Financial news

Bulgaria's Cabinet has approved a 5,88% increase of natural gas prices starting April 1, 2010.  On Wednesday, the government upheld the motion of the Bulgarian Minister of Economy, Energy, and Tourism, Traicho Traikov to reduce the price set recently by the State Energy and Water Regulatory Commission (DKEVR).  On Monday, the DKEVR announced that there will be a 10,88% increase in the price of natural gas from the beginning of the second quarter of 2010.  However, Minister Traikov ordered a reduction in the price set by the Commission in order to keep the price for heating and hot water at an acceptable level. The new gas price will be valid from April 1 till June 30, 2010.

Bulgaria and Turkey may build a joint terminal for delivery of liquefied natural gas. Bulgaria's Minister of Economy and Energy, Traicho Traikov, and his Turkish counterpart Taner Yildiz discussed the project. The capacity of the port will be 6 billion cubic meters and it will be located on Turkish seaside. During the energy forum held in Mexico Minister Traikov had a meeting with Oman's Minister for Oil and Natural Gas, Mohammed al-Rumhy who proposed that Bulgarian companies extract natural gas in Oman. Oman also showed interest in investing in Belene NPP.

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Companies

The Supreme Administrative Court (SAC) confirmed a penalty of BGN 100 thousand for Heat Supply Rousse JSC imposed in late 2008 by the Commission for Protection of Competition (CPC). The reason is that the company unreasonably refused to conclude a contract with the heat accountant Techem Services Ltd. Thus Techem was unable to provide its service in the territory of Rousse. The dominant company had also limited the choice of consumers. SAC has argued that the non-conclusion of this contract, which is an indispensable prerequisite for the activities of Techem Services Ltd, is a violation of the Law on Protection of Competition (CPC).

Developers Dinevi brothers withdraw an investments worth EUR 36 million from the town of Pomorie. Their company Dinevi Group officially announced that it would withdraw from the project to build a marina in the town and would redirect the funds elsewhere on the Black Sea coast. The entrepreneurs have already sent a letter to Pomorie Mayor Peter Zlatanov to inform him about the freezing of the project. The brothers claim that bureaucratic hurdles and unnecessary delays in development have led them to withdraw the planned investment. Negotiations between Dinevi Group and Pomorie municipality started in 2007. However, the first sod was never turned. The idea was to invest EUR 36 million in a modern marina, resulting in a rich tourist resort.

The Payment Agency of the State Fund Agriculture (SFA) has paid a total of BGN 34.4 million to 372 projects under the Rural Development Areas Program (2007-2013). Some BGN 7.8 million has been provided to 321 initiatives, filed by young farmers under measure 112. Other 24 projects worth BGN 7.8 million bagged money under measure 121, and 26 municipal projects saw advance payments of BGN 19.7 million flowing in under measures 321 and 322. The funding has come from European Agricultural Fund for Rural Development (EAFRD).

Loan default costs continued to put pressure on the combined profit of Bulgarian banks, which dropped 23% year-on-year to BGN 94.6 million as at end-February, show figures of the Bulgarian National Bank (BNB). February’s net profit added up to BGN 32 million, compared with BGN 63 million generated for January, a monthly deterioration of a formidable 49%. Lenders’ expenses to cover overdue credits spiraled off by 39% from the two months of 2009, totaling BGN 191.8 million. This represents the most drastic change among all financial indictors of the Bulgarian banking sector. On the other hand, banks managed to curtail some costs, such as administrative costs. Interest income slipped by less than 1% and income from fees and commissions fell by 1.2%.

The Bulgarian Development Bank is going to issue bonds for about BGN 600 M in order to help the government raise funds to cover part of its debt to private companies. This new arrangement was announced Wednesday by Bulgarian Prime Minister Boyko Borisov as part of the package of anti-crisis measures approved by the government, the business sector, and the trade unions. He said the bond issue has been prepared but will be realized within 15 days because of the Easter holidays. The Bulgarian Development Bank will issue corporate bonds worth between BGN 550 M and BGN 600 M.

Europe

Regulator Ofcom has told Sky it must cut the price it charges rival cable, terrestrial and internet broadcasters to show its premium sports channels. The broadcaster will have to sell Sky Sports 1 and 2 for up to 23% less than the current wholesale price. The decision- part of the result of a three-year inquiry - aims to offer viewers more choice of pay-TV services. Sky said it would appeal against the "unwarranted intervention", arguing it would be to the detriment of consumers. "This is a marketplace where customers are well served with high levels of choice and innovation," Sky said. Sky will have to sell Sky Sports 1 and 2 for £10.63 a month each - 23.4% less than at present.

America

Washington Mutual Inc. filed a Chapter 11 reorganization plan, two weeks after resolving a $4 billion dispute with JPMorgan Chase & Co. and the Federal Deposit Insurance Corp. The FDIC seized Washington Mutual's flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion. The sale resulted in the two banking companies and the government agency trading lawsuits over roughly $4 billion in disputed deposit accounts following the largest bank failure in U.S. history. The bank holding company filed its 521-page plan late Friday in U.S. Bankruptcy Court in Delaware. The plan, which still has to be approved by a judge, would set up a $7 billion trust fund for paying creditors, including the $4 billion in deposit accounts that JPMorgan had claimed for itself.

Asia

Henderson Land Development Co., the Hong Kong-based builder controlled by billionaire Lee Shau-kee, has been ordered to explain why just one of 25 property sales included in its recent results have been completed. Hong Kong’s government told Henderson to provide information on the deals. Responding to an outcry over rising property prices last year, Hong Kong raised down payments on luxury homes to 40 percent from 30 percent and clamped down on marketing techniques. Buying from rich mainland Chinese and near-zero interest rates on savings deposits fueled a 45 percent jump in prices of luxury homes in 2009.

The medieval fortress Markeli

The fortress Markeli is in the region of Karnobat Municipality, built in the western part of Hisar height. In antiquity, there were two swamps north and southwest from the fortress. The bridge over Mochuritsa River was the only passable connection between them. The strategic location and the natural defence were the main reasons for the construction of the fortress on this place. Several important battles took place in the surroundings of Markeli. During one of them, in July 20, 792 a.d., the Bulgarian forces besieged the Roman Emperor Constantine VI in the fortress and defeated his armies. After his escape the Emperor had to pay tax to Khan Kardam (777-802), and the fortress became Bulgarian possession. More than century after that Markeli was the most important border fortress situated on the shortest road between Constantinopolis and the first Bulgarian capital city, Pliska. There are one medieval basilica from the 6th century, one Old-Bulgarian church from the 10th century and on Roman church from the 11th cenruty, found during the archeological excavations in 1986. The area, surrounded by the fortress walls is 14,6 decares. Probably the fortress was destroyed by the Ottomans in 1371 during the battle near Chernomen.

On that day:  April Fool's Day