Financial news

Bulgaria reported a profit of BGN 1.72 billion from its EU membership for the first seven months of the year. Bulgaria received BGN 2.26 billion as aid for the January-July period, mainly money from EU funds. At the same time contribution to the EU budget until July was BGN 540 million. The significant growth in revenues from VAT, excise taxes and social security contributions, as well as funds received from the EU is the reason for the large surplus in the treasury. VAT revenue by the end of July was BGN 4.647 billion, which is 12.6% or BGN 520 million more than the same period last year, according to the Ministry of Finance. This increase of the revenues significantly outpaced economic growth, which was 2.2% in the second quarter. Apparent increase in VAT revenues is by nearly 13% due to strong controls and shrinking of the informal sector rather than the increase of the trade turnover.

By the end of August, the revenues to the state budget amounted to BGN 21.5 bln, which represented an increase of 12% compared to the same period last year. This was announced by Finance Minister Vladislav Goranov. The increase in the revenues from excise duties amounted to BGN 320 mln. Goranov noted that the improvement in the collection of taxes was due to the various measures taken by the government. The finance minister reminded that at the end of last year Bulgaria had excessive deficit and was faced with infringement procedure. According to him, there were no plans for the update of the state budget. There were certain risks concerning the implementation of the EU programmes as the deadline for payments under the previous programme period expires at the end of the year.

REFA qualification course Module 1: 05-16 October 2015 Module 2: 27-30 October, 04-07 and 11-12 November 2015 Corporate organization and management and optimization of the production processes Second module: Production Data Management Topic: Production Data Management The production organization Planning and control of production Workplace analysis European legislation on safety and health at work http://refa.bia-bg.com/, tel. 981-45-67, Sofia

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

Concessions

Six companies have purchased papers for participation in procedure on getting permission for exploration in Block 1-14 Silistar and Block 1-22 Teres, which are located in the Black sea. Companies, interested in the procedure have to hand out their applications up to 7th of September, while by the 23rd of the same month final offers have to be rendered. There are no big companies among those six that will take part in the concession procedure. The reason is that there is no bug chance to find gas in the two blocks. They have been explored numerous times, as accumulated data does not give huge hopes serious deposits to be founded. At the announced in 2013 competition for Teres no candidate issued an offer. Explanation is in overestimated requirements, including rendering of a bonus to the amount of EUR 1 billion and obligatory drilling. As opposed to Silistar and Teres, block Khan Asparuh has better prospects for finding deposits of gas there. Detailed seismic 2D and 3D surveys have been made there, while in the middle of next year first exploratory drilling will be conducted.

Companies

The Bulgarian competition regulator said on Friday it decided to allow New Bulgarian Media Group to buy Elit Media Bulgaria. The Commission for Protection of Competition (CPC) decided that it does not need to conduct a market analysis and examine the expected effects of the deal, CPC said in a filing. New Bulgarian Media Group is fully-owned by Irena Krasteva, mother of controversial media mogul Delyan Peevski, MP of the ethnic Turks' Movement for Rights and Freedoms. The group owns newspaper Telegraph, Monitor, Politika and Borba and participates in the management of several local companies for distribution of printed media. Elit Media Bulgaria operates television program Channel 3.

Qatar's Environment Minister Ahmed bin Amir al-Humaidi has proposed that Sofia and Doha set up a joint venture involving leading food producers, the Bulgarian government has said. The government's press office has reported that a meeting took place on Sunday between Bulgarian Prime Minister Boyko Borisov and the Qatari minister. An preliminary agreement was reportedly reached that the joint stock will include between 15 and 20 "of the best Bulgarian companies producing meat, fruit and vegetables." A Qatari business official is quoted as saying that Bulgarian production is now being eyed among "countries of the Persian Gulf". The latest developments come as Al-Humaidi is to meet on Monday with Bulgarian lamb producers. On Saturday Agriculture Minister Desislava Taneva revealed that Bulgarian producers were to come up on Monday with a joint project that would be proposed to Qatar which could eventually kick-start long-awaited cooperation with Doha in the food industry.

The Bulgarian Energy Holding (BEH) has launched a procedure to pick a lender that would help it pay off part of its debts. BEH, a structure managing state-owned assets in the energy sector, is now committed to make the payments under a deal with the AES and ContourGlobal thermal power plants which was reached in the spring. Earlier estimates suggested the sum amounts to EUR 450 M. The move, if successful, could help the state-owned National Electricity Company (NEK) partly solve its debt crisis which has been posing risks to Bulgaria's energy system. April's deal between the state, AES and ContourGlobal was one of the arguments for the national energy regulator to increase prices for household consumers from August 1. In return, when debts have been settled, fixed prices for electricity generated by the AES Maritza East 1 and ContourGlobal Maritsa East 3 TPPs will go down over the next years, allowing NEK to save some EUR 500 M (BGN 1 B) over ten years.

Bulgaria’s central bank  rejected an application by Sofia-based Industrial Holding Doverie to acquire 99.53% of the share capital of Tokuda Bank. The refusal is based on articles of the Credit Institutions Act relating to assessment by the central bank of the reputation and experience of the people who will manage the bank following the acquisition as well as the financial stability of the applicant with a view to the specific nature of the activity of the bank. Other grounds for the refusal cited in a statement of the Bulgarian National Bank (BNB) include an article from the Credit Institutions Act relating to assessment of the capability of the group, of which the bank will become a part, to exercise efficient supervision over the bank’s operations. In May, Industrial Holding Doverie, a subsidiary of Doverie Obedinen Holding, signed a preliminary agreement for the purchase with Japan-based International Hospital Service. No financial details were announced at the time. By acquiring Tokuda Bank, the potential buyer wanted to expand and diversify its portfolio, while the would-be seller wanted to concentrate resources into its core activity of healthcare services.

Europe

Swiss consumer prices posted their biggest fall in 56 years in August, the strongest indication yet of the downward pressure on prices from Switzerland's strong currency and low oil prices. Consumer prices fell 1.4 percent from a year ago, the Federal Statistics Office (FSO) said on Friday, equaling the steepest year-on-year drop since 1959. Prices were 0.2 percent lower compared with the previous month. The Swiss National Bank's governing board next meets on Sept. 17 to discuss its monetary stance but the latest data are unlikely to affect policy, economists said. SNB Chairman Thomas Jordan recently reaffirming the central bank's commitment to lowering the Swiss franc. "For the upcoming quarterly assessment, we think the SNB will keep current interest rates at -0.75 percent and will continue to intervene in the foreign exchange market, if necessary, as they have indicated for some time now," Credit Suisse economist Maxime Botteron said.

America

US house prices declined for the first time in almost four years in July 2015. New figures from Zillow suggest that the US housing market is now slowing down, with property values declining 0.1 per cent in July month-on-month. Prices rose 3 per cent on an annual basis, down from 3.4 per cent in June. Of the 517 metros covered by Zillow, 204 saw a slowdown, including major metros like Washington, DC and Cincinnati, where home values declined month-over-month in July. The slowing appreciation is a sign that the market is returning to normal, says Zillow, with economists expecting to see growth flatten out as the recovery continues. Indeed, even hot markets like Denver, Dallas, San Jose and San Francisco, which recorded double-digit annual home value growth in July, saw their monthly appreciation rates ease from June. "This slight dip in home values is a sign of the times. Many people didn't think it was happening, but it is: we're going negative," says Zillow Chief Economist Svenja Gudell.

Asia

The bidding battle for Avolon has ended with Bohai Leasing, a unit of the Chinese aviation and shipping company HNA, snapping up the Dublin-based aircraft leasing company in a deal valuing its equity at just over $2.5bn. It beat out AVIC Capital, a subsidiary of state-owned Aviation Industry Corp of China, which began talks with US-listed Avolon a year ago. Aircraft leasing is attracting growing attention and dollars in Asia, with Japan’s Mitsubishi Corp and Hong Kong-based billionaire Li Ka-shing among recent investors. Bohai secured its prize early on Friday with an offer of $31 a share, $1 a share below its previous offer and a 31 per cent premium to the undisturbed share price on July 13. Including debt, the price equates to an enterprise value of $7.6bn. The deal, approved by Avolon’s board, is expected to be completed in the first quarter of 2016. It has been a fraught battle but one with generous rewards for Avolon’s investors, which include private equity groups Cinven, CVC and Oak Hill. Avolon listed last December at $20 a share.

The Union of the Principality of Bulgaria and East Rumelia

The Congress of Berlin, July 1 (13), 1878, partitioned the independent Kingdom of Bulgaria into three parts – the Principality of Bulgaria; the autonomous province of Eastern Rumelia; and Macedonia and Eastern Trace that were handed back to the Ottoman Empire. After years of struggle for liberation, the Bulgarian people were disappointed with the division and started preparing the coalescence of Bulgaria, torn to pieces. On September 6, 1885, a coup d’etat was carried out in Eastern Rumelia and the union of the province with the Principality of Bulgaria was proclaimed. Prince Alexander Batenberg validated the act by the issue of the Union Edict. The Union provoked different repercussions in Europe and was an occasion for Serbia to declare war to Bulgaria in which the Serbian army was badly mauled. This forced the Great Powers and the Ottoman Empire to acknowledge the Union at the Tsarigrad Conference (October 24, 1885). The act of the Union was a manifestation of the independent Bulgarian spirit and was an important step for the consolidation of the Third Bulgarian State.

On that day:  Celebration of Radnevo