Financial news

Bulgaria ended 2014 with a deficit under the consolidated fiscal program on a cash basis amounted to BGN 3.072 billion, which represents 3.7% of GDP. The deficit of the sector "Government" in 2014 on the methodology of the European System of National and Regional Accounts (ESA 2010) on an accrual basis amounts to 2.8% of GDP. The fiscal reserve as of 31.12.2014 is BGN 9.2 billion, including BGN 8.1 billion deposits of the fiscal reserve in BNB and banks and BGN 1.1 billion claims from the funds of the European Union for certified expenditure, advance payments, etc. Revenues and grants under the consolidated fiscal program (CFP) in 2014 amounted to BGN 29.409 billion, which represents 98.1% of the annual estimates, but presented as a proportion of GDP - 35.8% of GDP. Tax revenues for the year amounted to BGN 23.027 billion, which represents a 98.8% performance of the estimates for 2014 or 28% of GDP.

At the end of August 2015, deposits of the non-governmental sector amounted to BGN 60,594 billion (72.2 per cent of GDP), which is an annual increase by 3.8 per cent, the Bulgarian National Bank said in a press release Wednesday. At the end of August, deposits of non-financial corporations amounted to BGN 16,698 billion (19.9 per cent of GDP), up by 4.4 per cent compared to the same month of 2014. Deposits of financial corporations decreased by 12.2 per cent annually in August 2015 (16.4 per cent annual decline in July 2015), reaching BGN 2,973 billion (3.5 per cent of GDP) at the end of the month. Deposits of households and non-profit institutions serving households (NPISHs) totalled BGN 40,923 billion (48.7 per cent of GDP) at the end of August 2015, increasing by 5 per cent from the like period of 2014. At the end of August 2015, loans to the non-governmental sector amounted to BGN 50,167 billion (59.7 per cent of GDP), while they totalled BGN 50,187 billion in July 2015 (59.8 per cent of GDP). Loans to non-financial corporations decreased by 14.5 per cent annually to BGN 30,661 billion (36.5 per cent of GDP) at the end of August.

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Companies

Bulgaria’s energy watchdog has proposed a 14.26% reduction in the price of natural gas to a rate of BGN 484.26 per 1000 cubic meters, VAT excluded, excise duty excluded, as of October. The proposal of the working group of the Commission for Energy and Water Regulation (KEVR) in connection with the quarterly change of prices of state-owned gas supplier Bulgargaz was discussed at an open meeting of the energy watchdog on Wednesday. CEO of Bulgargaz, Pepi Ivanov expressed his agreement with the proposed price change. Bulgargaz initially sought a 13.65% decrease. However, the Chair of KEVR, Ivan Ivanov, suggested one month ago that the price drop would exceed 14%. As a result, the total gas price decrease for 2015 will reach 30%, as compared to 4.3% for 2014. The final decision on the price of natural gas as of October is to be adopted by the energy watchdog on September 30. The prices at which Bulgargaz will buy gas from Russia’s Gazprom are 15% lower than the Q3, 2015 rates. As is usual in the winter period, the quantities of gas purchased by Bulgargaz go up by 56% from the amount bought in the period July-September.

BILLA plans expanding its activity in Bulgaria by investing further BGN 200 mln and the goal is for the number of stores to increase to 150 in the next three years. This will include both the opening of new stores and the acquisition of existing ones following the announced withdrawal of BILLA's sister company – the discounter chain PENNY. The focus of the expansion will be concentrated in Sofia, Plovdiv, Varna and Burgas, but stores will be also opened in smaller towns. Since opening its first store in Sofia on 5 October 2000, BILLA has expanded its activity and currently has a total of 92 stores across the country, 31 of them being in Sofia. BILLA was the first international supermarket chain to open in Bulgaria and since entering the country it has invested more than BGN 500 mln and provided employment to nearly 4000 people. More than 10% of the company's turnover comes from the sale of products from BILLA's own brands.

The local environmental authorities have ordered the Montupet automotive components producer in Rousse, on the Danube, to shut down its aluminum parts line due to air pollution. The company's line for cast aluminum parts will be sealed for as long as it takes to bring its operation in line with the requirements of its Integrated Pollution Prevention and Control permit. Montupet has already been fined BGN 35,000 for increased waste gas discharge rates and has promised to bring its operation into conformity with the environmental protection requirements. Montupet is among the significant French investors in Bulgaria and one of the biggest investors in Rousse. It started its Bulgarian operation in 2008. In Rousse's Industrial Park, the company makes cylinder heads and chassis parts for Audi, BMW, Renault, Ford and VOLVO and employs a staff of 842. It says it has invested EUR 100 million in buildings and equipment at its 30,000 sq m facility. The facility that is blamed for the excessive gas emission will be sealed on September 25 in the presence of Montupet officials. The order is appealable within 14 days before an administrative court but the appeal will not stay its enforcement.

Orgachim reports more than 10% increase in sales for all production lines, as compared to last year. The highest results are achieved in the construction segment, where sales are double, as compared to 2014. The most sold products are plasters and insulation systems that repeatedly exceed implementation plans. The company develops its business in four basic directions- thermal insulation systems, where the company has three certified systems with new, better materials. Waterproofing systems are a new direction for Orgachim. The product portfolio includes three systems, one of which is acrylate and the other two are based on cement. Still another novelty in the portfolio of Orgachim is fire protection of steel structures - swelling quality system covering the latest European and world standards for fire protection of steel structures, easy and efficient to use. Direction of industrial floor coatings, which is also new, turned out to be quite competitive and high-tech. Orgachim has just completed validation of the product range. Epoxy and polyurethane cement coatings have been developed.

Bulgarian drug distributor Sopharma Trading said on Wednesday its pre-tax profit rose by 11% to BGN 10 million in the January-August period. Sales revenues grew to BGN 391 million the first eight months of the year up by 3.0% on the year, Sopharma Trading said in a bourse filing. In August alone, Sopharma Trading's sales totalled BGN 48.7 million. Sopharma Trading is a unit of Bulgarian drug producer Sopharma.

Europe

EU leaders were gearing up Wednesday for migration talks that were expected to be hostile after a decision to push through a refugee relocation scheme despite the opposition of four member states. Europe is contending with its most significant influx of migrants and refugees since World War II with many people fleeing war-torn nations and qualifying for international protection. But the European Union has struggled to find a convincing response to the crisis. The bloc's disunity was further stoked by a majority decision on Tuesday to push through a scheme to redistribute 120,000 asylum seekers throughout the bloc - overruling the Czech Republic, Hungary, Romania and Slovakia - when the EU usually strives for consensus decisions. "I don't think that compulsory quotas, determined through a vote, will solve the problem," Romanian President Klaus Iohannis said in Bucharest, before departing for the Brussels summit. On Tuesday, Slovakian Prime Minister Robert Fico had said his country would not "respect this diktat" while his Czech counterpart, Bohuslav Sobotka, said the redistribution scheme would not work. "This is just a sop to the public in the countries that have become the target of this migration flux," he said.

America

Pacific Investment Management Co. says U.S. inflation will pick up -- at a time when the Treasury market is signaling the opposite. Investors should brace for inflation gains and the prospect that the Federal Reserve may raise interest rates more quickly than forecast, according to Pimco, which runs the world’s biggest actively managed bond fund. “Markets are probably pricing insufficient tightening by the Fed, based on our baseline forecast of above-potential growth and inflation getting back to the Fed’s 2 percent target over the next four quarters,” Richard Clarida, Pimco’s global strategic adviser, and Andrew Balls, the chief investment officer for global fixed income, said in a report Tuesday. It’s another story in the bond market. The difference between yields on one-year debt and similar-maturity Treasury Inflation Protected Securities, a gauge of expectations for consumer prices, fell to minus 1.83 percentage points Tuesday, the lowest closing level since February 2009, indicating investors are bracing for prices to fall in the next 12 months.

Asia

Boeing Co has signed deals to sell 300 aircraft to three Chinese firms and set up an aircraft plant in China, becoming the first U.S. firm to clinch a business tie-up in the country since Chinese president Xi Jinping began a U.S. state visit. The aircraft deals, potentially worth tens of billions of dollars in total, are collectively the largest order the aerospace firm has received from Chinese companies. China's ICBC Financial Leasing Co, a unit of the Industrial and Commercial Bank of China, on Wednesday separately confirmed it will buy 30 of Boeing's 737-800 jets, worth $2.88 billion at list prices. China Aviation Supplies Holding Company and China Development Bank Leasing are the other two customers for the aircraft, said Xinhua. Boeing, which is locked in a fierce battle for plane orders with European rival Airbus, will build its first aircraft completion plant outside the United States in China in order to gain a foothold in that important market, say industry observers.

The newest and most modern park in Stara Zagora

The newest and most modern park in Stara Zagora (officially opened on September 20, 2015) is built on 70 decares at the site of the former artillery barracks in the city. The location is near the center of Stara Zagora and allows for more green space and recreation of residents of three districts - Zheleznik, Tri Chuchura and Kazanski. There is a video surveillance system. There are many sites for sports and cultural entertainment - for children and fitness playgrounds, walking and bike trails, outdoor amphitheater stage and more. The sports zone has playgrounds for mini football, basketball, badminton, volleyball, tennis, and stands with 100 seats. A beautiful fountain with an area of ​​300 sq.m. with spectacular lighting is located in the center of the square area. Near the fountain is located an open stage for various events. Picture: www.zarata.org

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