Financial news

Bulgaria to apply with more projects for funding under the plan "Junker", insisted on behalf of the business Deputy Chairman of the Bulgarian Industrial Association (BIA) Kamen Kolev during a meeting of Parliament's Subcommittee on European funds. He pointed out that Bulgaria has sent draft projects for only EUR 1.5 billion, while other countries such as Croatia and Poland have requested financing for EUR 9 billion and EUR 40 billion respectively. Moreover, Bulgaria has focused mainly on infrastructure projects, ignoring a number of other areas such as high technology, ecology, energy efficiency, and other digital economy. Therefore BIA sent the government additional 9 projects totaling EUR 6.5 billion. If approved, they can also be sent to Brussels. One of the projects is for the Unification of ATM and POS terminals in the EU. Another provides unification of mobile stations to be able to benefit from various mobile operators, and others - to introduce a unified tolls system.

Construction production in Bulgaria fell by 4.2% last year, according to data of the European statistical office Eurostat for the first month of 2015. On a monthly basis the decrease was within 1.7% with growth of 1.2% in December last year. Bulgaria is last but one among all countries of the European Union (EU) in terms of construction. With a larger drop is only neighboring Romania, where the sector shrunk by 5.3% in January. European Statistics reported a decrease of 2.8% in the UK. Generally during the first month of the year construction registered positive results for all 28 Member States. Across the EU, the sector grew by 1 percent from an increase of 0.2 per cent in December 2014. On an annual basis the growth is 1.4 percent. Within the euro area increase in construction is even greater. Data for January showed an increase of 1.9% from 0.2% in December last year. Yoy growth amounted to 3% from a decline of 2.7% last year.

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

Concessions

Bulgaria’s Council of Ministers has permitted the transferring of all rights and obligations connected with the exploration for oil and natural gas in the 1-5 Devetaki, 1-7 Tarnak, 1-9 Miziya, and 1-10 Botevo blocks from Moesia Oil and Gas plc to its subsidiary company Moesia Oil and Gas (Bulgaria) EOOD. The terrains in question are located on the territory of the districts of Lovech, Pleven, Gabrovo, Vratsa, and Montana. The possibility for transferring rights and obligations connected with permission for exploration is regulated in the Subsurface Resources Act. The government has authorised the Minister of Energy to sign additional agreements to the oil and natural gas exploration agreements inked in May 2013.

Companies

The LIC 33 group, comprising investors from the EU, is acquiring control of Bulgarian telecommunication operator Vivacom and other leading companies in the country. LIC 33 will acquire majority stakes in Vivacom and other Bulgarian companies. The names of the other companies weren't disclosed. The former owner has sold out the telecom's assets in exchange for the new investor’s commitment to refinance all debts owed to banks estimated at about EUR 900 mln. Specialized in operations in emerging markets as well as deals involving distressed companies, the LIC 33 group has already launched efforts to refinance debt alongside Vivacom's restructuring in order to stabilise the company. The transaction has to be approved by regulatory authorities to go into force. Bulgarian businessman Tzvetan Vasilev, majority owner of collapsed Corporate Commercial Bank owned a little more than 43% of Vivacom, the brand name of Bulgarian Telecommunication Company (BTC), as of January 2015.

Port of Varna JSC joined the project Securing Transit Containers (SETRACON). It is funded by the European Commission through the Joint Operational Programme Black Sea Basin 2007-2013 and with national funds. The beneficiary of the project is the Thessaloniki Technology Institute Alexander and partners are Port of Varna, port of Alexandroupolis and National Marine University in Odessa. The total cost of the project is EUR 532,785, 90% of which are from the EU. The project aims to ensure the security of sealed containers and their safe transportation between ports. The project is expected to improve the management and security of container transport and to deepen cooperation in the Black Sea and the Aegean. The project includes the implementation of the four groups of activities, among which is the development of an electronic application to track the movement of containers in real time. Representatives of Port of Varna recently visited the port of Alexandroupolis, where experts from both ports discussed specific tasks for project implementation.

Global information services provider Experian intends to continue its organic and dynamic expansion in Bulgaria in the near future. The company plans to increase the number of its employees in Bulgaria to more than 400 by the end of the year from its current 330, and to keep expanding its staff by about 50% every couple of years. Experian has long-term intentions to invest in Bulgaria and it hopes to continue the pace of expansion. The company will invest in expanding, training and maintaining employees. The company has committed to creating, and maintaining, 150 new jobs in Bulgaria over a five-year period, starting from 2013. It is investing more than BGN 20 million in the project. To date, two-thirds of the envisioned job positions have been filled. Experian provides analytical services and risk management solutions. It entered Bulgaria in 2004 and opened a research and development centre in Sofia in 2008.

StartUp Factory-the first multi functional space for new IT business initiatives in Ruse opened doors just a month ago. Several young professionals, who have already gained experience not just in the IT sector but in entrepreneurship as well, stand behind the project. They created the space in their own initiative and with their own money. Emiliyan Enev is a manager in a company that develops online application; Martin Panayotov has his own company for web design, which also operates for foreign companies, while Dobromir Marinov is a system administrator. StartUp Factory’s creators want to see potential of the most active locals, developed at the optimum way. Their idea was to offer space where young people, as well as more enterprising ones of all ages to develop their business skills. StartUp Factory’s founders want to go out of the classical model of incubators and to turn their factory into a place for discussions, networking and space for leading lecturers from the country and abroad.

Europe

Sweden’s Riksbank cut its main policy rate deeper into negative territory as the central bank underlined its desire to weaken the krona in the midst of what economists have called a global currency war. The Riksbank unexpectedly cut its repo, or repurchase, rate from minus 0.1 per cent to minus 0.25 per cent on Wednesday and increased its quantitative easing programme of buying government bonds. The Swedish krona sharply weakened in the currency markets, with the euro rising by more than 1.4 per cent to SKr9.3349 in the immediate wake of the rate cut. “Effectively it’s a ‘currency intervention’ without selling krona,” said Robert Bergqvist, chief economist at bank SEB. Torbjörn Isaksson, chief analyst at lender Nordea, said that “given the Riksbank’s aggressive moves” he expected a further rate cut and increases to the country’s QE programme.

America

General Motors is to pull the European Opel brand from Russia and indefinitely close its St Petersburg plant as it seeks to cut its losses in the crisis-hit country.Falling oil prices and pressure from western sanctions have taken a heavy toll on car sales in Russia and prompted a 38 per cent decline in local registrations in February. Carmakers are also suffering from the sharp decline in the rouble — which has fallen about 40 per cent in the past year and has particularly affected carmakers importing parts from overseas. In a far-reaching revamp of its business model in the country, Detroit-based GM said it would withdraw the Opel marque from Russia this year and “minimise” the presence of mass-market Chevrolet models, focusing instead on the US-built premium Chevrolets and Cadillacs.

Asia

Japan's merchandise trade deficit narrowed sharply in February as imports unexpectedly tumbled, while exports outpaced forecasts. The gap in trade shrank to ¥424.6 billion last month from ¥1.17 trillion a month earlier, Japan's Ministry of Finance reported on Wednesday, coming in much stronger than the expected ¥1.00 trillion deficit. Exports were up 2.4% year-on-year in February, adding to a 17% surge in exports in January, and beating the market forecast of a 0.3% increase. Imports on the other hand, tumbled 3.6% in February compared with the same month a year ago, following a 9% drop in January. Analysts expected imports to rise 0.3% in February. Japan, who is one of the world's biggest net importers of fuel, has reaped the benefits of the recent plunge in global fuel prices.

Rock-hewn churches of Ivanovo

Some 23 kilometers southwest of Rousse there is an unique archeological reserve - the Rock-hewn churches of Ivanovo. Located at a height of 6 to 8 metres, the compound was founded in the 12th century and was inhabited by monks till the 17th century. Chronicles and the preserved church murals show that the community of hermits also created a blossoming literary center during the 13th - 14th century. The illustrations are colorful and realistic and represent popular scenes from the New Testament showing the last days of the life of Jesus. In the Covered-up church one can see the church-donor's portrait - most likely the czar Ivan Asen II. They say that Theodora (the first wife of czar Ivan-Alexandur), who adopted her name in religion Theofana is depicted at the so called Ruined church. The church-donor's portrait of Ivan-Alexandur with the model of the church in his hands can be found in the main church "Holy Virgin" of the complex.
The Ivanovo churches contain some of the best frescoes of Bulgarian religious art. The rock monasteries have been evaluated as an important stage in the development of European culture and recorded on the UNESCO List of World Cultural Heritage.

On that day:  Belashtinski monastery Ivan Vazov’s House-Museum in Berkovitsa