Financial news

Syria is going to pay off its debt to Bulgaria. This was negotiated by Bulgaria’s PM Boyko Borissov, who was on a two-day official visit to Damascus. In a month’s time, Damascus is expected to transfer to Sofia USD 17 million, which is 24% of Syria’s debt to Bulgaria. Damascus’ debt to Sofia, accumulated mainly in 1970s and 1980s, amounts to USD 75 million. The PM further pointed out that Bulgaria will work towards the restoration of the traditionally good bilateral relations maintained for dozens of years. The air routes between Sofia and Damascus will be restored as well as those between the sea ports of Varna and Latakia. Within the visit of Borissov to Syria a bilateral transport agreement was signed which is intended to be applied for transit cargo transport from or to the territory of Bulgaria and Syria.

A surplus in health insurance funds will help Bulgaria bridge its budget gap in 2010, according to communication between the government and Eurostat. The EU’s statistics office announced Bulgaria run up a deficit of BGN 2.569 billion, or 3.9% of GDP, for 2009. For 2010, the budget deficit (excluding municipal and health insurance budgets) is projected almost flat at BGN 2.130 billion. However, it should be offset by the overall surplus of BGN 806 million targeted for the National Health Insurance Fund (NHIF). Thus, Bulgaria should round off this year with a shortfall of BGN 1.354 billion, or almost 2% of GDP, by consolidated figures.

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

Concessions

Kaolin has applied requests for new concessions for extraction of kaolin from the Ludogorie area in the deposits Kolobar I and Kolobar II. They will probably be granted to the company within a month. Nevertheless, this would be a violation because it will reinforce the artificially created from the time of ex-minister Dolores Arsenova monopoly on this market. Monopoly is prohibited by the Constitution and law. At the same time the controls over the mining activity of Kaolin is, to put it mildly, lowered. According to the stock balance in the national geofond, Kaolin already has six kaolinitic deposits, and is on its way to obtain two more. The company is the sole distributor of quartz sand and kaolin in Bulgaria.

Municipalities will manage the mineral springs for 25 years. The matter concerns water that has not yet been granted at concession, said Assen Lichev, head of the Directorate for Water Management in MEW. The changes are set out in the new law, which is to be submitted to the Council of Ministers. Upon entry into force of the project, within one month mayors may request the right to dispose of the water deposit if it is used by the municipality. Bulgaria has about 4,000 mineral water springs, small catchments, springs and boreholes. From the suitable for exploitation deposits, only 102 are used, ie 40%. The rest of the healing water is poured into rivers, gullies and drains. 60% of the deposits may be given to municipalities and get the opportunity for additional revenue sources and development of spa tourism and other businesses.

Companies

The registered in Friday State Consolidation Company (SCC) established to privatize state-owned companies will include a quarter of the total of 200 companies managed by the Ministry of Economy. Within 10 days remaining ministries will present their proposals for companies run by them to be privatized by SCC. This was announced by Minister of Economy, Energy and Tourism Traycho Traykov. The Minister said that his department manages a total of 200 companies, of which 75 are active, 65 are in liquidation and the other - in bankruptcy. Only active companies will be sold said Traykov.

Bulgaria's airlines have suffered losses worth EUR 1.3 M due to travel disruptions caused by the high-altitude ash billowing from an erupting Icelandic volcano. “Bulgarian airlines have been incurred losses worth EUR 1,3 M due to the suspended flights across Europe,” Yovko Yotsev, representative of the Association of the Bulgarian airlines, told. The figure however does not include suspended flights, which had to be conducted by other airlines, contracted by the Bulgarian air companies. At its peak, the crisis affected 1.2 million passengers a day and 29 percent of all global aviation, according to the International Air Transport Association.

Nearly 560 thousand applications for re-registration of traders are expected at the Registry Agency in the end of the year. 700 thousand companies are expected to not re-register and be deleted, said the agency's executive director Atanas Georgiev and the Director of Officials by Registration Boyan Terziev. According to the Registry Agency, the deadline for re-registration should not be extended. "Dead" companies that have no activity are expected not to submit applications. Besides the re-registration application, financial reports are also expected until the end of June. In order to avoid queues, traders may submit applications electronically, the agency advised. To date, only 20% of the declarations are submitted with digital signature.

Another two Bulgarian firms shipping the bulk of their produce abroad gave out signals they might be getting the upper hand over the market upheaval. Fertiliser maker Neochim and vet products maker Biovet expect to scale up sales by 50% and 10%, respectively, in 2010. Biovet was in positive territory also in 2009, whereas Neochim saw sales slide thanks to dampened demand and pressure from the January 2009 gas crisis. The low base enables the company to make forecasts about stronger growth this year. Recovering foreign demand and market expansion are expected to shore up both Biovet and Neochim for 2010.

Europe

Ireland had the biggest fiscal deficit in the European Union last year – larger than both Greece and the UK - according to revised figures published by Eurostat. The deficit was revised up from 11.8 per cent to 14.3 per cent of Gross Domestic Product after Eurostat ruled that the Irish government’s €4bn of aid to Anglo Irish Bank must be treated as part of current spending. Brian Lenihan, the finance minister, described the Eurostat move as “a technical reclassification”, which would have a “once-off impact” but would not affect Ireland’s plan to reduce the deficit to below 3 per cent by 2014. The minister’s view was backed by Standard & Poor’s the rating agency which said “the revised data treatment does not affect our view of the underlying position of the Irish public finances.”

America

Microsoft saw its profits leap by 35% in the first three months of 2010 - as its Windows 7 operating system continued to prove popular. The software giant made a net profit of $4bn (£2.6bn) and said it had also seen "strong growth" from its Bing search engine business and XBox Live. Sales hit a record $14.5bn, up 6% on the same period a year earlier. Windows 7 has proved to be Microsoft's best-selling operating system to date after the disappointing Vista. The company's results are closely tied to computer sales because its two most profitable divisions make the Windows Operating System and Office business software. And the firm said business customers were "beginning to refresh their desktop".

Asia

ArcelorMittal has proposed a joint venture with Steel Authority of India Ltd to build a $2.7 billion steel plant in eastern India. The world's biggest steel maker has proposed an equal joint venture with the state-run Indian firm to set up a 3-4 million tonne steel plant in Jharkhand state. Steel Authority has been in talks with South Korea's POSCO and local media has reported the two were discussing a joint steel plant at the same site at a cost of 100 billion rupees ($2.2 billion). Arcelor's earlier proposed two steel projects in eastern India are getting delayed over land acquisition problems, while its proposal for a plant in southern Karnataka was in initial stages of getting clearances. A spokeswoman for ArcelorMittal declined to comment on the development.

Bolata preserved area

Bolata is a natural port, located to the north of the Kaliakra cape (Northern Black Sea Coast). The area is part of the coastal eco-systems of the migratory birds called Via Pontica. This is the only preserved area in Bulgaria including both waterside, sea area. 3 km to the north of Kaliakra, a deep narrow valley and a small inlet are located. The number of springs give the beginning of a small river that floats into the small swamp Bolata, where interesting water-loving birds - Little Bittern, Little Grebe, Kingfisher, Ducks and others. The remains of antique and medieval settlements were found here, unique stone circles, sacrificial stones, rock caves-houses also. The sheer shore is set with underwater caves with a number of niches in the rocks.

On that day:  Ethnography Museum – Silistra Dechko Uzunov