Financial news

Bulgaria ranks third in the EU in the number of cleared fraud investigations related to misuse of EU funds and subsequent inspections by OLAF according to the annual report of the European Anti-Fraud Office. First is Romania with 36 investigations, Hungary is second with 13, and Bulgaria boasts 11 completed investigations, the data show. In over half of the cases (55 per cent) in our country charges were pressed after inspections and recommendations of OLAF. Last year, the service reported a record number of indictments in its investigations. At the same time the duration of investigations decreased. We are not able to work on more than the reasonable number of inspections. We have no more capacity, OLAF Director General Giovanni Kessler said at a news conference. The most signals received by OLAF in Bulgaria in the past seven years came from "private sources" (54), and only five signals were from public institutions. SAPARD was among the cases reported by Bulgarian authorities. OLAF reports that the investigation of fraud in the amount of EUR 7.6 million from the EU budget has covered the territories of Germany, Italy, Spain, the Netherlands, Slovakia, Sweden and the UK.

The minimum wage in Bulgaria will be increased by BGN 20 from BGN 360 to BGN 380 (EUR 194) from July 1. The Borisov cabinet will vote about the raise of the lowest monthly remuneration for the second time this year after the Supreme Administrative Court overturned the previous decision as it was not consulted with the council for tripartite cooperation. This will be the second raise of the Bulgarian minimum wage this year: it was already increased once from BGN 340 to BGN 360 from January 1. After the second upcoming raise, after the deduction of taxes and insurance, the lowest monthly remuneration will provide a net income of BGN 298. This is BGN 16 more than the current level BGN 282.

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Companies

The Vienna Insurance Group said its Bulgarian unit Bulstrad has entered into an agreement to fully acquire non-life insurer UBB AIG and conclude a cooperation agreement with the United Bulgarian Bank (UBB). The acquisition allows the group to diversify its portfolio in Bulgaria and to increase - in the sense of multi-channel distribution strategy - its sales potential, VIG said in a press release. "Bulgaria is one of our core markets. Bulstrad took advantage of the opportunity to acquire UBB-AIG and strengthen its market presence," VIG CEO Peter Hagen said in the press release. "Moreover, this new distribution channel allows us to open up further customer segments." In May Bulstrad said it planned to acquire full control over UBB AIG in a deal worth EUR 3.2 million. UBB-AIG was established in 2006 as a bank-assurance company for UBB. In 2014 it recorded EUR 4.5 million in premiums and a net result of BGN 1.38 million.

Owner of one of the most modern data centers in Bulgaria- TelecityGroup Sofia will be acquired by the American Equinix. Leading operator in data centers Equinix offered GBP 11.45 per share to TelecityGroup, which assesses Great Britain-based company to GBP 2.4 billion. Half of the price will be paid in cash, while the rest in shares. Equinix said that TelecityGroup’s takeover will expand its presence in Europe, mainly through development of its capacity in key markets, such as Amsterdam, London, Frankfurt and Paris. The deal will give the new owner access to markets in Eastern Europe and Turkey and more particularly to Warsaw, Sofia and Istanbul, where data centers of the British company operate. Business with centers for storage of data is related to insuring safe, protected and at least double checked infrastructure for data storage. In 2013, the leading company in the sector in Europe TeleCityGroup acquired 100% of the Bulgarian Internet center 3DC. The main shareholder in the Bulgarian company was venture capital fund NEVEQ with 70% of the capital.

In a few months’ time a new sewing factory will start work in Vidin. The investment is made by the German company Slam Group. Its sole activity is related to production of men’s shirts for popular world brands. It is envisaged that the initial investment will be slightly over BGN 2 million. The work will start from July. Major funding is sought by banks. Till the Bulgarian company starts funding its activity by itself it will rely on the mother company for working capital. The company has already been registered in Bulgaria under the name of Slam Clothing. The sewing factory uses Technomarket’s building, which is hired for a period of ten years. The contract is with an option for a purchase, which is being thought of by the owners. The store has moved to another location in the town. Technomarket’s buildings in Vidin, like these in most regional cities are owned by Glorient investment BG. The investor in the factory for shirts Slam Group GMBH is an international subsidiary of the German Seth GMBH. The company’s plans are to start operation with 150 people. Within three to five years personnel will grow up to 600 in stages. That is what will make Slam Group one of the largest employers in Northwestern Bulgaria.

France-based aerospace and defence corporation Airbus Group is interested in cooperating with Bulgarian companies. It is interested in hiring subcontractors in various sectors, including electronic systems and components, information systems and data processing, traffic control systems, aluminium components, and metal constructions among others. Airbus Group officials will visit Bulgaria again in July to explore the opportunities for future cooperation.

Bulgarian telecommunications operator Max said it had extended its 4G LTE network to include two towns in the western part of the country. Max's 4G LTE network now covers the cities of Novi Iskar and Kostinbrod. The expansion is part of the company's plans to offer high-speed services in large urban areas and in popular tourist destinations. Max has 4G LTE coverage in Sofia, Plovdiv, Varna, Burgas, Stara Zagora, Ruse, Sliven, Pleven, Pernik, Blagoevgrad, Bansko, Novi Iskar, Kostinbrod, Hisarya, Velingrad, Zlatni Pyasatsi and Sveti Konstantin i Elena. For the summer, it plans to expand its network to Bulgaria's seaside resorts and to Elin Pelin and Bozhurishte. In February last year, Max board member Tony Robinson said that investment in the company's five-year 4G LTE rollout plan would amount to EUR 75 million.

Europe

The European Commission is preparing a ‘diplomatic energy action plan’ to diversify the EU’s natural gas supply sources, with plans for tapping Algeria’s huge unexploited reserves, and a comprehensive LNG strategy due next year. Miguel Arias Cañete, Commissioner for Climate Action and Energy, has agreed on a “coherent approach” with the EU’s foreign affairs chief, Federica Mogherini, in dealing with gas supply countries such as Norway and Russia. “For the time being, we have been concentrating a lot of efforts on the Mediterranean,” Cañete told a small group of Brussels-based journalists last week, underlining Algeria’s “enormous possibilities”. The Commission will convey a business forum “early next year” to analyse the reasons behind Algeria’s chronic under-investment in natural gas extraction capacity, and the possibilities for tapping unexploited reserves – both conventional and non-conventional. The offensive is part of the Energy Union, a project which received political impetus following the conflict in Ukraine, exposing the EU’s dependence on Russian gas imports.

America

US dealmaking hit an all-time monthly record in May, surpassing the previous highs seen during the peak of the dotcom bubble and the zenith of the debt boom that led to the 2008 financial crisis. The overall value of deals in US-bound mergers and acquisitions activity amounted to $243bn in May compared to $226bn during the same month in 2007 and $213bn in January 2000, the previous biggest and second biggest months respectively, according to Dealogic data. The data underline how frenzied US dealmaking has become as cheap debt and bullish boardrooms fuel an M&A boom of a size not seen since just before the last two equity market crashes. The main drivers were mega-transactions such as Charter’s three-way $90bn acquisition of cable companies Time Warner Cable and Bright House and Avago’s $37bn deal to acquire Broadcom, the largest tech deal since the dotcom boom.

Asia

Malaysia Airlines is "technically bankrupt", its chief executive has said, as he announced a restructuring programme and plans to cut about 6,000 jobs. The announcement follows the twin air disasters which forced its nationalisation last year. The airline said it had "offered jobs" to 14,000 of its 20,000 workforce. The move was expected and follows the appointment of new chief executive Christoph Mueller in May. "We are technically bankrupt," Mr Mueller told a news conference. "The decline of performance started long before the tragic events of 2014." The airline is operating as normal and no flights are currently affected. In March last year, Malaysia Airlines flight MH370 disappeared with 239 passengers and crew aboard. The plane is still missing. Four months later, flight MH17 was shot down by a suspected ground-to-air missile while in Ukrainian airspace, with the loss of 298 passengers and crew. The two disasters proved to be the final straw for the already struggling business, which had reported losses for several years as a result of strong regional competition.

Augusta National Archeological Preserved Area

The Late-Antique and Early-Byzantine castle Augusta raises just 6 km western from the town of Mizia (northwestern Danube River Valley), situated in the Kaleto district, Kozloduy Municipality. Kaleto is a district offering favorable natural and geographical conditions of life and protection. It is located at the left riverbank of Ogosta River. The area that the fortified walls spread on now is about 8 ha. The first archeological excavations in Augusta were held in the period 1973-1990. In 2005 they were restored by the National Museum of History with the active cooperation of the Kozloduy Municipality. The archeologists found that based on the camp Ala Augusta, yet in the 2nd century the town center Augusta progressed here. In its almost six-century long history Augusta was often attacked, ruined down and raised again. The last destruction is dated to the year 582, after a number of Avar invasions. In the 7th century a Slav settlement was established over the ruins of the destroyed town. The earliest remains here are dated to the end of the Bronze Ages. Two graves were found, where the funerals were done through burning the dead bodies and the ashes of the dead man was placed into an urn. Augusta was declared an archeological monument of culture. In 1984 it was declared an archeological preserved area under the name Antique Fortress Augusta in the Kaleto district near the village of Harlets, Vratsa region.

On that day:  King Ivan Shishman (1371- June 3 1395) Skravena village