Financial news

Bulgarian households kept BGN 40.212 billion in bank deposits by end-February, the Bulgarian National Bank (BNB) announced. Household bank savings rose 4.67% YoY. Unlike deposits, household credits dropped 2% to BGN 18.174 by end-February. This represents 21.8% of GDP. In end-February housing credits amounted to BGN 8.687 billion, decreasing 1.4% YoY. Consumer credits totaled up to BGN 7.31 billion, which represents a reduction of 1% compared to February 2014.

The amount of bad and restructured credits in Bulgaria was down by an annual 4.8% and fell by 0.4% month-on-month at the end of February, central bank data showed on Tuesday. In February, bad and restructured credits formed 19% of total credits, according to data posted on the website of the central bank.

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Companies

The government calls upon investors from LIC33 to provide information on the source of their income. This is what the official standpoint of the Council of Ministers says after LIC33 announced that it would buy the Bulgarian Telecommunications Company (BTC), arms factory Dunarit, GfK Audience Research Bulgaria (GARB), digital terrestrial television (DTT) multiplex operators NURTS and First Digital, and Avionams aircraft repair plant. Following an analysis of the provided information the government would consider contacting the new investors. The Council of Ministers pays great attention to all large deals with assets that supposedly have connections with CorpBank and the defendant Tsvetan Vasilev, the government standpoint says. At a special press conference in Sofia the owner of LIC33 Pierre Louvrier stated that there was no one apart from him and his team involved in the deal. The value of the deal was EUR 1, along with a commitment to pay liabilities of EUR 900 million, he announced as well.

After the collapse of Russian gas project South Stream, countries in Central-South Europe are looking for alternative gas links. One of the solutions is the gas supply from Trans Adriatic Pipeline. Therefore Romania and Bulgaria are thinking about building a gas connector between them. Bulgarian gas transmission system operator Bulgartransgaz and Romanian gas transmission company Transgaz are launching a tender for the construction works of the Bulgaria-Romania gas interconnector, estimated at EUR 4.7 million.The 25-km Romania-Bulgaria gas link, will be working in 2015. This connector will connect the southern Romanian village of Comasca with Marten, in northern Bulgaria. The maximum capacity of the pipeline will be 1.5 billion cu m a year. The entire project is estimated to cost EUR 24 million. The project is supported by the European Union with EUR 13.3 million funds.

Nestle Bulgaria will invest BGN 2.5 million in 2015 in modern technologies, improvement of quality of its products, training of teams and in systems for environmental and water protection. Since 2003 the company has invested more than BGN 176 million in Bulgaria. In the last five years Nestle Bulgaria has completed projects for more than BGN 3 million in the field of environmental and water protection. The newest hi-tech equipment in Nestle’s plant for chocolate products and biscuits in Sofia is steam station of new generation where more than BGN 1.5 million is invested. Consumption of water has gone down by 35% with its usage. Nestle has been present on the local market for 21 years now. It produces its products in two plants. The first one in based in the capital city and is focused on manufacturing of chocolate desserts, while the other is located in Varna and produces ice-cream. The Sofia-based plant has been chosen for a competence center for production of chocolate in Europe. In 2007 it became one of the three largest centers for production of Kit-Kat on the continent. About 70% of the plant’s production is exported in more than 30 countries.

Polish real estate developer GTC said the decline in the fair value of assets located in secondary cities in Romania, Croatia and Bulgaria, as well as land bank in Budapest, was the main reason for a net loss of EUR 194 million on revaluations of investment property and residential projects booked in 2014. Following the reassessment of performance of the group's portfolio in secondary cities and B-class locations in Romania, Croatia, Bulgaria and Hungary during fourth quarter of 2014, the company decided to no longer support certain of these assets and to sell the company's non-performing assets. Future of the Stara Zagora-based Galeria Mall is still unclear as it is among the properties that lived through the most serious revaluations not only last year but since the start of the crisis. Just in 2014 the shopping center wrote off EUR 10 million of its balance value which makes it the fourth most revalued GTC’s asset. In the meantime the Galeria Mall in Burgas ranked among the key assets of the company with book value of EUR 40.6 million.

Officially the European Commission exercises direct supervision over First investment bank. Special supervision authority has been appointed. Its name is Bane and Co, with which the bank fully cooperates and provides with the necessary information, including access to all records. The company Bane and Co publishes reports every three months. It looks for financial indices, as well as for good corporate management and risk management of the Bulgarian bank. In its role of a supervisor Bane and Co has the right to be present on meetings of Fibank’s meeting of board of directors, as well as these of credit and auditing committees.

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Europe

German exports to Russia fell in January 2015 in comparison with the same period last year, to almost 35, 1% (almost ? 800 million) and amounted to 1, 44 billion euros from the Federal statistical office of Germany, presented on Tuesday. A more rapid decline was observed only in 2009 due to the global financial crisis. According to information from the statistical office presented on the Internet organization, in January 2014, the exports to Russia amounted to almost 2, 22 billion euros. Thus, the loss amounted to 780 million euros. first, experts had predicted a More gradual drop in German exports to Russia this year. The German Association of industrial and trade chambers reported on the planned reduction of Over 15% per year. Also, according to German statistics, the performance of German imports from Russia - they dropped almost thirty percent: if in January 2014 they were 5, 18 billion dollars, in January 2015 - 2, 87 billion.

America

U.S. regulators added three foreign-owned banks to the list of big financial firms that haven’t shown they can collapse without causing broader economic damage. The Federal Reserve and the Federal Deposit Insurance Corp. found shortcomings in the “living wills,” or bankruptcy plans, of the U.S. units of BNP Paribas SA,HSBC Holdings PLC and Royal Bank of Scotland Group PLC. The banks could face sanctions if they don’t fix the issues by the end of this year, when new drafts of the plans are due, the regulators said. BNP and HSBC declined to comment, while Royal Bank of Scotland had no immediate comment. The regulators’ move echoes a similar rebuke issued to 11 of the largest U.S. banks in August. Among the biggest firms, Wells Fargo & Co. was the only bank that persuaded regulators it could go through bankruptcy without serious damage to the financial system. These 11 banks could face sanctions if they don’t make significant progress on the plans by July.

Asia

International Monetary Fund chief Christine Lagarde has said the IMF would be "delighted" to co-operate with the China-led Asian Infrastructure Investment Bank (AIIB). The AIIB has more than 30 members and is envisaged as a development bank similar to the World Bank. Mrs Lagarde said there was "massive" room for IMF co-operation with the AIIB on infrastructure financing. The US sees the AIIB as a rival to the World Bank, and as a lever for Beijing to extend its influence in the region. The White House has also said it hopes the UK will use "its voice to push for adoption of high standards". Countries have until 31 March to decide whether to seek membership of the AIIB. As well as the UK, other nations backing the venture include New Zealand, Germany, Italy and France. Mrs Lagarde, speaking at the opening of the China Development Forum in Beijing, also said she believed that the World Bank would co-operate with the AIIB, China established the Asian lending institution in 2014 and has put up most of its initial $50bn in capital.

March 25 – The Feast of the Annunciation (Blagoveshtenie)

On March 25, the Bulgarian orthodox church celebrates the day, on which Archangel Gabriel came to the Virgin Mary to tell her she would be the mother of God’s son – Jesus Christ. This sweet news also gave the name of the feast in Bulgarian – Blagoveshtenie (from “blag” – sweet, and “vest” – news). In Bulgarian folk traditions, this day is also known as Blagovets, or “half Easter”. It is connected with the coming of spring. People believe that on March 25 all cuckoos and swallows fly back from the south, bringing the sweet news that winter has gone away. On this day, each wound is believed to heal very fast, and even the strongest poison is believed to lose its power. On March 25, people should for the first time in the year eat something green (nettle, sorrel, or dock), so that new blood should start circulating in their bodies.
On March 25, everyone called Blagovest, Blagovesta, Blagoi, Blaga, celebrate their name day.

On that day:  Alexandrovo tomb Ivanchova polyana eco-trail