Business Industry Capital
Bulgaria
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BNB Exchange Rates
(07.05.2019) |
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EUR |
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1.95583 |
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GBP |
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2.27992 |
USD |
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1.75332 |
CHF |
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1.71820 |
EUR/USD |
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1.1199* |
ECB exchange rate |
Basic Interest Rate |
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as of 01.05 |
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0 % |
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Financial news |
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The BNB imposed supervisory measures on five Bulgarian banks due to violations last year. This became clear from the annual report of the central bank for 2018, which was submitted on April 30 to the National Assembly. The report does not mention which are the banks. It is known that last year, ‘Banking Supervision’ carried out nine on-site inspections to trace how the prescribed prescriptions were met in the latest stress tests following the collapse of the CCB. Thus, more than half of the respondents have received new supervisory measures. The controls were focused in particular on the concentration of credits. ‘There is a need for some banks to improve their overall approach to the process of internal risk analysis and capital adequacy,’ the report said. Source: Sega
The cash-based consolidated fiscal program (CFP) as of April 2019 is expected to be positive at BGN 2.678 billion (2.3% of projected GDP), the Ministry of Finance reported. The explanation is in the specifics of the tax calendar and recovered aid from the European Commission. CFP revenues and aid in April 2019 are expected to be BGN 15.1 billion, which is 34.5% of the annual estimate. Compared to the same period last year, the increase is by BGN 2.1 billion, both for tax and non-tax revenues. Based on the available preliminary estimates, tax revenues reported an increase of BGN 1.09 billion, non-tax revenues - BGN 672.9 million, and income from grants and donations - BGN 378 million. Expenditures are BGN 12.4 billion or 28% of the annual plan, as the Finance Ministry reminds that it is usual for them to accelerate in the second half of the year. The nominal increase compared to April last year (BGN 11.7 billion) is due to the increase of the budget wages by 10%, the increase of the teachers' salaries. The part of Bulgaria's contribution to the EU budget paid to the central budget as of 30.04.2019 amounts to BGN 536.6 million.
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Companies |
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TPP Varna Jsc. owes BGN 6.63 million to state-owned Bulgargaz for consumed but unpaid natural gas as of March 31, 2019. This is clear from the financial statement of the state-owned supplier for the first quarter of the year. Overdue liabilities are estimated at BGN 5.26 million. The latest data in the Commercial Register show that Ahmed Dogan, honorary chairman of the Movement for Rights and Freedoms, is part of the board of directors of TPP Varna. The mandate of the council expires on December 21, 2022. The owner of the plant is Sigda Ltd. Ahmed Dogan has the largest share in it. His partners are the children of the former transport minister Danail Papazov. Otherwise, Toplofikatsia Sofia has the biggest debts to Bulgargaz for unpaid gas - a claim amounting to nearly BGN 94 million, out of which over BGN 51 million are overdue. Toplofikatsia Burgas and Toplofikatsia Vratsa owe BGN 6.04 million and BGN 5.81 million respectively. The other counterparty with a larg obligation is Lukoil Neftochim Burgas - BGN 14.21 mln. Source: Banker
Sin Cars prepares the construction of a high-tech factory for production of electric and hybrid cars in Rousse. The production line should start in 2020. The initial investment is over BGN 10 million and will reveal between 50 and 100 new jobs. The company can now boast several successful models. The optimized manufacturing process in the new factory will allow for quick and easy assembly of the different platform variants using standard materials. The new L-City production line is designed with an annual capacity of 20,000 cars to be targeted at the European market. One of the leading goals in creating the L-city project is engaging in the cause of protecting the environment, reducing emissions in cities and creating a healthier living environment. Source: economic.bg
Bulgarian diversified group Synergon Holding has received anti-trust clearance to acquire liquefied petroleum gas (LPG) retailer V-Gas Bulgaria. The regulator's decision can be appealed within 14 days of its publication. V-Gas Bulgaria is a wholly-owned subsidiary of local Erast. Erast was the second-largest shareholder in Synergon Holding at the end of 2018, with a stake of 7.26%. V-Gas Bulgaria generated sales revenue of BGN 97.9 million in 2017, up from BGN 73.9 million the year before. The company ended 2017 with a net profit of BGN 753,000, which compares to BGN 305,000 in 2016. Synergon Holding was set up in 1996 as a privatisation fund under Bulgaria's voucher privatisation programme. The fund was transformed into a holding structure the following year. It has more than 25 subsidiaries and affiliated companies operating in various sectors of the Bulgarian economy.
Bulgarian confectionery producer Zaharni Zavodi said that its non-consolidated net profit fell to BGN 395,000 in the first quarter of 2019 from BGN 1.2 million in the same period of last year. Zaharni Zavodi's revenue decreased to BGN 15.6 million in the January-March period of this year from BGN 16.8 million in the comparable period of 2018. The company's expenses edged down to BGN 15.2 million in the review period from BGN 15.7 million a year earlier, following a decrease in cost of goods sold. Earlier this year, Zaharni Zavodi said it is launching a new BGN 11.2 million ethanol production installation, which will increase the company's output to 60,000 litres per day. The installation will also allow Zaharni Zavodi to produce dehydrated alcohol for industrial purposes. Zaharni Zavodi operates several other production facilities, including a sugar refinery and a confectionery plant.
The State-owned Maritsa East 2 thermal power plant (TPP) has reported a gigantic loss of BGN 332 million for 2018. The sum is more than half of the plant's revenues in 2018. The company's financial report shows that the negative financial result is twice bigger than the one in 2017, mainly due to the higher price of carbon emissions. The total loss is already BGN 605.5 million, and the debts exceed BGN 864 million. The plant is literally facing bankruptcy, because its current liabilities are by nearly BGN 909 million more than its assets. For the TPP to be saved, the Bulgarian Energy Holding is preparing a procedure for increasing the company's capital. Unless the energy market undergoes a cardinal change that would significantly increase the prices, the TPP's loss will continue to rise and, according to forecasts, it might reach half a billion leva this year. Source: Capital
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Bulgarian Industrial Association
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World
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Europe |
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As trade tensions over steel, cars and airplanes mount between Washington and Brussels, the European Union yesterday tried to calm the situation by convening a summit on an import the two sides both want to see increase – natural gas. Flush with reserves from the shale gas boom, the U.S. is eager to export supply to Europe – something that was not possible before because of US laws restricting such exports to only countries with which it has free trade agreements. The EU, in turn, is eager to reduce its dependence on Russian gas. And so the LNG trade started, at a slow pace, in April 2016 after the US changed the export restriction. At a bilateral meeting in Washington last July, U.S. President Donald Trump and EU Commission President Jean-Claude Juncker agreed that the EU would increase its imports of U.S. LNG in exchange for Trump backing off on his threat to slap import duties on German cars. Since that meeting, the Commission said yesterday, EU imports of U.S. liquefied natural gas have already increased by 272%. The EU plans to increase LNG imports to 8 billion cubic meters (bcm) per year by 2023, more than double the level of 2018.
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America |
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The U.S. economy grew at a faster pace than expected in the first quarter and posted its best growth to start a year in four years. First-quarter gross domestic product expanded by 3.2%, the Bureau of Economic Analysis said Friday in its initial read of the economy for that period. Economists polled by Dow Jones expected growth of 2.5%. It was the first time since 2015 that first-quarter GDP topped 3%. Exports rose 3.7% in the first quarter, while imports decreased by 3.7%. Economic growth also got a lift from strong investments in intellectual property products. Those investments expanded by 8.6%. Disposable personal income increased by 3%, while prices increased by 1.3% when excluding food and energy. Overall prices climbed by 0.8% in the first quarter. Friday’s data was the first look at how the economy fared during the longest government shutdown in history. The federal government ceased operations for 35 days between late December and Jan. 25 amid a standoff between the Trump administration and congressional Democrats over funding for a wall along the U.S.-Mexico border.
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Asia |
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Indonesia, the world’s fourth most populous country, is planning to move its capital away from Jakarta, which is suffering from severe congestion and is rapidly sinking. The country’s president, Joko Widodo, has decided to relocate the capital to outside of the crowded main island of Java, saying that the island’s infrastructure has been strained to the point that a move is necessary. “In Java, the population is 57 per cent of the total for Indonesia, or more than 140m people, to the point that the ability to support this, whether in terms of the environment, water or traffic in the future, will no longer be possible so I decided to move outside Java,” he told local media, according to a Financial Times report. Speaking to CNBC on Thursday, Indonesian Finance Minister Sri Mulyani Indrawati said that it will be a good move, reiterating that it isn’t sustainable for economic activities to be focused in Jakarta anymore, with concerns around quality of life as well. “From the point of view that Indonesia needs to move away from the very central focus in Java or Jakarta on economic development and growth, I think this is really a wise choice. Indonesia is a big country, but we are very much central in Jakarta or Java in terms of development,” she said.
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Indexes of Stock Exchanges 06.05.2019 |
Dow Jones Industrial |
26 438.48 |
(-66.47) |
Nasdaq Composite |
8 123.29 |
(-40.71) |
Commodity exchanges 06.05.2019 |
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Commodity |
Price |
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Light crude ($US/bbl.) | 62.48 |
Heating oil ($US/gal.) | 2.0700 |
Natural gas ($US/mmbtu) | 2.5200 |
Unleaded gas ($US/gal.) | 2.0000 |
Gold ($US/Troy Oz.) | 1 284.00 |
Silver ($US/Troy Oz.) | 14.92 |
Platinum ($US/Troy Oz.) | 885.30 |
Hogs (cents/lb.) | 89.75 |
Live cattle (cents/lb.) | 112.28 |
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