Financial news

Fitch Ratings has affirmed Bulgaria's Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB-' and 'BBB', respectively. The Outlooks are Stable, Reuters reported. The issue ratings on Bulgaria's senior unsecured foreign and local currency bonds have been affirmed at 'BBB-'and 'BBB', respectively. The Country Ceiling has been affirmed at 'BBB+' and the Short-term foreign currency IDR at 'F3'. Bulgaria's ratings are currently supported by the sovereign's lower level of domestic and external indebtedness relative to its 'BBB' range peers, as well as a sufficient level of foreign reserves, which provide stability to its existing currency board regime. These factors offset large structural weaknesses in the economy, which constrain higher trend growth.

The total hourly labour cost has risen by 6.9 per cent compared to the first quarter of 2014, according to preliminary data released by the National Statistical Institute. The total hourly labour cost grew by 5.6 per cent in industry, by 8.6 per cent in services and by 7.1 per cent in construction. In the structure of total labour costs, the wages and salaries costs per hour of work grew by 7.3 per cent, year-on-year, while non-wage costs rose by 5.0 per cent. Among the economic activities in the first quarter of 2015 compared to the first quarter of 2014, the growth rate of wages and salaries component ranged from 0.3 per cent in "Mining and quarrying" to 15.7 per cent in "Administrative and support service activities".

REFA qualification course 29.06-03.07.2015, 13.07-17.07.2015, 20.07-31.07.2015 Corporate organization and management and optimization of the production processes Second module: Production Data Management Topic: Production Management The Production Organization Production Planning and Control Workplace Analysis EU-guidelines on Work Safety, Health Protection and Safe Products http://refa.bia-bg.com/, tel. 981-45-67, Sofia

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

Companies

The decision of the State Energy and Water Regulatory Commission to increase electricity prices by up to 20% from July 1 is truly angering local producers. As a result, four employers' organizations have announced a one -hour protest strike on June 26. According to the industrial employers, the intent of the Energy Ministry to partially offset electricity costs for about 30 enterprises that have an electricity consumption over 30 GWh per annum does not solve the problems in the sector which have been accumulating for years. Our questions were left unanswered, said CEIBG, BICA, the BIA and BCCI in a declaration. The production will be suspended for one hour in the enterprises that are members of the Confederation of Employers and Industrialists in Bulgaria (CEIBG), Association of Industrial Capital in Bulgaria (BICA), Bulgarian Industrial Association (BIA) and Bulgarian Chamber of Commerce and Industry (BCCI). The only exceptions are those with a continuous production cycle. Although employers' organizations recently issued a position on the appreciation of the current for business, they say that many of their questions stayed unanswered.

Producer of calcite salt Solvay Sodi opened a vacuum distillation facility in its plant in Devnya. The new capacity will significantly reduce production expenses of the company and will have large environmental effect. The investment is assessed at about BGN 60 million. The new facility is part of a larger investment project, assessed at BGN 200 million, which the company plans to terminate by 2017. Still another large investment project of Solvay Sodi this year is construction of a second boiler of circulating fluidized bed in TPP Deven. Construction of the new facility started back in 2013. The project included gradual replacement of old equipment with new ones. Within the programme in the period 2003-2004 the first distillation group was build; in 2007-2008 - the second, while in 2013-2015 years - the new vacuum-distillation absorption group was finished. After its launch consumption of stema for the need of soda production will go down impressively. Solvay Sodi is one of the largest industrial enterprises in Bulgaria and the largest plant in Europe for the production of synthetic soda ash with a nominal capacity of 1.5 million tons of soda annually

Cannery Storko - Pleven will be put at public auction. Bidding for the plant will begin at starting price of BGN 6.4 million without VAT. The buildings and land are owned by Magazini Evropa JSC and commercial activities are carried out by Storko SPLTD. Both companies are related to Hristo Kovachki. For sale have been put several workshops, warehouses, administrative building, outbuildings and adjoining land of 140 decares. The enterprise is mortgaged in favor of the Municipal Bank. This is not the first bankruptcy of the factory. In 1995 the plant was privatized by the Israeli company Geller Group, but it struggled to repay its loan to the European Bank for Reconstruction and Development. In 2003, the company was acquired by businessman Plamen Minchev (BBB Group), and since 2006 it is owned by Hristo Kovachki. The factory was founded in 1935 and one of his first name is Storgoziyska Konserva.

Attempt for sale of the ex-bread factory of Nilana failed again. In Friday auction for Hlebni izdeliq-Poduqne with initial price of BGN 13.1 million had to take pace. No candidate appeared, though. After judicial authorization the factory will be offered at a tender again, this time at a price equal to 80% of the present one. Production buildings, warehouses, administrative part, auxiliary facilities with located in their equipment for production of bread as well as office furniture is announced for sale. All this is located in Sofia’s neighborhood of Hadji Dimitar. The other factory that produces bakeries under the brand of Nilana was in Sofia’s neighborhood of Knqjevo. That factory though is not announced in bankruptcy. That is way its assets might be sold by private enforcement officer. The request is made by creditor Unicredit Bulbank. Hlebni izdeliq-Poduqne is officially declared bankrupt in October last year, then began sale of the property. The starting date of insolvency is set at 31st December 2008.

Magistrates will look into rejected investment of BGN 50 million. The Supreme Administrative Court will say whether the Regional Health Inspectorate in Veliko Tarnovo legally ruled negatively against the project of a plant for chlorine and modular electrolysis in Gorna Oryahovitsa. The project was launched late last year and now has been temporarily suspended. Investor is Sofia-based Continvest LTD. The report on the impact on the environment of future production has been reviewed by the Regional Health Inspectorate (RHI) at the time of the former leader Dr. Albena Lambeva, who was replaced in December last year. RHI estimated that the plant will be located near residential buildings and did not approve the report. Investors, however, argue that the decision of the inspection was unlawful, since during consideration of the report part of the experts gave positive opinions. The case at SAC is scheduled for November.

Europe

Russian government assets in France and Belgium including bank accounts have been frozen in a row over compensation for shareholders of defunct oil giant Yukos, officials and a claimant representative said. In France, accounts in around 40 banks were frozen along with eight or nine buildings, Tim Osborne, executive director of the main shareholder GML said. "It's bank accounts and real estate," Osborne explained. There was no immediate confirmation from officials in Moscow or Paris. In Belgium, the Russian embassy in Brussels and representative offices at the European Union and NATO headquarters were among those affected, the Russian foreign ministry said. Russia also threatened to take "reciprocal measures targeting Belgian assets in Russia". It added that the Belgian ambassador to Moscow was summoned to the ministry to explain the move and "was told that Russia considers such action by the Belgian authorities as an openly hostile act".

America

Citigroup is planning to shift the headquarters of its European retail banking operation to Dublin from London to benefit from lower costs and capital requirements. This week the bank wrote to clients to say the UK-based business, Citibank International Limited, which operates a small number of branches across some 20 European countries, would be taken over by Dublin-based Citibank Europe Plc. "From a strategic perspective for Citi, moving to a single pan-European bank is expected to reduce operational and regulatory complexity, capital requirements and cost," the company told clients. Analysts said UK rules that require banks to hold a higher level of cash in reserve than other European countries do was likely to be a factor behind the move but that they did not expect to see a stream of other banks leaving the UK.

Asia

On Friday the BoJ decided not to make any changes to its current policy settings, keeping interest rates at around zero, and continuing to expand the monetary base at a rate of ¥80 trillion per year. All the Monetary Policy Committee members but one voted in favor of no policy change, with Mr. Kiuchi dissenting the action of current monetary base expansion and proposing cut to the amount of monthly asset purchases to ¥45 trillion. This is despite national core inflation running at around 0.3% in April, well below the BoJ's 2% inflation target. Luckily for Japan, economic growth has been stronger lately. According to recent government figures, the economy expanded 1% in the March quarter, stronger than the forecast pace of 0.7%, and much firmer than the 0.3% GDP growth recorded in the December quarter. The Bank of Japan (BoJ) is hoping that the stronger economy will start to generate price pressures soon, via a "virtuous cycle" of spending, investment, and income growth.

Architectural and ethnographical complex Dandolov’s Houses

The complex Dandolov’s Houses is located in Sevlievo downtown. It is a unique building which dates back to the time of the Bulgarian Renaissance. The complex comprises three typical Bulgarian houses, a small workshop and some with a few shops under the same roof on the ground floor. The complex was built in 1870 and restored in 1981. Аt present there can be seen the expositions of History Museum: interiors of Rural and Urban live mode, Rural and urban districts of Sevlievo regions during the Renaissance and The beauty of handicraft wares, created by Sevlievo craftsmen the Renaissance.

On that day:  Enyovden (Midsummer’s Eve) Anniversary of Lazar Dobrich The Nymph Sanctuary