Business Industry Capital
Bulgaria
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BNB Exchange Rates
(21.03.2019) |
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EUR |
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1.95583 |
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GBP |
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2.26684 |
USD |
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1.72259 |
CHF |
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1.72502 |
EUR/USD |
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1.1354* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.03 |
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0 % |
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Financial news |
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Another stage in Bulgaria's efforts to join ERM II and the euro area: the government approved a draft Law on the Amendment and Supplement to the Restructuring and Restructuring of Credit Institutions and Investment Intermediaries Act. This is a measure that is part of Bulgaria's plan for joining ERM II and the Banking Union. The draft law provides that, in carrying out their tasks and exercising their powers, national restructuring bodies shall apply the European regulation until the date of close cooperation with the European Central Bank. One of the measures envisages that the Bank Restructuring Fund will be transferred to the Bulgarian National Bank and it will be split into two sub-funds. One Fund will finance the implementation of the restructuring instruments and powers under the Restoration and Restructuring of Credit Institutions And Investment Institutions Act only in respect of branches of third-country credit institutions. The other Sub-Fund will receive contributions in accordance with the European Regulation and their transfer to the Single Fund for Restructuring. Source: investor.bg
Bulgaria’s exports doubled in the past ten years and exceeded EUR 28 billion per year, this country’s Deputy Minister of Economy Alexander Manolev announced during the opening of a business forum for Central and Southeast Europe held in Sofia. Bulgaria’s gross domestic product increased with EUR 15 billion in the abovementioned period. Turkey is the only non-EU country which places among the ten biggest importers of Bulgarian produce. Despite the good relations with its neighbors Bulgaria has the potential to boost economic cooperation with these countries, Alexander Manolev underlined. For the purpose, Bulgaria opened a new trade representation in North Macedonia this year, Deputy Minister Manolev further said. Source: BNR
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Concessions |
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Bulgaria's government has awarded a five-year oil and gas exploration licence to SPM Bulgaria for onshore block 1-25 Vratsa-West, in the country's northwest. SPM Bulgaria will invest EUR 7.4 million in exploration works during the five-year period and will pay EUR 210,000 upon signing the contract for the licence. The company plans to carrying out 2-D and 3-D seismic study on the block.
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Companies |
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Canadian Velocity Minerals has acquired 70% of the Rosino gold mining project in southeastern Bulgaria. The company has entered into a shareholding agreement with its partner Gorubso - Kardzhali, which becomes a shareholder in Tintyava Exploration, the company that holds the search and research rights in the Tintyava area, part of which is the Rozino section. The new shareholder is not yet listed in the Commercial Register. The Tintya Exploration Company, which until now was the sole owner of Gorubso-Kardzhali, received the search and research rights in 2017. The activities themselves were funded by the Canadian partner through its subsidiary, Kibela Minerals, which is now virtually a shareholder in Tintyava Exploration. Last September, the Canadian company presented the full preliminary economic assessment of the Rosino project, which gave it the right to exercise the option to acquire 70% of it. Source: Capital
Bulgaria's Forucom REIT said that local K1 Industrial Park has acquired 100% of the company via transactions on the Bulgarian Stock Exchange on March 14-15. K1 Industrial Park acquired a total 1,809,740 shares in the real estate investment trust. According to BSE data, K1 Industrial Park acquired 1,809,715 Forucom REIT shares for some BGN 2.15 million on March 14, and a further 25 shares for BGN 30 on March 15. K1 Industrial Park is a wholly-owned unit of local Besatur. Besatur was majority owned by Petrochim Trade at the end of 2017, when the company held 77.37%.
For the first time in many years, BDZ will have an accounting profit, the Chairman of the Board of Directors of Holding BDZ said. BDZ Passenger Services records stable revenues at the same level, with a slight increase. Passengers have also increased by about 500,000, which is a rise by about 2.5%. Operational profits of Passenger Services remain within BGN 20 million and the subsidy remains unchanged - BGN 175 million. The capital transfer, scheduled for repair is within BGN 39 million. More revenues compared to the past year are also planned in the BDZ Freight Services, by about 15%. Source: Trud
138 medium and small Hydro Power Plants including the state-owned Tsankov Kamak are threatened with closure soon, Hydro Energy Association warned. The reason is the Water Basin Act introduced in 2010 that the Regional Basin Directorates can refuse to continue with the water abstraction permit if the water source falls into a protected area, no matter where it is. Most of these areas coincide with Natura 2000, but there are others as well. This provision applies only to the HPPs that were put into operation after 2010. Water use permits have begun to expire recently and there are already cases of refusal of extension, said Boyan Karshakov, chairman of the association. The case also threatens the hydropower facility of National Electricity Company Tsankov Kamak, which started operating in 2013. Source: 24 chasa
TPP Maritsa East 2 is looking for bank loans in the form of overdraft. It will be limited to BGN 25 mln. The intention of the plant is to use the overdraft as working capital - for the purchase of raw materials, resources and other goods necessary for the functioning of TPP. The loan has nothing to do with the money it needs to buy greenhouse gas emissions - a cost that was about to bankrupt the company. The main requirement of the state-owned plant is not to seek collateral on the loan. The first position is for BGN 15 million and the other for BGN 10 million. The contracts are expected to enter into force either from the date of conclusion or at the latest by 7 May. Salvation of TPP Maritsa East 2 will be expensive and its return to life will again be paid by the parent company - the Bulgarian Energy Holding. For this purpose the megastructure plans to increase the capital of the plant by about BGN 600 million. Before that happens, Bulgaria needs to get permission from Brussels. Source: Sega
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Bulgarian Industrial Association
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World
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Europe |
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Germany plans to pass legislation by the end of 2019 to create a state-owned fund that can protect key companies from takeovers by Chinese and other foreign firms, government sources said, in a marked shift from its “hands-off” approach to business. Economy Minister Peter Altmaier proposed the fund in February as part of a more defensive industrial strategy and three officials told Reuters the government was now working on draft laws so the fund could be up and running next year. Two senior government officials, who spoke on condition of anonymity, said the idea was for the state-owned investment fund to work with the private sector when buying company stakes to foil unwelcome takeovers. One official said the state could buy a stake initially and then sell it on as soon as possible to private investors while the other official said in some cases the fund could work with private investors from the start.
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America |
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Top U.S. and China negotiators are planning new rounds of talks starting next week to end a trade dispute between the two nations, the Wall Street Journal reported on Tuesday. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin expect to fly to Beijing the week of March 25 to meet with Chinese Vice Premier Liu He, who will pay a return trip to Washington, D.C. the following week, the report said, citing Trump administration officials. Talks between China and the United States are in the final stages, with a target date for a deal by the end of April, according to the report here Washington and Beijing have slapped import duties on each other’s products that have cost the world’s two of the largest economies billions of dollars, roiled markets and disrupted manufacturing and supply chains. Representatives of the U.S. Treasury and Office the U.S. Trade Representative could not be immediately reached for comment. The White House had no immediate comment. Source: Wall Street Journal
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Asia |
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Rising Russian and U.S. competition has pushed Saudi Aramco to find new buyers for its oil in China, encouraging a shift toward independent refiners and newcomers to the business. It reflects a new strategy for the Saudi Arabian oil giant after years of dealing almost exclusively with major state-owned Chinese energy firms, industry sources say. But the change in tack may not offer the same returns. Aramco’s new partners lack the scale and marketing reach of PetroChina and Sinopec Corp, the state-run firms that dominate China’s refining, petrochemical and retail fuel business, analysts say. Aramco had been talking to PetroChina for years about a refining venture in Yunnan province in the southwest, but industry sources said the plans had been effectively shelved due to poor economics and disagreement over marketing rights. Aramco, which did not immediately respond to a Reuters request for comment for this report, has instead turned to new and independent players in China’s refining and petrochemical industry.
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Indexes of Stock Exchanges 20.03.2019 |
Dow Jones Industrial |
25 745.67 |
(-141.71) |
Nasdaq Composite |
7 728.97 |
(5.02) |
Commodity exchanges 20.03.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 60.22 |
Heating oil ($US/gal.) | 2.0100 |
Natural gas ($US/mmbtu) | 2.8300 |
Unleaded gas ($US/gal.) | 1.9000 |
Gold ($US/Troy Oz.) | 1 317.90 |
Silver ($US/Troy Oz.) | 15.57 |
Platinum ($US/Troy Oz.) | 870.60 |
Hogs (cents/lb.) | 90.25 |
Live cattle (cents/lb.) | 123.38 |
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