Financial news

According to preliminary data of the Customs Agency, VAT from imports increased by BGN 50 mln last month, or by 25% on an annual basis. April was the month with the highest revenue from VATs on imports since the beginning of the crisis in November 2008, the official website of the agency states. Proceeds from VATs on imports for April is likely to stand at BGN 257 mln. This is about BGN 6 mln more than planned for the month (BGN 250.8 mln). As a comparison, BGN 205.1 mln was collected from this levy last April. A total of BGN 792.7 mln entered the Treasury from exports for the first four months of 2010, which is 7% more than collected during the same period of last year. However, these proceeds were less than the planned BGN 798.1 mln.

The Bulgarian government plans to a appoint a third deputy finance minister who will be in charge of budget revenue, prime minister Boyko Borissov told. The premier brushed off rumours he plans to bid farewell to finance minister Simeon Djankov and Customs Agency chief Vanyo Tanov. “That I’m chiding people for falling revenue doesn’t mean I’m going to get rid of them,” Borissov explained. This is Borissov’s second attempts at strengthening the economic team of the Bulgarian government. Earlier this year, he unveiled plans to appoint macroeconomics professor Iliyan Mihov as a third deputy. But under pressure from the Blue Coalition and after meeting Borissov he turned down the proposal.

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Concessions

Candidate concessionaires have already showed interest in the airports in Stara Zagora and Rousse, said Kamen Kichev, Deputy Minister of Transport. Both airports have high priority in the ministry strategy for concessions, announced on April 2 this year The plan for the management of Bulgaria’s transport centers provided the concession of airports, ports and railway stations. At this stage, the crisis in BDZ continues as it pays less than half due to National Company Railway Infrastructure (NRIC) each month, said the Deputy Minister. Therefore, the transport ministry negotiates with banks to finance the programs for the restructuring of BDZ.

Companies

Cases for obligations of nearly BGN 265 thousand were started against a Balkancar Zarya JSC - Pavlikeni. There are already judgments for some of them and the company is obliged to pay BGN 185 thousand on them. Part of the cases is civil, brought by several companies, others by the municipality in Pavlikeni, and the NRA - Veliko Tarnovo. The division of the revenue agency has requested distraint of the bank accounts of Balkancar Zarya in First Investment Bank and UBB to secure debt of BGN 40.5 thousand. The report of the company shows that there are obligations to the municipality, even for unpaid garbage fee of BGN 21.6 thousand. By decision of the court in another case some of the obligations to the municipality will be paid on deferred payment.

Investors in the residential complex Winslow Gardens, whose construction was recently resumed, will invest BGN 90 mln in the project until the spring of 2011, the company announced. Raiffeisenbank has extended financing of over BGN 38 mln and another BGN 52 million will be invested by the developers. Winslow Gardens will be built in two stages and will have six low-rise residential buildings. The first stage is expected to be completed in 2011. Three buildings with 279 flats will be constructed during the first stage. The entire investment is expected to exceed BGN 200 mln.

Six Bulgarian banks have plunged into losses for the first quarter of the year, showed figures by the Bulgarian National Bank (BNB). Only three banks slipped into negative territory for the same quarter of last year. Of the 30 players in the Bulgarian banking sector, three lifted profits on an annual basis, while the other saw their performance deteriorate between 2.1% and 91.6% year-on-year. Investbank and Unionbank have shrunk profits more than twofold between January and March 2010 compared to the corresponding period of 2009, posting losses. The other four banks that booked losses for the period include the local branch of Slovenia’s NLB Banka, the local branch of Turkey’s TC Ziraat Bankasi, Emporiki Bank and the local branch of Greece’ Alpha Bank.

More Bulgarian exporting companies pulled off higher profits and ended their negative streaks in the first quarter of 2010. After two years in the red, Troyan-based timber products maker Lesoplast swung to better sales, up slightly over 3% to BGN 6.85 million on the bank of a rebound in demand on foreign markets. The share of exports surged to 82%. Lead and zinc smelter OZK lifted sales by 50%, mostly thanks to a jump in metal prices. However, volumes dwindled and the company’s profit plummeted. Aluminum producer Alcomet boosted revenue in terms of both value and volume, with the latter adding over 5% over the period. “This shows that the domestic and the foreign markets are starting to revive,” the company says in its earnings report. Turnover leapt by 19% and the firm turned to profit from a first-quarter loss for 2009.

Europe

Eurozone states and the IMF have agreed on a three-year lending package for Greece worth €110 billion. The decision taken by euro area finance ministers meeting in Brussels follows months of market turmoil, during which Greece's borrowing costs have risen to record highs, sparking fears of a potential sovereign debt default and breakup of the single currency area. Eurozone governments will provide €80 billion under the three-year deal (2010-12), with the first disbursement to be ready before a crucial debt deadline on 19 May when Athens is due to pay back roughly €8.5 billion to bond holders. Mr Rehn said installments will be subject to a system of "quarterly reviews".

America

UAL Corp.'s United Airlines will announce a deal to merge with Continental Airlines for more than $3 billion. The board of directors at both airlines approved the deal Sunday. The deal will be a merger of equals, valuing Continental at around its current market capitalization of $3.1 billion. A merger between the two would create the world's largest airline, overtaking Delta Air Lines, which merged with Northwest Airlines in 2008. United and Continental discussed combining in 2008 and Houston-based Continental backed out. United boasts a stronger financial position this time around though. Thanks to an improved financial performance, United was expected to have more weight in the talks.

Asia

China’s third increase of bank reserve ratios this year left benchmark interest rates and the yuan’s peg to the dollar unchanged, risking the need for more concerted effort to contain property prices and inflation in coming months. The requirement will increase 50 basis points effective May 10, the People’s Bank of China said. The current level is 16.5 percent for the biggest banks and 14.5 percent for smaller ones. The latest move adds to a government crackdown on property speculation after record price increases in March and came on a holiday weekend, with Chinese markets shut today. Within an hour of the central bank announcement, Finance Minister Xie Xuren said that officials remained committed to expansionary policies to cement the nation’s recovery.

The Assumption Church in Saparevo

The village of Saparevo is several kilometers away from the town of Sapareva Banya. The Assumption Church is the biggest in the municipality and is exceptionally beautiful. The central dome of the church is supported by four columns, crowned with guilt images. It was built in 1861-1864. The church is a scale copy of the church in the Rila Monastery. In decorating the church, the icon-painter and the master-woodcarver also imitated models from the Rila Monastery. In the early 19th century, there was only a stone cross on the spot of the today’s church, which is an indication that this was the site of an old consecrated ground. The church was built at the initiative of Alesko Grahayov, who was the poorest man in the village. The Holy Virgin appeared in his dream and told him he was going to built a church. In the same wondrous way he was given instruction where to dig for the money required for the construction of the church. The copper, in which they say the poor man found the gold coins, is preserved as a relic in the church to this day. Master-builders from Tran were employed, and an icon-painter from the Bansko-Razlog school was invited.

On that day:  Byalgrad Fortress