Financial news

Loyal suppliers and contractors on public procurements with overdue payments from 2009 will get their dues by the end of September under a new scheme approved by the Bulgarian government yesterday. The mechanism will see the Bulgarian Development Bank (BDB) start purchasing in a matter of days the private sector receivables, tapping into BGN 100 million of own resources and an additional BGN 400 million from the fiscal reserve to be deposited by the government in the institution. The Ministry of Finance said the BDB will impose a 5% annual interest rate on the government deposit, a move that will result in higher yield than keeping the money with the Bulgarian National Bank (BNB), where they have been parked at the moment. The development bank will buy government debt from companies at 95% of their face value, covering interest and transaction expenses when the state pays off the face value.

Bulgaria's government has given up its planned 10% cut of state spending after a Constitutional Court ruling declared illegal three provisions of the 2010 State Budget Act. This has been announced by Prime Minister Boyko Borisov, who made it clear that one of the anti-crisis measures of the cabinet contradicted with the court ruling in question. As part its newly approved anti-crisis package, Bulgaria’s government was expecting to save BGN 450 M from the 2010 budget by reducing state administration staff and additional expenditures. The 10 % cut of state spending was measure No. 19 of the 60 anti-crisis measures that Bulgaria's government approved last month.

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

Companies

A three-headed dragon in Bulgarian Energy Company has been stealing from the people for five years. The private energy supply companies CEZ, E.ON and EVN reap colossal profits at the expense of the Bulgarians and the state. The companies, which own the electric power distribution net, have been buying the electric power from the National Energy Company (NEK) at BGN 88 and were selling it to the customers at BGN 146. The figures were announced by PM Boyko Borissov yesterday. He accused NEK of working at a loss and in interest of the private companies. The privatization contracts were signed during the ruling of Saxe-Coburg-Gotha -led cabinet and kept in secret because of the shameful clauses.

US energy giant Westinghouse is interested in building a seventh reactor in the Bulgarian nuclear power plant Kozloduy. This has become clear after Bulgarian Minister of Economy, Energy, and Tourism, Traicho Traikov, met with representatives of the Westinghouse management, the Economy Ministry press center announced. Traikov is a on three-day visit to the USA (April 5-7), where he has had meetings with US government officials and American companies. The management of Westinghouse has presented to the Bulgarian Minister its new generation nuclear reactor AP1000 which can be erected in three years, and has a high level of protection. Westinghouse has made it clear it is interested in participating in a future tender for the construction of a new 1000 MW reactor in the Bulgarian nuclear power plant Kozloduy

Vivacom has signed an agreement to sell 50% of National Unit Radio and TV Systems (NURTS) to international financial investor Mancelord Limited. All documents have been submitted in the Communications Regulation Commission for approval. NURTS needs a financial injection that will help us implement our strategic investment program associated with the introduction of digital television and radio broadcasting. This transaction will help us to turn the company into a nationwide modern multiplex service provider," said Bernard Moscheni, CEO of Vivacom. Mancelord Limited is represented in Bulgaria by Bromak Ltd., majority shareholder in Bulgaria’s Corporate Commercial Bank Ltd.

Central Cooperative Bank was the most liquid public company for Q1, BSE statistic revealed. Fuel distributor Petrol JSC is no longer among the leaders in terms of market capitalization and was replaced in top 3 by Arko Towers REIT. Leader is BTC, second ranks CiBank with total market capitalization of BGN 769,3 million. Total capitalization of the Bulgarian Stock Exchange fell 3,53% in Q1 to BGN 11,37 billion. 19 companies terminated registration on BSE, 8 of them are mutual funds – four funds managed by UBB Asset Management and four managed by DSK Asset Management.

Bulgaria's eleventh-largest Central Cooperative Bank (CCB) acquired 317865 shares or a 93.72% stake in Macedonia's Stater Bank, the lender said in a note. A month ago, CCB decided to buy the full stake of the Macedonian bank at the price of EUR 5.9 M or EUR 17.3 per share. Earlier in the year Stater Banka said in a statement on the Macedonian Stock Exchange website that its majority owner, Iceland 's Milestone Group, is negotiating with Bulgaria's Central Cooperative bank to sell its 91,71% stake in the bank. The Central Cooperative bank has already acquired two banks in Macedonia – Sileks Banka and Post Bank, as well as a branch in Nicosia, Cyprus.

Europe

Renault, Nissan Motor and Daimler unveiled a strategic partnership to share small-car technology and power trains, in a move that comes as automakers are rapidly joining forces to cut costs. With auto markets in developed nations still hobbled after the financial crisis, the second tier of car manufacturers is under pressure to increase scale and reduce expenses to better compete with the global giants, Toyota Motor and Volkswagen. “Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint, both on a long-term basis,” Dieter Zetsche, the Daimler chief executive, said at a signing ceremony in Brussels. “We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected.” He said the deal made sense because the companies’ operations are largely complementary.

America

General Motors  reported a post-bankruptcy 2009 net loss of 4.3 billion dollars, but said it was encouraged by the results and hoped to achieve profitability in 2010. The new GM, which emerged from bankruptcy protection on July 10, said it aims to repay its government loans by June "at the latest" so it can launch an initial public stock offering "as soon as it makes sense." "As the results for 2009 show, there is still significant work to be done," said Chris Liddell, GM vice chairman and chief financial officer. But GM is very close to breaking even after making enormous strides in slashing its operating costs and improving its product portfolio, Liddell said."We don't need to make that much of an improvement to get to profitability," Liddell said. "I'm very happy with the progress we've made in the first quarter," he added, cautioning that he would "rather under-promise and hopefully over-deliver."

Asia

The Bank of Japan’s increased optimism about the export-led recovery suggests the policy board may raise its forecasts for economic growth and prices later this month, economists said. Governor Masaaki Shirakawa told reporters after a policy meeting yesterday that “the economy is currently picking up steadily and on top of that, we are seeing some signs of future progress.” His board, which left interest rates at 0.1 percent and chose not to expand deflation-fighting measures, will review its outlook for the economy and prices on April 30. “There’s a high chance that the central bank will raise its growth forecast to around 2 percent from its January forecast of 1.3 percent” for the year ending March 2011, said Kiichi Murashima, chief economist at Citigroup Global Markets Japan Inc. in Tokyo. “The recovery in exports is spilling over to domestic demand faster than people had expected.”

1992 - the first public trading session in Bulgaria

Bulgarian capital market celebrates 16 years since its revival. On April 8 1992, Sofia Stock Exchange (currently SFB Capital Market JSC) organized the first public trading session in Bulgaria’s new economic history. In 1997, Bulgarian the capital market integration process was completed and Bulgarian Stock Exchange – Sofia JSC officially started operating on October 21.

On February 21 1912, Parliament adopted the first Law on the stock exchanges, which was promulgated in the State Gazette on February 28 the same year. Sofia Stock exchange obtained official permit to start operating and started effective activity on July 28 1914, only a few days before the beginning of World War I. On May 25 1915, the Stock Exchange Regulation was adopted by a Decree. All issuers of securities, such as banks, production and trading companies, were invited to register for participation in the stock trade. On December 18 1917, the Sofia Stock Exchange issued a Regulation for the Internal Order of the stock exchange and decided three trading sessions to be conducted each week. On January 20 1918 the stock exchange was officially opened. It was the sole stock market in Bulgaria until its nationalization on December 27 1947 when it was transformed into a department of the Bulgarian National Bank and discontinued its activities until 1992.

On that day:  Saint Nikola Church in Sapareva Banya The Klisura Monastery St. Petka