Financial news

Bulgarian finance ministry reported a budget surplus of BGN 63.9 million as of end October 2015, which represented 0.1% of the projected GDP . For comparison, Bulgaria registered a deficit of more than BGN 1.7 billion at the end of October 2014, which means that the budget stance as relative share of GDP has improved by 2.2 percentage points. At the end of October, the revenues and grants were in the excess of BGN 26.5 billion, which represented 87.4% of annual plans under the 2015 state budget. Compared to the same period last year, revenues and grants increased by 10.5%, which amounted to more than BGN 2.5 billion. In structural terms, tax revenues increased by 7.5%, non-tax revenues grew by 5.4%, while grant proceeds (mainly from EU funds) increased by 48.3%. The expenditures at the end of October, including the Bulgarian contribution to the EU budget exceeded BGN 26.4 billion, which is 80.6% of annual plans. Compared to the same period in 2014, expenditures increased by 2.7%, amounting to BGN 689.8 million. In structural terms, there was a growth in capital expenditures, while non-interest current expenditures were close to the figures recorded for the same period last year. The fiscal reserve as of end October was BGN 10.2 billion.

Assets managed by Bulgarian investment funds totalled BGN 2.2 billion at the end of September, up by 16.4% as compared to the same month last year, Bulgarian central bank data showed. Assets managed by foreign investment funds in Bulgaria stood at BGN 1.4 billion at the end of September, 29.4% up from the same month last year, the Bulgarian National Bank (BNB) said. The Bulgarian funds' investments in shares decreased by an annual 1.3% to BGN 795.6 million by the end of September, whereas deposits fell by 29.2% to BGN 276.8 million. Investments made by local investment funds in securities other than shares grew by an annual 63.7% to BGN 227.8 million at the end of the period under review.

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Companies

A multi-million investment will be realized in Veliko Tarnovo up to 2017. The news emerged after the meeting of the Deputy Mayor of the city – Snezhana Daneva-Ivanova and the CEO of Kronospan Bulgaria EOOD – Asen Nikov. Snezhana Daneva-Ivanova presented Nikov with a construction permit for the realization of the company’s planned investments. During the meeting Asen Nikov said that Kronospan intends to invest BGN 150 million in the country. About half of it will be for the production base of the company in Veliko Tarnovo. The company plans to open the first production line for woodfibrous MDF plates on July 7, 2016, when the city will celebrate 139-year anniversary of the Liberation of Bulgaria. Kronospan, one of the biggest investors in Bulgaria, intends to build a modern plant in Veliko Tarnovo up to 2017, similar to one in Salzburg.

Bulgarian drug distributor Sopharma Trading said its subsidiary Sopharmacy has acquired drug retailer Farma Online. The deal is part of Sopharma Trading's long-term strategy for the development of its retail operations, the company said in a bourse filing. Farma Online is a joint project of Sopharma Trading and online sport media Sportal Media Group, which was launched two years ago. The online pharmacy has a portfolio of over 6,500 products which it delivers to its customers within 24 hours. Sopharmacy, launched in the beginning of the year, aims to build up on Sopharma Trading's strategy for diversification of its operations in different market segments.

FairPlay Properties, where major shareholder is FairPlay International has signed contract for additional funding of construction of its second building from a residential complex, which is being built by the fund next to National Sports Academy. The funds assessed to EUR 2 million are granted by Bank Piraeus Bulgaria. Investment in the entire complex is calculated at more than BGN 15 million. Construction works started this spring and preliminary contracts for sale in the first residential building have already started. The project envisaged the second building to have two underground and eight over ground floors with 92 apartments. The building is expected to be thoroughly completed by the middle of 2017. FairPlay Properties plans gradually construction and sale of two adjacent residential complexes in Malinova Dolina with total area about 30 thousand square meters.

Founder of VM finance group Vasil Mirchev sold more than half of his shares in Sirma group. Mirchev owns slightly less than 2.7% of the technological company. During the IPO of shares of Sirma founder of VM finance group took over almost 7% of the company. Vasil Mirchev sold part of its stake to some of the large pension companies. A total of 349 entities acquired stakes of the company during the IPO, among which 27 legal and 321 physical entities. The creator of VM Finance Group gained 4.4 million shares of newly issued 9.52 million. Sirma is the company with the largest number of traded securities last week - almost 4.6 million. Transactions with shares of the company are also the most for the period - a total of 269 shares of Sirma reported minimal rise to BGN 1.205 per share after the price at the start of trading on the Bulgarian Stock Exchange - Sofia, 23 November was BGN 1.2. Sirma includes more than 20 subsidiaries and companies specialized in various software developments - IT, industry, financial sector, and other cloud systems

The company, which will invest EUR 5 million for the construction of a new manufacturing plant next to the shrimp plant - Almar Seafood AD, asked the City Council of Aytos to give "consent for connection of the newly designed road through municipal property". The aim is construction of a new road giving access to the properties on which the new plant will be built. "This connection will be part of the linear infrastructure of the future plant for salmon processing," says the proposal. The City Council has already given preliminary consent for the proposal. It is well-grounded as it is legally required for both properties to have access to technical infrastructure, the Council announced.

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Europe

Germany's retail sales declined more than expected in October, figures from Destatis showed Monday. Retail sales dropped by real 0.4 percent in October from September, when it remained flat. Sales were expected to decrease 0.2 percent.On a yearly basis, growth in retail sales slowed to 2.1 percent from 3.5 percent a month ago.Sales of food, beverages and tobacco advanced 2.3 percent annually and non-food sales gained 1.8 percent. In nominal terms, retail turnover remained flat from September and increased 2.4 percent from the same period of last year. During January to October, turnover in retail trade increased 2.8 percent in real terms and by 2.7 percent in nominal terms.

America

The Federal Reserve Board approved a proposal to curb its emergency lending powers, a change demanded by Congress after the central bank's controversial decision to aid AIG (AIG.N), Citigroup (C.N) and others in 2008. The rule, unanimously approved by the Fed's Washington-based board in an open meeting, requires that any future emergency lending be only "broad-based" to address larger financial market problems, and not tailored to specific firms. The 2010 Dodd-Frank financial reform law instructed the Fed to curtail emergency loans to individual companies and prohibited it from lending to firms that were insolvent. While some at the Fed worry the new rules will hamper the central bank's response in future crises, some politicians have said the proposed regulations are too imprecise, for example in defining insolvency, to prevent the types of deals done in 2008.

Asia

The International Monetary Fund (IMF) is expected to announce that China's currency, the yuan, will join the fund's group of international basket of reserve currencies. Just the US dollar, the euro, Japan's yen and the British pound are currently part of this select band. Earlier this month, IMF head Christine Lagarde backed the yuan's inclusion. If the decision is made, the yuan is likely to join the basket next year, experts said. China is the world's second largest economy behind the US and asked for the yuan to become a reserve currency last year. Reserve currencies are used by central banks and other financial organisations to help pay down international debt and steady exchange rates. The last change made to the basket was in 2000, when the euro replaced the German mark and the franc.

Botevgrad Public Holiday

On December 1 Botevgrad municipality celebrates its official public holiday. The first historical data about settlements in the region of Botevgrad dates back to 1-3 century. In the Middle ages, a village called Zeliln was formed in the area, which is nowadays some 3 km south of Botevgrad. Not far from the town, the last stronghold of the Second Bulgarian State – the Urvich fortress, is located, which preserves the only medieval Bulgarian inscription dedicated to the last battle of king Ivan Shishman. Later on, in the second half of VIII century, Zelin fell into decay and its inhabitants moved to the valley, where a settlement called Samundjievo was formed. On March 23 1866, the settlement was proclaimed a town and an administrative center of the region, and was renamed to Orhanie. After Bulgaria’s liberation from the Turkish yoke, the town grew, and on December 1 1934 it was renamed to Botevgrad, after the great Bulgarian revolutionary Hristo Botev.

On that day:  Ranuli Fortress Antim I