MPs approved the transfer of the Bank's Restructuring Fund to the BNB. This happened with a change in the Loan Recovery and Restructuring Act. The change is part of the plan for Bulgaria's accession to the Banking Union, ie the establishment of a so-called close cooperation with the European Central Bank (ECB), whereby Frankfurt should take the watch over the largest banks in the country. This is a condition for the Bulgarian lev to enter the Euro zone. The Restructuring Fund was set up in 2015 and will be used in troubled situations in banks in need of support. If Bulgaria joins the Banking Union, the Fund's funds this year must reach BGN 550 million and will gradually be transferred to the European Restructuring Fund. In order to plan the transfer of the Bank's Restructuring Fund from the Deposit Insurance Fund to the BNB, it is also envisaged to transfer the functions of the Deposit Insurance Fund on establishment of a bridge bank and an asset management company at the restructuring body,

Bulgaria's debt at the end of last year was BGN 24.430 billion, the National Statistical Institute reported. It is 22.6% of the gross domestic product (GDP), which last year reached BGN 107.9 billion. This shows preliminary data for last year. For comparison, Bulgaria's debt in 2017 amounted to BGN 25.9 billion, or more than 25.6% of GDP. It had decreased compared to the previous 2016 when it was considerably high - 29.6%. Last year, the government sector reported a budget surplus of BGN 2.149 billion, or 2% of GDP, which has steadily increased in recent years. Only in 2015 the sector reported deficit of BGN 1.7 billion, and in 2014 it had a huge deficit of BGN 4.5 billion. The surplus in the central government sub-sector, which includes all state-owned enterprises, amounts to BGN 1.9 billion, or 1.8% of GDP.

ICGB, the company developing the Gas Interconnector Greece-Bulgaria project, said that it has picked a joint venture of local companies Ecoengineering, Stroy Control Engineering and Control Engineering to supervise the construction of the gas link. The total cost for the construction supervision activities proposed by the joint venture amounts to BGN 766,000 excluding VAT. Earlier this week, ICGB said that Greece's J&P-Avax has offered the lowest price - EUR 144.85 million - in the tender for construction of the gas interconnector. The other bid, priced at EUR 229.70 million, was filed by a consortium named IGB-2018, which according to previous statements from ICGB comprises Bulgarian construction companies GP Group and Glavbolgarstroy International. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station. The gas link is estimated to cost EUR 220 million overall. The project company has secured a sovereign guarantee of EUR 110 million which could ensure loan financing under preferable conditions.

Bulgaria's Kamenitza, part of U.S.-based Molson Coors Brewing Company, has opened a craft brewery in the city of Plovdiv following an investment of EUR 2 million. The craft brewery is located at a part of the site of Kamenitza's former beer factory in Plovdiv built in 1881 which the company used to operate until 2015. Kamenitza pans to produce around 1,200 hectolitres of craft beer per year in the new brewery, which spreads on 3,500 sq m and has already opened 40 new jobs. In 2015, Kamenitza moved its beer production from Plovdiv to its other brewery located in Haskovo, some 90 km to the southeast. In 2017, Kamenitza sold 30,500 sq m of the land where its former brewery in Plovdiv was built to two local companies but said it would retain ownership of a portion of the land where to build a craft brewery. Kamenitza's portfolio comprises the Kamenitza, Astika, Burgasko and Slavena beer brands as well as the international brands Stella Artois, Beck's and Staropramen.

The Sofia municipality said that it has signed a BGN 549,000 deal with local software company Telelink Business Services to develop and install an air quality monitoring system for the city's needs. The project will benefit from EU funding. The deal was signed on March 27. Two companies submitted offers in the public procurement procedure for awarding the contract. Telelink Business Services is one of the four companies forming the Telelink Bulgaria group. In 2017, Telelink reorganised its business into four new companies - Telelink Business Services, Telelink Infra Services, Telelink City Services and Telelink Labs. In February, the European Commission that it has approved financing of EUR 16.7 million under the LIFE programme for a project aimed at improving air quality in six major Bulgarian municipalities, including Sofia.

Guala Closures Bulgaria, part of Italy-headquartered non-refillable closures maker Guala Closures Group, said that its net profit more than doubled to BGN 2.5 million in 2018 from BGN 1.1 million the year before. Guala Closures Bulgaria's sales revenue grew to BGN 18.9 million last year from BGN 15.8 million the year before. Expenses for materials rose to BGN 8.4 million in 2018 from BGN 7.3 million in 2017, while personnel expenses increased to BGN 4.5 million from BGN 3.3 million. Expenses for hired services grew to BGN 2.5 million last year from BGN 2.0 million the year before. Earlier this year, Guala Closures Bulgaria said that it plans to decrease capital by BGN 4.2 million to BGN 6.22 million. Guala Closures International, part of Guala Closures Group, owns a 70% stake in the Bulgarian subsidiary, while TN Partners holds the remaining 30%.

The Financial Supervision Commission (FSC) is starting an audit of Eurohold Bulgaria AD and its major companies. It said in a statement for the press that the audit has been prompted by the heightened public interest in the possible purchase of the Bulgarian assets of Czech energy group CEZ by Eurohold. The FSC's main objective is to verify the financial condition and capacity of the holding company with future acquisitions in mind, including CEZ Distribution Bulgaria AD and CEZ Electro Bulgaria AD. By law, power distribution companies are part of the national European critical infrastructure with a direct relationship to national security issues. Eurohold Bulgaria was granted exclusivity last week in the talkson possible purchase of the Bulgarian assets of CEZ. It is the third potential buyer after two others - Inercom of Bulgaria and Indian Power, dropped out for different reasons. The first failed to secure an approval from the deal by the national energy regulator amid suspicions over the origin of the money. While Eurohold does not have the reputation problems of Inercom, it lacks any experience in the energy sector - which experts and opposition politicians have been quick to point out. The prosecution magistracy and the State Agency for National Security are informed about the audits and will be informed of the results, as well as of any facts that suggest irregularities.

The company behind the Nord Stream 2 gas pipeline is threatening to sue the EU if it's not allowed to avoid new regulations that it says endanger the billions of euros that have been invested in the project. In a letter obtained by POLITICO, Nord Stream 2 CEO Matthias Warnig wrote to European Commission President Jean-Claude Juncker that if the pipeline is not eligible for a derogation from the new rules, "the measure would be discriminatory against [Nord Stream 2] as an investor" and the EU may be breaking an international treaty. The EU's Gas Directive was revamped earlier this year and extends the bloc's gas liberalization rules to cover new offshore gas pipelines from non-EU countries. It's an effort to bring the contentious Russia-backed project — opposed by the Commission and many Central European countries but supported by Germany — under the EU's regulatory umbrella. The pipeline is to run 1,200 kilometers from Russia to Germany, but the new rules would only apply to the section of Nord Stream 2 in German territorial waters, a stretch of 54km. Nord Stream 2 argues it is eligible for a "derogation" that applies to pipelines that are already "completed" when the new law is expected to kick in this summer.

The Bank of Canada held interest rates steady as expected but removed wording around the need for future hikes and lowered its growth forecast for 2019, cementing the view that rises in borrowing costs are off the table for now. The central bank said economic growth in the first half of 2019 was now expected to be lower than anticipated in January, due to a slowdown in Canada's oil sector, the negative impact of global trade policies and a weaker-than-expected housing sector. It lowered its gross domestic product (GDP) growth forecast for the year to 1.2 percent from 1.7 percent in January, and said it was monitoring the impact of developments in household spending, oil markets and global trade. The bank, which hiked rates five times from July 2017 to October 2018, said it still expects growth to pick up in the second half of 2019, as housing activity stabilizes and consumer consumption is underpinned by growth in employment income. "Given all these developments, the Governing Council judges that an accommodative policy interest rate continues to be warranted," it said in a statement.

China’s economy still faces downward pressure and the government will counter it by deepening reforms and cutting taxes, state television quoted Premier Li Keqiang. The economy grew a steady 6.4 percent in the first quarter, defying expectations of a further slowdown, with factory output, retail sales and investment in March all growing faster than expected following a raft of stimulus measures. “We are keenly aware that China’s economy still faces downward pressure,” Li said. He called for greater confidence but said authorities should not underestimate the difficulties in the economy. China will deepen reforms, cut red tape and implement large-scale tax cuts to help companies, Li said. China’s central bank is likely to pause to assess conditions before making any further cuts in lenders’ reserve requirements, though its easing policy bias remains unchanged, policy insiders said. Economists do not expect a sharp recovery in the world’s second-largest economy, as many private firms grapple with high funding costs, while external demand may weaken in the coming months as the global economy loses steam.