Bulgaria is experiencing imbalances. Vulnerabilities in the financial sector are coupled with high indebtedness and non-performing loans in the corporate sector. Meanwhile, the Bulgarian economy continues to grow- this country’s gross domestic product is expected to see a 3.6% increase in 2019 and 2020. The GDP debt ratio is expected to be around 26% which is one of the lowest in the European Union. The next external position has improved on the back of robust growth and large current account surpluses. While there is progress in addressing sources of imbalances, the full implementation and monitoring of recent reforms to supervision and governance in the bank and non-financial sectors will be crucial. More action is also needed to reduce the stock of non-performing loans and to complete the reform of the insolvency framework, the EC First Vice President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union said in his report on the Member States’ progress on economic and social priorities.

In January 2019, the Base Interest Rate (BIR) was 0.00 per cent, remaining unchanged compared to January 2018 and December 2018, the Bulgarian National Bank said. In January 2019 compared to January 2018, in the non-financial corporations sector the average interest rate on deposits in leva with agreed maturity decreased by 0.17 percentage points to 0.09 per cent and that on deposits in euro, by 0.11 percentage points to 0.13 per cent. The average interest rates on household deposits in leva and euro with agreed maturity decreased respectively by 0.03 percentage points and 0.04 percentage points to 0.16 per cent. In January 2019 compared to the same month of 2018, in the non-financial corporations sector the average interest rate on loans up to 1 million euro dropped by 0.01 percentage points to 3.94 per cent for loans in leva and by 0.75 percentage points to 2.80 per cent for those in euro. For loans over 1 million euro, the average interest rate dropped by 0.46 percentage points to 2.73 per cent for loans in leva and by 0.95 percentage points to 3.63 per cent for those in euro.

Bulgaria's government has approved the transfer of the concession rights and obligations for the Bobov Dol section of the Bobov Dol coalfield to local company Grand Energy. The rights will be transferred upon the request of their current holder - Vagledobiv Bobov Dol, the government said. The government will propose changes to the contract's clauses, which envisage expanding the scope of the bank guarantee provided by the concessionaire, in order to cover both monetary and non-monetary obligations. Vugledobiv Bobov Dol signed a 35-year concession contract for the Bobov Dol section in 2005. According to commercial register data, Grand Energy is fully owned by private individual Aleksandar Spasov. Vagledobiv Bobov Dol is a wholly-owned unit of local Vugledobivna Kompania, which in turn is fully owned by Great Britain-registered Carlington. Last year, the government transferred all rights and obligations under a 35-year coal mining concession contract for the Minyor section of Bobov Dol coalfield to Sliven-based Trash Energy from Bobov Dol-registered company Fundamental.

The shareholders of the copper-miner Asarel-Medet AD have approved the management's plan to launch a share repurchase programme worth up to EUR 100.5 million. The proposal, targeting up to 14.7% of the company's capital, envisages buying back up to 591,240 own shares in the price range of EUR 170 to EUR 200 apiece. Asarel Medet was set up in 1991 and is based in Panagyurishte, in southern Bulgaria. In June 1999, the company was acquired by Asarel-Invest – a joint stock company majority owned by VA Copper Invest - a subsidiary of Austria's VA Intertrading. Malta-based VA Copper Invest owned a 67.91% stake in Asarel-Medet at the end of 2017, according to the latest available data from the commercial register.

Kaufland Bulgaria opened its first hypermarket in Veliko Tarnovo, which is the 59th site of the chain in the country. The investment is about BGN 25 mln and will open over 100 new jobs, the company said. The new hypermarket has about 6,000 square meters of which a little more than 3000 square meters are commercial area and over 250 parking spaces. There is a free-of-charge electric vehicle charging station, a children's playground and a special walkway for visually impaired people. The hypermarket is located on the site of the unfinished surgical block of the city hospital, which Kaufland bought in 2016 at an auction for BGN 5.8 mln. It has a size of 18.9 decares and is located on the main road Sofia - Varna. Kaufland Bulgaria plans to expand its logistics base in the village of Stryama, to work on building its fifth hypermarket in Varna and to continue with the modernization of its sites throughout the country.

Sofia-based Morski dar 09 built a new production and warehouse base in the village of Gorni Bogrov. The official opening is scheduled for 3 March - the date of registration of the company in 2003. "The investment is for EUR 1.5 million of own and borrowed funds," said owner Hristo Radkov. The new fish processing plant occupies a 1350 square meters area, of which 600 square meters are provided for a modern refrigeration base. The production is equipped with machines for filleting and cleaning of fish, for packaging in a protected environment, for vacuuming etc. The investment will add at least 10 new jobs to the existing 60. The beginning of the company activity was 16 years ago through Vicky - Hristo Radkov ET. In 2009 the company was transformed into Morski dar 09 EOOD. The main activity is sale of chilled and frozen fish and fishery products, and the management team includes the brothers of the owner - Radoslav and Bozhidar Radkovs.

Bulgarian Technology Company BIODIT has submitted a prospectus for the initial public offering of shares on the Bulgarian Stock Exchange (BSE) in the Financial Supervision Commission (FSC). BIODIT, which specializes in the development of the most technological biometric access control systems and working time, based on biometric identification, will seek up to BGN 2.42 million from investors. Besides the start-up company, another 12 small and medium enterprises are expected to submit stock listing documents on the Bulgarian stock exchange. The technology company is also the first to benefit from the grant for listing on the stock exchange on the initiative of the Executive Agency for the Promotion of Small and Medium-Sized Enterprises. Its clients are companies such as Аllіаnz, Lехus, Rаіffеіsеn Ваnк, Nеt 1, United Milk Company, Madjarov, and others. An investment intermediary will be Karroll.

In its annual assessment of the economic and social situation in the Member States, the European Commission today stresses the need to promote investment, pursue responsible fiscal policies and implement well-designed reforms. Challenges vary significantly across countries and call for appropriate and determined policy action. This review of country-specific challenges comes against the backdrop of a European economy that is expected to grow for the seventh consecutive year in 2019, but at a more moderate pace. Employment is at a record high and unemployment at a record low. Public finances have also improved across the board, although some countries are still facing high levels of debt. However, challenges remain. Productivity levels remain subdued, population ageing is intensifying and rapid technological change is having a significant impact on labour markets. Real household income remains below pre-crisis levels in some Member States. Youth unemployment has been significantly reduced, but is still unacceptably high in some Member States.

An advanced look at U.S. trade patterns in December showed a 12.8% increase in the nation's trade deficit. The advanced trade gap in goods - services are excluded - climbed to $79.5 billion from $70.5 billion in November, the U.S. Census Bureau said Wednesday. A bigger deficit subtracts from gross domestic product, the official scorecard for the U.S. economy. The bigger trade gap in December could led to GDP estimates being lowered. An advanced look at wholesale inventories, meanwhile, showed a 1.1% increase in December. And an early look at retail inventories reflected a 0.9% gain in the final month of 2018.

China, Russia and India agreed to strengthen trilateral coordination and cooperation to bring more stability and positive energy to the volatile international landscape. State Councilor and Foreign Minister Wang Yi, Russian Foreign Minister Sergei Lavrov and Indian External Affairs Minister Sushma Swaraj reached consensus on a wide range of issues for cooperation when they met in Wuzhen, Zhejiang province. The three countries agreed to firmly uphold multilateralism and the international system with the United Nations at the core, as well as the basic norms of international relations including the principle of noninterference in the domestic affairs of other countries, Wang told reporters at a joint news conference with the other two ministers after their meeting. They agreed to intensify communication and coordination within the multilateral platforms such as the Group of 20, Asia-Europe Meeting, Shanghai Cooperation Organization and BRICS-the association of the five major emerging economies of Brazil, Russia, India, China and South Africa-to ensure the mechanisms develop in the right direction, Wang said.