Financial news

In 2009 the Tailoring industry in Bulgaria reported a significant decrease of the produced output, shows the industry report of SFB Capital Market JSC on the development of the sector in Bulgaria. Compared to 2008 the reduction of the output is by 26%. The trend of increase in import of clothing and tailoring products in 2009 was cut short and the reduction as to 2008 is substantial - by 24.3%. The decrease in export is also significant. Compared to 2008 the slump is by 20.2%. In 2009 the employment in the subsector is nearly 5% lower but the average monthly wage is higher by 21.6% year-on-year. Compared to the non-financial enterprises, the profitability of companies in the subsector is higher in 2008, overall liquidity is higher and indebtedness is lower. For more information and orders see: http://sfb.bia-bg.com

Bulgaria's budget deficit is forecast to increase to BGN 3.2 B at the end of the year, accounting for nearly 5% of the country’s gross domestic product, according to the revised budget law, obtained by local media. Representatives of Bulgaria's cabinet, labor unions and employers, bundled into the so-called National Council for Three-Way Partnership, will debate on Tuesday the revised 2010 budget law as the country battles a deep recession. Bulgaria's budget deficit increased to BGN 1.67 B in the first three months of 2010 due to a fall in revenues and a rise in spending for social payments. The total gap for the first quarter accounted for 2.4% of the country’s gross domestic product (GDP), based on the government's latest forecast for 2010 GDP. The deficit grew by BGN 270 M in March alone.

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

Companies

Bulgaria’s Commission for Protection of Competition (CPC) has imposed a fine of BGN 219,630 on International Fair-Plovdiv, the Bulgarian operator of industrial exhibition halls, which it says abused its monopoly. According to the regulator, the company continued to harm competition through its prices for constructing and renting a stand. “We’re going to pay out fine because we’re guilty. We no longer provide stand construction and follow CPC’s guidelines,” the operator’s majority owner Georgi Gergov told. The fine comes after in 2007 International Fair Plovdiv was served a BGN 300,000 fine for the same violation.

"Under the recommendations of the International Monetary Fund (IMF) and the World Bank (WB), we should narrow the circle of firms that pay VAT," National Revenue Agency Director Krassimir Stefanov told. "We've been recommended to increase the bracket for mandatory VAT registration, which currently is 50,000 levs turnover, and to restrict the voluntary payment of VAT. If all companies operating in Bulgaria register as VAT paying entities, the revenue agency will not be able to control them. I will speak with VAT experts if it is possible to exempt single-person enterprises from VAT registration, even if their turnover is 50,000 levs or, alternatively, to increase this bracket," Stefanov said.

Sofia City Prosecutor's Office submitted an indictment in the Sofia City Court against Toshko Dobrev as an executive director of Sofiiski Imoti JSC. He is accused because as a director of the company has not taken sufficient care for the management of property entrusted to him for making in-kind contribution, representing a real estate. It succeeded substantial damage to Sofiiski Imoti in very large sizes and the case is particularly severe. He is also accused of signing up disadvantageous deal with Sofia France Auto for the swap of real estate owned by Sofiiski Imoti with two cars.

The creditors of Bulgaria’s Plovdiv-based cosmetics maker Alen Mak are starting to sell out the assets of the cash-starved company, which in January suspended bond payments. Creditors have also requested information on whether distribution methods have harmed the company as they provide the bulk of the receivables at the moment. At general meetings held on May 14, Alen Mak’s bondholders empowered custodian banks Corporate Commercial Bank and United Bulgarian Bank (UBB) to commence forceful execution of the pledged properties, buildings, equipment and trademarks. They have also been seeking since March investors to acquire the company’s shares, which are also part of the bond collateral.

Former managers of the Vazov Machine Works (VMZ) in Sopot face lawsuits alleged for large scale abuses, the Plovdiv district prosecution announced. The case is against an unknown perpetrator and is based on the inspection of the armory for the period 2006-2009. Under investigation were ex-managers, as well as members of the board of directors. They will be questioned, and the guilty will be prosecuted. The check was initiated last year by the Agency for State Financial Inspection. According to data from the former executive director Hristo Ivanov, only in 2008 VMZ has accumulated a BGN 18 million loss.

Europe

French President Nicolas Sarkozy has said the country's constitution should be amended, obliging future French governments to set out budgetary targets at the start of each new term. The centre-right leader made the announcement at a "conference on deficits" in Paris on Thursday (20 May), detailing plans that would see newly-installed administrations outline deficit or surplus targets for their five years in office, starting from 2012. The move bears more than a passing resemblance to an initiative carried out in Germany last September, although Berlin's changes go further by including deficit limits within the Federal Republic's constitution. As a result, German governments are now forbidden from running a deficit of more than 0.35 per cent of GDP by 2016.

America

PepsiCo Inc. said that it plans to invest an additional $2.5 billion in China in the next three years on new plants and research facilities as the food and beverage maker builds up its presence in the growing market. The company made the announcement in a news release Friday from Shanghai, site of the Shanghai Expo, where PepsiCo is a sponsor of the USA Pavilion. That planned spending is in addition to the $1 billion investment it announced in 2008 and plans to complete this year. The company's overseas business has become a strong factor in its success, with PepsiCo reporting last month that international growth pushed its first-quarter profit up 26 percent, as people in developing countries bought more of its snacks and drinks. The company, based in Purchase, N.Y., posted double-digit gains in sales of snacks and beverages in India and China.

Asia

Australia has invited Chinese companies to take part in talks on a proposed tax on the so-called "super profits" of the Asian-driven mining boom, after Beijing expressed concern about the levy. Trade Minister Simon Crean said the government was consulting mining companies on the implementation of and transition to the tax -- but that the level at which it kicks in and the 40 percent rate would not change. "Any other company, if it thinks it is going to be affected by this, has the opportunity to make submissions to the panel," Crean said. The proposed tax has angered mining companies which have placed billions of dollars worth of projects on hold or under review as a result and have warned that it will lead to job losses and investment going offshore.

Chiflik

The resort village Chiflik is situated at the most upper course of the Beli Osam River, at the altitude of 750 m, at the foot of Middle Balkan, at the territory of Troyan Municipality. It raises some 160 km northeastern from Sofia, and 15 km southwestern from Troyan. The nature here is extraordinary beautiful, with alpine character. Some natural phenomena, part of the Central Balkan National Park are situated here. The winter here is mild, and the summer – cool, and the air – crystal clear. Close to the village of Chiflik, there is a thermal spring with hot water of 52°C, having quite valuable healing qualities. By structure, it resembles the mineral water of the springs in Gorna Bania, Bankia, Hissar, Momina Cheshma, and Varshets, and may be used for healing a number of diseases.

On that day:  The first Bulgarian woman on Mt. Everest National Museum of Military History