Financial news

The record for the past seven years budget surplus of BGN 850 million at the end of June is due to strong growth of revenue from VAT and social security contributions, according to the Ministry of Finance. Still no official data on the revenue at the end of June on individual types of taxes. But for the first five months of the year collected revenue from VAT and insurance jumped by over 11%. This is a very good achievement given that GDP growth for the first quarter was 0.9% and the annual inflation at the end of May was also 0.9%. It turns out that the serious growth in revenue is primarily due to the performance of revenue agencies and the release of part of the gray economy to light, rather than real economic growth. VAT revenues for the first five months of the year increased by BGN 331 million and reach BGN 3.27 billion. Receipts from pension and health contributions increased by BGN 278 million to BGN 2.78 billion. Serious growth was also registered in excise revenues, which increased by BGN 138 million (+ 9.2%) to BGN 1.6 billion.

Bulgarian exports to “third countries” – meaning non-EU countries – were 10.4 per cent higher in January to May 2015 than in the first five months of 2014, the National Statistical Institute said on July 10, citing preliminary figures. In the period January – May 2015, Bulgarian exports to third countries increased amounted to BGN 6.8 billion. Among non-EU countries, the main trading partners of Bulgaria were Turkey, China, Serbia, the United States, the Russian Federation and Singapore, which accounted for 50.6 per cent of the exports to third countries. In May 2015, exports to third countries decreased by 0.7 per cent compared to the corresponding month of the previous year and amounted to BGN 1.4 billion. Bulgarian imports from third countries in the first five months of 2015 decreased by 1.1 per cent compared to the corresponding period of 2014 and added up to BGN 7.8 billion (at CIF prices). The largest amounts were reported for the goods imported from the Russian Federation, Turkey, China and Ukraine. In May 2015, Bulgarian imports from third countries decreased by 9.3 per cent compared to the corresponding month of the previous year and amounted to BGN 1.6 billion.

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

Concessions

Investors will make online inquiries on what stages procedures on rendering permits for prospecting, exploration and concessions of natural resources are. This is clear from a public procurement for development of software announced by the Ministry of energy. Total forecasted value of the order is up to BGN 283 thousand VAT excluded. The information system has to be developed on modules principles. After it is ready the investors will make current reports for stages up to which the procedure reached via link on the internet site of the ministry. The contractor is envisaged to create the software within the period 1st of September-1st of December 2015. Offers will be accepted until August the 3rd, the opening is on the 4th of August, 2015. The construction of the system is funded by a project under the Operational Programme Administrative Capacity.

Companies

Bosch Solar Energy, a property of the German giant Bosch succeeded in selling its five photovoltaic parks, which until recently it had in Bulgaria. Their total installed capacity is nearly 25 megawatts. The buyer is the manager of the company’s subsidiary in Bulgaria, called BCI Kazanlak Holding, Nedko Mladenov. His company is managing the projects located near the unanimous town. The deal took place in April 2015. The value of the acquired shares is symbolic. A loan to the amount of EUR 10 million has been drawn by Investbank. As collateral the company was pledged to the bank at the end of May. Five solar parks are connected to the July 2, 2012 the power of each of the projects is 4.98 megawatts. Bosch Solar Energy is producer of solar panels and has subsidiaries in Australia, India, and the US. The bough business has annual turnover of slightly over BGN 8 million. Tangible fixed assets in each of the five companies were valued at BGN 14 million, i.e. a total of BGN 70 mln.

HP Global Delivery Bulgaria Center topped this year’s ranking Top 100 ICT companies, prepared by Computerworld, part of ICT Media. The ranking was held for the 18th year and covers companies from the ICT sector operating on the Bulgarian market. The center for expert support of global customers of HP ranks first among ICT companies in 2014 with revenues of 254 million BGN and compared to the previous year amounted to 9% growth. It is followed by two distribution companies – PolyComp and Solytron. Both are respectively with revenues of 148 million BGN and 119 million BGN. Top five is completed by Datex and the system integrator Telelink, respectively turnover last year of 112 million BGN and 65 mln. BGN. The development unit of SAP – SAP Labs, occupies the 6th position with revenues of 53 million BGN. 3.82 billion BGN is the total revenue of the participants in Computerworld’s Top 100 ICT companies. Of these IT sector amounted to 1.56 billion BGN and another 2.26 billion BGN come from telecommunications. Last reported a decline of about 5 percent of revenues, while the IT sector as a whole the drop was less than 1 percent. Projects abroad of most system integrators and outsourcing businesses fail to offset the decline in domestic consumption.

Due to ambiguity around electricity prices NPP Kozloduy has lost part of its long-term contracts for sale of electric energy. At the same time NEC began to delay payment of its debts to the power plant and do not repay the amount indicated in the repayment plan between the two companies. Nearly BGN 40 million, which NPP Kozloduy will have to submit in future fund "Security" of the power system, the plant hopes to find by optimizing its work. All conventional plants that will pay 5% of its turnover in the fund will actually calculate this cost in the price at which they sell energy on the open market and thus, in the chain, this cost will reach the final cost to consumers.

Stara Zagora District Court declared the bankruptcy of one of the largest repair enterprises in Maritza East complex - the privatized in 2002 Remotex-Radnevo. The case was based on claims of FIB and Burgas-based Alsi, which claim to BGN 23.5 million. For beginning of insolvency, the Court has set January 2, 2014. Temporary trustee was appointed. According to the conclusion of the expert appointed by the court, as to 21 March 2015 the company had short-term assets worth BGN 43.4 million, while its liabilities were BGN 34.7 million. Sinking of the plant, which employed nearly 900 people, started in 2013. The then owners borrow from the Bank, which transferred to related companies. Salaries have not been paid in full for almost two years. Part of the basis of the bankrupt factory is now owned by Minstroy Holding. According to its head Nikolay Valkanov, 500 workers are to be recruited and production is to recover.

Europe

Britain’s trade in goods deficit narrowed to its lowest level in nearly two years in May, pushed down by a fall in imports including ships, but April’s deficit was revised higher. The Office for National Statistics also said construction output suffered its biggest monthly fall in more than a year in May, underscoring why the government is preparing to announce measures to boost home-building. The ONS said on Friday the goods trade deficit shrank to 8.000 billion pounds, much smaller than a median forecast for a shortfall of 9.700 billion pounds in a Reuters poll of economists and its lowest level since June 2013. But April’s deficit was revised higher to show a gap of 9.837 billion pounds compared with an original estimate of 8.561 billion pounds. An ONS official said the revision was caused by imports that were higher than previously thought. It was the second month in a row that the import figure for a previous month was revised higher because of changes in figures from Britain’s customs department, she said. Goods exports rose 0.1 percent in volume terms from April while imports plunged 5.5 percent, pushed down by lower imports of ships amd material manufactures.

America

Puerto Rico will hold its first formal meeting with creditors since announcing it planned to restructure $72bn worth of debts, as money managers gird themselves for tough, drawn-out battles for years to come in “America’s Greece”. The stricken island’s governor Alejandro Garcia Padilla admitted at the end of last month that its debts were “not payable” and announced that his government would seek to restructure to help an extensive economic adjustment programme. Puerto Rico’s economy and population has been shrinking for almost a decade and debts have ballooned to about 100 per cent of its gross national product as the government took advantage of the tax exemption enjoyed by US “municipal debt”. The depth of Puerto Rico’s fiscal and economic woes has attracted parallels to Greece. A committee set up by the government to explore restructuring options — which includes members of the local legislature and Puerto Rico’s Government Development Bank — will meet with creditors at Citi’s New York offices next week to set out its argument for debt relief, the authorities said in a statement on Thursday.

Asia

Chinese police visited the office of the country's securities regulator on Thursday to investigate clues that suggest "malicious" short-selling of shares, the latest effort by authorities to prevent a further meltdown in the stock market. The country's stock markets have plunged roughly 30 percent over the last three weeks, with a series of increasingly aggressive attempts by authorities so far having failed to stem the massive exodus from a once-booming market. Citing unidentified sources, Xinhua said Vice Minister of Public Security Meng Qifeng had led a team to the office of the China Securities Regulatory Commission on Thursday morning. The investigation shows that authorities will "punch back" against illegal activities with a "big fist", Xinhua said in its official microblog. It did not specify the illegal activities or identify any individuals under investigation. The stock market rout has rattled investor confidence and raised concerns that it could pose an even bigger threat to the world economy than the Greek debt crisis. In Beijing's most drastic step yet, the securities regulator banned investors who own more than five percent of their shares from paring their stakes in the next six months.

Thracian cult complex – Zhaba Mogila (Frog Mound)

Strelcha is a small town in Southern Bulgaria. Among the sloping hills and century-old trees, at the foot of Sredna Gora Mountain, some unique natural and archeological monuments are protected. The Thracian tomb Zhaba Mogila is dated back to 5th century BC – when the Bessi (Thracian tribe) ruled in the lands around Strelcha. The complex consists of two facilities – a tomb- mausoleum and a sanctuary temple. The tomb is a two-chamber one and as a chariot, three horse skeletons and armoury, as well as 9 turned bottom-up pottery were found there. The sanctuary is located in northwestern direction of the tomb. It consists of three premises lied in L-shape with the total area of 25 square meters.