Financial news

Bulgaria's import and export would increase in 2010. The expected growth rate compared to 2009 is by 3 percent and 1,5% respectively, reads a report prepared by Business Monitor International on the sphere of water transport of freights in Bulgaria. The increase would have a positive effect on the work of Bulgarian ports. For example the prognoses for port Varna are for 2,4% growth of tonnage of the total freight turnover during the year.  This week would be issued the data for Bulgaria's trade turnover for February. The information for January showed a yearly drop by 5% in import, while the export has marked a 13% growth compared to January 2009.

Bulgaria's Budget deficit for January-February 2010 was 1.4 billion leva, the Finance Ministry said. In February alone, the deficit was about 900 million leva. Consolidated Budget revenue for the first two months of the year was 3.1 billion leva, 27.4 per cent less than in the same period of 2009. Indirect taxes, the single largest source of revenue for the Budget, were down by 34.9 per cent to 1.27 billion leva. Value-added tax (VAT) revenues were 684.1 million leva, a decrease of 45.7 per cent from the same period of last year. The reason, according to the Finance Ministry, was the "one-off high revenue received in January 2009 as a result of increased public spending in December 2008."

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

Companies

Bulgarian River Shipping (BRS) signed а contract with Ship Machine-building JSC for the purchase of 10 inland vessels on March 31, 2010. The acquisition of vessels is according to a decision of the GM of BRS. With the new fleet, company’s vessels increased by additional 9400 tons of loading capacity and 6600 hp. This is the second purchase of vessels by Bulgarian River Shipping in the past 3 months. On February 23, 2010 the public company bought from East River Steamshipping 4 river barges and 1 pusher. As a result of the two acquisitions, the company's fleet increased by a total of 17,000 tons of loading capacity and 7500 hp.

Before being sold, Sofiyska Voda JSC announced that it needs about BGN 3.5 billion for replacement of old pipelines, said the secretary of the company Ivan Ivanov. A few days ago it became clear that the British company United Utilities, owner of the concessionaire Sofiyska Voda, will sell its business in Bulgaria to French competitors. Negotiations are at an advanced stage with two leading companies. Sofiyska Voda received a 25-year concession on the metropolitan water supply network in 2000. According to Ivanov BGN 50 million for last and this year investment programme are very insufficient, as the money are enough to replace only 1% of the old water supply network.

The REITs have been top profitability performers in Q1 of 2010, BSE-Sofia data shows. In the first three months of this year, the stocks of Bullland Investments rose by 34.73%, these of BenchMark Fund Real Estates – by 28.65% and the securities of FairPlay Properties – by 23.12%. When it comes to the blue chips, it clearly shows that Corporate Commercial Bank (CCB) reigned supreme with a yield of 11.31% in the first quarter. CCB’s investors were informed they would bag dividends of BGN 5 per share. CBC also posted outstanding results for 2009, its profit bulging by 58% up to BGN 64 million. Boncho Ivanov, portfolio manager in UBB Asset Management forecasts that by the end of 2010, investors will have expanded their bets, focusing on export companies and public procurement contractors mainly.

Bulgarian asset manager First Financial Brokerage House Asset Management got the green light to launch a new mutual fund by the end of the month. Stakes in the new scheme, dubbed FFBH Vostok, will be available within one or two weeks. The fund bears moderate to high risk level and invests mostly in shares listed for trading on internationally recognised and liquid markets as well as bonds and fixed-yield securities. This is the fourth mutual fund managed by First Financial Brokerage House Asset Management, which offers schemes in the whole risk range including conservative, medium and high (in stocks).

After five months on the market, Greek electronics, music and film retailer Publicworld last week said it will wind up operations in Bulgaria and shut its store in Varna, on the northern Black Sea coast. The chain grounded the decision on the store’s performance for its first five months, pointing out it stems from the fact that the company’s innovative concept is incompatible with the current needs of the Bulgarian market. The general recession on the market, spawned by the global economic downturn, has made matters worse by radically changing the habits of Bulgarian consumers. Publicworld set foot in Bulgaria last November, pledging to pump over EUR 10 million into the market.

Europe

The European Commission has appeared to back suggestions from some member states, notably France, that Germany is too dependent on trade surpluses and needs to boost domestic demand to correct imbalances in the eurozone. While not going so far as to describe the European economic powerhouse as the China of the eurozone, the EU executive in its latest quarterly report on the eurozone, a special issue looking the effects of the financial crisis on the member states that use the euro, said: "Action is also needed in member states that have accumulated large current account surpluses," clearly referring to Germany. "In these countries, policies should aim to identify and implement structural reforms that help in strengthening domestic demand." The report says that the imbalances in the eurozone exacerbated the effects of the crisis in Europe.

America

The US Treasury is delaying by several months a report on whether China manipulates its currency, the yuan. Treasury Secretary Tim Geithner said he would delay the report, which was due out on 15 April, until after a series of high-level international meetings. The decision may improve US relations with China but could upset some American lawmakers. It is no secret that the US believes China keeps the yuan artificially low, harming the US economy. But saying that in an official report is a different matter. It would set off a chain of events that could eventually result in unilateral US sanctions against Chinese products and could damage relations between the two countries. Chinese President Hu Jintao is due in Washington later this month for a nuclear summit, and the US is expected to push hard to sign China up to sanctions against Iran over Tehran's nuclear programme.

Asia

Toyota Motor Corp. “knowingly hid a dangerous defect” that caused its vehicles to accelerate unexpectedly, the U.S. said, for the first time accusing the world’s largest automaker of breaking the law. Transportation Secretary Ray LaHood proposed a record civil penalty of $16.4 million, the most the government can impose. The fine recommended yesterday escalates the confrontation between Toyota and LaHood, who initially praised the carmaker for its handling of recalls the company attributed to faulty accelerator pedals. The fine was announced the week after Toyota reported U.S. sales rose 41 percent in March with the help of no-interest loans and discount leases, signaling the Toyota City, Japan- based company may be recovering from recalls of more than 8 million vehicles worldwide.

Kokalyane Monastery

The Kokalyane monastery St. Archangel Michael is also know as the Urvich monastery. It is located in a picturesque region in Plana Planina mountain, about 4 km southeast from the Village of Kokalyane, and some 6 km northeast from the village of Jeleznitza. Originally, it is dated back to the Second Bulgarian Kingdom. According to legends and historical data, it was built in the 11th century, during the ruling of King Samuil. During the Ottoman Yoke, the cloister was set on fire twice. It was completely restored following Bulgaria’s Liberation, and the new church was built in 1896 I nthe place of the old one, which was destroyed in 1858. A famous relic, the so-called Urvich Collection, consisting of laudatory words for Archangels Michael and Gavriil (including the one written by the famous man of letters, Kliment of Ohrid) was found in the Kokalyane monastery. In 1969, the monastery was declared a monument of culture.

On that day:  Saint Methodius Djuglata Natural Phenomenon