Financial news

Bulgaria will receive the EUR 300 million compensation requested for the early shut-down of units 1 to 4 of the Kozloduy Nuclear Power Plant. That emerged after the Greens in the European Parliament failed to block the money. The first EUR 75 million disbursement is expected by the middle of June. A German MEP demanded that EUR 120 million of the total amount should be blocked and only used for setting up a fund for construction of nuclear waste storage facilities.

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Companies

The Bulgarian arm of Russia's LUKoil plans to upgrade its refinery in the southern coastal city of Bourgas and launch production of oil generator fuel. The investment is estimated at USD 1 billion. This became clear yesterday, following a statement of Mr. Sergey Andronov, chairman of the board of LUKoil Neftochim Bourgas. The project has been developed by the Italian company technic and a deadline for the delivery of the technical equipment has been set. The new facility is expected to come online in about four years and it will provide three hundred job positions. "We do not plan any lay-offs at LUKoil Neftochim Bourgas, neither have we considered options for shutting down the refinery or moving it to Romania or any other country," Andronov said also.

Bulgaria will receive a dividend from the three power distribution companies in the country, Deputy Economy Minister Maya Hristova said on April 8, just days after Prime Minister Boiko Borissov raised the prospect that the utilities' privatisation contracts could be reviewed and potentially cancelled.  The state holds 33 per cent in each of the three utility companies, sold in 2005 to Austria's EVN, Czech CEZ and Germany's E.ON. On April 7, Borissov said that the Cabinet would ask for an audit of the three utilities to investigate the discrepancy between the prices at which the companies bought electricity from state-owned power grid operator NEK and the ones at which electricity was sold to consumers.

Bulgaria’s national card operator BORICA and payment system operator Bankservice have informed the nation’s competition watchdog of their intention to merge. The Commission for Protection of Competition (CPC) said the consolidation would not have an impact on the two companies’ respective markets. The new entity would be more competitive and will enable the two companies to utilise their resources more effectively, banking sector representatives said.

Bulgaria's competition watchdog gave the green light for Central European Media Enterprises to acquire Bulgaria's first national private television bTV, wholly owned by Rupert Murdoch's News Corp. The approval of the Bulgarian Commission for the Protection of Competition was the last hurdle before the closure of the deal, which was signed on February 18. Under the terms of the agreement, CME will pay USD 400 M in cash for 100% of the terrestrial free-to-air TV channel, bTV. It will also take control of the two genre channels, bTV Comedy and bTV Cinema, along with News Corporation’s 74-per-cent interest in Radio Company C.J which operates five radio stations.

Bulgaria’s mutual funds market remained almost flat in first-quarter 2010, with only foreign investments propelling the sector forward, showed the latest data of the Bulgarian Association of Asset Management Companies (BAAMC) and sector player estimates. The net assets of the Bulgarian schemes added up to some BGN 380 million as at end-March. The figure bulges to some BGN 580 million with investments in the foreign schemes available on the market. This represents a modest 6% increase overall and less than 3% for the domestic schemes compared with the end of 2008.

Corporate Commercial Bank (CCB) has acquired 93, 72% of the Macedonian Stater Bank, the financial institution announced. The biggest share was owned by the Icelandic Milestone EHF – 91, 71%. By December 31st 2008 the bank disposed of assets amounting to BGN 70 million. For the first nine months of 2009 it registered losses of BGN 269 000, 65% less compared to the same period a year earlier. Currently, CCB owns shares in the Macedonian Silex Bank and Postbank.

It appears that over the first trimester of the financial year 2010 the Bulgarian Stock Exchange in Sofia suffered losses in the amount of BGN 420 million. Thus, its market capitalization slumped by 3.53% at the end of the first trimester - from BGN 11.8 billion to BGN 11.38 billion. At the same time, the leading index, SOFIX, lost 1.36% of its value and slumped to 421.44 percentage points at the end of March, while the broader index BG 40 increased by 0.35% over the same period - from 117.16 pctp to 117.55 pctp. The index BGTR 30 lost 3.01% of its value over the first three months of 2010 and slumped to 43.24 pctp, while the index BG REIT went down by 9.94% - from 48.01 to 43.24 pctp. This index is formed by the shares of companies with a special investment purpose, which invest in real estates.

Europe

British Airways and Spain's Iberia signed an $8 billion merger to create the world's third-largest airline, bringing a three-way tie-up with American Airlines a step closer. The deal between BA and Iberia, which the pair hope to complete by December, is designed to help BA and Iberia stem over $1 billion of combined annual losses following the worst industry downturn in decades. They hope to cut costs by 400 million euros a year to better compete with larger rivals Lufthansa and Air France and budget carriers such as Ryanair. The combined group, to be majority owned by BA shareholders, ends the British company's long pursuit of Iberia and positions the companies for further consolidation.

America

After a bumpy end to 2009, all six of the US largest financial institutions are expected to report a profit for the first quarter. Even Citigroup and Bank of America, long considered the laggards of the group, are both expected to report slim profits of less than a $1 billion each, after hemorrhaging a combined $13 billion last quarter as a result of paying back bailout funds to taxpayers. The latest earnings season, which begins in earnest next Wednesday when JPMorgan Chase delivers its results before the opening bell, would represent the first time in a long, long while that all of the nation's top financial institutions have collectively recorded a profit.

Asia

Saudi Arabian Oil Co., the world’s largest state-owned oil company, will supply full volumes of crude oil to Asia for loading in May. Saudi Aramco, as the company is known, will provide 100 percent of cargoes sold under long-term contracts next month, according to a survey of refinery officials in Japan, China and South Korea who asked to remain unidentified citing confidentiality agreements with the Middle East producer. Aramco’s decision to provide full exports for a sixth month comes as the Organization of Petroleum Exporting Countries agreed last month to leave production quotas unchanged from the fifth time since 2008. The group is exceeding the targets by the equivalent of a supertanker of crude a day.

The medieval fortress Hotalich

The fortress Hotalich is a predecessor of today’s town Sevlievo. It is situated on a natural fortified hill above the gorge of Rositsa River. Hotalich was founded in 5-6th century as an early Byzantine fortress and town. The archeological excavations in the region started comparatively late – in 1979. The first find is the remains of a small medieval church, built in 12-14th century. The archeologists found out a second older church from the 5-6th in it. In 1981 the explorations of the fortress itself and the village below it began. Hotalich was important strategic defence point for the capital city Tarnovo. The citadel was surrounded by stone walls, some of which are kept today up to three meters in height, defence towers and five gates. A water reservoir, used during sieges, was found also in the fortress. For ten years in the area of the village 86 stone buildings were found, which means that Hotalich was large town at the time. Because of the slope of the hill, the buildings were semi-dug. They were built from stones and mud. In 1993 the archeologists found a treasure of 2944 coins. Most of them are from copper, stamped in the 12th century in Constantinopolis, but there are also 146 Bulgarian coins.

On that day:  Temple St. Prophet Iliya – Gradevo village