Financial news

Under one percent of the employed in the country - 0.6%, work in sectors where payroll averaged BGN 2,000, according to a reference made by the Bulgarian Industrial Association on the security thresholds in all 85 economic activities. In only one sector the total income of all employees pass the threshold - in the Manufacture of coke and refined petroleum products the security contributions are BGN 2117.87. It employs 1657 people. Just over 135 thousand employees, or nearly 7% of all workers are secured at lower amounts than the minimum wage. These are part-time employed – at 4-hours work shifts are employed all workers in subsidized employment programs. Full time employed persons cannot be provided under the minimum salary, which as from 1 July is BGN 380. The employed in 85 economic activities are 1,958,509 people. The average income in the country from January to April is BGN 729.18. As to the same period last year it increased by almost 7%.

From 2004 to 2014 the amount paid cash for unemployment benefits increased 3.4 times – from over BGN 101.3 million to over BGN 340.1 million, shows an analysis of National Social Security Institute. It recalls that the registered unemployed decreased in the 2004-2008 period, which is explained by macroeconomic stability, sustained positive trend of high economic growth and significant investment in the country. In this period reduce the cost of cash unemployment benefits. In 2008, the average annual unemployment rate decreased to 5.6%. The trend sharply reversed in 2009. At the end of the year the number of unemployed is 338,144 as it has increased by over 97 thousand from the beginning of the year. Only in 2011 mass layoffs decreased by about 25%, and in 2013, when unemployment continues to grow, its levels begin to approach those of 2005. In 2009, unemployment benefits rose by more than twice compared with the previous year. They grow until the end of 2012. Only in the last two years of the analyzed period the cost of unemployment benefits declined slightly.

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

Companies

An arrangement between the National Electricity Company (NEK) and the AES Maritza East 1 Thermal Power Plant to modify the agreement under which the plant sells its electricity was approved by the energy regulator and by all 24 European and Bulgarian banks which are creditors to AES Maritza East 1, as well as by the European Bank for Reconstruction and Development, the World Bank and the export credit agencies of France and Germany, the plant said in a press release. The arrangement, concluded on April 8, entails an immediate reduction of NEK's expenses, the plant's CEO Olivier Marquette said. The change consists in reducing the availability price charged by Maritza East 1 by 14 per cent as soon as the plant collects all its overdue receivables. This will save NEK around BGN 50 million annually, or BGN 550 million until the sale agreement expires in 2026.

Dimitar Angelov, CEO of Bulgaria’s Kozloduy Nuclear Power Plant, has complained that the N-plant lost long-term contracts for the sale of electricity as a result of the postponement of the new regulatory period. Angelov said that the National Electric Company (NEK) had started delaying debt payments and the installments no longer matched the amounts stipulated in the debt settlement plan agreed by the two companies. Angelov underscored that long-term agreements were being avoided, with customers seeking deals with a time frame of up to 3 days as they were uncertain about the conditions in the new period. The CEO of the Kozloduy NPP said that the crisis in Greece had also affected sales of electricity, causing problems at Bulgaria’s national power utility and an ensuing deterioration in debt payments to the Kozloduy NPP over the past month. New electricity prices were supposed to take effect on July 1, with household prices going up by around 2% and prices for industrial consumers increasing by 4-20%.

Austrian leader on the furniture market XXXLutz via its owner XLCEE Holding will acquire 67% of the capital of the two companies that develop local retailers Aiko and Mobbo. That is what becomes clear from a decision of the Commission for protection of competition. Changes in the management won’t be made. Aiko will continue to be managed by its founder Marian Dushkov. As a result of the deal a new competitor of international scale will appear on the market. It has business in eight European countries, assessed to more than EUR 3.3 billion. Bulgaria is part of the strategy of the Austrian company to develop its network in the region of Central and Eastern Europe. The company has real estate in Sofia, Varna, Burgas and Stara Zagora. XLCEE Holding is one of the largest companies for trade with furniture in Europe and is a leader in the branch in Austria.

Milk-processing factory Codap is being sold at an auction by Unicredit Bulbank due to unpaid debts. The company is more popular by its brand MyDay. The bank announced for sale the commercial enterprise without its industrial assets. The minimum price for Codap is EUR 5.1 million, against which the candidate buyer may get the rights, obligations and actual relations. The price is not bound with VAT. Offers for purchase will be accepted till 12 o’clock on the 17th of July, solely in a written form. Codap is enshrined in UniCredit Bulbank and, according to the notice for sale production assets are provided as collateral to still another lender. That is the reason why only the company is put for sale without its manufacturing capacity. The very company commented that its production facility in Sofia is to continue to produce. There are two pledges established on the company’s business, both of them in favor of Unicredit Bulbank. The first is from January 2013 and is for a debt of BGN 11.023 mln. The other contract is from February of last year and is for a debt of EUR 639 thousand.

One of the largest producers of auto parts in Bulgaria-German Witte Automotive Bulgaria EOOD continues to expand its activity in the country. The company will launch till the middle of July into exploitation a production line in its renovated building on 7 Dunvaski kat Street in Ruse. Production of entirely new product will start there- hinges for back covers of luxury cars, namely AUDI A6 and AUDI A8. In the end of the year manufacturing of Volvo’s new models S60 and S90 will start, too. New jobs by the end of the year will exceed 40.

Europe

Euro zone leaders made Greece surrender much of its sovereignty to outside supervision in return for agreeing to talks on an 86 billion euros bailout to keep the near-bankrupt country in the single currency. The terms imposed by international lenders led by Germany in all-night talks at an emergency summit obliged leftist Prime Minister Alexis Tsipras to abandon promises of ending austerity and could fracture his government and cause an outcry in Greece. "Clearly the Europe of austerity has won," Greece's Reform Minister George Katrougalos said."Either we are going to accept these draconian measures or it is the sudden death of our economy through the continuation of the closure of the banks. So it is an agreement that is practically forced upon us," he told BBC radio. Greece however aims to reopen its banks on Thursday, bankers said after meeting the finance minister. Facing a wave of withdrawals, the banks closed two weeks ago. If the summit had failed, Greece would have been staring into an economic abyss with its shuttered banks on the brink of collapse and the prospect of having to print a parallel currency and exit the European monetary union.

America

The United States led global commercial real estate investment in the second quarter of 2015 with a 30 per cent increase in sales volume, the latest industry research shows. According to Propertywire.com, despite the debt crisis in Greece and volatility in China’s equity markets, the prelim data from international real estate services firm JLL shows global transaction volumes in the second quarter of the year totalled $161bn, unchanged from the same period a year ago. The Americas, as a whole, posted the best second quarter performance since 2007, at $79bn, as the US economy recovers while Russia shows signs of renewed optimism with the strongest level of activity seen in five quarters. In Asia Pacific, lower transactions in Japan and Australia, the region’s biggest markets, pulled volumes down. In EMEA, transaction volumes were up 11 per cent, measured in local currencies. “We can expect the recent decline in global interest rates to support transactional activity for the remainder of 2015,” said David Green-Morgan, global capital markets research director at JLL.

Asia

Trade turnover between Russia and China in the first half of 2015 fell by almost a third - 30.2% - compared to the same period last year and amounted to $31.1 bln, according to the report of the General Administration of Customs of China published Monday. According to the report, the volume of exports of Chinese goods to Russia in the first half of the year fell by 36.2% against the same period last year and amounted to $14.6 bln. The volume of imports of Russian goods to China also declined by 23.9% and amounted to $16.5 bln. In June, the volume of trade turnover between Russia and China amounted to $6 bln, which is 20.9% lower than the same month last year. The volume of exports of Chinese goods in Russia for the period totaled $2.85 bln, down from last year's figures by 34.2%. Russian imports to China also showed a decline of 3.4% and amounted to $3.2 bln.

Golden Sands Park

Sunny Beach Park includes some parts of the eastern slopes of the Frangensko table land. It is situated 17 km northwestern direction of Varna. The park is a unique mixture of sea, greenery, and a beautiful beach. It was declared a park in 1943. The vertical limestone rocks, which figure the edge of the table land, are notably picturesque. Most of the park’s territory is covered with deciduous vegetation, mainly  yoke-elms and oak-trees. Dense forests cover the deep wet valleys, where 13 small natural lakes are situated. The park is a habitat for more than 70 species. A historical monument in the park is the Aladja Monastery, which dates back form the 13 century. Golden Sands sea-resort is also situated on the park’s territory and attracts thousands of Bulgarian and foreign tourists each year.

On that day:  Architectural and historical reserve Bojentzi The Assumption of Virgin Mary Church – the town of Elena