The Bulgarian National Bank expects a weaker decline in real gross domestic product (GDP) in 2020, followed by lower growth rates of economic activity in the period 2021-2022. This is clear from the revised quarterly forecasts of the bank. Thus, according to its latest estimates, last year's GDP will decline by 4.4% with a forecast for September to shrink by 5.5%, and for 2021 and 2022 the updated forecasts are for growth of 3.7% and 3.6% respectively. The revised estimates decreased by 0.3 percentage points and 0.2 percentage points, respectively, due to domestic demand and private consumption, while the negative contribution of net exports to GDP change was higher than in September. The recovery in private consumption was stronger than projected in the third quarter of last year. In 2021 and 2022, BNB's expectations for real GDP growth have been revised downwards compared to the previous forecast. Expectations for private consumption have also been lowered. Lower growth rates compared to the previous forecast are also expected for fixed capital investment in 2021 and 2022.

Consumers will take out fewer loans this year. Thus, credit growth will slow in 2021, mainly as a result of the expiration of the credit vacation. This is what experts from the Bulgarian National Bank (BNB) wrote in their quarterly Macroeconomic Forecast. In December 2020, the moratorium on bank loans was extended until the end of March 2021. The central bank expects that after the end of the period there will be an increase in non-performing loans in bank portfolios. 'This is likely to increase interest rates on new loans and tighten other credit conditions,' BNB warned. These processes, combined with relatively subdued investment activity, will limit credit growth in 2021. However, the growth rate is expected to recover in 2022, but will remain lower than in 2019.

The Energy and Water Regulatory Commission allowed the Czech energy company CEZ to transfer its 67% of the shares in the capital of CEZ Distribution Bulgaria JSC to the company from the EUROHOLD BULGARIA JSC group. The insurer Eurohold will gain control over the business of CEZ Group in Bulgaria through its subsidiary and specially created for the purpose Eastern European Electric Company B.V. "The EWRC permits transactions for disposal of equities and shares, representing more than 20 per cent of the capital of commercial companies, which carry out licensed activity for transmission and distribution of electricity, heat or natural gas, in order to ensure security of supply, protection of national security and public order. The Commission shall rule after the entry into force of all other necessary permits and approvals related to the transactions," said the watchdog. The commission ruled on the basis of opinions received from the Ministry of Interior, the State Intelligence Agency, the State Agency for National Security, the Ministry of Energy and the Financial Supervision Commission. EWRC's decision was the last obstacle to the deal, after the Commission for Protection of Competition abruptly changed its position in October 2020 and gave the green light to the purchase.

Raiffeisenbank Bulgaria, a unit of Austria-based Raiffeisen Bank International (RBI), opened its first cashless offices, located in Sofia and Plovdiv. Raiffeisenbank will also open a cashless office in the city of Pazardzhik, in southern Bulgaria, at the beginning of February. The cashless offices combine the advantages of digital technologies with consulting and banking services. Cash transactions are made via ATMs. RBI operated 147 business outlets in Bulgaria at the end of September, down from 148 a year earlier, according to the group's latest interim financial report.

The construction of the third stage of the expansion of Hotel & SPA Kamengrad in Panagyurishte has started with a symbolic first sod. The investment belongs to Assarel-Medet through the subsidiary Thracian Hoteliers and amounts to BGN 7 million. "In perhaps the most difficult period for the tourism industry, we are investing in the expansion of the Kamengrad Hotel, because there is great potential here, which we continue to develop. Panagyurishte is an attractive destination for cultural and historical, SPA, conference, health and sports tourism, "said on behalf of the"Thracian Hoteliers Veselina Tsotsorkova, who presented the investment. The project is by from Tourist Stroy Project, the contractor of the construction activities is Pixie Stroy, and the supervision will be carried out by Sechkov 1. The new wing of Kamengrad is expected to be ready around Christmas in 2022. The capacity of the hotel will increase with 128 beds in 56 double rooms and 5 suites. The project envisages the construction of a five-storey building in the current yard of the complex, which will be connected to the existing hotel and will have its own spa area.

Kozloduy NPP has provided 56.6% of the electricity traded on the Bulgarian Independent Energy Exchange (IBEX) in the Day Forward segment in 2020. This became clear during a ceremony on the occasion of the fifth anniversary of the existence of the energy exchange in the country. The nuclear power plant was awarded by the IBEX at the short ceremony with a diploma in "Manufacturer" category. The management of the exchange also awarded Energo Pro (in the "Trader" category), Stomana Industry ("Consumer" category). AES Geo Energy was awarded as "Innovator" on the energy exchange. IBEX started its work on January 19, 2016 with 16 participants and one segment - Day Ahead. Five years later there are 83 participants in this sector, liquidity is increasing, and the exchange is working for the unification with the stock exchanges in neighboring countries. The merger with Day Ahead markets in Greece and Romania is expected by the end of 2021. At the end of 2019, the merger of the Within the Day segments of IBEX and the Romanian Energy Exchange was finalized.

State-owned Bulgarian Development Bank has signed two loan agreements worth a total of BGN 40.7 million with local company Sparky Rousse 2000, commercial register data shows. The entire company has been pledged as collateral on the two loans, data entered into the commercial register last week shows. Both loans have an interest rate equal to the 3-month EURIBOR rate plus 3 percentage points but no less than 3%. Sparky Rousse 2000 was established in May 2020. The company has a registered capital of BGN 10 and is fully owned by private individual Mihail Natskin.

The European Union (EU) is investing in pure hydrogen and is looking for ‘valleys and islands’ where its production will be the most economically viable, said EC President Ursula von der Leyen in an address to the Hydrogen Council, an initiative of leading managers of energy companies with a vision for the development of the hydrogen economy. Once the production sites have been identified, networks will be set up to transport it to where it is needed. The aim is to create a European hydrogen market. In the summer of 2020, the EC presented its strategy for the use of hydrogen. It noted that the current distribution of hydrogen as an energy source is low, and it is produced mainly from fossil fuels, which does not make it a pure alternative. The goal of Brussels is precisely the decarbonisation of hydrogen production, which is made possible by the development of green power plants. This will support energy transformation, especially for high-emission industries that rely on fossil fuels.

Some publicly traded real estate companies in the United States have found a buyer for their shares despite vacant offices and hotels and troubled malls. Paradoxically, the buyer is themselves. Real estate owners, including SL Green Realty and the Healthcare Trust of America, say stock market investors have significantly underestimated their real estate assets compared to the price they could receive in the private market. Although some of these companies allowed the repurchase of their own shares before the coronavirus pandemic, they expect that with the spread of vaccines, travel, office work and shopping malls will be pushed back from the bottom after a terrible year for large real estate assets. Brookfield Asset Management took that strategy a step further last week when it offered to buy a 40 percent stake in Brookfield Property Partners that it did not own for USD 5.9 billion.

The Indian government has decided to buy 21 MiG-29 fighters and 12 Su-30MKI fighters from Russia. In total, the Indian Air Force will receive 33 Russian warplanes, and according to military sources, the receipt of warplanes is planned for 2024-2025. This was reported by the Indian newspaper The Times of India, citing the military department. "The request for the sale of a batch of MiG-29 will soon be submitted to Rosoboronexport. The official document envisages the sale to India of 21 multi-role fighters of the fourth generation MiG-29, which are now in storage in Russia," sources said. The Indian Air Force now has up to 30 squadrons with 16-18 combat units each. After buying a batch of MiG-29 and Su-30 MKI from Russia, the Indian command will increase the number of squadrons of its air force to 42 units.