Financial news

In February 2015 the harmonised index of consumer prices decreased by 1.7% compared to February 2014. The highest decrease was registered in ‘Transport’ - by 10.0%, show the data of Bulgaria’s National Statistical Institute. Producer Price Index on Domestic Market in February 2015 decreased by 1.2% compared to the same month of 2014. The domestic prices fell in the manufacturing by 4.2% and in the mining and quarrying industry by 3.1%, while prices increases were registered in the electricity, gas, steam and air conditioning supply by 4.2%. According to the conjuncture inquiry in March 2015 the majority of managers expected the selling prices in industry to preserve their level over the next 3 months.

According to Bulgaria’s National Statistical Institute, in January 2015 the working day adjusted Industrial Production Index increased by 1.7% compared to the same month of 2014 (preliminary data). On annual basis in January 2015 Industrial Production Index calculated from working day adjusted data increased in the manufacturing by 5.4% while decreases were seen in the mining and quarrying industry by 10.6% and in the electricity, gas, steam and air conditioning supply by 2.3%.

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

Privatization

One of the biggest tenders of Sofia’s agency for privatization for 2015 probably will end with a deal. A site with an area of 24.2 acres and a building on it, owned by Stolichen Avtostransport were offered at a tender. A company under the name of Knyzhevo service was the sole candidate and thus became owner of the property against the initial price of BGN 2.15 million (half of the sum will be taxed with VAT. The company is engaged with repair of trucks. Its CEO is Vasil Dragomirov, who also participates in the management of several consortiums of the waste disposal group Titan. The site is located on Sofia’s ring road, next to Slivnitsa Boulevard. Knyzhevo service is owned by Black Sea Assets and waste collecting company Titan service. Dragomirov himself is manager in Titan Sofia iztok and Titan Sofia Iztok 1. Knyzhevo service maintains and repairs trucks of these waste collecting companies, too.

Companies

InvestBulgaria Agency Executive Director Stamen Yanev said stronger investor activity had been registered. He participated in a roundtable on investments in the Northwestern Planning Region held on the Agency's initiative. Yanev said there were 14 projects worth over BGN 340 million due for certification at the Agency. A large investment of 30 million euro is shortly expected to be launched in Pleven, said Yanev. The town is the right place for this investment and the Agency and local government will support it. Industrial zones are a niche which should develop, the Agency representatives said. Car manufacture and high technology are priority industries for investors. Bulgaria is a good place to invest in, a strategy is being drawn up to identify investment opportunities, said Yanev. The Agency's key priority is not just to attract new investors but to keep those who have already come to Bulgaria, he said. That is why the Agency will study their problems and will help investors deal with them, especially problems connected with red tape. The Agency will make a special effort to attract investments to the Northwestern Region.

New proposal for a business that combines cloud and telecom services presented Mtel and Microsoft Bulgaria at a press conference today. Both companies will offer business customers service packages which combine the most popular applications of the Office suite 365, based on the “cloud” technologies with tariff plans and devices offered by the Bulgarian telecom. Business customers can choose between four variants of the combined service – Smart Office, Smart Office Combo, Mobile Office and Fix Office. Advantage for users of the service is the presence of the latest version of the traditional Office suite of all connected devices, and the ability to use “cloud” services such as sharing of large data files. Along with several employees can work on files simultaneously in real time, to conduct audio and video conferencing. The service includes providing a platform for in-house social network. Convenience for business customers that will receive all services in one contract and one invoice for used telecom services and nonstop support of Mtel. 30% of the 100 largest companies in Bulgaria already use a combined package of Mtel and Microsoft or are in the process of implementation.

Swedish engineering group Trelleborg said it has utilized an option from 2011 to acquire the outstanding 50% of the shares in Trelleborg Sealing Solutions Silcotech Bulgaria, with a production unit in Pernik. "The transaction is part of Trelleborg’s strategy to strengthen its positions in attractive market segments," Trelleborg said in a statement. The main focus of Trelleborg Sealing Solutions Silcotech Bulgaria is the production of precision molded seals in liquid silicone rubber (LSR) for various industries including baby care and food processing. Trelleborg offers engineered polymer solutions that seal, damp and protect critical applications in demanding environments.

Severe crisis in Bulgarian football is the reason the project for a new stadium at the site of Slavia stadium to not go well, as the President of Slavia – Vencislav Stefanov announced days ago. German Uwe Matey, who is responsible for the funding by the investor IFC stated this bluntly. "After signing the contract the football in Bulgaria goes sharply downwards. There are only three clubs, which at this time have no problems with the license. Well, what they will do on a new stadium? Will play with each other? Our business plan was for a league with 14 teams and they constantly decrease. There is no attractiveness, audience is missing. Adding the constant rumors of "black gambling", the investment risk is growing and it is becoming increasingly difficult to find funds," said Matey. He however expressed optimism that the project can be saved. Several days ago the boss of Slavia threatened to sue the German company unless he receives information what is happening to mid-April.

Europe

Poland's central bank governor has criticised a regulator's proposal to allow holders of mortgages denominated in Swiss francs to convert the debt at the historical exchange rate saying it would be "fatal" for lenders. "I think this proposal would be fatal for banks. In any case difficult to accept. For us it would mean getting rid of almost half the currency reserves," Marek Belka told Rzeczpospolita daily in an interview published on Thursday. He also said that Poland should not help banks with government money to deal with the burdens of more than 550,000 Poles who incurred Swiss franc debts that have soared as the currency nearly doubled almost doubled in value.

America

The onus for restoring the oil price back to an equilibrium lies squarely on the shoulders of countries like the U.S. and not on the Organization of the Petroleum Exporting Countries (OPEC), a top Goldman Sachs analyst said. Michele Della Vigna, head of European energy research at Goldman Sachs, said non-OPEC oil producers had created the oversupply in the market which has weighed on prices. "I think the market has realized that where we need to find the adjustment is onshore U.S. and that's where the market is focused," he said. "The adjustment is starting to happen there. Clearly an OPEC cut would help getting to the equilibrium faster, but at the end of the day, it is non-OPEC that needs to sort out the oversupply that it has created."

Asia

Global investments in renewable energy rebounded strongly last year, registering a solid 17% increase after two years of declines and brushing aside the challenge from sharply lower crude oil prices. Major expansion of solar installations in China and Japan and record investments in offshore wind projects in Europe helped propel global 2014 investments to $270 billion, a 17% surge from the 2013 figure of $232 billion. It was the first annual increase in dollars invested in and committed to renewables (excluding large hydro-electric projects) in three years, a total just 3% below the all-time record of $279 billion set in 2011. The falls in the investment figures for 2012 (to $256 billion) and 2013 (to $232 billion) were attributed in part to lower prices for renewable energy technologies due to economies of scale. The dominant feature of the solar sector was unprecedented expansion in China and Asia. Between them, the two Asian giants invested $74.9 billion in solar in 2014, around half the world's total.

Uzunbodjak Reserve

Uzunbodjak (Lopushna) Reserve is the biggest reserve in the Strandja Mountain. The reserve was created to protect the century-old oak and beech woods, which spread on almost 95 per cent of the reserve’s territory. Besides these tree spices, separate groups of rare tree species are found here. The average age of the trees is over 100 years, and the average height is above 20 m. The average monthly temperature in the reserve never falls above 0C. Uzunbodjak was declared reserve in 1956, and in 1977 was included in the list of the biosphere reserves. The reserves lies on the longest drift of the Rezovsko Ridge – Uzunbodjak. The name comes from the Turkish words “uzun”, which means long, and “budjak” – calm silent place. The longest river in Uzunbodjak is the Rezovksa River, also known as Rezvaya. It springs out on Turkey’s territory. The reserve has very important place is the national system of protected territories – its area ranks it sixth in Bulgaria, and makes it the biggest protected territory in Strandja. The reserve keeps a great part of the flora and fauna of North Strandja.