Financial news

The average gross monthly wage in Bulgaria increased by an annual 8.4% to BGN 931 levs in the first quarter. Quarter-on-quarter, the average gross monthly salary rose by 1.7% in January-March. The highest wage - BGN 2,125 - was registered in information and communication sector, followed by the finance and insurance sector with BGN 1,639. The lowest gross salary was recorded in accommodation and food services -BGN 576. In comparison with a year earlier, the average monthly wages and salaries in the public sector grew by 6.0%, while in private sector they increased by 9.2%.

Activity rate of Bulgarian population aged 15 - 64 was 68.3% in the first quarter of 2016, remaining the same as in the first quarter of 2015. The employment rate for population aged 15 - 64 was 62.3%, up by 1.3 percentage points from the respective quarter of 2015. The unemployment rate was 8.6%, by 2.0 percentage points lower compared to the same quarter of 2015. There were 1,483,700 economically inactive persons aged 15 - 64, accounting for 31.7% of population in the same age group. Of them 176,400 (11.9%) were discouraged persons. Compared with a year ago the number of discouraged persons (aged 15 - 64) decreased by 14,600. In the first quarter of 2016 there were 2,975,100 employed persons aged 15 years and over, of whom 1,586,100 men and 1,389,100 women. In employment were 53.8% of men and 43.6% of women of the age group concerned. In the first quarter of 2016 the number of employed persons in the industry sector achieved 901,700, representing 30.3% of all in employment. In the services sector worked 1,891,100 persons (63.6% of all employed), while in agriculture, forestry and fishing worked 182,300 (6.1%). Of all employed persons 3.7% (108,900) were employers, 7.5% (223,700) were self-employed persons without employees, 88.1% (2,622,300) were employees and 0.7% (20,300) were unpaid family workers.

Concessions

A draft decision for granting concession on Sofia international airport is on the agenda of a meeting of the Bulgarian government today. The cabinet plans to seek an upfront payment of about BGN 600 million from the future concessionaire to repay debt of Bulgarian State Railways (BDZ). Granting concession on Sofia Airport is one of the options to repay some BGN 460 million of outstanding debt of the struggling state railways company. The use of proceeds from the concession fee on Sofia Airport to repay debt of BDZ constitutes state aid and needs clearance from the European Commission. Bulgaria expects the EU’s executive to rule on the government’s plan in the autumn of 2016.

Companies

Technological company Progress announced that Telerik which it acquired in 2014 already hold the name Progress both in Bulgaria and abroad. In relation with the expansion Progress plans constructing a nine-floor building, which will have an area of11 500 square meters. The new building will be located in Sofia close to the company’s present premises. It will have a capacity of more than 1000 people, as construction will start in the autumn of the present year. Construction of the new building is related to 10 percent increase of Progress’ employees in Bulgaria at annual base. Besides conference halls, space for meetings and open office area, the building will include a data center, too. The company’s plans are trend for extension of team to remain unchanged. By 2020 number of employees in Bulgaria is expected to reach more than 900 people. Progress’ aim is to increase its top talents in the sphere of engineer and business matters, as well as in digital marketing.

Chinese bus manufacturer Zhengzhou Yutong Bus Co. Ltd is considering the construction of a factory in Bulgaria. The Chinese company has entered the Bulgarian market with the supply of 110 urban buses for Sofia public transport company, to be delivered in September 2016. It is already present in France, the UK, Iceland, Romania, Slovakia, Spain, Norway, the Czech Republic and Macedonia. With its strategic location in Europe and its membership of the EU Bulgaria can become a doorway to Europe for Zhengzhou Yutong Bus.With many parts for their buses originating from suppliers in Europe, Zhengzhou Yutong was considering Bulgaria as one of the locations for its future factory. A new factory in Europe will also cut the time needed for the supply of parts, delivery of the company’s output to customers as well as after-sale service. Zhengzhou Yutong Bus Co. Ltd sold 67 018 buses last year, which is 15% of world output. The company specialized in the bus manufacturing business has more than 30,000 employees and operates production plants in 15 countries. It posted turnover of about EUR 6.6 B last year.

Bulgaria’s VMZ Sopot military plant is to officially inaugurate renewed and modernised production capacities in the village of Iganovo. Two new ammunition production factories will be launched in operation in Iganovo, while the plant in the town of Sopot will have a new laboratory. The modernisation is important for the plant because it sets a new stage in the development of the production connected with the introduction of new higher standards for the quality and safety of the work. Two new jobs are opened, too. The inauguration ceremony will be attended by Bulgarian Minister of Economy Bozhidar Lukarski, Deputy Minister of Economy Lyuben Petrov, VMZ Sopot Executive Director engineer Dr Ivan Getsov, District Governor of Plovdiv Dr Emil Kabaivanov, mayors and other officials.

Bulgarian data center and cloud services company Daticum posted sales revenue of BGN 4.7 million for 2015, up by 178% from 2014, its parent company Sirma Group Holding said. Daticum's new customers rose 25% in 2015. "Record-high revenue and steady growth of new customers are a proof that we are on the right path," CEO Rosen Marinov commented. Sirma Group raised BGN 11.4 million in an IPO on the Bulgarian stock exchange, which closed in October. Its shares started trading on Bulgarian stock exchange in December. Sirma Group Holding, founded in 1992 simultaneously in Bulgaria and Canada, employs more than 300. The company is active in semantic technology, mobile applications, enterprise resource planning, business intelligence, electronic government, financial and bank services.

Bulgarian car battery maker MonBat said it plans to distribute a dividend of BGN 0.28 per share, up from BGN 0.15 per share paid out last year. The company also announced a share buyback plan envisaging the repurchase of up to 3% of its total shares at a price ranging from BGN 6 to BGN 8 per share. The goal of the buyback of up to 1.17 million shares is to improve the liquidity of the company's shares. The share buyback plan has been approved by MonBat's board of directors and will be implemented for six months starting June 1, with Benchmark Finance acting as a consultant on the deal. The dividend distribution of a total of BGN 10.9 million should be approved by the company's annual shareholders meeting scheduled for June 27. In 2015, MonBat generated a net profit of BGN 18.4 million, of which BGN 7.5 million will retained by the company.

Europe

The European Commission will study options for a “moratorium tool” that could be applied across the EU, according to a document seen by the Financial Times. While work on the measure is at an early stage, the powers would abruptly halt payments to bondholders and potentially even prevent depositor withdrawals. The tool could have a “stabilising” effect while regulators are preparing a decision on how to intervene at a bank, according to the document dated May 10 drawn up by the Netherlands, which holds the rotating presidency of the EU. “A moratorium … can enable an expedient and successful process that minimises risks to financial stability,” it says. The freeze would not last long, a matter of days at most, say people briefed on the idea. According to EU government officials, the idea is supported by Germany and the Netherlands, which believe it will bolster EU rules that seek to shield taxpayers from rescuing failing banks. At the same time, governments are wary that pulling up the drawbridge too early could shatter confidence at the bank while sending shockwaves through the broader financial system, prompting reservations among some nations.

America

Warren Buffett is backing a consortium bidding for Yahoo's core internet assets. The head of Berkshire Hathaway is among a group that includes Dan Gilbert, the billionaire founder of Quicken Loans. US news reports and the Financial Times said Mr Buffett co-signed a letter from the group and pledged money for a bid. Verizon, private equity firms, and the owner of the Daily Mail have expressed an interest in Yahoo's assets. Last month the search company, hit by falling advertising and weakening investor confidence, shortlisted about 10 potential buyers. News of Mr Buffett's interest could improve Yahoo's sale hopes. He admitted at Berkshire's annual meeting last month that his investment firm had been slow to get involved the new tech industry. Mr Buffett, whose firm has a stake in IBM, said in an interview on 2 May that Yahoo's business had deteriorated significantly and that "something has to change there". But he did not mention any potential bid.

Asia

Mitsubishi UFJ Financial Group Inc. sees full-year profit falling 11 percent as negative interest rates squeeze loan profitability and bad-loan costs increase. Japan’s largest bank is targeting net income of 850 billion yen ($7.8 billion) in the year ending March 2017, it said in a statement Monday. That is lower than the 982 billion-yen average estimate of nine analysts surveyed by Bloomberg. Profit fell 8 percent to 951.4 billion yen last fiscal year, said Tokyo-based MUFG, which also announced plans to buy back shares. Chief Executive Officer Nobuyuki Hirano has been among the biggest critics of the Bank of Japan’s negative-rate policy, saying last month that it has caused anxiety among households and companies and will weaken lenders by narrowing net interest margins that are already among the world’s lowest. MUFG’s outlook is also hampered by the risk of soured loans to the energy industry even as oil prices recover from a two-year rout. “The severe environment with ultra-low interest rates is continuing under the negative interest-rate policy,’’ Hirano, 64, said at a briefing in Tokyo.

Krushuna

Krushuna village is situated next to the Devetashko plateau, where the last slopes of Stara Planina become common uplands, and where the Danube plain begins. It is 34 km away from the town of Lovech. In 1976-77 mineral water was discovered in the southeastern part of the village. The picturesque Maara neighbourhood is located in the southern part of the village. Its high rocks shape up an enormous horseshoe on the edge of the Devetashko plateau. The Waterfall cave is about 800 m away from Krushuna. It is one of the most beautiful caves in Bulgaria. It represents a complex water labyrinth. The water goes through many barriers, forming the magnificent waterfall Krushuna and a cascade of beautiful lakes. The galleries of the cave are originally covered with specific perfectly white shapes, which, on the background of the brown vault arch, create a magnificent view. Besides the Waterfall cave there are also other caves in the region like Urushka maara, Gornik, Devetashka cave, etc., which impress with the size of their entrance halls. Near the village Krushuna there is an eco-path.

On that day:  Batak municipality public holiday Bulgaria’s membership in UNESCO