Financial news

Bulgaria's M1 money supply, which includes cash in circulation and demand deposits, rose by 11.5% on the year and was up by 4.9% on the month in June, central bank data indicated on Thursday. The M2 money supply rose 2.4% to BGN 69.2 million year-on-year in June. The M3 broad money increased by an annual 2.5% to BGN 69.3 billion which represents 82.6% of country's GDP forecast for the year.

The Bulgarian government has proposed for the minimum wage in the country to become between 35 % and 55 % of the average remuneration. The cabinet has made the proposal to the employers' organisations and trade unions. At present, the minimum wage is defined administratively. This year the minimum wage was increased twice – first to BGN 360 on January 1 and then to BGN 380 on July 1. The plans of the Finance Ministry foresee for the minimum wage to increase to BGN 420 next year and to BGN 460 in 2017. According to the data of the National Statistical Institute (NSI), the average wage in the first quarter of 2015 stood at BGN 859. This means that in the first quarter of the year, the minimum wage in Bulgaria amounted to 42 % of the average remuneration.

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

Companies

At the end of June 2015 deposits of Non-government sector are BGN 59.274 billion, an increase of 4% compared to the same period last year, preliminary data of Bulgarian National Bank showed. Deposits of non-financial companies are BGN 15.851 billion and annual increase is 5.4%. In contrast, deposits of financial companies decrease by 15.4% to BGN 2.843 billion. Share of household deposits is BGN 40.58 billion. They increased by 5.2% compared to June 2014. At the end of June 2015 loans to Non-government sector are BGN 50.262 billion, as compared to May this year increased by BGN 0.509 billion. On an annual basis, loans recorded a decline of 9.8%. Loans to non-financial enterprises by the end of June 2015 fell by 14.5% yoy to BGN 30.778 billion. This means that the reduction is BGN 5.221 billion. Loans to households and NPISHs are BGN 18.305 billion as their annual change is a decrease of 1.8%. In this structure loans are BGN 8.695 billion, decreasing by 2.2% yoy. Consumer loans are BGN 7.344 billion, which also reduce but by 0.1%.

New investment to the amount of about BGN 250 million will be made for Sviloza AD’s development. The investment will be focused on increase of the company’s production capacity to 200 thousand tons, as the first aim will be to reach sustainably to 150 thousand tons. To that purpose a new salt boiler will be made, which requires investment of EUR 50-60 million. Part of the invested money will go for a new co-generation with a turbine and boiler for about EUR 30 million, where biomass is burned and emitted from the treatment plant for waste water in Svishtov. By the end of the year a substation will be also built, which will be connected to the national electricity system. New investment will be made for softened water, as well.

The Bulgarian subsidiary of Integrated Micro-electronics Inc. (IMI) has acquired land and a building in the town of Botevgrad to meet its expansion targets, the parent company has revealed. IMI, one of the leading worldwide providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services, said in a statement on Wednesday that Integrated Micro-electronics Bulgaria (IMI BG) has entered a deal to acquire a plot of land and a building in Botevgrad, in western Bulgaria, for EUR 1.14 mln from Melexis Bulgaria (MB). The property has a total land area of 16,275 square meters (sqm.) and a total built-up area of 12,193 sqm. IMI President and CEO Arthur Tan commented: “This new development augurs well for IMI BG. With additional capacity, IMI BG can service more OEM [original equipment manufacturer] requirements, especially in its fast-growing target markets of automotive and industrial electronics.” According to Tan, the acquisition reinforces the strong position of the IMI Bulgaria in winning new businesses enhancing the group’s strategy of providing long lasting partnerships to its customers.

Printing Works of the Bulgarian National Bank starts a process of certification for printing of euro notes. In that way Bulgaria will prepare better for the euro introduction and will be able to make the change faster and without problems, when the moment is up. Since the Printing Works of the Bulgarian National Bank has been working together with the French company Oberture its production has gone up 14 times, while the number of employees has increased 3.5 times. Next year new series of existing banknote with new protection elements will be put into circulation. Their design will not be changed. Till the end of the year change of BGN 2 banknote with a coin will take place. The aim is to reduce the cost because the coins are used for a longer time.

Research center in the field of plant biology and biotechnology system will be built in Plovdiv. Partners in project PlantaSYST’s implementation are three Bulgarian and two German scientific organizations. The aim is to develop the center as a leader in the field of plant sciences in Bulgaria and Southeastern Europe. Funding for the implementation is provided by the European program Horizon 2020. From the Bulgarian side are involved Plovdiv-based scientific organizations Institute of Molecular Biology and Biotechnology; Institute of Vegetable Crops Maritsa and the Institute of Microbiology, Laboratory of Applied Biotechnology. German partners are the Potsdam University and the Institute of Molecular Plant Physiology Max Planck. Project leader of PlantaSYST is Prof. Tsanko Getchev. The center will work on creating new products for Bulgarian and European markets, new technologies for growing plants, new varieties with improved nutritional qualities, etc.

Europe

A group of German auto makers agreed to pay slightly more than EUR 2.5 billion for Nokia’s digital mapping service, prevailing over Silicon Valley bidders in a battle for a key enabling technology for self-driving cars. German luxury car makers Audi, a unit of Volkswagen AG , Mercedes-Benz parent Daimler AG , and BMW AG have agreed in principle to purchase the telecommunications group’s digital mapping service Nokia Here, according to a person familiar with the situation. If a deal is struck, which isn’t yet certain, the German auto makers plan to invite other automotive companies such as Fiat Chrysler Automobiles NV, Renault SA, PSA Peugot Citroën, Ford Motor Co. , Toyota Motor Corp. and General Motors Co. to invest in Nokia Here, two people familiar with the situation said. “The goal has always been to run the service as an open platform for everyone,” one person said. “The final signing could take place in the next few days.” Nokia Here generated more than half its EUR 970 million in 2014 sales from the auto industry, and the rest from location-based services.

America

The European Union has launched an antitrust case against six major U.S. movie studios, including Disney and Warner Bros, and British satellite broadcaster Sky for restricting access across the 28-country bloc. The EU's executive Commission said Thursday it had sent a statement of objections to the companies regarding what it says are "contractual restrictions" that prevent Sky offering its full service to consumers beyond Britain and Ireland. The companies mentioned in the statement are NBCUniversal, Paramount Pictures, Sony and Twentieth Century Fox as well as Disney, Warner Bros. and Sky UK. "European consumers want to watch the pay-TV channels of their choice regardless of where they live or travel in the EU," EU Commissioner Margrethe Vestager said. "Our investigation shows that they cannot do this today."

Asia

Iran outlined plans to rebuild its main industries and trade relationships following a nuclear agreement with world powers, saying it was targeting oil and gas projects worth $185 billion by 2020. Iran's Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh said the Islamic Republic would focus on its oil and gas, metals and car industries with an eye to exporting to Europe after sanctions have been lifted, rather than simply importing Western technology. "We are looking for a two-way trade as well as cooperation in development, design and engineering," Nematzadeh told a conference in Vienna. "We are no longer interested in a unidirectional importation of goods and machinery from Europe," he said. The United Nations Security Council on Monday endorsed a deal to end years of economic sanctions on Iran in return for curbs on its nuclear programme.

Earth Pyramids of Melnik

The earth pyramids of Melnik represent beautiful sand formations, situated in the surroundings of the town of Melnik. As a result of the combined erosion activities of water, wind, heat and cold, whimsical shapes were formed up in these places (resembling mushrooms, minarets, swords, the Egyptian pyramids, etc.). The most impressive natural sculptures are those looking like rock mushrooms. The presence of a rock “crown” prevents the sand and rock material underneath it from fast destruction, and thus, the incredible natural creations have been formed up. The most famous group of this type is located near the famous Rozhen monastery. The earth pyramids of Melnik are the most popular earth pyramids in Bulgaria. They have been declared a natural landmark.

On that day:  Anniversary of Constantine Irechek First issue of Bulgarian State Gazette Bulgarian medics – finally released!