Financial news

According to preliminary data, the upward trend of the production of Meat Industry in Bulgaria was interrupted in 2009, shows the industry report of SFB Capital Market JSC on the development of the sector. Production decreased by 7.7% compared to 2008 but the turnover of the manufacturers grew slightly by 1.2%. In 2009, the increase in import of meat products in Bulgaria continued, and as compared to 2008 it is up 10.3%. Exports of meat and meat products from Bulgaria increased significantly in 2009. Compared to 2008 growth is 68.6%, due mainly to the exported poultry meat, which increased 2.4 times. Preliminary data showed no significant change in sales of the meat processing enterprises on the domestic market in 2009 compared to a year earlier. For more information and orders see: http://sfb.bia-bg.com

The European Commission (EC) and Eurostat, the EU’s statistics office, will dispatch a joint mission to Bulgaria to check the quality of the country’s budgetary statistics and data on which government forecasts are based. The announcement was made by EU Economy Commissioner Olli Rehn at a press conference Tuesday after the meeting of the EU Council on Economic and Financial Affairs in Luxembourg. Bulgaria’s Ministry of Finance (MoF) commented they had anticipated such a mission will take place. Rehn said that Bulgaria will be the first EU country to undergo thorough investigation in line with a mechanism approved yesterday granting Eurostat more power to audit national budget reports.

Electricity prices will rise by 5%. Till the last moment the State Energy and Water Regulatory Commission was positive that the price rise would not be necessary. Yesterday, though, the Commission presented the new calculations, according to which the three energy companies in Bulgaria would increase the rates. The electricity consumption in southern Bulgaria will see the highest increase as the supplier EVN will raise prices by 5.45%. CEZ in Sofia will demand by 5.23% more and the supplier for northeastern Bulgaria E.ON will increase prices by 4.98%. The higher rates of electricity as of July come in a series of other planned dear demands on the Bulgarians pockets.

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

Companies

"The Registry Agency will need about BGN 450 mln for the administrative liquidation of companies that have not re-registered with the Commercial Register by December 31, 2010," Emil Radev, MP from GERB and member of the parliamentary Legal Affairs Committee, said yesterday during a roundtable on the legislative amendments needed to improve the functioning of the Commercial Register. Radev explained that only 17% of the 1.2 million companies existing in Bulgaria have re-registered so far.  If re-registration continues at the same speed until the deadline set in the Commercial Register Act, the Treasury would have to pay for traders who owe liabilities and who have failed to re-register within the set 3-year term.

Maya Hristova, released last Friday by the office of Deputy Minister of Economy, Energy and Tourism, takes the helm of Bulgarian Energy Holding, said her successor - the new deputy minister Mariy Kossev. Yesterday, Economy Minister Traycho Traykov signed the order for her appointment as head of BEH. She will take the post as the executing office of CEO Dobrin Stefkin, who took over after the dismissal of Galina Tosheva. Stefkin will again become Chairman of the Board of Directors, which post was occupied by Maya Hristova. Deputy minister Kossev said that by the end of the month the future development of BEH should be clear. We consider 3-4 options, he explained.

Bulgaria’s Financial Supervision Commission (FSC) will allow clean energy company Energoni to trade on the local stock market. FSC member Kiril Zhelev, who is currently filling in for deputy chairperson Ralitsa Againe, has granted permission to the Bulgarian Stock Exchange (BSE) to allow Energoni’s shares to trade on the market, the regulator said in a statement yesterday. The move comes only months after the FSC blocked the shares until it receives the reasons for the evaluation of the company’s key asset -- a wind farm development patent, whose value bulged from BGN 80 million to BGN 547 million within a few years. The watchdog also ordered examination by an independent auditor of the company’s financial statements to ensure that investors would not be misled by the information revealed by the firm.

The Greek company Actor, which had offered the lowest price for the leg from Nova Zagora to Yambol of Trakia motorway, was chosen as prime contractor. This was announced yesterday by the road agency. The Greeks have offered to make 36-km stretch at record-low price of EUR 60.16 million excluding VAT, which means that one km will cost EUR 1.67 million. For comparison the Bulgarian Trace, which hitherto held the record for the lowest price will make the part from Stara Zagora to Nova Zagora for EUR 2.2 million per kilometer. Yesterday, the technical bids of the participants in the competition for the last section of the Trakia highway from Yambol to Karnobat were opened. At the last auction 13 Bulgarian and foreign companies submitted bids.

Elana Holding has prepaid its EUR 3.46 million bond issue in early June before it matures on June 14, the company said. The maturity of the bond, which was placed privately on June 14, 2006, was extended by one year in 2009. “The bond repurchase was financed by funding from the majority owner combined with long-term bank financing related to implementation of the project that served as collateral for the issuance,” Elana said. The bond was secured by a 2-decare land plot in downtown Sofia, whose purchase was financed by the bond.

Europe

Hungary's prime minister vowed to introduce a flat income tax and a tariff on banks, cut some public pay and ban foreign currency mortgages as he strove to reassure investors he can contain the budget deficit. After sweeping an April election with a two-thirds majority, Viktor Orban unveiled a program departing from that of the previous caretaker Socialist cabinet that cut spending last year after narrowly avoiding economic meltdown in 2008. Despite warnings his center-right Fidesz party's pro-growth strategy could undermine Hungary's pledges to cut its budget deficit under a 20 billion euro international aid package, Orban said boosting jobs and output were key to economic recovery. Struggling to win back market confidence after Fidesz officials rattled investors by warning of a Greek-style debt crisis last week, Orban said he would enact a flat 16 percent income tax over two years, effectively cutting the rate.

America

General Motors Co announced a recall of about 1.5 million trucks, crossovers and cars from model years 2006-2009 because the unit that heats the windshield washer fluid could catch fire. Jeff Boyer, GM director for safety, said GM will remove the unit that heats washer fluid, because the supplier who made the module has stopped manufacturing, leaving no chance to design an improved unit. GM will pay each customer $100 when the heated fluid module is removed at dealerships, Boyer said. The washer is a feature to allow larger vehicles to better eliminate ice and snow on windshields. A GM spokesman said the removal of the module will take a mechanic about 20 minutes, at a cost GM did not estimate.

Asia

China’s passenger-car sales rose at the slowest pace in 14 months in May as falling stock prices and government efforts to cool the economy and property market weighed on consumer sentiment. Demand for cars, sport-utility vehicles and multipurpose vehicles increased 26 percent from a year earlier to 1.04 million units on a wholesale basis, compared with a 33 percent jump in April, the China Association of Automobile Manufacturers said today in an e-mailed statement. The gain was the smallest since March 2009. “A lot of vehicle buyers are looking at the economy and holding back their car purchases,” Marvin Zhu, a senior market analyst at JD Power & Associates, said in an interview before the data was released. Chinese policy makers are trimming stimulus measures this year after a $1.4 trillion lending binge in 2009 revived growth and sent property prices surging.

History Museum in Pazardjik

The History Museum in Pazardjik with its over 33 000 exhibits reveals the colorful historic past of the region as it was centuries ago till now. The exposition is situated in seven halls. The ethnographic exposure is situated in the biggest residential house in the city during the Bulgarian Renaissance. It has been built in 1850 by master-builders from the city of Bratzigovo in a baroque style. The first museum exhibition dates back in 1924. In 1978 the main halls inside the museum were separated. Then were established restoration workshop, special library and photo laboratory. Museum experts are still exploring local customs, culture and means of livelihood that have been typical for the different ethnic groups in the city of Pazardjik and the surrounding area. As the most interesting historic times are considered the Bulgarian Renaissance, the fights for throwing back the Ottoman yoke, the life and deeds of famous Bulgarians who were born there and the newest history. The History Museum in Pazardjik stores some really important exhibits from the Prehistoric Age, Ancient Times and the Middle Ages. There are also very nice collections of outfits, textile, ancient books, ancient weapons and armory.

On that day:  The Town Clock in Sliven Rozhen monastery