Business Industry Capital
Bulgaria
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BNB Exchange Rates
(12.04.2019) |
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EUR |
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1.95583 |
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GBP |
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2.26979 |
USD |
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1.73635 |
CHF |
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1.73021 |
EUR/USD |
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1.1264* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.04 |
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0 % |
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Financial news |
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The government expects a serious reduction in government debt. According to the medium-term forecast for the period 2020-2022, adopted by the Council of Ministers today, by the end of 2022 the debt should reach BGN 21.6 billion or 15.6% of GDP. According to the budget execution report at the end of 2018, government debt amounts to 20.4% of GDP, which is slightly above BGN 22 billion, of which BGN 16.6 billion are external and BGN 5.5 billion is the domestic debt. The general government debt ratio is expected to continue to decline by the end of 2022, moving from the range of 19.1% to 16.7% of the projected GDP, with the nominal value of the debt stabilized within the range of BGN 23.5-23.1 billion per year, it became clear from the forecast. Over the entire period, the projections for the relative share of consolidated debt to GDP remain well below the Maastricht 60% convergence benchmark, which will ensure that the level of government indebtedness remains within sustainable limits, respectively - Bulgaria's leading position among EU Member States in terms of the low level of debt burden. Source: investor.bg
The government approved an agreement to conduct an economic review of Bulgaria by the Organization for Economic Cooperation and Development (OECD) and proposed to the National Assembly to ratify the agreement. The review will be made due to Bulgaria's membership bid for the organization. The government decision noted that the outcome of the review is expected to improve reforms in all sectors of Bulgaria's socio-economic life and to attract new investments. The reason for this is that such a review sends a positive sign to investors about the stability of the economy and the financial system in Bulgaria. By the end of 2017, the government confirmed Bulgaria's co-operation with the OECD and specified the actions the country should take to join. One of these is the economic review. The review outlines the macroeconomic challenges faced by Bulgaria and examines the links between macroeconomic performance and structural policies in the areas of labor market, competition, innovation, human capital, financial markets, sustainable development, social security, taxation, healthcare and public spending.
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Concessions |
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A consortium of Manchester Airports Group (MAG) and China's Beijing Construction Engineering Group (BCEG) filed a bid in a tender for a 35-year concession contract to run Bulgaria's Sofia Airport worth an estimated EUR 3.9 billion. The consortium's offer envisages the construction of a third terminal at the airport, as well as the development and reconstruction of the existing two terminals. The deadline for submitting offers in the tender expired 14:30 local time on Thursday. Manchester Airports Group operates three airports in Great Britain - Manchester, London Stansted and East Midlands. The combined annual passenger traffic of the three airports totals nearly 60 million. Source: Monitor
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Companies |
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The Financial Times opened its office in Sofia. ‘We looked at different places for this office - in Asia, Europe and the UK before we chose Bulgaria. Sofia’s long reputation as a technology center, together with the development of data industries, artificial intelligence, the revival as the Balkans capital of technologies Sofia - all this makes it an irresistible destination for such an investment,’ said Cait O'Riordan, chief product and information director. By the end of the year, 130 people will be employed to be in charge of the engineering, development, design and economic analysis of the publication. Source: Banker
The European Commission's Innovation and Networks Executive Agency (INEA) has signed two grant agreements with Bulgaria, worth a total of EUR 55 million, aimed at funding two energy projects. The project for construction of a 400 kV interconnection line between Bulgaria's Maritsa East substation and the Nea Santa substation in Greece will benefit from a EUR 28 million grant, while a project for rehabilitation and modernisation of the internal Bulgarian gas transmission network will receive EUR 27 million. Both grants will come from the Connecting Europe Facility (CEF), which is partially managed by INEA. The CEF already co-financed the studies and pre-investment works, and the cost-benefit analysis and business plan for the Maritsa East - Nea Santa power line project. The new funding will support the construction and commissioning of an approximately 123 km long overhead transmission line on the territory of Bulgaria between the substation Maritsa East and the Bulgarian-Greece border connection point.
Bulgaria's Slantse Stara Zagora Tabac is considering the possibility of building a new plant for tobacco products, according to data from the company's invitation for an extraordinary shareholders meeting. The company is seeking approval from its shareholders to acquire a land plot of between six and eight hectares for up to BGN 12 million. If the proposal is approved by the shareholders, Slantse Stara Zagora Tabac will have 18 months to acquire the land plot. The proposal will be put to a vote on May 13. Earlier this year, Slantse Stara Zagora Tabac said that it is planning to launch a capital increase, aimed at raising up to BGN 17.82 million. The company will offer 1.65 million shares with a nominal value of BGN 1 each for subscription at a price of BGN 10.8 apiece. Slantse Stara Zagora Tabac's registered capital currently amounts BGN 1.18 million. Slantse Stara Zagora Tabac is majority-owned by local diversified group Sila Holding, which owned 67.85% of the company at the end of 2018.
Bulgaria's Trace Group Hold said that its wholly-owned unit Infra Commerce has acquired 100% of local acrylic paint producer Himcolor for an undisclosed price. Infra Commerce acquired all 5,000 Himcolor shares with a nominal value of BGN 10. The acquisition was entered into the commercial register of April 10. Himcolor booked revenue of BGN 932,000 in 2017 and closed the year with a net profit of BGN 68,000. Source: investor.bg
Bulgarian state-owned Sofia Tech Park has invited offers for the provision of a BGN 5.1 million five-year loan for capital expenditure, working capital needs, and bank guarantee issuance. Out of the total, BGN 1.5 million should be provided in the form of an overdraft, which the company will use for working capital, Sofia Tech Park said in an invitation for offers. The loan should have an annual interest rate of no more than 3%.
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Bulgarian Industrial Association
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World
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Europe |
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Telenor will enter Finland’s telecoms market after agreeing to buy a controlling stake in the country’s third-largest mobile firm DNA Oyj, completing its presence in the Nordic region. The 1.5 billion-euro deal for a 54 percent stake in DNA marks a further step in the Norwegian company’s drive to focus on its main markets in the Nordics and Asia. Telenor had expanded into other emerging markets, but has recently been selling out of its smaller businesses, exiting India and central Europe and gradually divesting its stake in Veon, formerly known as Vimpelcom. With DNA, Telenor’s revenues from the Nordic region will rise to 44 percent of the total from 39 percent, at a time when Swedish rivals Telia and Tele2 are also expanding, Citi wrote in a note to clients. Telenor, which did not speak to DNA before striking a deal with two of its major shareholders, said on Tuesday it was paying 20.9 euros per DNA share, a 7.4 percent premium to Monday’s closing price. Completing the stake purchase will trigger a mandatory offer by Telenor for the rest of DNA’s shares, valuing DNA at 2.78 billion euros.
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America |
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The number of people who applied for unemployment benefits in the US in early April fell below 200,000 for the first time since 1969, the latest sign that an ebullient labor market remains an island of strength for a slower-growing U.S. economy. Jobless claims, a rough measure of layoffs, fell by 8,000 to 196,000 in the seven days ended April 6, the government said. Economists had forecast a 210,000 reading. The decline in jobless claims follows closely on the heels of government report showing a rebound in job creation in March after a near-hiring freeze in February. The U.S. added 196,000 new jobs last month. Jobless claims have fallen four weeks in a row to the lowest level in 50 years, just a few months after spiking to as high as 244,000. The more stable monthly average of claims, meanwhile, declined by 7,000 to 207,000. That was also the lowest mark since 1969. The last time jobless claims were as low as they are now, the working population in the U.S. was far smaller and the economy looked much different. While changing eligibility standards and other differences in the claims report over time make comparisons with past periods difficult, the low level of layoffs is still quite remarkable. Source: Market Watch
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Asia |
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China’s March consumer inflation rose to a five-month high due to rising food prices, data from the country’s National Bureau of Statistics released Thursday showed. Consumer price index (CPI) in March rose 2.3 percent from a year ago — the quickest pace since October 2018. It was lower than the 2.4 percent rise forecast by economists Reuters polled, but higher than February’s 1.5 percent increase. Food CPI was up 4.1 percent on year in March, up sharply from a 0.7 on-year rise in February due to a seasonal rise in vegetable prices and an on-year rise in pork prices, said the statistics bureau. Farmers in China have been culling their hogs in a bid to stem the spread of African swine fever, driving up pork prices. Non-food CPI was 1.8 percent, little changed from February’s 1.7 percent rise on-year. Producer price inflation (PPI) picked up for the first time in nine months, easing deflation fears amid China’s bilateral trade war with the U.S. However, the People’s Bank of China may ease monetary policy to reach the government’s 3.0 percent inflation target in 2019.
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Indexes of Stock Exchanges 11.04.2019 |
Dow Jones Industrial |
26 143.05 |
(-14.11) |
Nasdaq Composite |
7 947.36 |
(-16.89) |
Commodity exchanges 11.04.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 63.84 |
Heating oil ($US/gal.) | 2.0700 |
Natural gas ($US/mmbtu) | 2.6800 |
Unleaded gas ($US/gal.) | 2.0400 |
Gold ($US/Troy Oz.) | 1 295.80 |
Silver ($US/Troy Oz.) | 14.92 |
Platinum ($US/Troy Oz.) | 898.80 |
Hogs (cents/lb.) | 97.70 |
Live cattle (cents/lb.) | 120.42 |
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April 12, 1877 – Russia declares war to Turkey |
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In the 1870s the fight of the Balkan Christians against the Ottoman reign reached its crucial phase. The Herzegovina rebellion (1875) and the furious suppression of the Bulgarian April Uprising (1876) met a mighty response in Europe. In the same time, as result of the Crimean War, Russia was deprived of its possibility to take active participation in the Balkan problems. Despite the efforts for peaceful arrangement of the argument Russia actively prepared for war with Turkey. On April 12 (24), 1877 Emperor Alexander the Second declared war to Turkey in a manifesto. As early as the next day the Russian army crossed the Prut river and advanced to the Danube river. On June 10 (22) the Russian army crossed Danube and on June 17 (29) Svishtov was liberated. Three battalions were formed. The Eastern detachment, headed by Alexander Alexandrovich, advanced to Rousse, the Western one – lead by general Kridener – towards Nikopol. The Front detachment was commanded by general Gurko, and Bulgarian volunteers were included here. Despite being the smallest, the Front detachment was the most active one on its way to Tarnovo. On July 7 the former Bulgarian capital was liberated and the detachment marched south. At the same time the Ottoman headquarters transferred the army of Suleiman pasha from Northern Albania, as it should pass the Balkan Mountain passes and help the Pleven fortress. The Front detachment happened to the only one to stop the Ottoman’s attack. After liberating Kazanlak, Stara Zagora and Nova Zagora the Front detachment fortified the Shipka pass and prepared the defense. Shipka’s defense was confided to 36th Eagles’ infantry regiment and 5 Bulgarian detachments. Another 200 Bulgarian volunteers joined the fierce battle, and the parts sent by general Radetski entirely broke the Turkish chance and so the Ottomans way to Pleven was cut off. In the same time Pleven faced dramatic turns of the war – after three unsuccessful attacks and thousands of victims the command post was assigned to general Totleben and after putting the town under siege Osman pasha was forced to surrender. Pleven’s liberation had a great strategic and political role. The Russian army advanced fast – passing Etropole, Orhanie (Botevgrad), Sofia (January 4), Plovdiv (January 16) and at the end of January 1878 an advanced guard of the gen. Gurko’s detachment entered Odrin. Worried by the Russians' impetuous invasion and the proximity to Constantinople, the Great Powers forced Russia to join a conference for solving the Balkan matters. On February 19 (March 3) 1878 the San Stefano Preliminary Peace Treaty was signed, which restored Bulgaria as autonomous principality.
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