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Business Industry Capital
ISSN 1311-364X
Wednesday, 04 September 2019, Issue 5031
  Bulgaria   Bulgarian Industrial Association   World   Discover Bulgaria BIC Capital Market Ltd. 

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BNB Exchange Rates
  EUR   1.95583  
GBP   2.15198
USD   1.78827
CHF   1.80610
EUR/USD   1.0937*
ECB exchange rate
Basic Interest Rate
  as of 01.09   0 %  

Bulgarian Stock Exchange - 03.09.2019
  Total turnover (BGN): 167 559.01  
Traded companies: 30
Premium 46 717.22
Standard 111 804.79
REIT 7 385.90
Structured 1 651.10
Biggest change
Zarneni hrani Bulgaria JSC - Sofia 5.66 %
Industrial Capital Holding JSC - Sofia -4.17 %
BaSE - Shares: 1 917.90

Other supporting water transport activities
BEIS rating
Top 10 companies by
Net sales
for 2017
(thous. BGN)
  1   Port Varna SPJSC - Varna   72 476  
  2   Bon Marine LTD - Varna   41 355  
  3   Bulgarian Ports Infrastructure SC - Sofia   41 065  
  4   Marine antipollution enterprise JSC - Varna   16 085  
  5   NTZ Transport LTD - Varna   15 900  
  6   Tri stars SPLTD - Varna   13 756  
  7   Port Flot Burgas JSC - Bourgas   9 031  
  8   Port Fleet 99 SPJSC - Sofia   8 409  
  9   Flexy Trans LTD - Bourgas   8 210  
  10   Bourgas Tag Service SPLTD - Bourgas   7 830  
Make your own Bulgarian companies rating in BEIS

Bulgarian companies

Financial news

The Ministry of Finance has put forward for public discussion a draft amendment to the Corporate Income Tax Act. However, it changes a few more standards. For example, for local taxes and fees, for personal income taxes, value added act and for excise duties and tax warehouses. In the reasons for the bill, Vladislav Goranov's office explains that the draft is being drafted in order to align Bulgarian legislation with that of the EU. One of the interesting ideas is in the VAT Act. The changes aim to limit the escape from VAT registration, and when a threshold of BGN 50,000 is reached, a new company is created. The proposal is that, where there are related companies, the tax authorities can register them for VAT if their turnover exceeds the threshold. Companies that will be affected by the changes will have to register under the VAT Act within 14 days after the changes come into force. It is expected to be January 1, 2020. New rules are also envisaged for taxation upon leaving the country. They are intended to prevent corporate tax deduction in the country of origin of the company. The reason - corporate taxpayers may seek to reduce the amount of tax due by changing the jurisdiction in which they are resident for tax purposes or by transferring their assets solely for the purpose of aggressive tax planning.

Source: Banker

Police and military personnel receive almost double the average retirement pensions. This is shown by the data of the state social insurance, published by the National Social Security Institute. The average pension in 2018 for pensioners, former employees of the Ministry of Interior, NSO, SANS and the military, is 638.08 BGN per month. It exceeds considerably the average for the persons, with a pension for seniority and old age, which is 349.81 BGN per month. Or, the accounts show that retired people from specialized agencies spend an average of BGN 288.27 more than other seniors. The data also shows that pensions of military and police officers increased by 4.1% last year compared to 2017, when the average pension was BGN 612.68. Although these professions are considered to be male, it turns out that there is very little difference in how much men and women receive from specialized agencies.

Source: Trud


About 10,000 people across the country will receive free IT training over the next five years. The initiative is being carried out by the largest Bulgarian IT company, ScaleFocus. The investment in the first two years is estimated at about BGN 1 million. People from all over Bulgaria will be able to study at ScaleFocus Academy. Two months after the start of training, they will start working in a real team, for a real client, guaranteed by ScaleFocus. The goal of this project is for the IT industry in Bulgaria to overcome the biggest challenge - shortage of staff. The training starts this fall in Burgas, with the support of the municipality. Other software companies with local offices will be involved as partners in the project. According to a report of the Bulgarian Outsourcing Association, 67,300 people are employed in IT and outsourced business services (BPO) in Bulgaria in 2018. Estimates indicate that by the end of 2020, this industry will need 79,000 staff. ScaleFocus is the largest Bulgarian software company with over 1000 specialists, 200 clients worldwide and development offices in Sofia, Plovdiv, Burgas and Varna. The company's revenue for 2019 is expected to exceed BGN 60 million, 80% of which are from projects in North America and Western Europe. Over the next few years, the company will triple its capacity by setting up development offices in other cities in Bulgaria and the neighboring Balkan countries.


Bulgaria's Generali Insurance has signed an agreement for the launch of a digital transformation project in partnership with local software solutions provider Software Group. The project, which is expected to be completed by the end of 2020, will allow Generali Insurance to expand its online product portfolio and will support its growth strategy in the coming years. With the implementation of the project, Generali Insurance will optimize its online insurance sales channels and policy management processes via an innovative digital insurance platform. The optimised online operations of the insurer will make access to new customers faster and easier. "Customer needs and expectations are becoming more complex, and purchasing decisions are led mainly by two factors – time and convenience," Kalin Radev, CEO of Software Group, said in the statement. In July, Generali Insurance, part of Italian insurance group Assicurazioni Generali, said that its net profit fell to BGN 6.5 million in 2018 from BGN 6.9 million the year before.


Switzerland-based ICT solutions and services provider Also Holding is seeking an anti-trust approval to acquire 100% of Bulgarian IT solutions distributor Solytron, Bulgaria's Commission for Protection of Competition (CPC) said. The transaction is expected to affect trade in ICT equipment on the territory of the European Economic Area (EEA). Interested parties have until September 5 to submit their opinion on the notified deal to the competition authority. In August, Also Holding, which is active on the Latvian market, said it is seeking approval from Latvia's Competition Council to acquire Solytron Bulgaria. On completion of the acquisition Also Holding will be represented in almost all East European markets, except Russia, with total market volume of about 30 billion euro, the company said at the time. Currently, Also Holding is present in 22 European countries. Solytron Bulgaria posted revenue of BGN 215 million last year, up from BGN 172.3 million in 2017. Also Holding, majority-owned by Germany-based investment company Droege Group, connects over 100,000 clients with more than 550 providers of ICT services in 18 European countries. The company's portfolio includes logistics, financial and supply services as well. Solytron Bulgaria, founded in Sofia in 1991, trebled its sales revenue between 2011 and 2018 and sells solutions and products of over 50 leading manufacturers.

Source: SeeNews

Bulgarian financial leasing company Elana Agrocredit has signed a BGN 15 million loan deal with local bank Expressbank. The loan comprises a revolving credit facility of up to BGN 5 million and an investment loan of up to BGN 15 million for funding the expansion of the company's leasing portfolio. The revolving credit line has to be repaid within 2 years of the contract signature date, while the investment loan can be repaid 8 years after the signing of the deal. The revolving credit line has an interest equal to Expressbank's reference interest rate plus 2.20%. The investment loan bears a fixed annual interest of 2.79%, or an interest equal to Expressbank's reference interest rate plus 2.25%. At the time of the contract signature date, Expressbank's reference interest rate was 0%. Elana Agrocredit has financed farm land acquisitions worth some BGN 6.1 million so far this year.

Source: SeeNews

The Monbat Group has increased its net profit more than seven times in the first six months of the year and its revenue has increased by almost one fifth. This shows the consolidated half-year report, which includes the company's battery manufacturing and recycling plants. The strong results come after the group reported losses related to the newly acquired companies in Italy and Germany last year. However, in 2019, the company also recorded a purely operational growth. The company's net sales revenue increased by just over 18% in the first half of the year. Operating profit increased six-and-a-half times to BGN 8.1 million, despite increased costs. The net result has also improved significantly. Monbat traditionally exports most of its products and enjoys a rather diversified market. Currently the group sells in more than 60 countries, with important markets being France, Spain, Germany, Romania, Italy and more. Over the first six months of 2019, overseas sales were worth EUR 71.6 million, or over 89% of net sales revenue. During this period, the largest market was in Germany, where more than 11% of sales were made. In Bulgaria, sales for the period were BGN 16.6 million (EUR 8.5 million).

Source: Capital

       Bulgarian Industrial Association




The European Union (EU) will finance with EUR 363 million the construction of a bridge over the Danube in Braila, Eastern Romania. The project should be completed by the end of 2023. The financing will be extended under the European Regional Development Fund (ERDF), the EC Representation in Bucharest announced. The project also involves the construction of connecting roads to improve the transport connections from the Black Sea to Northeast Romania. The contract for the execution of the bridge was signed in March 2018 and has a total value of EUR 540 mln. The contractor is the Association Astaldi SpA (Italy) - IHI Infrastructure Systems Co.Ltd (Japan). "This EU-funded project will clearly improve the quality of life in the region through shorter and safer road routes. Through simpler connections to Moldova and Ukraine, the cohesion project will also contribute to intensifying EU relations with its neighbors," said Johannes Hahn, Commissioner for European Neighborhood Policy and Negotiations on Enlargement and Regional Policy.

Source: Associated Press


The Trump administration has started the arduous process of canceling $3.6 billion in military construction projects to fund its plans to build a wall along the U.S.-Mexico border. Defense Secretary Mark Esper began notifying lawmakers Tuesday which projects will be canceled in their districts. Top Democrats immediately blasted the plan. Senate Minority Leader Chuck Schumer, D-N.Y., was among the first lawmakers to say his district will be impacted by the funding cuts, for the U.S. Military Academy at West Point. Schumer went on to say that Trump is trying to "usurp Congress's exclusive power of the purse and loot vital funds from our military." He also signaled Congress will strongly oppose any funds for new wall construction. The Pentagon officials said they will halt 127 military construction projects to help build 175 miles of wall. The plans come nearly seven months after Trump announced a national emergency to use roughly $8 billion to build a wall to curtail illegal immigration along the U.S. southern border. Of that, $3.6 billion was slated to come from the military construction funds, the Trump administration said during the Feb. 15 announcement.

Source: Associated Press


Fast-fashion giant Zara denied speculation that the retailer’s employees were supporting anti-Beijing protests that disrupted some of its store operations on Monday. “Zara has never made any comments or undertaken any actions related to a strike in Hong Kong,” the company said in a post on its Weibo account. “Zara does not back a strike and supports ‘one country, two systems,”’ the post said, referring to a general strike called by unions as part of the protests, and China’s policy for governing Hong Kong. Multinational businesses are becoming increasingly ensnared in the volatile conflict that’s morphed from a protest against an extradition law into a broader challenge to Beijing’s authority in the city. Cathay Pacific Airways, Hong Kong’s biggest carrier, faced heavy pushback from China after its staff joined the demonstrations, while companies ranging from HSBC Holdings Plc to PwC have been the subject of online speculation over their positions on the protests, which have rocked the former British colony for almost three months.

Source: Bloomberg

Indexes of Stock Exchanges
Dow Jones Industrial
26 118.02 (-285.26)
Nasdaq Composite
7 874.16 (-88.72)
Commodity exchanges
  Commodity Price  
Light crude ($US/bbl.)54.22
Heating oil ($US/gal.)1.8100
Natural gas ($US/mmbtu)2.3400
Unleaded gas ($US/gal.)1.4700
Gold ($US/Troy Oz.)1 551.60
Silver ($US/Troy Oz.)19.51
Platinum ($US/Troy Oz.)964.80
Hogs (cents/lb.)66.52
Live cattle (cents/lb.)99.28

       Discover Bulgaria

Yakoruda public holiday

The municipality of Yakoruda lies in the Northeastern part of the Blagoevgrad district. Its territory includes the Yakoruda Park section, a part of the Rila National Park. The historical data are grounds to include Yakoruda in the list of the most remarkable ancient settlements in Bulgaria. The remains of a Thracian sanctuary near the Babechka Chuka summit are evidence for the existence of a settlement even before the Thracians. A Roman road passes near the land of Yakoruda and used to connect Philipopolis and the valley of the Maritsa River with one of the main roads of the Roman Empire - Via Egnatia. The two fortresses also come to prove that – one of them under the town and called Kalyata, and the other – Gradishteto, near Cherna Mesta River. The place is also known for the ruins of the medieval church (5th-6th century), some 3 to the southwest of the town, as well as the remains of the prehistoric settlement (2nd-1st millennium BC) near the village of Yurukovo. Yakoruda’s economic and cultural progress from the age of the National Revival is remembered today by the two architectural ensembles in the center of the town – declared monuments of culture. Yakoruda keeps alive the traditional Bulgarian crafts such as home weaving – with its unique color palette and patterns, as well as knitting and tapestry manufacture. Yakoruda is also known for the amazingly beautiful districts located between the two mountains – Rila and Rhodopes. The chain of numerous summits, the turbulent lakes and circuses, the wide meadows and evergreen woods have all the seasons a fascinating charm. The town celebrates its public holiday on September 4, when in 1964 the village of Yakoruda was declared town.

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