Financial news

The savings of citizens and non-profit organisations in Bulgarian banks increased by more than BGN 1.5 billion in the past year. Savings amounted to BGN 42.5 billion at the end of May, registering a new record level. Depositors seem to have restored their confidence in Bulgarian banks, as the deposits keep increasing despite the lower interest rates. In the past months the returns on deposits in Bulgaria have been similar to that in most EU member states, Darik radio reports. The average interest rate on deposits in BGN was 1.63% in May, while that for deposits held in EUR was 1.25%. Despite that the savings increased by BGN 204.5 million in just a month, one of the possible explanations being that Bulgarians still lack culture of investment. Another possible reason is the Greek crisis, which has forced Greek citizens to transfer their assets to Bulgarian banks in search of greater safety. Holding accounts in Bulgarian banks also allows Greeks to have free access to their deposits, in contrast to the situation in Greece, where cash withdrawals are limited to EUR 60 per day.

Bulgaria's Parliament approved on first reading the pension reform presented by Social Minister Ivaylo Kalfin. as such, the normal retirement age for both men and women will increase to up to 65 years for both sexes by 2037. The work needed required for the eligibility for receiving full pension benefits will gradually rise by two months per year to 40 years for men and 37 for women in 2027. Contributions are envisaged to increase by 1% in both 2017 and 2018. As for the defense and security sector, the retirement age will increase to 52 years and 10 months from 1 January 2016. Then, it will gradually increase up to the age of 55. However, unions and employers are strongly opposing the measure.

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Companies

At this stage, the official data by the central bank disprove the gloomy forecasts about a drop in investments in Bulgaria, Economy Minister Bozhidar Loukarski said. Three investment certificates, two of which for class A investments and one for a priority investment project, were issued in the past few months totalling BGN 128.32 million. The three undertakings are expected to create 327 new jobs. Investment projects worth more than BGN 87 million and creating about 943 jobs over the next couple of years are in the process of being certified, Loukarski said. The Ministry has analysed the problems raised by investors and together with the Finance Ministry is working on a mechanism for monitoring the investment climate. Loukarski said that the Bulgarian Investment Agency has the objective of becoming a "one-stop shop" for all investors. According to Deputy Economy Minister Daniela Vezieva, the biggest problem of the business are the administrative burdens caused by various regulations. She said that the Ministry has suggested amending or scrapping some regulations "because otherwise it would be impossible to free the business environment".

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) will lend EUR 20 million to Bulgarian energy distributor Bulmarket DM for the development and expansion of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) terminals. The funds will be used by Bulmarket DM to expand its existing network of LPG terminals, and build a new terminal which will store and distribute LNG, putting the company in a position to become the first importer and distributor of LNG in Bulgaria. The expansion will allow the company to start supplying LNG to industrial companies in Bulgaria, many of which are remote and do not have access to traditional gas distribution and competitive energy sources. The project is also consistent with the LNG Masterplan of the European Commission’s Innovation and Networks Executive Agency, which supports the development of LNG terminals along the Rhine-Main-Danube river axis.

The Sofia Court of Appeal decided on Friday to set June 20, 2014 as the starting date of the insolvency of Corporate Commercial Bank, overruling an earlier decision. The court's decision can be appealed before the Supreme Court of Cassation after it has been entered in the Registry Agency, the Sofia Court of Appeal said. The date of the bank's insolvency is crucial for the legitimacy of deals for the purchase of unsecured deposits concluded after June 2014 that allowed creditors to get back part of their money. In June 2014, the Bulgarian National Bank placed Corporate Commercial Bank (Corpbank) under special supervision over risk of insolvency and appointed two conservators after it notified the central bank it had run out of liquidity. Payments and all types of banking operations were suspended. In November, the central bank delicensed Corpbank and said it would seek the bank's insolvency after it was found to have a negative own capital. In April the Sofia City Court declared Corpbank insolvent, setting November 6, 2014 as the starting date of the insolvency. Its decision was appealed by the prosecuting magistracy and the central bank, among others.

The rating agency Moody’s has decreased the deposit rating of Bulgarian DSK Bank to Ba2/Not-Prime as well as the deposit rating of Raiffeisen Bank to Ba3/Not-Prime. Their perspectives for development have been further decreased to ‘’stable’’. A month ago Moody’s confirmed Bulgaria’s rating of Baa2 with a stable perspective. The decision should reflect the balance between a stable budget situation, sustainable economic recovery rates and initiated reforms as compared to the risks of external shock conditions, for example the current fiscal crisis in Greece or other political risks. One of the main factors for the decision made by the rating agency is the lower level of Bulgarian foreign debt as compared to the rest of the countries in the same credit category, as explained by the Ministry of Finance.

At present Bulgargas has 40 million cubic meters of gas in its deposit in Chiren. In May the state gas company pumped only 0.6 million cubic meters, while in June-17 million cubic meters. These are working data, as the company is due to presents its commercial accounts for June. As compared to May 2013 and 2013 more than 50 million cubic meters of gas were injected, while in June in the same two years the amount was 72-73 million cubic meters. Bulgargas’ last data is as of 8th of June. The company is owner of the deposit in Chiren, where there were about 166.5 million cubic meters of gas.

Europe

With two-thirds of ballots counted, results from the Greek referendum show voters decisively rejecting the terms of an international bailout. Figures published by the interior ministry showed 61% of those whose ballots had been counted voting "No", against 39% voting "Yes". Greece's governing Syriza party campaigned for a "No", saying the bailout terms were humiliating. The "Yes" campaign warned this could see Greece ejected from the eurozone. Some European officials had also said that a "No" would be seen as an outright rejection of talks with creditors. But Greek government officials have insisted that a "No" vote would strengthen their hand and that they could rapidly strike a deal for fresh funding in resumed negotiations. Greek banks will reopen by Tuesday, they say.

America

Health insurers continued their mating dances, with giants Anthem Inc. and Cigna Corp. rekindling their talks to combine, and smaller Centene Corp. agreeing to buy Health Net Inc. for around $6.3 billion. Representatives of Anthem and Cigna met this past Friday and Tuesday to discuss a potential tie-up, said people familiar with the matter. They said a deal could be reached in coming weeks, though there is no guarantee the latest round of talks will result in a merger. Anthem has been trying to combine with Cigna for nearly a year, but the two companies have struggled to agree on price and other terms, including who would run the combined company. Last month, in an attempt to woo Cigna shareholders, Anthem made public an offer of $47.5 billion, which Cigna publicly spurned. The talks are part of a flurry of discussions among the top five health insurers aimed at striking deals that will enable them to be more competitive in a health-care landscape dramatically altered by the Affordable Care Act and other developments.

Asia

Japan still plans to raise the national sales tax again in 21 months, even as the economy struggles to gain momentum following the recession caused by a hike in the levy last year. “Unless something really unusual like a large economic shock happens, if things are in a normal state, we’ll definitely raise the sales tax,” Economy Minister Akira Amari said in an interview in Tokyo on Thursday. “It’d be best for the government to raise the sales tax after declaring an end of deflation.” Amari’s comments underscore the pressure on Prime Minister Shinzo Abe’s government to consolidate Japan’s finances as the nation’s debt burden swells. His cautious tone on deflation comes as the Bank of Japan’s efforts to stoke faster price gains run into headwinds in the form of weak consumer sentiment and low oil prices. The most recent reading of the BOJ’s preferred inflation gauge was 0.1 percent. The minister also said that China’s economic slowdown poses a bigger risk to Japan than any financial turmoil flowing from the crisis in Greece.

St. Dimitar Cathedral Temple - Vidin

When in 1718 Vidin became a border city of the Ottoman Empire. This is why there was a new border law saying that the Bulgarians were not allowed to live inside the city walls (The Citadel). As a result of this new regulation there was an urgent need of a new temple to be built outside the stronghold which happened in the end of 17th c. The new cathedral was named after the Thessalonikian holy martyr Dimitriy. Soon it became an important cultural center of all Bulgarians. The cathedral is the second biggest one in Bulgaria after St. Alexander Nevski in Sofia. On December 6, 1868 for the first time in the newest Bulgarian history a liturgy served by a Bulgarian bishop in Bulgarian language took place. Since then the church became home of the Vidin bishop Antim, who was proclaimed as the first Bulgarian exarch, four years later. The Cathedral-temple St. Dimitar has a cruciform shape with three longitudinal and one transverse nave. The central dome rests on four pillars that emphasize its size and appearance. The height of the central dome is 33 meters. The cathedral is considered as one of the most important and considerable Bulgarian cultural monuments.

On that day:  Iliya Petrov (July 6, 1903 – May 18 1975)