Financial news

The trend of reduction of textile production in Bulgaria continued in 2009, shows the industry report of SFB Capital Market JSC on the development of the sector in Bulgaria. Production decreased by 30% compared to 2008 and the turnover of the manufacturers declined by 28.9%. In 2009 import of textile products significantly decreased. Compared to 2008 it dropped by 19.9%. The downward trend in exports, continued in 2009 as the YoY decrease is 20.2%. Final data for 2008 indicate that the textile products sold on the domestic market by manufacturers represent 22% of their total sales. Workers in the subsector are 16.4% less as compared to 2008. The average wage in the subsector is one of the lowest. For more information and orders see: http://sfb.bia-bg.com

The National Statistical Institute (NSI) has released data showing that the unemployment rate in Bulgaria reached 10,2% in the first quarter of 2010. The NSI statistics show that the number of unemployed people in Bulgaria totaled 341, 000, an increase of 3,8% or 118,000 people compared to the same quarter in 2009. The unemployment rate amongst men reached 10,8%, while amongst women it was 9,5%. Youth unemployment remains the biggest problem in the labor market in Bulgaria – 23,8% or 60, 200 youths aged 15-24 have not been able to find work. The State Employment Agency recently revealed that unemployment has continued to decline slightly for a second month in a row - about 9,95% of the Bulgarian labor force were unemployed in April 2010, the official statistics showed, down from 10,14% unemployment in March.

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

Companies

DB Schenker Rail Bulgaria starts rail freight in the country. The first train of the company, a subsidiary of the largest railway carrier in Europe - Deutsche Ban, will set off tomorrow from Pirdop for Burgas, loaded with copper concentrate. It will be towed by the newest locomotive in Bulgaria - Siemens Series 86. Before it leaves, Deputy Transport Minister Kamen Kichev will officially hand DB Schenker Rail Bulgaria the complete set of documents for the goods: a license for national railway carrier, certificates of insurance coverage and safety and contract for use of railway infrastructure. DB Schenker Rail Bulgaria was registered in Pirdop. Until now it carried out only transit cargo through Bulgarian territory and maneuver activities at Cumerio Med, Stomana and Kaolin. DB Schenker Rail Bulgaria owns five modern electrical locomotives Siemens 86 series and over 100 freight wagons.

The SGS SN – Sofia consortium offered the lowest price for consultations on the rehabilitation of Lot 5 from OP Regional Development for roads III-205 Razgrad – Isperih and II-49 for the Targovishte-Razgrad-Kubrat-Tutrakan intersections. Only three companies fulfilled all necessary requirements for the tender. The offers, opened by the Road Infrastructure Agency, showed the following prices: SGS SN – Sofia consortium – BGN 154,500 /excl. VAT/, Trafic Consult - Varna – BGN 180,554.55 /excl. VAT/, Patinvest Engineering – Sofia – BGN 203,035 /excl. VAT/.

The Greek company Proodeftiki S.A. has lodged an arbitration claim against the Ministry of Regional Development and Public Works (MRDPW) and the Road Agency with the International Arbitration Court at the International Chamber of Commerce in Paris. The company claims EUR 7.8 mln in incurred losses. Proodeftiki was implementing the project for the rehabilitation of the Razlog – Bansko - Gotse Delchev - Sadovo road financed by the EU PHARE Programme. However, the project was stopped in the middle of July 2008 because only 40% of the works had been carried out. The company then demanded an additional EUR 20 mln to complete the section, while the agreed price was about EUR 5 mln.

Red tape and cumbersome licensing procedures are the main hurdles foreign investors encounter in Bulgaria, according to Valentin Georgiev, executive director of the American Chamber of Commerce in Bulgaria (AmCham). US Commercial Counselor Scott Pozil said Bulgaria should focus efforts on encouraging investors that already operate on the market and by offering a large number of integrated offers for potential investors. Georgiev revealed that two years ago AmCham started cooperation with an unnamed company which was eager to pour USD 60 million in the Bulgarian economy. Georgiev noted that the company received no assistance from either InvestBulgaria Agency -- the country’s investment promotion authority, or the local government in the town it wanted to invest in.

Italy’s largest energy utility Enel has denied the announcements that it has shown interest in investing in Bulgaria’s second nuclear power plant Belene. During his visit to Rome on Friday, Bulgarian Prime Minister Boyko Borisov said his government has invited Enel representatives to visit Bulgaria and consider investing in the Belene project, which is temporarily put on hold over the lack of a strategic foreign investor. In a media statement Enel confirms information it has previously shown interest in the Belene project but “is no longer interested.” The company points out that it has started a plan to withdraw from Bulgaria by selling its 73% stake in the Enel Maritza East 3 thermal plant, a Bulgarian coal-fired plant with a capacity of 908 megawatts.

Europe

European Union countries will be required to impose an upfront levy on banks, with the proceeds to be paid into national funds to insure against future financial failures, under proposals to be unveiled tomorrow. The scheme, which could raise billions once implemented, is designed to prevent future bank failures from destabilising the broader financial system. The plan is due to be announced by Michel Barnier, EU internal market commissioner, with the aim of legislating by 2011. The proposal is at a preliminary stage, and any legislation would have to be approved by EU member countries and the European Parliament. The proposal will be controversial, especially if it is not accompanied by similar moves in the US and elsewhere.

America

U.S. mortgage finance enterprises Fannie Mae and Freddie Mac will continue to sustain losses on mortgages as house prices drop, their regulator said in testimony made public on Tuesday. Losses will be especially severe in four states where home values have tumbled sharply: California, Florida, Arizona, and Nevada, said Edward DeMarco, acting director of the Federal Housing Finance Agency, in remarks prepared for delivery to a House of Representatives Financial Services panel. He said Fannie Mae and Freddie Mac have been building loan loss reserves to cover future anticipated losses. DeMarco also said he has "serious concerns" with the quality of Federal Home Loan Banks' investments in mortgage-backed securities issued by financial firms other than the government-sponsored mortgage finance enterprises.

Asia

Relations between North and South Korea deteriorated to their worst condition in years as Pyongyang announced it would cut all ties with Seoul and expel some South Koreans working at a joint industrial park in the border city of Kaesong. The reaction came amid rising tensions after an investigative report concluded that North Korea was to blame for sinking a South Korean naval vessel in March, killing 46 sailors. South Korea on Tuesday resumed propaganda broadcasts across the North-South border. The North has threatened to fire artillery shells at South Korean loudspeakers used in the broadcasts. Pyongyang also said it will resume its own broadcasts.

Mezek Thracian Tomb

The Mezek Thracian tomb is situated about 10 km away from the town of Svilengrad. It is considered to be the biggest and one of the most interesting and impressive beehive tombs of Mycenaean type in Thrace. It is dated back to IV century B.C. It is fully preserved in its original mode. The tomb is known for its distinctive architecture – it consists of one round and two rectangular chambers. Many unique objects made of gold, bronze, iron, glass and ceramics have been found inside of it. Scientists believe that the tomb most probably belonged to a local ruler. One of the most interesting findings in it is a bronze statue of a wild boar, dated back to the middle of the second half of IV century B.C. The statue is in natural size and the coat of the boar is depicted through sheaves shaped like flames, exactly the way they are depicted on one of the jugs from the famous Rogozen treasure.

On that day:  Bansko Anniversary from the death of Panayot Volov