Financial news

Bulgaria's Gross Domestic Product (GDP) in the last quarter of 2009 is BGN 17.9 bln or BGN 2 400 per person. Compared to the same period of 2009, the GDP is down by nearly 6%. In the forth quarter of 2009, the number of employed over the age of 15 is 3.17 million people – down by 192 000 year on year while the employment index is down 2.6%. The unemployed in the last three months of 2009 are 273,000 or 7.9% of those in employment age. In December 2009, the average salary for the country is BGN 625 – over 4% more than November and over 10% more year on year. In January 2010, the current account shows a EUR 242 mln deficit (0.7% of the forecast GDP) compared to EUR 552 mln (1.6% of GDP) in January 2009. The trade balance in January is negative by EUR 174 mln (0.5% from GDP) compared to EUR 344 mln (1% from GDP) YoY.

"The construction works on Belene NPP will be launched in 2011," stated Bulgaria's Minister of Economy and Energy Traicho Traikov. "The project will be started if only plans for the nuke are fulfilled," Minister Traikov specified. In his opinion, the joint Bulgarian-Russian company will start working straight after the shareholders make a decision on its foundation. The joint company was negotiated over one month ago when Russia's Minister of Energy Sergey Shmatko visited Sofia. "Belene NPP project is very painful for Bulgaria," Minister Traikov underlined and specified that those circumstances had become more worrying due to the financial crisis and after the withdrawal of the strategic investor of the project - German company RWE at the beginning of last September. It is expected that a new investor be found by the middle of April. If everything goes to plan, Belene NPP will start generating power in 2014.

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Concessions

The concession of Plovdiv Airport will include only freight operation and not the passenger terminal, said airport CEO Doychin Angelov. This was discussed with Deputy Minister of Transport Kamen Kichev. After building the new passenger terminal in the Plovdiv Airport and the reduction of state charges in May, we expect to finalize talks on the regular international routes, Angelov added.

Companies

Another batch of Bulgarian exporters have sent out a new sign for recovery as they outlined their 2010 guidance. Drug maker Sopharma and lead and zinc smelter OZK said they expected sales to gain 15% and 20% this year, respectively. Both companies pegged their optimism on continuous recovery of the European recovery and global markets. Sopharma forecast in its annual report last week that it would post zero growth for 2010 amid the still rickety global economic conditions. Kardjali-based OZK says sales are poised to bounce by approximately 19.4% on an annual basis for 2010 to clear the BGN 150 million mark. The company said the increase hinges mostly on the rebound in lead and zinc prices on commodity exchanges.

Prime Minister Boyko Borisov revealed the next big energy abuse - state energy companies have entered into insurance contracts before the expiration of the old ones, and this has happened in the days after the last parliamentary elections. He called it "an obvious scam" and said that there will be dismised officials within days. The only example given by the PM was NEK. The company has signed a new 5-year contract with Energy IC in July 2009, provided that the current contract ends only now. “The contract was for BGN100 million. And what about Kozloduy and the mines? I regret that every day, wherever you touch, a scam comes out,” said Borisov. Answering a question on who has signed the contracts, he added that the names will be known in a few days when the officials are dismissed.

Bulgaria’s first IKEA store will be opened in Sofia in the last quarter of 2011, announced George Alevizos, Finance Manage of the Greek group of companies Fourlis. Alevizos said the economic crisis has not delayed the opening of the IKEA stores in Bulgaria. The Fourlis company is IKEA’s franchisee for Bulgaria and several other Balkan countries. “We believe to the cyclical aspect of any crisis and Bulgarian economy will return soon in positive growth rates and it is very important when this happens, we will be there ready to offer a better everyday life to the many people in the local market,” the Fourlis manager stated. Alevizos told that Fourlis intended to open at least one more IKEA store to be located near the Black Sea city of Varna, and might also consider opening a third store within the next 5 years.

The Greek group of companies GEK TERNA intends to invest about EUR 500 M in real estate development and energy production in Bulgaria over next 1-2 years. This has been announced by Konstantinos Lamprou, Group Communication and Marketing Director, GEK TERNA Group of Companies. Lamprou has also told that 80% of the major real estate project of GEK TERNA’s Bulgarian subsidiary ICON, named 3TOPS and located on the Bulgaria Blvd has been sold out. The downtown skyscraper-type business center City Tower currently constructed by GEK TERNA is expected to be completed in 2-3 years, the Greek manager said.

Europe

The sort of debt problems seen in Greece are likely to spread further in the euro zone and Portugal could be the next victim, said Greek Deputy Prime Minister Theodoros Pangalos. In an interview Pangalos said Portugal should not remain neutral on the issue of European Union help for troubled members after leaders agreed on a financial safety net for Greece on March 25. Poor growth, competitiveness and a budget deficit that surged to 9.4 percent of GDP last year, have made Portugal one of the economies in the spotlight for markets worried about the chances of a debt default in the euro zone. But the premium it costs Portugal to borrow is still about three times less than that of Greece, and its projected debt-to-GDP ratio for this year, of 86 percent, is much lower than Greece's roughly 120 percent.

America

ExxonMobil, the world’s largest international oil company, has agreed to pay the US government $32.2m in a settlement to resolve claims that it knowingly underpaid royalties owed on natural gas produced from federal and native American leases, the justice department said. The case, which dates back to before Exxon bought Mobil in 1999, alleged Mobil Natural Gas, Mobil Exploration & Producing US and their affiliates violated the False Claims Act by systematically under-reporting the value of natural gas taken from the leases from March 1 1988 to November 30 1999. Thus, the companies paid less royalties than owed to the US and various American Indian tribes. The settlement stems from a lawsuit filed by Harold Wright, a private citizen, on behalf of the US.

Asia

Samsung Electronics Co., Asia’s biggest maker of semiconductors, flat screens and mobile phones, said first-quarter profit increased sevenfold after demand for personal computers and televisions drove up prices. Operating profit was about 4.3 trillion won ($3.8 billion), plus or minus 200 billion won, compared with a revised 590 billion won a year earlier. Samsung shares closed at a record amid speculation higher memory-chip and flat-panel prices will help the company post its biggest-ever profit this year. Earnings growth will probably extend until the third quarter, while demand for devices such as Apple Inc.’s iPad and smartphones will help boost NAND flash-memory sales, according to analysts at brokerages including Shinhan Investment Corp.

World Health Day

April 7 is the international health day, which has been celebrated annually since 1950. On this day in 1948, the World Health Organization (WHO), which unites 180 member-countries, was associated. The slogan for World Health Day 2005 is "Make every mother and child count", which reflects the reality that today, the health of women and children is not a high enough priority for many governments and the international community.
In Bulgaria, April 7 has been celebrated as the Day of Medical Workers since 1964.

On that day:  Dryanovska River Tomb in the Ostrousha Mould