduce its dependence on Russian energy. The Balkan country is in talks with Royal Dutch Shell PLC, BP PLC, Statoil AS and other oil companies for the exploration of its Teres and Silistar blocks, said Delyan Dobrev, chairman of the energy committee of the Bulgarian parliament. Bulgaria plans to launch the tender process in the next few weeks, said Mr. Dobrev, who is one of the country's top energy officials. He spoke on the sidelines of the International Petroleum forum under way in London, where he will be announcing details of the tender process later on Tuesday. With the fall in global oil and natural gas prices in recent months, Mr. Dobrev said: "Now is probably not the best time to tender licenses. But exploration takes many years and prices will recover eventually."

Companies

The biggest producer of cars in Bulgaria, Balcancar Record JSC Plovdiv will produce and export a series of 62 ecological motor cars that work on natural gas to the Czech republic and Poland. The development of the new machines is granted to five engineers, lead by the company’s technical director. Natural gas that is used in the new models called Record 2 E is almost twice as cheaper as the diesel by about 50% and less expensive than propane butane, which explains its increasing demand in the EU. By a single filling the ecological car works a thorough working shift. The new model’s capacity is from 2.5 tonnes to 5 tonnes. Business initiative for the new product of the Plovdiv-based company came from Balcancar Record’s Czech representative. He informed the company that there is huge demand for motor cars that operate on methane, while their supply is still humble.

France-based trade credit insurance provider Euler Hermes said it has opened an office in Sofia to provide its services to Bulgarian clients. Euler Hermes Bulgaria will also contribute local business intelligence and underwriting skills to the insurer’s international network. “Our global objective is to grow and protect our clients in their domestic and export markets,” Ludovic Senecaut, CEO of Euler Hermes Northern Europe Region, said. To meet this objective, Euler Hermes is seeking economies like Bulgaria’s which demonstrate domestic growth potential and export opportunities. According to Ludovic Subran, group chief economist at Euler Hermes, the company expects “private Bulgarian consumption and investment to remain robust this year and exports to recover, supported by both lower oil prices and a weaker lev pegged to the euro. As a result, the gradual economic uptrend should continue and economic sentiment improve. Euler Hermes forecasts real GDP growth in Bulgaria of 2% in 2015, followed by 2.5% in 2016," Subran said.

Bulgarian fertilizer producer Neochim plans to increase its annual electricity output in the 2015-2019 period, the energy regulator said on Tuesday. The company plans to produce 24,000 MWh during each of the next five years, the State Energy and Water Regulatory Commission (SEWRC) said in a statement on its website. In the previous five years, Neochim's annual electricity output ranged between 13,062 MWh and 22,839 MWh. Neochim holds a 15-year licence for cogeneration of electricity and heat at its plant in Dimitrovgrad, in the southeast of the country, that was issued in November 2009. The electricity it produces goes to cover its own needs. The planned increase in electricity is related to the plant's production plan, the regulator added.

Private enforcement agent has announced at a public sale properties of Montage Complect Engineering. The announcement is at the request of Mayak TM. The announced initial price of the tender is BGN 2.67 million. For it the new owner will get two properties in the Sofia’s neighborhood of Kremikovtzi. The two lots are located next to each other. The first one has a total area of slightly over 41 thousand square meters and has 13 buildings with different purpose constructed on it. The other one has a total area of 21.3 thousand square meters and has warehouses on it. The two lots are mortgaged in favor of Unicredit Bulbank. Montage Complect Engineering is founded in 1991. The company is specialized in production of metal constructions with industrial use. Among its clients are KCM-Plovdiv, Lukoil Neftochim Burgas as well as the public TPP Maritsa East 2.

Europe

Raiffeisen Bank International AG is refocusing and restructuring its operations in several of its markets in order to increase capital buffers after the bank reported late Monday night a net loss for 2014. The bank is looking to increase its core Tier 1 ratio--a measure of a bank's capital strength--to 12% by the end of 2017, up from 10% at the end of 2014, it said. To do so, the bank will be selling off several of its operations "which generate low returns, have high capital consumption or are of limited strategic fit," the bank said. Among the operations to be sold are its units in Poland and Slovenia, it said. Raiffeisen will also be selling its direct banking unit Zuno. It added it will also be reducing its exposure in Ukraine, which Raffeisen in the past has indicated it would be willing to exit completely, and its key market of Russia. The bank said it would be reducing risk-weighted assets by around 20% by the end of 2017 in Russia. And the bank's operations in Hungary will be optimized further, it said.

America

US investors are preparing themselves for the first tightening of interest rate policy this summer as strengthening employment conditions in the world’s largest economy counter worries over slowing global activity. It is a shift in sentiment for investors, who had expected the first rate rise from the US Federal Reserve to arrive late this year or early in 2016, and comes after employment numbers released on Friday showed solid job and wage gains. “The clock is ticking on the Fed’s near-zero interest rate policy,” said John Brady, managing director at RJ O’Brien. “The strength of the US jobs market is a major step forward in allowing the Fed to start normalising interest rate policy.” The change in US interest rate expectations sets the stage for higher market volatility, as the Fed may embark on a tightening cycle while many of its foreign counterparts are easing monetary policy to combat slower economic growth.

Asia

Taken at face value, India became the fastest growing major economy in the world after its statisticians changed the way they measure Asia's third-largest economy and showed it clocked faster growth than China in the December quarter. It marks a dramatic turnaround for an economy that a fortnight ago was assumed to be struggling to gain momentum under Prime Minister Narendra Modi's reform-minded government. Prior to Modi's election last May, the economy had endured its weakest phase of growth since the 1980s. The statistical recovery is in large measure due to changes both in the way authorities calculate gross domestic product (GDP) and the base year. Under the new method, the economy expanded 7.5 percent year-on-year during the last quarter, higher than 7.3 percent growth recorded by China in the latest quarter.

Gorge of Erma River

Erma River runs through the territory of Serbia and Montenegro and Bulgaria. The river enters Bulgarian territory near the village of Strezimirovtsi and leaves it through the breathtaking gorge near the village of Petachintsi. Erma is the river, near which the feudal settlement of Stara (Old) Znepolia once rose. It was an independent administrative unit that survived 70 years after the end of the Second Bulgarian Kingdom. Entering Bulgaria, the Erma River passes through the spectacular gorge near the town of Trun. The gorge is located some 3 km away from the town. The legend tells that once a beautiful girl called Mara and her beloved Rangel lived here. Mara came from rich and honoured family, while Rangel was very poor, and the girl’s family did not like him. So they decided to run away, but Mara’s mother laid a curse on them and the mountain broke in two. Mara and Rangel remained on the opposite sides. Even nowadays the river cries, telling the sad story of the two young people. In the south part of the gorge begins the Trun eco trail, some 13 km long. Walking along it, tourists can enjoy the incredible beauty of the Trun gorge. Besides for its picturesque landscape and rich history, the Trun region is known for the lowest temperature registered in Bulgaria ever – minus 38.9˚C.

On that day:  St. George the Newmartyr of Sofia