One of the main drivers of Bulgarian economic growth – exports, lose power, according to Eurostat. Bulgaria reported a negative trade balance of EUR 4 billion for the period January - December 2018, compared to EUR 2.4 billion in the same period in 2017. The deficit surge was sharp - by 67%. The main reason for this is the decline in exports to third countries. It was EUR 8.8 billion, the drop being 13%. This lag cannot be offset by the growth of exports to EU countries, which grows by 9% on an annual basis and is EUR 19.3 billion. The total value of exports is EUR 28 billion, an increase of 1% compared to 2017. At the same time last year Bulgaria imported goods for a total of EUR 32.1 billion, 6% more than 2017.

The credit claims of the companies specializing in lending were BGN 2.446 billion as at the end of December 2018, compared to BGN 2.748 billion at the end of December 2017. They decreased by 11% (BGN 302.3 million) compared to the end of the fourth quarter of 2017, rising by 0.5% (BGN 12.6 million) compared to the end of September 2018. Credit loans are also affected by net sales of loans by companies, which for the last twelve months amounted to BGN 92.4 million. On an annual basis, the loans sold amounted to BGN 94.5 million (including BGN 18.5 million in the fourth quarter of 2018), and the purchases - BGN 2.1 million (including BGN 0.4 million in the fourth quarter of 2018), BNB data show. The maturity structure is dominated by loans over 5 years, which are BGN 1.073 billion at the end of December 2018. They increased by 1.9% (BGN 19.9 million) compared to the end of December 2017 and by 1.2% (BGN 12.8 million) compared to the end of September 2018. The relative share of these loans in the total amount of credit claims increased from 38.3% at the end of December 2017 to 43.9% at the end of the same month in 2018.

Bulgarian fund Doverie United Holding has bought a 64 percent stake in Moldovan bank Moldindconbank, Moldova’s financial market regulator said. Moldova wanted to sell Moldindconbank, the country’s second largest bank, to a foreign investor as part of a clean-up of the financial system backed by the International Monetary Fund and other donors. This followed a USD1 billion bank fraud which plunged the country into crisis in 2014-2015.

State-owned Bulgarian Posts said that it has signed a security services deal with local company VIP Security worth BGN 60 million, VAT excluded. The deal was signed on December 21, Bulgarian Posts said in a notice. The procedure for awarding the contract attracted two offers. The second offer was submitted by a tie-up, Union Trans Security, which submitted a significantly better offer in terms of price but was ranked second because VIP Security was awarded a maximum score for technical criteria.

Bulgaria's Bravo Property Fund REIT said that its shareholders have approved the managements proposal to acquire an office building in Sofia for BGN 71.4 million from local real estate company Office A. The proposal was unanimously endorsed by shareholders present at the meeting, which took place on Friday. The office building, located near The Mall shopping centre, has a total built-up area of 14,479 sq m with 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. Last week, 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 fuel retailer Dieselor has installed charging stations for electric vehicles (EVs) at two of its filling stations - in the towns of Novi Pazar and Stamboliyski. Dieselor intends to increase the number of its EV charging stations, the company said in a statement without elaborating. Currently, Dieselor operates six filling stations - in Sofia, Plovdiv, Varna, Novi Pazar and Stamboliyski.

The net profit of the Bulgarian-American Credit Bank (BACB) for 2018 amounts to BGN 12,638 million after tax, which is a 60% growth compared to the end of 2017, the credit institution said. At the end of last year, the Bank's assets reached BGN 1.430 billion, the increase being 15%. BACB's credit portfolio continues its tendency to expand, driven by diversified lending to corporate clients, SMEs and individuals. At the end of 2018 the approved loans from the bank amounted to BGN 907.145 million and registered an annual increase of 18%. Despite the low-interest environment and the continuing downward trend in lending rates, BACB reported steady growth in interest income over the year due to the growing loan portfolio. Net interest income grew by 23% compared to 2017 and reached BGN 35.374 million. Until 31 December the attracted funds increased by 16% on an annual basis and exceeded BGN 1,227 billion. The positive dynamics are also preserved in the bank's capital position - with a growth of 4% (12% on a profit for 2018, according to unquoted accounts) compared to the end of 2017.

The European Commission has announced its LIFE programme will invest EUR 116.1 million in environmental and climate projects. The funding, which will support 12 large scale projects across 10 Member States – Austria, Bulgaria, Czechia, Estonia, Finland, Greece, Hungary, Italy, Portugal and Slovenia – is anticipated to unlock a further EUR 3.2 billion in additional investment. The projects, designed to facilitate the implementation of environmental legislation, will aim to help Member States observe EU rules governing climate change, nature preservation and air and water quality. In total they will be working with an initial budget of EUR 215.5 million, of which EUR 116.1 million will be provided by the LIFE programme. Project coordinators will also be able to mobilise other sources of EU funding such as agricultural and structural funds, regional schemes and Horizon 2020 investment; as well as national funding sources and private backing. Commissioner for the Environment, Maritime Affairs and Fisheries Karmenu Vella said: “LIFE Integrated Projects are a perfect example of EU funds making a real difference on the ground, improving the quality of life of millions of European citizens. The new investment will help Member States to tap into resources to respond to citizens’ concerns on air and water quality and halt the loss of biodiversity.”

As the U.S. seeks to ease trade tensions with China, it risks ramping them up with the European Union. The European Union says that it will respond if U.S. authorities conclude that European cars are a threat to national security and should be hit with punitive tariffs. The U.S. Commerce Department is expected to issue soon an opinion on whether auto imports endanger U.S. national security enough to justify import taxes. U.S. President Donald Trump would then have 90 days to decide whether to impose them. EU spokesman Margaritis Schinas said Monday that if the U.S. goes ahead with "actions detrimental to European exports, the European Commission would react in a swift and adequate manner." The EU and the U.S. have been trying to work out a trade deal but progress has been slow. The Commerce Department began its investigation last year under the same law used to impose higher tariffs on steel and aluminum. Section 232 of the Trade Expansion Act of 1962 gives the president authority to restrict imports and impose unlimited tariffs if a Commerce Department investigation finds a national security threat.

Goldman Sachs Group Inc. Chief Executive Officer David Solomons said the investment banking giant will recover from the the 1Malaysia Development Berhad (1MDB) corruption scandal as it takes a more cautious approach when doing business in developing countries, the Nikkei Asian Review reported on Monday. The executive's remarks follow the legal action pursued by the Malaysian government against Goldman over its alleged money laundering and corruption involvement related to 1MDB. "We continue to examine our business practices as we deal with governments, particularly governments in what I'll call developing economies as opposed to more established developed economies like Japan or the United States," Solomons asserted. "We continue to do business in developing economies- that's part of what Goldman Sachs does... But we'll do it through a different lens based on the experience we had," he added. Goldman Sachs and its former employees Tim Leissner and Roger Ng were sued by the Malaysian government in December. Following the lawsuit, the company issued a statement denying the allegations.