Financial news

In January - March 2015 Bulgaria’s exports to the EU has increased by 12.0% compared with the same period in 2014 and amounts to BGN 6.9 billion, show the date of Bulgaria’s National Statistical Institute. Main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium, which accounted for 69.9% of the exports to the EU Member States. In March 2015 the exports to the EU increased by 11.3% compared to the corresponding month of the previous year and amounts at BGN 2.4 billion. Bulgaria’s imports from the EU in January - March 2015, on the other hand, has increased by 7.2% compared with the same period of 2014 and added up to BGN 7.8 billion at CIF prices. The largest amounts were reported in the goods imported from Germany, Italy, Romania, Spain and Greece.

According to the preliminary seasonally adjusted data, in April 2015 the turnover in ‘Retail trade, except for motor vehicles and motorcycles’ at constant prices has decreased by 0.2% compared with the previous month, show the data of Bulgaria’s National Statistical Institute. In April 2015 the working day adjusted turnover in ‘Retail trade, except for motor vehicles and motorcycles’ grew by 0.5% in comparison with the same month of the previous year. In April 2015 compared with the previous month the turnover in the ‘Retail sale of textiles, clothing, footwear and leather goods’ has increased by 6.9% and in the ‘Retail sale of automotive fuel’ - by 0.6%. A decrease was registered in the ‘Dispensing chemist; retail sale of medical and orthopaedic goods, cosmetic and toilet articles’ - 1.5%, in the ‘Retail sale of computers, peripheral units and software; telecommunications equipment’ - 1.0%, in the ‘Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances’ - 0.5% and in the ‘Retail sale of food, beverages and tobacco’ - 0.2%.

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

Companies

The Supreme Court of Cassation (SCC) repealed the controversial definition of the Sofia Court of Appeal, by which was terminated the case under which Investbank was sued to pay BGN 9 million to the Varna-based company Mesocombinat-Varna due to drained funds from the company’s accounts. Last year Sofia City Court sued the bank to pay Mesocombinat-Varna AD nearly USD 2.5 million for drained funds as together with the compensation and interests the amount reached BGN 9 million. In the end of March the company gave up the the claim and withdrew the credentials of the former lawyer of the company. SCC however quashed the judges Grozdev, Todorov and Markov’s decision as illegal.

Bulgarian power supplier Energo-Pro Sales said it has filed with the country's financial regulator a request to delist from the Sofia bourse. Energo-Pro Sales submitted the request with the Financial Supervision Commission. Also on Monday Energo-Pro Sales' majority owner, Energo Pro Varna, said it increased its stake in the company to 98.75% from 90.18% following a buyout bid. Energo-Pro Varna is a fully-owned unit of Czech power group Energo-Pro. In March Energo-Pro Varna launched a revised buyout bid for Energo-Pro Sales and power distributor Energo-Pro Grid, offering to pay BGN 23.25 and BGN 164.42 per share, respectively. It targeted to buy 9.56% of Energo-Pro Sales and 9.82% of power distributor Energo-Pro Grid.

Bulgarian hotel and resort operator Albena and tour operator Thomas Cook Scandinavia have invested BGN 40 million in the renovation and expansion of the White Lagoon sea resort near Kavarna. More than 7,000 Scandinavian tourists are expected to visit the resort as the nearby Varna airport is expected to witness an 30% increase in inbound seat capacity. The official opening of the resort will take place on June 11. Two days earlier the resort will welcome its first guests. The expansion of the four-star resort included the addition of a stage for live events, two restaurants, several swimming pools, and a fitness centre. Three new tennis courts along with a football field are still under construction. This is the first investment in the country for tour and airline operator Thomas Cook Scandinavia, part of UK-based Thomas Cook group.

Five companies have made bids in the tender called by the Energy Ministry on the Bulgaria-Serbia gas grid interconnector project. The public procurement is aimed at selecting a contractor to consult the Bulgarian Energy Ministry in the project. Dikril Consult Ltd., Bulstroy Kontrol Engineering Jsc, Kontrol Engineering Jsc, Sofinvest Ltd, and Sevko Energoproekt Jsc submitted bids in the public procurement procedure with a maximum value of BGN 333,333.33, VAT excluded. This emerged today at the public bid opening. A 7-strong committee chaired by Alexander Davidov is to prepare a draft decision on the ranking of the participants and on choosing a contractor or terminating the procedure by June 30, 2015.

Trace PZP Nis AD, a subsidiary of Bulgarian construction company Trace Group Hold, has signed a new contract for road repairs in Serbia’s Nis. The value of the contract for repair works at four streets in Nis, signed on May 25, is EUR 408 319.68, according to a media statement of the company to the Bulgarian Stock Exchange-Sofia. The contracting authority is Serbia’s Economy Ministry and the project is to be completed in 110 calendar days. The project envisages the reconstruction of the following streets: Dragiša Cvetković, Svetozar Marković, Episkopska, and Kosta Stamenković. Apart from that, on June 15, 2015 Trace PZP Nis will start implementing a project worth EUR 20 585.73 for the construction of roads to facilitate access a business site at the roundabout at Boulevard Sveti Car Konstantin in Nis. The contracting authority is the Public Enterprise Construction Directorate Nis and the project is to be completed in 45 calendar days.

The Bulgarian heating utility Toplofikatsiya Razgrad is seeking a bank to provide it with three five-year loans of up to BGN 770,000, BGN 420,000, and BGN 500,000, respectively. Proceeds from the two investment loans will be used for refinancing of an existing loan and for funding of a new project for retrofitting of two steam boilers, while the third loan will be taken as an overdraft.

Europe

Greece has submitted a revised reform plan to the European Union (EU) and International Monetary Fund (IMF). It comes days after Greek Prime Minister Alexis Tsipras rejected a set of reforms put forward by EU Commission President Jean Claude Juncker. The EU and IMF want further economic reforms before they release EUR 7.2 bln of bailout funds. It is believed Athens has conceded ground on VAT reforms, pensions and the country's primary surplus target. The reform plan comes a day before Mr Tsipras meets the French president and German chancellor. Last week, Greece "bundled up" a EUR 300 mln payment to the IMF, delaying the payment until the end of June when a total of EUR 1.5 bln is due to be paid. Among the plans being put forward by the government, it is believed Greece is willing to increase VAT, but still maintain three rates: a standard rate, a reduced rate for food and medicine and a further reduced rate for books and hotel accommodation. The government has proposed increasing its three rates of VAT, according to Greek newspaper Ekathimerini.

America

Fiat Chrysler Automobiles NV Chief Executive Sergio Marchionne is reaching out to hedge funds and other potential allies to prod General Motors Co. into a merger, according to people familiar with the matter. His pursuit of outside investors is only the latest move in Mr. Marchionne’s drive to find a partner for the Italian-American auto maker, which logged $108 billion in sales in its most recent fiscal year. But contacts with activist investors—only months after GM agreed to hedge fund demands to buy back billions of dollars in stock—have yet to land a patron, these people said. A similar strategy could be employed with at least one European auto maker, they added. His high-profile calls for industry consolidation have led some analysts to characterize Mr. Marchionne’s pitch as a desperate one, reflecting Fiat Chrysler’s weak operating margins. Although the company is now profitable, a potential industry downturn and the future costs of meeting emissions regulations and investing in new technology leave sizable risks.

Asia

India has increased pressure on its heavily indebted companies with rules that allow banks to push out business owners who fail to repay loans. The move by Raghuram Rajan, central bank governor, represents an escalation of attempts to bring India’s problem of bad loans under control, and end a system that made it nearly impossible for banks to recover assets from near-bankrupt businesses. The rules also represent a significant departure from the country’s consensual corporate culture. The Reserve Bank of India rules released on Monday could also pave the way globally for private equity groups such as KKR and Blackstone to take over distressed companies, a step that has been prevented by rules protecting business owners. Mr Rajan has been sharply critical of many Indian tycoons, saying they have misused state-backed banks by taking on excessive risks and then refusing to repay loans. India’s economy has been dogged by rising bad debts over recent years, with numerous industrial companies unable to repay creditors.

The Flat Hill – village Yunatsite

The village hill near the village of Yunatsite, also known as the Flat Hill, is located in Northwestern Thrace and is the biggest one in Western Bulgaria. The first excavations of the place were made as early as 1939. The discoveries made during the excavations were highly evaluated by the European science and resulted in the permanent establishment of the term “Yunatsite culture”. Due to them, a series of extremely precious pieces of information about the ancient history of the Balkans and the whole region of Southeastern Europe, became known. The village hill is a sort of an open-air museum and is included in the system of international cultural tourism.

On that day:  The Preobrazhenski Monastery