Financial news

According to the forecast of the economists from the Bulgarian Academy of Sciences (BAN), the economy of the country will record a growth of 1.4 % in 2015. This became clear after the annual report of the Economic Research Institute to BAN. The unfavourable trend for a very low growth of 1-2 % was likely to continue unless further reforms were introduced. Bulgaria hasa greater potential, but could not materialise it due to the lack of reforms. The scientists expect the growth of international prices to continue as well as considerable insecurity linked to the restoration of economic growth in the EU. The global and regional trends did not justify the restoration of economic growth, which had been expected to take place in 2014.

Bulgaria’s Deputy Prime Minister and Social Policy Minister Ivaylo Kalfin is convening a meeting of the National Council for Tripartite Cooperation (NCTC) on May 26 on the minimum wage level in 2015. On May 19 the Supreme Administrative Court (VAS) revoked a ministerial decree envisaging two minimum wage hikes, each by BGN 20, in 2015, including one in January, to BGN 360, and one in December, to BGN 380. The lawsuit was launched by the Bulgarian Industrial Capital Association (BICA), the Bulgarian Industrial Association – Union of the Bulgarian Business, and the Bulgarian Chamber of Commerce and Industry (BCCI). The organizations challenged the ministerial decree on the minimum wage level in 2015, stressing that it had not undergone the mandatory coordination procedure at the NCTC. The stance of the Bulgarian government, according to Kalfin, is that the minimum wage increase was discussed during the discussions on the 2015 state budget.

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

Companies

Fuel distributor Petrol warned it could lose assets because of debts. In a statement to the BSE it said that the company's creditors have begun enforcement of the Law on Pledges on assets of the group companies. Petrol has taken out loans, but has stopped servicing its liabilities. Therefore, lenders take steps to acquire control of the assets and their eventual sale. The procedure for pledges is applied to two companies of the group – Elit Petrol -Lovech and Petrol-West. 150 stations have been apported to Elit Petrol -Lovech. Last week trustees of CCB demanded seizure of the shares of that company. Failed bank seeks USD 53 million from Elit Petrol -Lovech, Naftex Petrol and Arven. Garnishment is not yet registered as bailiff has filled the wrong form. Petrol-West owns 10 petrol stations in Sofia. The sites are pledged in favor of Turnaround Management. The management of Petrol announced that a case has been open for the bankruptcy of its subsidiary Naftex Petrol.

New wave of large interest for properties in villages has been registered. The interest is focused mainly on purchase of properties in villages, located at a distance of 25 km from large cities in the country. The market for rural houses is most active in the following regions: Burgas, Plovdiv, Blagoevgrad, Lovech and Veliko Turnovo. Houses with yards of 2 acres and at prices up to EUR 25 thousand are mostly looked for. Rural properties at the South Black sea coast are also registering increased investment interest, mainly from Russian nationals. Large family houses, as well as apartments in the villages next to the sea are demanded for greatly. Average level for completed, newly constructed property there is between EUR 280-450 per square meter.

Bulgarian government will be allocating an additional sum of BGN 15 mln for the completion of the Sofia subway. The project has been published by the Ministry of Finance. The additional funding will be applied to the completion of the subway extension between the James Boucher and Hladilnika stations and will be provided through the central budget. Construction of the 950 meter long tunnel started in 2014, as its purpose will be to allow subway trains to be able to shift their directions. The total cost of the construction of all stations and tunnels, as well as other infrastructure systems was BGN 42.5 mln, and the section is expected to be completed by 2016. The additional funding will allow for the project to be completed in time by the end of 2015, as per the statement of the Bulgarian Ministry of Finance.

Bulgarian Ministry of Economy summoned a sitting of the Defence Industry Council on Tripartite Cooperation on Monday, dedicated to the restoration of the production process at Iganovo complex of VMZ – Sopot, Bulgaria’s largest military industrial plant after the two explosions that occurred at the VMZ site in the village of Iganovo. The sitting was attended by representatives of the employers and trade unions’ structures and the board of directors of the company. “Direct loss caused by the explosions at the VMZ-Sopot military plant in the village of Iganovo is estimated at around BGN 3 million. The sum includes the cost of the damaged buildings, too,” said Ivan Stoenchev, director of VMZ-Sopot. In his words, the plant suffered a BGN 500,000 loss a day.

The new owner of the bankrupt Remotex-Radnevo’s assets is preparing the company for renovation of its activity by the end of June. 500 employees, who are to start work in Radnevo, are being looked for. There are orders for repair of machinery out of the state mining plant in the Maritsa basin. By the end of the year several millions of BGN will be insured for investment in equipment. That is what Remotex-Radnevo’s new owner Nikolay Vulkanov said after he bought it for BGN 21 million in cooperation with Greek national Ioannis Giofkos. Mr. Valkanov is owner of Minstroy holding. Seller of Remotex-Radnevo was First investment bank. The deal for transfer of the company has not been registered in the Registry agency. The new owner bought an asset set free from its basic obligation to the bank. Remotex - Radnevo is structurally defining enterprise not only to the state Mines Maritsa East, but for the mining sector  as a whole. There is a need for such type of establishment which carries out repairs of machines, engines, spare parts in the group of companies lead by Minstroy

Europe

The Vatican bank said Monday its profit soared by more than 20 times last year as it recovered from a trading loss and continued its reform process away from its scandal-marred past. The bank, officially called the Institute for Religious Works, said it earned 69.3 million euros in 2014, up from 2.9 million euros the previous year. Its net trading result jumped to 36.7 million euros from a loss of 16.5 million euros in 2013, when it lost money on investments and saw the value of its gold holdings drop. Profits were also boosted by a drop in operating costs. In 2013, operating expenses jumped by some 8 million euros as it paid outside consultants to help review its client base and bring it into compliance with anti-money-laundering norms.

America

A decade into its run on the Web, the crafts marketplace Etsy may soon face its biggest challenge yet. E-commerce titan Amazon has been putting out feelers to sellers on Etsy, pointing them to an online form thanking them for their interest in "Handmade at Amazon." They're asked to fill out the form with information about their business and the items they sell -- from jewelry to gourmet goods to toys and games -- with a promise to keep respondents updated "while we set up shop." Etsy's artisans began posting notes about Amazon's inquiries to Etsy's online forums late last week, and the news was noted by the Wall Street Journal on Friday evening. Amazon and Etsy both declined to comment to CNET. Brooklyn-based Etsy has built a business by connecting buyers and sellers of arts and crafts, deriving its revenue from listing fees and from commissions on items for sale.

Asia

China's state planning agency released a list of more than 1,000 proposed projects totalling 1.97 trillion yuan ($317.75 billion) that it is inviting private investors to help fund, build and operate. The National Development and Reform Commission said the 1,043 projects, in sectors such as transport, water conservancy and public services, will be done as public-private partnerships (PPP). An NDRC statement on its website did not say whether private investors will include foreign firms. As its economic growth slows, China is increasingly turning to PPP, a model not commonly used, to fill a widening funding gap as Beijing clamps down on traditional off-balance sheet borrowing methods used by local authorities. The list includes projects planned for 29 areas including capital Beijing and southeastern Jiangxi province. "The publication of this library of PPP projects is to help speed up the adoption of the PPP model, and to encourage and guide social capital into the provinces, autonomous regions and municipalities," the NDRC said.

Mezek Thracian Tomb

The Mezek Thracian tomb is situated about 10 km away from the town of Svilengrad. It is considered to be the biggest and one of the most interesting and impressive beehive tombs of Mycenaean type in Thrace. It is dated back to IV century B.C. It is fully preserved in its original mode. The tomb is known for its distinctive architecture – it consists of one round and two rectangular chambers. Many unique objects made of gold, bronze, iron, glass and ceramics have been found inside of it. Scientists believe that the tomb most probably belonged to a local ruler. One of the most interesting findings in it is a bronze statue of a wild boar, dated back to the middle of the second half of IV century B.C. The statue is in natural size and the coat of the boar is depicted through sheaves shaped like flames, exactly the way they are depicted on one of the jugs from the famous Rogozen treasure.

On that day:  Novo Selo monastery Holy Trinity Anniversary from the death of Panayot Volov Bansko