Financial news

Bulgaria ranked second among the EU countries by monthly rebound in producer prices in March, adding 1.3% from February, show data by Eurostat, the EU’s statistical office. The increase was matched by Greece and second only to the UK, which pulled off a 1.7% upswing. On an annual banking, however, Bulgaria is down on the list. Greece suffered the fastest inflation in producer prices of 7.9% in March 2010 from the same month of last year. Overall, produce prices in the EU ticked up by 0.7% in March from the month before, with the eurozone rising 0.6%.

In April, there was a positive balance of BGN 213 mln, showed the operational data of the Ministry of Finance (MF). Such positive results have not been registered by the Treasury since January 2009 when the target revenue level was exceeded by BGN 907 mln. Last year, surpluses were recorded as early as April (BGN 162 mln), October (BGN 3.3 mln BGN), November (BGN 47.4 mln) and December (BGN 2 mln). Officials from Simeon Djankov's Ministry specified that the result for April confirmed the preliminary estimates of a stabilisation of the fiscal situation and the achievement of a positive balance at a consolidated level.

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Companies

Bulgaria has put on hold construction of its second nuclear power plant until it finds a new investor to complete the project, Prime Minister Boyko Borisov said. According to the DPA news agency, the government has earmarked USD 9.25 million to mothball the Belene site on the Danube, 180 kilometers northeast of the capital, Sofia. "The country has no money for a nuclear power plant," Borisov said. "We will build it when investors come." The plant was originally to be built by Russian company Atomstroyexport for EUR 4 billion. Last week, Borisov turned down a EUR-2-billion offer from Moscow for a stake in the plant. He said Bulgaria is looking for a full investor to finish the project following the withdrawal of German energy company RWE in the fall of 2009.

The International Monetary Fund (IMF) recommended stricter supervision over Bulgarian banks’ liquidity and closer cooperation with supervisory bodies in the countries that have significant shares in the Bulgarian bank system, the Ministry of Finance announced. According to the IMF, increased attention must be paid to the growing number of irregular credits and the heightening risk for a shift in some parent institutions’ behaviour. The IMF has approved the report prepared by its expert committee that visited Bulgaria in the end of February. In reference to the financial system, the IMF notes that it remains stable, due to the considerable capital reserves and good supervisory policy. In spite of existing risks, the IMF expects that the Bulgarian economy will undergo a recovery in 2010.

A city to the size of Burgas may be heated only by biomass, said the Minister of Economy, Energy and Tourism Traycho Traykov at a round table on "Economics of low carbon energy", organized by the Bulgarian Industrial Association. According to Traykov, Bulgaria has the capacity to build ecological power plants with a total capacity of about 800 MW using biomass fuel. Traykov said that talks have already been made with AES - 3C Maritsa Iztok 1 and Enel Maritza East 3 about changing some clauses in their contracts for the long-term purchase of their produced energy, not disclosing details.

Bulgaria's State Commission for Energy and Water Regulation (DKEVR) has fined again the power supplier CEZ over the delay in reinstatement of the monthly bills. The Deputy Head of DKEVR, Valentin Kirchev, announced the probe of the other supplier EVN will conclude on May 25th, after which the Commission along with the State Agency for National Security (DANS) and the National Revenue Agency (NRA) will probe CEZ, and the third major power supplier EON. Kirchev says preliminary probes in all 3 already revealed violations, adding all probes will be done by July 1, which is the date new electric power prices will become effective. DKEVR issued two fines for CEZ, in the amount of BGN 100 000 and BGN 60 000 for delaying the reinstating on the monthly billing cycle as ruled by the Court.

Schenker officially opened its new and modern logistics terminal on May 4, even though the facility has been operational since the beginning of March 2010. The complex, which is in Bozhourishte, near Sofia, is close to the international road linking Sofia and Belgrade, just 20 minutes from the centre of the capital. The new Schenker facility is a 10-million euro complex, spanning more than 48 000 sq. m of land, with a logistics warehouse of 3000 sq. m, an office complex of 3500 sq. m, a 2000 sq. m cross-docking hall, both equipped with 30 loading bays with hydraulic ramps. The buildings are equipped with state-of-the-art security technology and fire safety systems, in what is one the most modern such facilities in the region.

Bulgarian consortium Ecostroy Dimitrovgrad has won a EUR 2.037 million contract to repair and construct a 43-kilometre water pipe network on the left bank of Maritsa River in Dimitrovgrad. The facility is scheduled for completion within 93 days. Experts say similar projects usually span between 18 months and two years. The tie-in is led by Stara Zagora-based BGS Group and includes also Haskovo-based Monolit and Sofia-based Akvapartnyor. PK 2000 – AKVA has been appointed supervisor of the project.

Europe

Traders involved in Europe's flagship climate change programme, the Emissions Trading System - some of whom work at Germany's biggest banks and energy firms - were the focus of a series of raids and arrests by British and German prosecutors in part of a massive pan-European crackdown on CO2-credit VAT fraud. A total of 25 people were arrested amid a blitz by authorities on hundreds of company offices in the two countries, including Deutsche Bank and energy firm RWE, in a case involving the theft of an estimated €180 miillion from government coffers. On Friday (30 April), it was revealed that UK tax authorities had raided 81 different offices and homes earlier in the week, arresting 22 individuals - 13 in England and further eight in Scotland.

America

Wal-Mart Stores Inc. has agreed to pay $27.6 million to settle allegations that it improperly handled and dumped hazardous waste at stores across California in a case that led to changes in the retailer's practices nationwide. The settlement ends a five-year investigation involving more than 20 prosecutors and 32 environmental groups. They alleged that each of the company's 236 stores and distribution centers across California were in violation of environmental laws and regulations. Wal-Mart was accused of improperly disposing of pesticide, fertilizer, paint, aerosols and other chemicals. Wal-Mart still may shell out more money because of civil and criminal investigations by federal officials into allegations that the company's handling of hazardous waste violated environmental laws in California, Missouri and Washington, D.C.

Asia

An International Monetary Fund mission will visit Sri Lanka next week to discuss the 2010 budget of President Mahinda Rajapaksa’s newly elected government as it evaluates whether to lend the island more money. The IMF will return to Sri Lanka starting May 12 for discussions on the budget, “which will be the key determinant of the disbursement of the third tranche under the $2.6 billion aid package,” said Koshy Mathai, the fund’s resident representative. The IMF said it may consider changing its aid package to Sri Lanka after the South Asian nation’s 2009 budget deficit exceeded the Washington-based lender’s target under the program. Sri Lanka’s Treasury Secretary P.B. Jayasundera said April 6 the country plans to nearly halve its fiscal deficit in three years as the end of a 26-year civil war spurs economic growth and boosts revenue.

The Yurdanov 's house

The village of Marash is situated 10 km away from the city of Shoumen. On your way to the village, you pass through a natural tunnel formed by a wattle of walnut-tree branches that lead you straight to the village. One of the most remarkable sights in the village of Marash is the Yurdanov’s house. The old man Yurdanov was among the wealthiest people in the village. He had a big 12-member family, a big house and many cattle and other domestic animals. The village still remembers baj Jordan. Nowadays his house is one-of-a-kind in Bulgaria. The restored museum-house is located in the village of Marash. It is built in 1883 - the thickness of the walls is 50-60 cm – put up with clay loam and straw bricks, two storied, white - colored, on the road side the roof is supported with bays, there are wooden posts, wooden staircase and tiled wooden peak on the yard side, in the yard – fruit trees, rye-grass, trellis vines, flowers are planted and there is a vine yard also. The house consists of the following rooms: barn with a variety of agricultural tools and devices, weaving workshop, odaja (respite and dining room, drawing room (tavern), cellar (wine cellar) and a penthouse (shade). The Yurdanov 's house is not functioning as a museum house in which tasting is carried out. One of the most popular drinks that could be tasted there is the original Bulgarian yellow lemonade, made by an old recipe from the XVIII c.

On that day:  St. George's Day