Financial news

Bulgaria has declared in the European Patent Office just 22 patents, while the leading country of the European Union on this indicator - Germany, has over 22 thousand applications. This is what Eurostat’s analysis for registered innovations in 2012 in the EU shows. NSI’s data says that in the field of scientific research and development in 2012 more than 22 thousand people were employed, as 16 thousand of them are researchers. As a matter of comparison in 2000 in the same field 16 thousand specialists were employed, as 10 thousand were researchers. Together with Germany, among leaders in number of requested patents are countries like France-8 300, Great britain-5 100, Italy- 4200 and The Netherlands- 2800. Out of the EU the greatest number of requests for patents are registered by the USA-28 500 and Japan - 22 700, followed by South Korea - 5900 and China - 5 500. The smallest number of patents is requested in Malta - only 2, Cyprus - 5, Latvia 14 and Lithuania 18, according to Patent Pending European statistics.

The personal identification code (PIC) can now be obtained from any office of the NRA in the country, the revenue agency announced. So far, the 12-digit number could be obtained only from the office of residence of citizens and company registration. The requirement to go on site to a specific office of the NRA was one of the main disadvantages of the personal code. In many cases, permanent and current address of the people are spaced a few hundred kilometers. The idea of the government and mainly the Finance Minister Vladislav Goranov is PIC to become a free alternative of the electronic signature and provide access to all government e-services.

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Companies

Bourgas may become a logistics hub for Eastern investors in the EU, Economy Minister Bozhidar Loukarski said. Loukarski visited Bourgas to meet with local business people. The meeting is part of a series of such talks the Economy Ministry holds nationwide. Loukarski said he needs to learn first-hand about the problems of the small and medium sized businesses and try to solve them. Loukarski said that a discussion is underway on the extension of the Bourgas Industrial Zone and the construction of appropriate infrastructure at the facilities in nearby Ravnets in a bid to attract foreign investment.

Bulgaria’s defense industry is regaining lost ground in India, one of the traditional markets over the past 40 years, according to Stefan Ionkov, Head of Bulgaria’s Commercial & Economic Affairs Office in Delhi. Ionkov informs that Bulgarian state-owned arms trader Kintex is working actively on contracts launched during the visit of the Bulgarian government delegation in April. He says that the value, scope, and time frame of these contracts far exceed previous export contracts for special products between Bulgaria and India. In his words, apart from Kintex, arms-maker Arsenal is also stepping up its presence in India, planning to open an office in Delhi. Ionkov argues that the planned export projects of the defense industry far exceed the total volume of trade between Bulgaria and India, at USD 218 M in 2014.

A Bulgarian Parliament commitee has adopted changes to the Energy Act meant to reduce chronic financial deficits at the state-owned National Electricity Company (NEK). The changes approved on second and final reading by the Energy Committee on Monday call for the creation of a Electricity System Security Fund. Producers and importers of electricity will make monthly contributions into the new fund equal to 5% of their sales revenue. Another change provides for cutting the expenses of NEK by capping the purchases of electricity from renewable sources at preferential prices at volumes agreed in advance between NEK and the renewable operators.The Parliament is expected to vote on the changes to the Energy Act on Wednesday. If approved, they could take effect from next month.

About 60 000 Greek companies intend relocating to Bulgaria because of higher taxes on companies, capital controls and the Tsipras government’s inability to deal with their problems, according to Vassilis Korkidis, president of the Hellenic Confederation of Commerce and Entrepreneurship. Korkidis, who has been consistently critical of the current Greek government’s policies and whose confederation sent an open letter to the Greek government in January calling for steps to avoid businesses taking flight from the country, said. He said that the further borrowing meant that corporate taxes would rise from 26 to 29 per cent, which in turn would mean many companies, most of them SMEs, would go out of business. According to Korkidis, the Greek government was “incompetent” because the auditing committee meant to examine requests by SMEs for capital control exemptions had failed to do its job.

Euroins Insurance Group (EIG), a subsidiary of financial and insurance group Eurohold Bulgaria, has reached an agreement to acquire a Greece-based life insurance company. The Greece-based company is a subsidiary of French Credit Agricole. The deal, which is to be approved by the respective regulatory authorities, may be finalized by the final quarter of 2015. The acquisition is in line with EIG’s strategy to expand and consolidate its position as a leading insurance company in the region and to diversify its life insurance portfolio, according to a media statement of the company. After the successful conclusion of the deal EIG will own companies in 5 countries and will generate revenues exceeding EUR 350 M, according to preliminary forecasts.

Bulgarian drug maker Sopharma  raised its stake in peer Medica to 36.10% as part of plans for the possible absorption of the company over the next three to five years. Sopharma acquired 240,000 new shares, equal to 2.4%, in Medica. The value of the deal was not disclosed. In March, Sopharma obtained the competition regulator's approval to take over Medica. At the time, the regulator said Sopharma's mid-term plans include a possible takeover of Medica within the next three or five years. Earlier this month, Sopharma said it has increased its stake in another medical products maker, Momina Krepost, to 92.62% following a buyout.

Europe

The German economy likely grew by around 0.3 percent in the second quarter, the finance ministry said on Monday, adding that the mood in corporate boardrooms remained largely optimistic despite the Greek debt crisis. In the first quarter, growth in Europe's largest economy slowed to 0.3 percent, mainly due to weaker foreign trade, after an unexpectedly strong 0.7 percent expansion between October and December last year. The finance ministry said in its monthly report that the German economy was in an upswing, with domestic demand remaining the key growth driver, but foreign trade also picking up. "According to the latest economic data, gross domestic product (GDP) likely increased in the second quarter at a similar rate as in the previous quarter when it rose by 0.3 percent on a seasonally and price-adjusted basis," it added. Demand and production in the industrial sector are on an upward trend and the mood among companies is good, the ministry said, adding that assessments of the business situation and outlook remained predominantly optimistic.

America

Lockheed Martin, the Pentagon's largest arms supplier, reported a better-than-expected 4.5 percent rise in quarterly profit and said it could spin off or sell its government IT and technical services businesses. The company also said on Monday it would buy Black Hawk helicopter maker Sikorsky Aircraft from United Technologies for $9 billion. The strategic review of its businesses represents about $6 billion in expected 2015 sales and 17,000 employees, Lockheed said. The company, which had 112,000 employees as of Dec. 31, said it expects to complete the review in 2015. Lockheed, which reported quarterly results a day earlier than scheduled to coincide with the announcement of the Sikorsky acquisition, raised its earnings per share forecast for 2015 to $11.00 to $11.30 from $10.85 to $11.15. U.S. weapons makers have been increasing sales to international markets to offset weak government spending at home. Lockheed said in February foreign sales would account for about 25 percent of overall revenue in the next few years, compared with 20 percent in 2014.

Asia

China's gold reserves stood at 1,658 tonnes at the end of June, the central bank said on Friday, up 57 percent from the last time it adjusted its reserve figures more than six years ago. Despite the tonnage increase, gold now accounts for 1.65 percent of China's total forex reserves, against 1.8 percent in June 2009. The United States, the biggest official sector gold holder, holds nearly 73 percent of its reserves in gold.The figures make China the world's sixth largest official sector gold holder after the United States, Germany, the International Monetary Fund (IMF), Italy and France. Speculation in the gold market has been rife in recent years over the size of official sector reserves in China, which is the world's biggest producer of the precious metal and vies with India for the title of number one consumer. China considers its gold holdings a state secret and does not report its holdings on a monthly basis to the International Monetary Fund as most other countries do.

Vasil Aprilov (July 21 1789 – October 2 1847)

Vasil Aprilov is one of the most prominent educationists and writers of the Bulgarian Revival period. He was born in a rich family of traders in Gabrovo on July 21 1789. He started his education in his hometown’s monastery school, and when he turned 11, went to study in Russia. Later on, he graduated a German high school in Brashov. He studies medicine in Vienna, but did not complete his education because of his health problems. In 1811, he settled in Odessa permanently and started commercial activity. Following 1826, Vasil Aprilov abandoned trade and became absorbed with his literary activities. At that time, Odessa began playing an important role in the national liberation struggle of the Balkan people, particularly of the Bulgarians. With the help of his fellow-townsman Nikola Paluzov and some other patriots, Aprilov managed to collect some money and to carry out his idea of building the first secular school in Gabrovo, which was opened on January 2, 1835. The school became popular as the first school, where subjects were taught in Bulgarian language. All through his life, Vasil Aprilov dreamt of publishing a history of Bulgaria. In his personal life, he was always sick and lonely. He died in Galatz in 1847.

On that day:  Radoi Ralin (April 22 1923 – July 21 2004) Day of the Bulgarian Diplomatic Service Kavatzite Vasil Aprilov (July 21 1789 – October 2 1847)