Business Industry Capital
Bulgaria
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BNB Exchange Rates
(22.01.2019) |
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EUR |
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1.95583 |
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GBP |
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2.21491 |
USD |
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1.72138 |
CHF |
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1.72426 |
EUR/USD |
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1.1362* |
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 retained its third position among the European Union (EU) countries with the lowest ratio of government debt to gross domestic product (GDP) and the third quarter of 2018, according to data from the European Statistical Office Eurostat. For the period July-September, the ratio of Bulgaria's government debt to GDP reached 23.1%, compared to 23.8% in the second three-month period of 2018. Over the same quarter of the previous year the ratio was even higher - 26%, compared to the same period of the previous year, or up 2.9 percentage points. The debt is also decreasing on a quarterly basis and on an annual basis - to BGN 24.614 billion in the third quarter. This is by BGN 201 million less compared to the second three months of 2018, but also by BGN 1.178 billion less compared to the July-September period of 2017. The countries with the lowest debt-to-GDP ratio for third quarter of the year remained Estonia (8%) and Luxembourg (21.7%). In 14 Member States the government debt ratio continues to exceed 60% of GDP (government debt below 60% of GDP is one of the numerical criteria for euro area membership). Source: investor.bg
Ministry of Finance proposed to introduce a new class of creditors with amendments to the Bank Bankruptcy Act. They would be holders of a non-preferential unsecured primary debt, which should have a higher priority than the holders of equity and subordinated debt instruments and a lower priority than the holders of other unsecured primary debt instruments. Currently, the texts of the Act do not reflect the specificity of financial instruments with different levels of subordination issued by institutions and businesses in countries with more developed financial systems. According to the reasons for the bill, the amendments relate to the transposition of Directive 2017/2399. The document from Brussels also includes investment firms as well as some financial institutions, financial holdings and mixed financial holding companies to which the rules of general commercial insolvency apply, along with the banks.
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Companies |
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The HyperScience software developer, based in Bulgaria, has attracted USD 30 million investments. This is the last round of the company’s fundraising campaign. With it, the total amount of investments in HyperScience exceed USD 50 million. The management will use the attracted capital to expand their team in their offices in Sofia and New York. Essentially, HyperScience's products are aimed at facilitating some of the administrative processes for businesses. Among the main clients of the company are companies from the financial sector, insurance, healthcare and others. One of HyperScience's largest partners is the US division of QBE Insurance's international insurance group. Globally, its employees are 60, with half of them working in our country. The revenues of the Bulgarian subdivision for 2017 amounted to EUR 2.3 million.
Bulgarian printing and advertising company Billboard has signed a loan deal of up to BGN 2.8 million with state-owned Bulgarian Development Bank (BDB). The company plans to use the proceeds of the loan to finance the acquisition of printing equipment as well as industrial and office properties from Bulgarian company Digital Print located in the city of Varna. Billboard also intends to use part of the proceeds to refinance a loan extended by Eurobank in July 2017. The interest rate on the BDB loan is set at three-month EURIBOR plus 3 percentage points per annum but no less than a total of 4.5%. The loan will mature in 120 months. Billboard has also signed an agreement for a BGN 960,000 24-month credit line with BDB for the payment of local tax, notary fees and value added tax related to the purchase of the office properties. The credit line carries an interest rate of three-month EURIBOR plus 3 percentage points per annum but no less than a total of 4.5%. Billboard, established in 2001, offers wide format digital printing, offset printing and branding of vehicles.
By a final decision of a five-member panel of the Supreme Administrative Court on January 21, 2019, the transaction for the acquisition of Dunarit by Emco is returned for a new ruling of the Commission for Protection of Competition, which in 2016 after some delay approved the change of control. This means that the anti-monopoly regulator will start a new case in order to comply with the reasons for the decision of the Supreme Administrative Court. For the most part, the court battle is taking place between Emco (which in 2016 declared an increase in the capital of Dunarit by BGN 60 million) and the offshore Viafot Limited (which, based on a buy-out taken from the factory, blocks through the court any entries in the Commercial Register). Dunarit was part of the former Corporate Commercial Bank, with nearly BGN 90 million liabilities to the bank. Source: Capital
The three companies that have shown interest in the expansion of the Turkish Stream pipeline in Bulgaria have not registered enough quantities to generate an economic benefit from the implementation of the project. This became clear after the completion of the first stage of the market test, which was expected to determine whether the project could be economically justified. Bulgartransgaz, which has to build the project for the new transit pipeline from the Turkish to the Serbian border, explained that they changed the terms for the next stage. The cost of reserving the capacity of the pipeline will be reduced, and the time will be increased from 15 to 20 years. The total project cost is expected to be BGN 2.8 billion.
Some Romanian small and medium-sized companies have been considering moving their businesses to Bulgaria because of fiscal and legislative changes adopted in Romania recently. Florin Jianu, the president of the National Council of Small and Medium-sized Enterprises in Romania said. In addition, the problem for Romanian companies is the rise of electricity and telecommunications prices, as well as banks' reluctance to lend loans. "Bulgaria has a permanent tax system - nothing has changed over the past 12 years," Jianu said. Source: BNR
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Bulgarian Industrial Association
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World
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Europe |
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Negotiations over the European Union's Copyright Directive have been shelved as 11 member states now line-up in opposition to the proposed overhaul of the copyright regime across the EU. Germany, Belgium, the Netherlands, Finland, Slovenia, Italy, Poland, Sweden, Croatia, Luxembourg and Portugal voted against a compromise text proposed by Romanian diplomats last week and, with so many countries lining up to block the proposal in its current form, talks have been put off. The European Commission claims that EU copyright rules are in need of modernisation "fit for the digital age". The rules would be updated via both the Directive and a regulation - an EU edict that is implemented and enforced directly into member states' laws. The Commission claims that the new copyright rules will make it easier for copyrighted materials to be used in education, research and what it calls "cultural heritage". However, opponents of the Copyright Directive claim that the new rules will come at the cost of individual online rights, and will ratchet up online censorship and control. Source: Associated Press
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America |
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President Donald Trump signed a bill into law aimed at accelerating development of a new generation of advanced nuclear reactors. The Republican administration's efforts to revive the coal industry clash with Democrats’ plans to address climate change and transition to clean energy. So this marks a rare instance of cooperation between the two parties, and the second instance of cooperation on advanced nuclear in the last four months. The Nuclear Energy Innovation and Modernization Act calls on the Nuclear Regulatory Commission to make its review process "technology-inclusive" by 2028. The process was designed for the light water reactors that ruled the industry for the last half-century, but new reactors emerging from labs and startups use fundamentally different technologies. The law also calls for more transparency on the costs and timelines of NRC reviews. Source: Associated Press
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Asia |
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Japan has started the process of importing Iranian oil, which was suspended due to U.S. sanctions, the governor of Iran's central bank said. The resumption of oil imports comes after Tokyo was granted a waiver from U.S. sanctions that went into effect in November. Iran is the fourth-largest oil producer among the members of the Organization of the Petroleum Exporting Countries. "After China, South Korea, India and Turkey, Japan also started the process of importing Iranian oil, " Abdolnaser Hemmati said. Iran's oil exports have fallen sharply since U.S. President Donald Trump said in May 2018 the United States would withdraw from a pact curtailing Iran's disputed nuclear program and reimpose sanctions on Tehran. However, exemptions have been granted to Iran's biggest oil clients — Japan, China, India, South Korea, Taiwan, Italy, Greece and Turkey — which allow them to import some oil for another 180 days.
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Indexes of Stock Exchanges 18.01.2019 |
Dow Jones Industrial |
24 706.35 |
(336.25) |
Nasdaq Composite |
7 157.23 |
(72.77) |
Commodity exchanges 18.01.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 53.51 |
Heating oil ($US/gal.) | 1.9000 |
Natural gas ($US/mmbtu) | 3.3300 |
Unleaded gas ($US/gal.) | 1.4300 |
Gold ($US/Troy Oz.) | 1 278.70 |
Silver ($US/Troy Oz.) | 15.22 |
Platinum ($US/Troy Oz.) | 794.50 |
Hogs (cents/lb.) | 66.28 |
Live cattle (cents/lb.) | 127.38 |
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