Financial news

Bulgarian exports to the EU and non-EU countries amounted to BGN 6.8 billion in January and February 2015, a sum 7.7 percent higher than in January and February 2014, NSI announced. In February 2015, Bulgaria’s total exports added up to 3.4 billion leva and increased by 5.8 per cent compared to the corresponding month of the previous year. The total value of all the goods imported into the country in the period January – February 2015 amounted to BGN 7.9 billion, or 1.9 percent more than the corresponding period of 2014. In February 2015, total imports increased by 8.1 percent compared to the corresponding month of the previous year and added up to BGN 4.1 billion. The total foreign trade balance was negative in the period January – February 2015 and amounted to BGN 1 097.1 million, which was BGN 338 million less than the balance in the first two months of 2014.

Industrial establishments plan to cut investments by 30.4% on an annual basis in 2015, according to data provided by Bulgaria’s National Statistical Institute (NSI). According to a survey conducted among industrial establishments in March 2015, expenditure on acquiring fixed tangible and intangible assets in industry increased by 3.9% on an annual basis in 2014. Industrial establishments expect a decrease in investments by 30.4% in 2015 as compared to 2014. The private sector’s share in the total volume of the projected expenditure on acquiring fixed tangible and intangible assets in 2015 stands at around 81%, with managers in this sector foreseeing a 37.8% decrease in investments programs compared to 2014. Energy and water-related industries account for the largest share of investments in 2015 (36.3%), yet a decrease of 34.4% on an annual basis is expected in these sectors. The second-biggest share is that of industries manufacturing intermediate goods, at 34.1%.

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

Companies

The authorities are taking a series of steps to eliminate, or nearly eliminate, the current deficit of the National Electricity Company (NEK), which was BGN 644 million last year, Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov said. One of the steps was an April 8 revision of NEK's agreements with two US-owned thermal power plants in Bulgaria, Maritza East 1 and Maritsa East 3, which reduced the capacity disposition price paid by NEK to the two plants. The reduction will save NEK nearly BGN 100 million every year or BGN 964 million over the remaining ten years of the agreements' term of validity. Another way of cutting NEK's deficit is to enhance control over compliance with the electricity sale quotas set for in-house power plants and green power plants, Ivanov said. Besides that, Bulgarian consumers also contributed to the reduction of NEK's deficit by BGN 150 million after electricity prices rose in October 2014. As NEK's deficit falls, it will be possible to take two more steps: to change the electricity trading rules which were established in the summer of 2014, and to make the final choice of a model for a future electricity exchange and introduce legislative changes necessary for its establishment.

14 projects totaling BGN 340 million have been applied to the InvestBulgaria Agency (IBA), which are to be certified. Increased activity by investors has been seen recently, IBA commented. These projects are in the process of waiting for the adoption of amendments to the Investment Promotion Act (IPA), related to regulation 651/2014 and the new framework for state aid, explained IBA. Part of investors has already started work on the planned activities. Companies that wish to invest in Bulgaria are from different countries, but most of them are from Europe. As regards the economic sphere, which is the most attractive, sectors related to engineering, electrical engineering and information technology outstand, IBA said. Changes in the Act are expected to be adopted on second reading by the end of the month. "Changes in the law would give us operating rules for the application of the law to encourage investment. These rules together with the Act are the basis for certification of investors," the agency said.

Over USD 150 million was invested by the Bulgarian Maritime Fleet (BMF) in the order of six brand new ultra modern Chinese ships. This was announced by the shipping company's CEO Alexander Kalchev. From the first quarter of 2016, the shipping company will gradually enter its newly built 42,300-ton bulkers (bulk carrier), Kaltchev explained. They will have a new design developed specifically for the BMF and run with extremely economical engines, which will make them highly competitive even in such a low freight market as the current one, the expert noted. The six new ship will be of special sizes to be able to fly both long distances such as to the North and the Norwegian Sea and the rivers and lakes of North America. This June a new ship named "Persenk" will enter the company's fleet. It is the sister ship of the 30,346-ton bulker "Belkemen", which was received by BMF on April 1 in Shanghai. With "Belmeken" and "Persenk", as well as the six new ships next year, the company will operate ships with a total tonnage of over 1 million tons.

The largest company for fast loans BNP Paribas Personal Finance almost entirely changed its profile. It jumped smoothly into a new segment. From small and expensive loans BNP goes to longer, long-term and cheaper loans for consumers. The French company offers services such as a regular bank does. The only difference is that it does not collect deposits. At the same time the company gets competitor with leasing companies, too. The biggest changes with the company took place in the last few months, as from the past week BNP Paribas Personal Finance raises limit of loans up to BGN 70 thousand. Part of the reason is that fast loans require lots of human resource, i.e. costs are high, and therefore the product is not among the most profitable portfolio. Part of the motivation is the fact that the Bulgarian subsidiary is equal to the French mother company. Probably that is where the financial resource for the change comes from. Outside the consumer credit business BNP operate in the country and by bank branch - it collects deposits and grants corporate loans.

IT company Sutherland Global Services Bulgaria expressed readiness to create 500 jobs in Burgas. The company opened its office in the Black sea city in August 2014 and has employed 110 locals for now. In August 2015 Sutherland Global Services Bulgaria will hire 500 more. Besides Sutherland there are subsidiaries of other IT companies in Burgas. These are Musala Soft and Technologica.

Europe

Finland's Nokia confirmed Tuesday that it is in "advanced" merger discussions with telecoms company Alcatel-Lucent, following rumors of a tie-up. Nokia shares fell up to 6 percent following the news, while Alcatel-Lucent traded up to 13 percent higher. In a joint statement, the companies said a potential merger would take the form of a public exchange offer by Nokia for the French company. Urging caution, the statement added: "There could be no certainty at this point that these discussions will result in any agreement or transaction." It is unclear whether Nokia, which is a backbone of the Finnish economy, would acquire all of Alcatel-Lucent's assets, or just its wireless business. Analysts at Credit Suisse and Citi concurred that purchasing Alcatel-Lucent's (ASU) wireless unit would be a wise strategic move for Nokia (NSN), because of the former's presence in the U.S.

America

PepsiCo will sponsor the National Basketball Association, ending a 28-year deal between its arch rival Coca-Cola and the NBA. PepsiCo will be the official food and drinks partner of the NBA, the Women's National Basketball Association, NBA Development League, and USA Basketball. The deal, which starts next season, covers North America, and also China, where NBA is growing in popularity.Financial terms of the sponsorship were not disclosed. "The NBA has established itself as one of the most exciting and innovative sports leagues in the world," PepsiCo chief executive Indra Nooyi said. "We look forward to working together to redefine the meaning of sports marketing partnership." The new deal will involve the Pepsi range, as well as the company's Aquafina and Lipton Brisk drinks, and Doritos and Ruffles crisp brands. Mountain Dew will become the NBA's lead soft drink brand.

Asia

A Japanese court has blocked the restarting of two nuclear reactors in the western city of Takahama, after local people raised safety concerns. The plant had already obtained approval from the country's nuclear watchdog. But locals had petitioned the court in Fukui prefecture, where Takahama is located, to intervene, saying it would not withstand a strong earthquake. All 48 commercial reactors in Japan remain offline following 2011's Fukushima disaster. The BBC's Rupert Wingfield-Hayes in Tokyo says the ruling is a serious blow for Prime Minister Shinzo Abe's push to have the reactors restarted. Mr Abe has said the shutdown is damaging the struggling economy, forcing Japan to import expensive fossil fuels to make up the power shortfall. The operators of Takahama plant, Kansai Electric, said the plant met heightened safety standards brought in by the Nuclear Regulation Authority (NRA) after Fukushima.

The Bachkovo Monastery

The Bachkovo Monastery was founded in 1083 by the Byzantine military commander of Georgian origin Grigorii Bakuriani and his brother Abbasii. Grijorii built up the monastery in his own feudal lands, and according to Georgian traditions, dedicated it to the woman-mother, thus naming it The Petrichki Monastery (after the name of the nearby fortress). In 1206 Tsar Kaloyan conquered the Rhodope Mountains and the Bachkovo Monastery was included within the boundaries of the Bulgarian State. After 1344 Tsar Ivan Alexander consolidated the Bulgarian ruling over the Rhodopes, and the monastery became an important medieval centre of religion and learning. After the Ottomans conquered Bulgaria, the Bulgarian Patriarch Evtimii of Turnovo was exiled to the monastery and created the Bachkovo School of Education there. The monastery library preserves many valuable incunabula and old manuscripts. Its most remarkable asset, however, are the unique paintings, which could be seen everywhere in the churches and the Ossuary, The figure of the Bulgarian Tsar Ivan Alexander is discernible on the 11th and 14th century murals, in the Refectory (1601), in the "Assumption of the Holy Virgin" main church (1604), and in "The Holy Trinity and St. Nicholas" church (1840), which contains some of the first murals painted by the eminent National Revival artist Zachary Zograph.

On that day:  Baykusheva Mura