Financial news

In the second quarter of 2015 there were 330,900 unemployed persons in Bulgaria. The unemployment rate was 9.9%. In comparison with the same quarter of 2014 the number of unemployed persons has decreased by 50,900 and the unemployment rate went down by 1.5 percentage points. In the period concerned the unemployment rate declined for both men and women, and reached 10.9% for men and 8.8% for women. Of the total number of unemployed persons in the second quarter of 2015 some 19,000 (58.9%) were men and 135,900 (41.1%) were women. In the second quarter of 2015 there were 208,800 thousand long-term unemployed persons, representing 63.1% of all unemployed. The long-term unemployment rate was 6.2%, and in comparison with the respective quarter of 2014 it has decreased by 0.4 percentage points. The long-term unemployment rate by sex was 7.0% for men and 5.4% for women. Of the total number of unemployed persons some 48,600 (14.7%) were looking for a first job. In the second quarter of 2015 the unemployment rate for the age group 15 - 29 was 13.9% (14.2% and 13.3% for men and women, respectively).

In the second quarter of the year, the Gross Domestic Product (GDP) of Bulgaria increased by 2.2 % compared to the same quarter in 2014. The GDP, which exceeded BGN 20.9 B, recorded a growth of 0.4 % compared to the first quarter of the year. This is revealed by the flash estimates of the National Statistical Institute, which were released on Friday. The balance of trade in the second quarter of 2015 was negative. NSI is scheduled to publish the preliminary data on GDP in the second quarter on September 4. At the same time, Eurostat also released its flash estimates on GDP growth in the member states of the EU in the second quarter of the year. The figures of Eurostat confirm those of NSI, with the GDP in Bulgaria registering an increase of 2.2 % compared to the same quarter in 2014 and a growth of 0.4 % compared to the previous quarter. The average GDP in the EU-28 increased by 0.4 % compared to the previous quarter and by 1.6 % compared to the same quarter in 2014. Thus, the economic growth in Bulgaria exceeded the EU average figures.

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Concessions

Bulgarian Prime Minister Boyko Borisov announced on Saturday that the oil and gas explorations in the continental shelf of the Black Sea will begin in February next year. Each year Bulgaria spends USD 6.7 B on the import of hydrocarbons, while the country's vast reserves remained unexploited. Borisov pointed to the successful example of Romania, which has already developed its Black Sea shelf and imported only 10 % of its fuel.

Companies

Local gas production for the first six months of the year amounted to 44 million cubic meters, or just over 7 million cubic meters. This amount represents only 3.5 percent of all natural gas delivered in the country for the first six months of the year, Bulgargaz report shows. Besides being small, the share of local production continues to go down. Yoy drop was 31.2 percent compared to the reported yield for the first half of 2014 by 64 million cubic meters. Experts expect that domestic production will fall further. The reason is the depletion of current fields and delays in the start of commercial production of others. One of the most promising fields studied so far is Koynare, prospected by Direct Petroleum (owned by the Canadian Trans Atlantic). It has four sections - Borovan, Vranyak, Gornik and Sadovets. Gornik is only one of the four sections studied completely. 13.7 billion cubic meters are expected from it. On its launch forecasts for jump in the share of local production to 25-30% were made. Compared with the first six months of last year were imported 1,198 bn. cubic meters of natural gas, which is 2.4% less. They represent over 95% of natural gas delivered to Bulgaria at the end of June. Along with amounts used by the Chiren storage facility total gas consumption in the country for the first six months reached a volume of 1,437 billion cubic meters.

After 10 years of interruption, NEC again began with the construction of dam Yadenitsa that may significantly increase the capacity of the operation the largest countervailing facility in Southeast Europe - PSPP Chaira. In the middle of last week, the state company announced a contract update of the detailed design and preparation of technical documents for the award of construction works for the construction of the dam Yadenitsa. The procedure includes a second stage, which provides exercise of supervision during the construction and preparation of project operation. The value of the contract is BGN 3.57 million. 50% of the funds for the overall completion of the dam Yadenitsa will be financed by European funds. In April this year, the Agreement between NEC and the Executive Agency Innovation and Networks at the European Commission came into force by which EUR 3.213 million for the renovation costs of the assessment of environmental impact (EIA) of the project was allocated and thus a permit for construction of the dam was rendered. The winner must provide a bank guarantee for performance of the contract to the amount of 2% of its value, or BGN 70 thousand, while at the same time will receive a 15% advance payment. The deadline for submission of bids is September 25th, and they will be opened on September 28 in the building of the NEC.

Capital of Lukoil Neftochim Burgas  is raised again, while debts of the company to the mother company decreases. It’s a decision made in the end of June at the general meeting of shareholders. The operation is made via apportion of debts to the mother company, the Dutch Lukoil Europe Holdings, to the amount of EUR 900 million, or BGN 1.76 billion. Actually there is no fresh money in the Burgas-based refinery. The operation is technical, as the old debt of the mother company transforms in shares, as the debt decreases. 35 204 940 new shares with a nominal value of BGN are issued against the apportion. These new stakes will be listed and acquired by Lukoil Europe Holdings, as the decision for the maneuver is made back in April. It’s not the first large increase of the capital of the local company. Due to accumulated loss Lukoil Neftochim Burgas’ own capital fell under the size of the share capital and became negative. This made the main shareholder to submit additional capital, which was made in 2012 – the increase back than was by BGN 490.9 million and it was made by giving fresh capital, not by debt conversion. At the end of 2014 the majority owner had 81.26 percent of the shares of the company,  while OAO "Neftenaya company Lukoil" - 18.45%.

After it got permission by BNB and its shareholders deposited BGN 8.2 million, TBI Bank’s capital increase became real and was inscribed in the registry agency on the 10th of August 2015. In that way the company’s main capital reached BGN 78.6 million. The capital increase will let the bank maintains high increase in consumer and target financing of citizens and to enter even more aggressive in the segment of small and medium-sized enterprises. TBI Bank’s main focus is retail banking, micro, small and medium enterprises in Bulgaria. In the autumn of 2013 the bank increased its capital by BGN 5 million, after a permit by BNB which was deposited by TBIF Financial Services B.V, sol owner of the bank’s shareholders capital. The liquidity ratio of the Bank at the end of the year was 40.15%, while the average for the entire Bulgarian banking system was 30.12%. TBI Bank is owned by a company registered in the Netherlands, called TBIF Financial Services BV which operates on the Bulgarian market since 2002 and owns well-known Bulgarian consumer brands TBI Credit, TBI Leasing, TBI Rent.

American business process outsourcing company Sutherland Global Services is about to invest EUR 10 million next year in extending its Bulgarian business, Bulgaria's Economy Ministry said following a meeting between company officials and economy minister Bozhidar Lukarski. The company is planning to extend its Bulgarian workforce by 3000 in the next three years and is currently exploring new locations for its operations across the country. In addition, it is seeking to tighten its cooperation with the country's universities. Currently the company is employing a total of 1,100 employees in its three centres in Sofia and Bulgaria. Sutherland entered Bulgaria in 2008 with the opening of a call center in Sofia serving the European market.

Europe

Ukraine and a group of its largest creditors said on Friday debt restructuring talks would continue after they held detailed discussions in San Francisco. The two sides held negotiations on Wednesday and Thursday in what Kiev billed as the absolute deadline for a deal to restructure $19 billion of sovereign and quasi-sovereign debt. "The Ukrainian delegation and the ad hoc creditors' committee held detailed discussions in San Francisco. Talks are on going," they said in a brief joint statement. The often bitter negotiations have dragged on for five months, snared on whether the bonds' face value should be written down. Kiev has warned it would halt debt payments if an agreement is not reached this week. The latest statement gave no indication if the two sides had moved any closer to an agreement. Crucial debt payment deadlines looming for Ukraine are a $60 million coupon on Aug. 23 and a $500-million bond maturing on Sept. 23.

America

The United States and Cuba will enter a new phase in their long, tumultuous history Friday when the American flag is raised outside the recently reopened U.S. Embassy along this city’s historic waterfront. U.S. Secretary of State John Kerry will oversee the event, which follows a similar flag-raising ceremony outside the Cuban Embassy in Washington, D.C., last month. The events represent the latest steps in the changing relationship between the two nations since President Obama and Cuban President Raúl Castro announced an end to the diplomatic freeze in December. To help the raise the flag, American officials are bringing back three of the U.S. Marines who lowered it 54 years ago when the U.S. cut off ties with Cuba at the peak of the Cold War. A wave of Americans is expected to attend, including members of Congress, businessmen and women and academics who have lobbied for the changes. Supporters of Obama’s reconciliation with Cuba say it’s an unfortunate but necessary move to continue dialogue.

Asia

Alibaba Group has appointed former Goldman Sachs executive Michael Evans to take the reins as president of the group. Since September 2014, Evans has been serving as an independent director of the company. Now he will focus on the company's international growth strategies. Alibaba has a strong presence in China, but the company's top priority is expanding its presence in international markets. Daniel Zhang, Alibaba's CEO, says that globalization will be the key goal of the company in the near future. The company aims to help nearly 10 million businesses around the world and serve over 2 billion customers. "We have been laying the foundation for many years and now we need a global team in place with best-in-class talent to bring our vision to fruition. To that end, I can think of no one better than Michael to help Alibaba become a truly global company," said Zhang. Initially, Evans will develop partnerships with prominent brands, product owners and retailers in Asia, the Americas and Europe. He will work closely with executives in China and ensure that the company provides high quality customer experience to consumers and merchants in China and internationally.

Arapya Camping

The Arapya Camping is located in a picturesque natural bay at the Bulgarian South Black Sea. It is situated between Tsarevo and Lozenets. In the summers Arapya attracts thousands of tourists charmed by the incredibly beautiful nature, the pure sea and beach, combined with a wonderful coastline of hursts, islets and rocks. The camping has a developed infrastructure and offers all the opportunities for the perfect holiday. The fans of seaside sports may enjoy Arapya as it is a lovely place for surfing, scuba diving and fishing.

On that day:  Thracian Beehive Tomb – town of Pomorie