Business Industry Capital
Bulgaria
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BNB Exchange Rates
(14.02.2019) |
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EUR |
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1.95583 |
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GBP |
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2.23388 |
USD |
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1.73006 |
CHF |
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1.72002 |
EUR/USD |
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1.1305* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.02 |
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0 % |
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Financial news |
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The European Parliament supported an increase of over BGN 3 billion in EU funding for Bulgaria after 2020. The legislative report provides for an increase of the current BGN 14.6 billion to BGN 18 billion for the period 2021-2027. This is the highest budget for regional development, infrastructure, environment and employment since Bulgaria's accession to the European Union so far. Bulgaria ranks among the top three countries with the highest increase in the Cohesion Budget, amid an average reduction of 11% in the EU. The approved text provides for the poorest regions to co-finance only 15% of the value of the projects, although the European Commission has proposed they pay one third. Another important proposal in the legislative report, which gathered support from MEPs, is for Cohesion Policy to help combat the demographic crisis and poverty in the most affected regions. Source: Banker
The average gross monthly wage in Bulgaria has increased by an annual 6.9% to BGN 1,171 in the fourth quarter of 2018, data from the National Statistics Institute (NSI) showed. On a quarterly comparison basis, the average gross monthly salary rose by 4.8% in the last quarter of 2018. The highest average wage, of BGN 2,788, was registered in the information and communication sector, followed by the finance and insurance sector with BGN 1,933. The lowest gross salary, of BGN 705, was recorded in the sector of accommodation and food services. In comparison with a year earlier, the average monthly wages in the public sector grew by 7.4% in the fourth quarter, while the private sector saw an increase of 6.8%. Source: Capital
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Companies |
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Greece's Minister of Environment and Energy George Stathakis has provided the Gas Interconnector Greece-Bulgaria (IGB) with an installation permit for the start of construction works on Greek territory, the ICBG company implementing the project said. The decision will enter into force upon publication in Greece's Government Gazette, which will happen in several days. Bulgaria gave the green light to the construction of IGB on its territory in September 2017. The last step related to the obtainment of permits prior to the start of the construction works in Greece is the acquisition of a licence for independent transmission system operator, which Greece's Regulatory Authority for Energy is expected to issue in the second half of 2019. The IGB project will provide a direct link between the national natural gas systems of Greece and Bulgaria. The pipeline will have an approximate diameter of 813 mm and an overall length of 182 km, with a transportation capacity of approximately 3 bNcm/y of natural gas from Greece to Bulgaria. The project is being implemented by the ICBG AD joint venture company, registered in Bulgaria in 2011 by the State-owned Bulgarian Energy Holding EAD and IGI Poseidon S.A., with each shareholder owning 50 per cent. IGI Poseidon is a Greek-registered company with DEPA S.A. (Greece) and Edison SpA (Italy) as shareholders. Source: Monitor
Bulgaria's Bravo Property Fund REIT has agreed to acquire an office building in Sofia for BGN 71.4 million from local real estate company Office A. The office building, located near The Mall shopping centre, has a total built-up area of 14,479 sq m. The building offers six storeys of office space, a ground floor, and two underground levels with 240 parking spots. The operation of the building is expected to generate annual revenue of at least BGN 4.6 million. Bravo Property Fund REIT will go through with the deal if it successfully attracts financing of BGN 42 million. On Tuesday, the Financial Supervision Commission approved the company's prospectus for a capital increase, aimed at raising up to BGN 36.4 million via the issuance of the same number of shares at a price of BGN 1 each. The capital increase will be considered successful if at least 36 million shares are subscribed for and paid for. In addition, the company is planning to issue a five-year BGN 30 million bond. The non-convertible issue will carry an annual coupon of up to 4%. The financial regulator has not yet approved the company's prospectus. Bravo Property Fund REIT will also seek a one-year BGN 12 million bank loan.
Bulgarian cigarette filters maker Yuri Gagarin said that it has signed two loan deals with local D Commerce Bank worth a total of EUR 10 million. Yuri Gagarin took out a EUR 3.5 million investment loan for financing the purchase of a cigarette filter production line, as well as a EUR 6.5 million working capital loan, the company said. The company has to fully repay both loans by 2029. In addition to cigarette filters, Yuri Gagarin also manufactures multi-colour printed packaging and labels of cardboard and paper for the cigarettes, food, cosmetic and other industries.
Discount chain Lidl Bulgaria announced that it has opened its 94th store in the Saints Constantine and Elena Black Sea resort, and intends to open four more in Pomorie, Tsarevo and Sofia by the end of 2019. Lidl Bulgaria is also continuing the renovation of its existing network, with 18 stores left to be renovated this year. The company has already completed the modernisation of 42 stores. Last year, Lidl Bulgaria opened seven new stores and increased the number of its employees by 200 to 2700. Lidl entered the Bulgarian market in 2010 and currently operates stores in 46 Bulgarian cities. Source: Monitor
Telecommunications company A1 Bulgaria, formerly known as Mobiltel, boosted its earnings before interest, taxes, depreciation and amortisation (EBITDA) by 6.1% to EUR 138 million in 2018. A1 Bulgaria's revenue rose 3.5% to EUR446.2 million last year. The rise was mainly due to higher revenue from equipment sales, which increased to EUR 89.4 million in 2018 from EUR 59.4 million. Capital expenditure rose 6.5% to EUR 86.5 million last year, as it grew by an annual 37.8% to EUR 35.6 million in the last three months of 2018. In the fourth quarter alone, A1 Bulgaria generated an EBITDA of EUR 30.5 million, up 6.1% year-on-year, as its revenue increased by 3.6% to EUR 116.2 million. A1 Bulgaria's wireless subscribers decreased by an annual 1.1% to 3.9 million at the end of 2018. A1 Bulgaria, which used to operate under the Mtel brand, was renamed and rebranded in May, in line with a decision of its parent - Telekom Austria Group, to roll out its A1 brand across all of the group's operations. In Bulgaria, A1 competes with the Bulgarian Telecommunications Company (BTC), which operates under the brand name Vivacom, Telenor Bulgaria - a unit of Czech Republic-based investment group PPF, and local Max Telecom, which was set up by the founder of Mobiltel. Source: Capital
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Bulgarian Industrial Association
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World
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Europe |
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Finance ministers from smaller European Union states on Tuesday opposed a plan to limit governments’ power to block EU reforms on tax matters, in a move that further reduces the chances of introducing an EU levy on large digital firms. EU countries with smaller populations have for years blocked efforts to narrow loopholes that allow tax evasion and in some cases even money laundering in the bloc. Many of them defend their right to decide their own tax laws and attract foreign business by offering sweeteners. In an attempt to break the deadlock, the EU executive commission proposed last month to gradually remove the veto power that states wield on the overhaul of tax rules. But at the meeting in Brussels, Luxembourg, Malta, Lithuania, the Netherlands and Sweden called for maintaining their veto power. The opposition of only one of them would be sufficient to block the planned overhaul in the whole 28-nation bloc. The Commission had proposed to gradually move to majority voting on some minor tax issues, but crucially permitted states to decide on this structural reform by unanimity.
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America |
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The U.S. national debt has topped $22 trillion for the first time in history, according to daily figures released by the Treasury Department on Tuesday. The debt has ballooned by more than $2 trillion in the two years since President Trump took office in January 2017, when the debt stood at $19.9 trillion. It surpassed $21 trillion for the first time in history in March 2018. Under the Obama administration, the national debt grew from $10.6 trillion to $19.9 trillion, an increase that drew sharps criticism from Republicans. In an interview with the Washington Post in 2016, Mr. Trump vowed to eliminate the national debt "over a period of eight years." Top White House economic adviser Larry Kudlow, who joined the White House after the president said he would eliminate the debt, told CBS News last month Mr. Trump probably didn't mean he would eliminate the debt entirely. But the ratio of debt-to-GDP has also increased, something that's unusual in a strong economy. In June 2018, the Congressional Budget Office said in a report that the level of debt as a share of GDP had reached its highest levels since World War II. Michael Peterson, CEO of the Peter G. Peterson Foundation, a fiscal policy think tank, said Tuesday's milestone is only "the latest sign that our fiscal situation is not only unsustainable, but accelerating."
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Asia |
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As North Korea signals a willingness to open up its highly centralized, socialist economy, Vietnam's model of development is being widely suggested as a blueprint for Pyongyang to emulate. Hanoi's ability to retain one-party rule, strict censorship, minimal dissent and a top-down system of control after integrating into the global economy is an attractive prospect for North Korea, according to analysts. If Pyongyang were to ever transition into a market economy, it will likely continue to prioritize regime stability — loosening restrictions on areas such as currency and migration could be politically destabilizing for Kim Jong Un's rule. To gauge lessons for its own future, North Korea has long studied communist governments such as China and Vietnam, countries with state-managed growth that have integrated into the world economy. As Hanoi prepares to host the second U.S.-North Korea summit in late February, experts believe Kim may be more inclined toward Vietnamese-style liberalization. Vietnam's Foreign Minister Pham Binh Minh traveled to Pyongyang on Tuesday following North Korean Foreign Minister Ri Yong Ho's visit to Hanoi last year. That trip was reportedly aimed at studying Vietnam's reforms, according to Yonhap News Agency. Such visits hark back to earlier years such as 2012, when a North Korean delegation visited the Vietnamese province of Thai Binh to examine rural development.
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Indexes of Stock Exchanges 13.02.2019 |
Dow Jones Industrial |
25 543.27 |
(117.51) |
Nasdaq Composite |
7 420.38 |
(5.76) |
Commodity exchanges 13.02.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 54.32 |
Heating oil ($US/gal.) | 1.9500 |
Natural gas ($US/mmbtu) | 2.5900 |
Unleaded gas ($US/gal.) | 1.4800 |
Gold ($US/Troy Oz.) | 1 311.50 |
Silver ($US/Troy Oz.) | 15.60 |
Platinum ($US/Troy Oz.) | 787.80 |
Hogs (cents/lb.) | 59.78 |
Live cattle (cents/lb.) | 126.98 |
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St. Cyril Philosopher |
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St. Cyril, together with his brother Methodius, is the creator of the Glagolitic alphabet. He is canonised by the Orthodox and the Catholic Church as a saint and an Apostle. On December 30, 1980, Pope John Paul II declared Cyril and his brother Methodius co-patrons of Europe. Orthodox Christians revere him as one of the Seven Saints. He was born 827 in Thessaloniki, Byzantium. He studied at the Magnaur school where children are educated by the Emperor and highest Byzantine aristocracy. After completing the Magnaur school, he was ordained a deacon and subdeacon, and he entrusted the Patriarchal Library in the Cathedral St. Sofia (Constantinople). They were assigned various missions. In the monastery of Olympus together with his brother Methodius they created the Slavic alphabet and translated the holy books of the Orthodox Church. In 863 at the request of Prince Rostislav Cyril and Methodius went in Great Moravia to resist the German church and spiritual influence. After completing their mission, passing through Pannonia, they introduce the Slavonic liturgy and train 50 students. At a Spiritual festival in Venice Cyril protects the right of every nation of literature and serving in their own language. Invited by the Pope, the brothers arrived in Rome (end of 867), where Pope Adrian II approves the Slavic liturgical books and liturgy and ordains priests and deacons. Shortly before his death, he accepts "the great monastic Schema" named Cyril, which remains as a saint in the Orthodox and Roman Catholic Church. Cyril dies in Rome on 14 February 869, he was buried in the crypt of the Basilica of San Clemente in Rome.
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