Business Industry Capital
Bulgaria
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BNB Exchange Rates
(16.01.2019) |
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EUR |
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1.95583 |
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GBP |
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2.19694 |
USD |
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1.71204 |
CHF |
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1.73605 |
EUR/USD |
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1.1424* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.01 |
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0 % |
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Financial news |
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Bulgaria annual consumer price inflation slowed down to 2.7% in December, from 3.1% in November, the National Statistical Institute (NSI) said. The average annual inflation in 2018 was 2.8%. On a monthly comparison basis, consumer prices in December remained unchanged, after edging down 0.1% in November. Prices of food and non-alcoholic beverages, which have the largest weight of 31.34% in the consumer basket, rose 2.6% year-on-year in December. Prices of housing, water, electricity, gas and other fuels (18.23% weight) grew 4.6% on the year, while transport prices (8.76% weight) remained unchanged. Bulgaria’s EU-harmonised consumer price index (HICP) rose 2.3% on the year in December and was unchanged compared to the November level.
At the end of September 2018, the total assets of the banking system reached BGN 103.2 billion, increasing by 3.1 billion BGN (3.1%) in the third quarter of the year. This is clear from the latest Bulgarian Bank of Bulgaria (BNB) publication. The data show that the five largest banks in the period held 58.4% of the total assets of the banking system and their market share remained almost unchanged compared to the end of the previous quarter. The share of local banks in the total assets of the banking system increased to 22.3% (from 21.9% at the end of June 2018). The share of EU subsidiaries decreased to 71.6% (against 71.9% as of June). The share of non-EU bank branches (0.1%), branches of EU2 banks (3.0%) and non-EU-owned banks (3.1%) remained unchanged. In the third quarter deposits in the banking system grew by 2.8 (BGN 2.4 billion) to BGN 88.6 billion, the Central Bank reported. Source: Banker
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Companies |
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The Bulgarian Stock Exchange is starting a project for reducing administrative burden on market participants, the BSE chairman said. The project is being developed with European funds and its name is "Single Entry Point". "The purpose of this project is precisely to alleviate the administrative burden on market participants and to ease the access to capital market institutions' services," the chairman said. The BSE has defined the year 2018 as the "year of regulations" and predicts that the present will be "full of challenges".
Up to one year will be the period of the licensing process for NPP Belene project, said Lachezar Kostov, chairman of the Nuclear Regulatory Agency. He explained that if all the documents submitted to the Agency were in order, the license would take no more than a year. "Upon renewal of the project implementation, the process should continue from the approval phase of the technical design of the facility, taking into account the actions that have been carried out so far," Kostov said. When questioning who should request the extension of the license - the owner of NEK or the future investor, he explained that both options are possible and that at present NEK can submit the documents to the Nuclear Regulatory Agency. Taking into account the decision of the Council of Ministers to seek a strategic investor, the newly created company will be able to use the licenses issued to NEK. Source: economy.bg
BDZ ends 2018 with pre-tax profit in the amount of BGN 10 million, the Chairman of the Board of Directors of Holding BDZ EAD announced at a press conference. The company is recording profits and they are growing. The financial position of the company is stable, assured the Executive Director of Holding BDZ. He pointed out that the main goals are improving the organization and the group’s results, based on a 6-year plan. The capital transfer plus the generated funds will be invested in development, repair and payment of debts. The group generates about BGN 350 million a year, half of which comes from state subsidy. The capital transfer is BGN 40 million and the operational liabilities to suppliers amount to about BGN 100 million. The main creditor is the National Railway Infrastructure Company (NRIC), to which BDZ owes BGN 80 million and pays on a repayment schedule. The BDZ's budget for this year will be submitted for approval to the Transport Ministry by 15th February. For its development BDZ still relies on the concession of Sofia Airport, for which the deadline for submitting offers has been extended several times. Source: investor.bg
The European Bank for Reconstruction and Development (EBRD) has a new regional director for Bulgaria and Romania, the bank said on its website. Mark Davies, who is currently an adviser to EBRD Deputy CEO Adams Pollux, will take up his new post on April 1 this year in Bucharest. To date, the EBRD has invested more than EUR 8.3 billion in Romania and nearly EUR 3.9 billion in Bulgaria. Only in 2018 the bank's investments in these two countries amounted to more than EUR 400 million in Romania and over EUR 185 million in Bulgaria. Source: economic.bg
A contract was signed between the Road Infrastructure Agency (RIA) and Avtomagistrali EAD for the construction of 134.14 km of the Hemus highway in the section from Boaza junction to the intersection with the road Ruse - Veliko Tarnovo. Its value is BGN 1.12 mln, excluding VAT and the funds are from the republican budget. The whole amount is in a special account with the BNB. Its resources can only be used to carry out activities on the 134 km stretch of the Hemus highway. There are no payments at this time. The contract will be sent for information to the Public Procurement Agency (PPA) within the statutory deadline of one month from its conclusion. Prior to his signature in the RIA, a positive opinion was received from the PPA. Source: Darik radio
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Bulgarian Industrial Association
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World
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Europe |
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The German government will permanently nationalise motorway truck toll company Toll Collect, Transport Minister Andreas Scheuer said, adding that this would be cheaper than hiring a private operator. The government’s contract with Toll Collect, the world’s first satellite-based truck toll system, expired on Aug. 31. Until then Toll Collect had been 45 percent-owned by German carmaker Daimler, 45 percent by Deutsche Telekom and 10 percent by Vinci unit Cofiroute. The government temporarily nationalised the company when the contract expired but had planned to start a bidding process to find a new operator. Scheuer said the process had been cancelled and the bidders had been informed about the government’s decision. “The last few months have shown that the government is capable of guaranteeing that the toll system can operate well - the system is working perfectly,” Scheuer said. The toll is applied to trucks weighing at least 7.5 tonnes and is levied on about 52,000 kilometres of roads in Germany.
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America |
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Venezuela’s President Nicolas Maduro ordered a 300 percent increase in the monthly minimum wage and pledged to boost oil production to 5 million barrels a day by 2025 during his state of the union address Monday. The salary increase will go into effect this week, Maduro said in a nearly four-hour long broadcast from the country’s national constituent assembly, after raising it six times in 2018. Even so, the new 18,000-bolivar monthly wage is just enough to buy 1 kilogram of ham and amounts to about $7 at the black market exchange rate with annual inflation running at about 240,000 percent. During his address, Maduro said investment from nations such as China, Russia, Turkey and Qatar could help rebuild local industries. “I’m not a wimp, nor a capitalist, but I’m not obtuse,” Maduro said. “If someone offers to bring private capital or offers advice to recover a company, should I not take it?” Since taking office in 2013 following the death of longtime leader Hugo Chavez, Maduro has repeatedly failed in his efforts to overhaul the country’s economy.
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Asia |
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China signaled more stimulus measures in the near term as a tariff war with the United States took a heavy toll on its trade sector and raised the risk of a sharper economic slowdown. The world’s second-largest economy will aim to achieve “a good start” in the first quarter, the National Development and Reform Commission (NDRC) said in a statement, indicating the government is ready to counter rising pressure. Central bank and finance ministry officials gave similar assurances. Surprising contractions in China’s December trade and factory activity have stirred speculation over whether Beijing needs to switch to more forceful stimulus measures, though most analysts believe the government is wary of steps that could heighten debt risks and weaken the yuan. Data on Tuesday showed credit growth remains stubbornly weak, with several key gauges hovering around record lows despite months of policy easing. “
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Indexes of Stock Exchanges 15.01.2019 |
Dow Jones Industrial |
24 065.59 |
(155.75) |
Nasdaq Composite |
7 023.83 |
(117.92) |
Commodity exchanges 15.01.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 52.15 |
Heating oil ($US/gal.) | 1.8700 |
Natural gas ($US/mmbtu) | 3.4000 |
Unleaded gas ($US/gal.) | 1.4100 |
Gold ($US/Troy Oz.) | 1 290.80 |
Silver ($US/Troy Oz.) | 15.63 |
Platinum ($US/Troy Oz.) | 803.60 |
Hogs (cents/lb.) | 66.95 |
Live cattle (cents/lb.) | 127.42 |
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