BULGARIAN ECONOMIC TOP NEWS DIGEST
WEEKLY REPORT ( 5 – 9 JANUARY 2009 )
Sections/headline briefs:
MACROECONOMY:
· Natural gas supply for the Balkans was suspended
· Chiren gas depot reserves compensate for downsized supplies
· Ukrainian ambassador Kalnyk: "Yushchenko promised to provide gas to Bulgaria from Ukraine's reserves"
· The price of bread jumps because of the gas crisis?
· Bulgaria's factories lose BGN 500 M daily over natural gas shortage
· Bulgaria's President: We should restart NPP Kozloduy units
· EC says no to restarting of closed Bulgarian NPP reactors idea
· Atomstroyexport signs € 82 M contract for Belene nuclear plant
· Bulgaria earmarks BGN 2 billion for waste management projects
· Jobbery inflates prices in Bulgaria by 25%
· Apiarists ready to protest
· US Commercial Attache: EU funds can help Bulgaria become innovation powerhouse
· Bulgaria sells armoured vehicles to Russia
· Bulgaria in Top 3 in Caviar Production
· Bulgaria expects 6.5 million tourists in 2009
· Shanghai-based Bright Dairy & Food Co. launches sales of Bulgarian yogurt Momchlovtsi
· Bulgarian president to visit Japan from 25 January
· Kaliakra wind power produces 50,000 MWh electricity
· Austria's EVN plans solar park in Bulgaria
· Bulgarian edition of Forbes Magazine to appear in October 2009
INVESTMENTS:
· Bulgaria's Foreign Minister invites honorary consuls to discuss investments
· New housing complex to sprout in Plovdiv
· Hisaria launches € 11.4 M water management project
· Water projects for BGN 15m in Gorna Oriahovitsa
· New winter sports center opens in Bulgaria's mountain resort Chepelare
· Enemona to build € 50 М administrative building
· Railway Infrastructure invests over BGN 12,6 M in train station repairs
COMPANIES:
· Rosa Impex exports 85% of its production
· Bulgaria Air raises passenger traffic by 10% last year
· Low-cost air carrier Wizz Air raises local sales by 143% last year
· Sopharma's sales revenue up by 6% in 2008
GLOBAL FINANCIAL CRISIS ANALYSIS AND NEWS:
· Bulgaria 2008 Review: Global financial crisis and Bulgaria
· Economists: Bulgarian economy to slow down, some sectors to wince
· FT Deutschland: Bulgaria, Romania not spared by global crisis
· Deposits in Bulgarian banks to grow thanks to the financial crisis
· Bulgarians spend record BGN 800 M during winter holidays despite crisis
INTERVIEWS:
· Plamen Oresharski: Tighten the belts, but not too tightly
· “The world financial crisis is a bluff that everybody rushed into believing in”, says James Ray, the famous author of “The Secret”
Articles:
MACROECONOMY:
Natural gas supply for the Balkans was suspended
Supplies of Russian gas to Bulgaria, Greece, Macedonia and Turkey were halted overnight, the Bulgarian ministry for the economy and energy said Tuesday."Deliveries of natural gas at the Bulgarian-Romanian frontier for Bulgargaz, destined for the Bulgarian market and for onward transit towards Greece, Turkey and Macedonia, were stopped at 3:30 AM, tuesday," the ministry said in a statement.The ministry has summoned an emergency meeting to address issues of industrial safety concerns, it added.It also appealed to all gas consumers in the country to "limit their gas consumption to the minimum and turn to alternative energy sources where possible." Bulgaria is the only country in the Balkans that is almost totally dependent on Russian gas to cover its daily consumption of 12 to 13 million cubic metres as the country lacks any major natural gas resources.Russia covers 92 percent of Bulgaria's total natural gas needs. In 2007, the country imported some 3.7 billion cubic metres of Russian gas, or 1.7 percent more than in 2006.Bulgaria is currently compensating the cut in Russian supplies by pumping as much as 4.3 million cubic metres of gas a day from its only underground gas storage at Chiren, to the country's northwest, the statement said.The depot holds a total of about 300 million cubic metres of gas.The government asked major consumers on Monday such as metallurgy and chemical companies and heating plants to switch to alternative fuels where possible.Bulgarian homes were not directly threatened though as only a fraction of them use gas for heating or cooking.Heating plants in Sofia and the big cities were nevertheless mostly gas-fired, which might spell mid-winter central heating cuts for consumers.The president of the association of heating companies, Valentin Terziyski, however said that four days were necessary for a plant to switch from gas to fuel oil.
Chiren gas depot reserves compensate for downsized supplies
Prime Minister Sergei Stanishev had a working meeting with Economy and Energy Minister Peter Dimitrov and Dimiter Gogov, CEO of Bulgarian gas supplier Bulgargaz on Monday. They discussed the reduced natural gas supplies for this country resultant from a dispute between Ukraine and Russia's Gazprom, the Government's Information Service said. Participating in the meeting was also Deputy Economy and Energy Minister and Bulgarian Energy Holding Director Galina Tosheva. Russia turned off natural gas supply to Ukraine on January 1 after the two nations failed to agree on a price for 2009. That has resulted in downsizing supplies to other nations, that has already affected Bulgaria, Poland and Romania. According to Gogov, the Chiren facility compensates for the reduced supplies and may provide the quantities needed by the end of the heating season. The gas depot may provide 3-4 million cu m of gas per 24 hours. The Bulgargaz management is taking all necessary measures. It has drafted a schedule of reduced supplies and is ready to implement it, if necessary.Given the 15 per cent reduction of gas supplies from Russia and the higher consumption in the winter season, the Chiren reserves will meet the demands for about two months, the Bulgargaz press centre told BTA.Minister Dimitrov has launched talks with big industrial consumers of natural gas to reduce provisionally the quantities used by them until the settlement of the conflict. The problem was also discussed at an extraordinary meeting of the permanent representatives of the EU Member States in Brussels. The issue is further expected to be considered at a meeting of the EU foreign ministers on January 8-9.Meanwhile, Alexander Medvedev, Deputy Chairman of Gazprom's Management Committee, said in an interview for the Bulgarian Nova Television that Bulgaria should resort to juristic and financial mechanisms so as to seek its rights being one of the first countries to feel the effect of the Ukrainian actions, related to the reduction of Russian gas supplies.Unfortunately, there is no possibility for alternative supplies to the Balkans outside the territory of Ukraine. Medvedev said. Ukraine already diverts 10 million cu m of gas from the transit quantities, designed for Europe. This has begun to cause difficulties for consumers in the Balkans. Medvedev described Ukraine's actions as blackmailing of Europe and Russia. "Ukraine has walked out of the negotiations on December 31 and has not returned so far although we are ready to conduct them round-the-clock," he also said.Commenting on Medvedev's appeal over the telephone for Nova Television, Gogov said that Bulgargaz could seek its rights only through court. However, he noted that "the contracts with Bulgarian suppliers involve transporting the natural gas to the Ukrainian-Romanian border. In other words, all problems, having occurred in the course of the gas transiting to the Romanian border have to be resolved by the supplier rather than by the customer". "We cannot sue Ukrainian companies for something, which is not a subjectmatter of our contract [with Gazprom]," Gogov also said. The transiting of gas via Ukraine is a subject of a contract between Gazprom and an Ukrainian company. Gogov also said he sees Medvedev's statement as an attempt to evade and transfer the problem.According to figures of the Balkan Dispatch Centre of Topenergy for January 4, 2009, the total volume of the gas transited to the Balkans has dropped by 24.7 per cent and to Bulgaria - by 7.2 per cent, the Centre's Igor Yelkin told journalists.The total amount for the Balkans are about 16 million cu m down. on Sunday gas supplies for Romania were down 33.8 per cent and for Turkey - 22 per cent, according to the Centre.The situation is changing every hour. Ukraine is shutting down and re-starting compressor stations without warning, Yelkin also said. Referring to the Ukrainian side, he said that supplies may be even further downsized. In his view the situation is not critical for Bulgaria for the time being. Gazporm's sales and carriage of gas are steady and reliable; it is Ukraine that is violating the contract, Yelkin said further. In order to compensate for the reduced amounts Gazprom has increased supplies via Blue Stream by 13 per cent. Tuesday these supplies are expected to be increased by further 20.5 per cent, Topenergy's Balkan Dispatch Centre also said. Topenergy is a fully-owned subsidiary of Russia's Gazprom.
Ukrainian ambassador Kalnyk: "Yushchenko promised to provide gas to Bulgaria from Ukraine's reserves"
Ukraine's Ambassador in Sofia Viktor Kalnyk told a news conference here on Thursday that in a telephone conversation Ukraine's President Victor Yushchenko promised Bulgarian President Georgi Purvanov to provide gas to Bulgaria from Ukraine's reserves."When the appropriate pressure in the gas pipeline is restored, Ukraine will deliver gas to Bulgaria as well. If gas is available at the Ukrainian border, it can reach Bulgaria within two or three hours," Kalnyk noted."Ukraine is doing everything possible for the resumption of supplies to European users and insists that this be done immediately and in the volumes and to the destinations applicable by December 31, 2008," the diplomat stated. Despite the growing problems in the functioning of the Ukrainian gas transmission system, there is no reason to worry that the gas transit system will become inoperative.The Ambassador confirmed that the top executives of Gazprom and Naftogaz met Wednesday night but, as he put it, "official results from the meeting are not yet available."According to Ukraine, Gazprom halted gas deliveries via the only functioning distribution station, Sudja, at 7:44 a.m. on January 7, 2008, which is why Ukraine is unable to transmit gas to the European users.At present twelve European countries have serious problems with deliveries, which have been completely cut off to nine of them, Kalnyk said. "We could say that Russia has tested a new type of weapon on Europe," the Ambassador said.He noted that all control points responsible for the suspension of Russian gas supplies to the European users via Ukraine are within Russian territory. "The switch is in the territory of theRussian Federation," Kalnyk said.He stated that Ukraine is ready to hold negotiations with Russia constructively, on mutually advantageous terms and without political blackmail.According to the diplomat, Ukraine does not object to a rise in the price of gas but insists that, if this happens, the fees for transit across Ukrainian territory should be increased as well.On January 6, the Ukrainian President sent a letter to the President of the European Commission proposing that, for the sake of full transparency and reliable information, observers be sent to the transit gas points and to the principal dispatching point. on the same date, Yushchenko also sent a letter to Russian President Medvedev, calling on the Russian leadership to abandon all restrictions on gas deliveries to European users.Kalnyk said that Ukraine, too, does not receive gas for its own needs from Russia. Ukraine has met the requirements of the Russian side and has fully paid its obligations for the gas used in 2008, according to the Ambassador. Ukraine has no direct contacts with Gazprom because the gas is supplied by intermediary RosUkrEnergo. As from January 1, 2009, Ukraine uses only the 62 million cu m of natural gas it produces daily from its own deposits, Kalnyk argued.Some 40 members of the public protested over the suspension of gas deliveries to Bulgaria in front of the Ukrainian Embassy in Sofia on Thursday. The protest was organized by the Confederation of Indpendent Trade Unions in Bulgaria and the Podkrepa Confedration of Labour.Podkrepa President Konstantin Trenchev said that whether Ukraine or Russia is to blame is not a problem of Bulgarians because they are prompt payers. He said that the Bulgarian economy is currently sustaining enormous losses, which will be paid by ordinary people. He argued that such a situation cannot exist in the 21st century between civilized states.Trenchev said that if the gas problem is not solved, protests are also expected in front of the Russian Embassy and, after that, in front of the Council of Ministers as well.Speaking to the protestors, the Deputy Chief of the Commercial and Economic Mission at the Ukrainian Embassy Georgii Alavatskii voiced concern over the situation and said that the Ukrainian people sympathizes with Bulgaria.
The price of bread jumps because of the gas crisis?
It is possible that the price of bread increases by about 5% in regions where it is necessary that producers use alternative fuel or electricity.This was forecasted by the Chair of the Federation of bakers and confectioners Dimitar Lyudiev.He specified that in Plovdiv, Haskovo, Kurdzhali and other towns, producers do not depend mainly on natural gas, as it is the case in Varna, Razgrad and Stara Zagora.Bakers have gone through many difficult times and have alternatives in production, so that it does not come to crises in production and deliveries, people from the industry organization think.Residents of Varna and the region, however, can be left without bread within two days, if the supply if natural gas is not restored.This was announced by Ivo Bonev, Chair of the Regional union of bakers, cited by BNR. He specified that almost all of the six bread producers in the region work on natural gas.According to Bonev, for 80% of bread producers in the country the situation is the same and for this reason the matter is of great concern.
Bulgaria's factories lose BGN 500 M daily over natural gas shortage
Bulgaria's plants are losing at least BGN 500 M per day because of the terminated supplies of Russian gas.This was announced Tuesday afternoon by the Executive Director of the Confederation of the Employers and Industrialists (CEIBG) in Bulgaria Evgeniy Ivanov in an interview for Darik Finance.Ivanov also said Bulgarian companies had already started to sack workers because of the natural gas shortage.In his words, Bulgaria's glass producing industry would be dealt a deadly blow by the termination of the Russian gas supplies.The only alternative for Bulgaria, according to the CEIBG Director was the import of liquified natural gas by sea.According to CEIBG, the suggestions made earlier on Tuesday by the Bulgarian President Parvanov for restarting the shut Units 3 and 4 of the Kozloduy Nuclear Power Plant were just an ｅxpression of populism, and could damage Bulgaria's EU membership, as the closure of the two nuclear reactors is stipulated by Bulgaria's accession treaties.
Bulgaria's President: We should restart NPP Kozloduy units
"Bulgaria should immediately restart the third unit of Kozloduy NPP," Bulgaria's President Georgi Parvanov appealed yesterday.He reminded that according to art 36 of Bulgaria's EU Accession Treaty, in a crisis situation, this country is allowed to switch on the decommissioned units. The current situation is an exemplary crisis. The President said that alternative gas suppliers were necessary."I hope in the light of the current events even my most fervent opponents will understand why I visited Turkmenistan, Azerbaijan, Egypt and Turkey. The aim was not simply establishing gas supply alternatives but construct a network of pipelines that will prevent crisis situations like that," the President said. A team of experts is already working in Kozloduy NPP on the schedule for the reactor's restart."It will take about a month," said Ivan Genov director of Kozloduy NPP.
Thus, 440 megawatts more would be secured for Bulgaria's energy system."If everything goes on schedule unit 4 might be restarted in a month and a half," told The Standart Rasho Parvanov in charge of Operation direction in Kozloduy NPP."We have unused fuel on stock that will let us charge the reactor in about a month. Afterwards all systems should be thoroughly tested. However, before the reactor is restarted it needs to be certified for electricity production," explained for The Standart the chairman of the Nuclear Regulatory Agency (NRA) Sergey Tsochev.Currently, units 3 and 4 of Kozloduy NPP have licenses but they are not for production of power. Tsochev promised that the NRA would do its utmost to be in total synchrony with the efforts of the staff at Kozloduy in order to shorten the term for the restart of the units.Bulgaria has never submitted a request for restarting the decommissioned units of Kozloduy Nuclear Power Plant (NPP), according to a statement by EC's Spokesman for Energy Ferran Tarradellas cited by dnevnik.bg. The e-edition reported yesterday that Sergey Stanishev had had a phone conversation with Energy Commissioner Andris Piebalgs and that Tarradellas had said categorically that the restart of Kozloduy's units 3 and 4 was unthinkable.
EC says no to restarting of closed Bulgarian NPP reactors idea
The restarting of the closed 3rd and 4th reactors of Bulgaria's Nuclear Power Plant in Kozloduy is out of the question, said the spokesperson for Andris Piebalgs, European Commissioner on Energy, on Tuesday. According to him the restarting of the reactors is no solution to the current energy crisis, caused by the stopped gas flow from Ukraine. The solution to the energy crisis is a national priority and Bulgaria should come up with its own crisis plan before they seek solidarity from the EU. Earlier Bulgarian president Georgi Parvanov had said in front of the media that there is a clause in the agreement for closing the nuclear reactors between the EU and Bulgaria that permitted that they could be restarted in extreme situations.
Atomstroyexport signs € 82 M contract for Belene nuclear plant
Russia’s state nuclear holding Atomenergoprom assigned a EUR 82mn contract to Russia’s Izhora Plants to construct the two 1,000 MW reactors for the nuclear plant in the Danube town of Belene. Izhora Plants are specialised in engineering, production, sale and servicing of equipment and machines for the nuclear and mining industries. Atomenergoprom controls AtomStroyExport, which has won the contract for building the EUR 4bn third-generation nuclear power plant in Belene. Two months ago, the Russians signed a partnership agreement with its main sub-contractor CARSIB, owned by France ’s Areva and Germany ’s Siemens, for building the plant. The first unit of the power producer should be supplied in 2011 and must start operations in 2014 while the second one in 2012 and 2015 respectively. The Germany energy firm RWE Power and the state-owned National Electricity Company (NEC), acting as power system operator in the country, signed an agreement for the setup of the company that will administer construction works and operate the plant in December. The state will control 51% of the project while RWE will own the remaining 49% but is planning to sign an agreement for transferring 24.5% of its stake to Belgium ’s Electrabel.
Bulgaria earmarks BGN 2 billion for waste management projects
Bulgaria will spend over BGN 2 billion on the construction of waste depots and platforms, separation installations and biodegradable waste composting sites by 2013, under a new five-year waste management programme coming into force in 2009.A total of BGN 652 million has been slated for completion of all 55 regional depots to be scattered across the country, said Maria Ninova, head of the waste management department at the environmental ministry.The EU’s Environment Operational Programme, the state budget and private investors will finance the development of 15 facilities for composting, prior processing, and construction waste treatment, medical waste incinerators and the creation of a national hazardous waste centre.Municipalities located away from regional depots will be serviced by 35 waste transfer stations sorting and processing waste.Statistics show that Bulgarian villages generate an average of 169 kilograms of household waste per person of which 50 kg is biodegradable. The respective quanities for cities are 300-350 kg and 140 kg.
Jobbery inflates prices in Bulgaria by 25%
Speculations with the prices of foods hit Bulgarians on the pocket. Producers, suppliers and merchants make ten or twenty-five percent higher profits in the conditions of global financial unrest. These are the results of a survey of the Consumers Federation, announced by its Executive Secretary Pavel Kurlev. For example, bus carriers and public transport companies refuse to lower their fares, although the prices of gasoline and diesel have fallen to their levels of 2006. "We have drawn huge credits for new buses and the salaries also went up," bus carriers justify themselves about the high fares.A kilo of cow milk cheese costs 5.52 levs now, whereas in 2006 it cost 3.87 levs. This is a difference by about 2 levs, but the purchase price of milk has gone up by only 0.1 lev per liter.
Apiarists ready to protest
Over 38 thousand apiarists are ready for protest actions after the middle of January. This was announced by Plamen Ivanov, chair of the National apiarist union, in an interview for Focus agency.According to him each Bulgarian, who consumes honey, would support their protest, while the state is careless about the condition of the industry.Apiarists in Bulgaria are in a difficult situation, because they do not receive subsidies per beehive, do not receive subsidies for bee family and their production is not subsidized, Ivanov announced.He added that apiculture is very important for the development of the entire agriculture.One of the major problems is the import of honey from other countries. The dealers import honey from abroad, which they sell at a dumping price, the chair of the industry union of apiarists said.He reminded that our country has traditions in honey production dating back from 1911 and was one of the leading countries in this industry.The average age of apiarists is 66 years and there is a lack of young people to take up the trade and develop it. This must also be changed and the state needs to interfere, so that the business and traditions are preserved.
US Commercial Attache: EU funds can help Bulgaria become innovation powerhouse
Bulgaria must do its best to utilize EU stimulus funds in order to create an innovative and green economy, according to the Commercial Attache of the US Embassy in Sofia Scott Pozil. In an interview for Novinite.com, Pozil stated that while the current global financial crisis would affect Bulgaria, the country should use the crisis as a catalyst for structural changes to its economy. In his view, the billions of EU funds available to the country must be used to "turn Bulgaria into an innovation powerhouse". Pozil also said he was concerned that not only the global financial crisis but the recent negative coverage of Bulgaria in the international press were likely to make foreign investors reluctant to start projects in Bulgaria. That is why, he stressed the overwhelming importance of the government measures needed to ensure that EU stimulus funds would be spent as transparently and efficiently as possible.
Bulgaria sells armoured vehicles to Russia
A Russian company purchased 60 multipurpose armoured carriers. The carriers were then shipped to Siberia where they were given to private companies or individuals for personal use.The deal was apparently very lucrative for the Bulgarians, as the Russians bought a large quantity of tracked vehicles and other heavy wheeled vehicles, Bulgarian daily Sega said. In total, ten Bulgarian companies have sold obsolete Bulgarian armoured carriers to Russia.The Russians allegedly paid on average 3000 euro for an out-dated vehicle which, in accordance to the new Bulgarian army standards imposed by NATO are only good for scrap and as such they would be worth far less.In turn, the Russian entrepreneurs are said to re-sell the vehicles in Siberia for well over 10 000 euro.The multipurpose armoured vehicles can carry 12 fully armed troops and have additional space for 2500 kg of load. Equipped with an eight valve V shaped diesel engine, they consume between 90 and 120 litres per 100 km, with an average cross-country speed of 60 km/h. After the latest reforms the Bulgarian army will be left with 160 main battle tanks, as 1378 tanks were either sold, scrapped or recycled. A further 2400 heavy vehicles are going to be destroyed.
Bulgaria in Top 3 in Caviar Production
In the last years, Bulgaria has been among the leaders in caviar production in EU, announced Nikolay Kisyov - executive director of the Bulgarian National Association of Fisheries and Aquacultures. Bulgaria's main rivals are Italy and France. In 2008 the price of 1 kg caviar was over 2,000 euro. The Bulgarian production of caviar is exported for Switzerland, France, Great Britain and the USA.The real amount of sturgeon fish production in Bulgaria is not certain, but most probably it is about 1,000 tons.
Bulgaria expects 6.5 million tourists in 2009
"Bulgaria expects some 6.5 million tourists in 2009. The number of holiday-makers in 2008 was nearly the same," stated the Director of the Institute for Analyses and Evaluations in Tourism, Rumen Draganov, before the Bulgarian News Agency (BTA).
"Despite the world financial crisis, Bulgaria cannot expect a bigger than 3-7% reflux of tourists in 2009," Mr Draganov added.At the same time, Greece expects a 40%-decrease of tourists. In 2009, Bulgarian hotel-runners will also rely on the native holiday-makers. It is very likely that in 2009 the tourists will spend less money but they will not cut down on the number of their vacations. Bulgarian tourists spent an average 340 euro for a holiday in 2008. Some 30% of the bed capacities in the hotels are expected to be occupied in 2009 at an annual basis due to the world financial crisis and the boom in construction works in the last years.
Shanghai-based Bright Dairy & Food Co. launches sales of Bulgarian yogurt Momchlovtsi
Shanghai-based Bright Dairy & Food Co.,one of the leading Chinese dairy products maker, launched sales at the start of the year of a new type of sweetened yogurt with the brand name Momchilovtsi which is made with bacteria imported from Bulgaria, the Bulgarian Foreign Ministry said in a press release.The official launching of the yogurt was made in a five-star hotel in Shanghai, attended by representatives of key Chinese media. The company plans a large-scale advertising campaign for the new yogurt in which Bulgaria is featured as a country with clean nature and long-living people. The Bulgarian Economy and Energy Ministry and the Foreign Ministry have provided active assistance in the marketing concept of the product, says the press release.
Bulgarian president to visit Japan from 25 January
Bulgarian President Georgi Parvanov will visit Japan from Jan. 25 for five days, during which he is scheduled to hold talks with Prime Minister Taro Aso and meet Emperor Akihito in Tokyo, as well as visit the ancient city of Kyoto, the Japanese Foreign Ministry said Friday. This year marks the 50th anniversary of the resumption of diplomatic relations between the two nations and the visit is to mark the start of the anniversary-related celebrations, the ministry said. It will be Parvanov's first visit to Japan.
Kaliakra wind power produces 50,000 MWh electricity
The Kaliakra Wind Power near Kavarna, on the Northern Black Sea, has produced 50,000 MWh of electricity since the wind farm went into operation on July 1, 2008, manager of the facility Georgi Petkov said. The electricity produced by the wind farm in December was 10,000 MWh, and in January so far, 2,000 MWh. Petkov said that since the wind farm went into operation, none of the total of 35 generators, each of which produces 1 MW of electricity from wind power, has been switched off due to technical faults. Kaliakra Wind Power, the biggest wind farm in Bulgaria, is a joint-stock company owned by Mitsubishi Heavy Industries and a Bulgarian engineering company Inos-1. The investment totals 60 million euro. The wind farm occupies 270 hectares of land. According to preliminary plans of the investors, the wind farm is to work round the year, 2,103 hours a year, and generate 79,000 MWh of electricity. In 2006 Kaliakra Wind Power was granted a first-class investor certificate for the wind farm project.
Austria's EVN plans solar park in Bulgaria
Austrian power utility EVN said on Thursday it plans to build a solar park in southeastern Bulgaria as part of its plans to diversify energy production in Southeast Europe (SEE).The solar park, with installed capacity of one megawatt (MW), will be located in the village of Blatets, in the Sliven region, the EVN head for southeast Europe, Stefan Szyszkowitz, told SeeNews without elaborating on the cost of the project.Industry officials estimate the cost of one megawatt installed capacity of solar energy at around 5.0 million euro ($6.8 million).EVN plans to invest 200 million euro in wind farm projects in Bulgaria, Macedonia and Romania in the next two to three years. The company has already launched the construction of a 100 million euro wind farm in Kavarna, in northeastern Bulgaria, jointly with German wind farm developer Enertrag. The wind farm will have an initial installed capacity of 50 MW and 30 MW later could be added more.EVN is also considering a wind farm project in Macedonia, Szyszkowitz said but added that it was too early to discuss the plan in details. In Bulgaria, where EVN operates as a electricity distributor supplying some 1.6 million customers, the company is also interested in running water supply systems and in building wastewater treatment plants, as well as becoming an investor in the construction of a long-delayed hydropower cascade on the Gorna Arda river, and in a project for a coal-fired power plant. In Macedonia, EVN serves 720,000 customers as an electricity distributor. In SEE, the company is also active in Albania where in joint venture with Norwegian renewable energy producer Statkraft it will build three power plants with a combined capacity of 340 MW and worth a total of 950 million euro. It will build also a 48 MW power plant worth 160 million euro in Albania jointly with Austrian electricity producing and transporting company Verbund.
Bulgarian edition of Forbes Magazine to appear in October 2009
The first issue of the Bulgarian edition of The Forbes Magazine is going to be published in October2009, the Pari Daily reported citing the future publishers. Forbes Bulgaria will be published by Attica Media Bulgaria, which also publishes the Bulgarian editions of Playboy, Maxim, Grazia, Joy, and OK!. 60% of the contents of Forbes Bulgaria will be made up of Bulgarian business news. The other 40% will be articles from the American edition of the magazine.The first issue of Forbes Bulgaria will have a circulation of 30 000. Forbes Media LLC are entering the Bulgarian market as part of their strategy for expansion in Eastern Europe.Forbes Bulgaria will be the magazine's eleventh local-language licensee edition. The other editions in local languages are published in China, Croatia, Israel, Japan, Korea, Poland, Russia, Turkey, and the United Arab Emirates.
INVESTMENTS:
Bulgaria's Foreign Minister invites honorary consuls to discuss investments
Bulgaria's Foreign minister Ivaylo Kalfin invited Bulgaria's honorary consuls from all over the world to a meeting to discuss how to draw more foreign investments to Bulgaria and the way Bulgarian overseas companies to be more effective. The forum will be held in Sofia on January 14 -15. The forum has been organized for a second time since 2007.
The discussions would treat several subjects - economy, culture and representation of Bulgaria abroad, diplomats reveled especially for The Standart. The issues connected to business and investments will be addressed with special attention.Thirty-five of seventy consuls have confirmed their participation in the forum. They will have meetings with foreign minister Kalfin and with representatives from the ministry of economy, the state agency for tourism and the investment agency. The honorary consuls will get promotion brochures of Bulgaria.
New housing complex to sprout in Plovdiv
Yazov, the Plovdiv-based property developer and investor, will today break ground on a 21-building residential complex in the country’s second largest city. The Sky Buildings project will stomach EUR 50 million, according to the investor. The buildings, set to rise on a 3.2 hectares plot, will house homes, shops, eateries, spa centres and cinema halls. Some 30 percent of the total area will be gardens and children’s playgrounds. The complex is set for completion in March 2013.
Hisaria launches € 11.4 M water management project
The municipality of Hisaria will launch a BGN 22.2mn (EUR 11.4mn) water purification project tomorrow. This is the start of the first project under the EU environment operational programme. The environment ministry has signed contracts with municipalities valued at total of BGN 567mn last year, 87% of which for water management projects. The ministry is expected to sign the agreements for all approved projects valued at BGN 1.5bn by the middle of this month. The earmarked funds under the environment operational programme amount to a total of EUR 1.8bn over the period of 2007-2013, 22.2% of which is national co-financing. Some 70% of the money will finance water management projects, 21% of the financial resource will be allocated to projects for household waste treatment, 6% will be used for biodiversity protection while the remaining 3% for technical assistance.
Water projects for BGN 15m in Gorna Oriahovitsa
Contracts for four projects amounting to BGN 15 million under Environment Operative Programme was signed by the mayor of Gorna Oriahovitsa municipality and Ministry of environment and waters. The water and sewerage pipe systems of the three biggest villages in the district should be finished in 38 months as well as local purifying stations and collectors. Another 70 km water and sewerage systems will be built.
New winter sports center opens in Bulgaria's mountain resort Chepelare
A new sports center with 20 km of ski tracks and a new ski lift was opened Wednesday in Bulgaria's resort town of Chepelare, which is located in the Rhodoppe Mountains.The Chepelare Sports Center was opened by Ekaterina Dafovska, Bulgaria's gold medalist in biathlon from the 1998 Nagano Olympics, who is also a native of Chepelare. It is equipped with the latest system for making artificial snow, and with free wireless Internet. The Center's lift has the capacity to transport 2 000 people per hour on a distrance of 2,7 km, which takes it nine minutes. About EUR 10 M have been invested in the various facilities of the Chepelare Sports Center so far. The total investments in the resort complex are expected to reach EUR 50 M in a few years as facilities for summer sports will also be constructed.The investor in the complex is a public-private partnership called Chepelare Kurort Jsc. The Chepelare Municipaly has a share of 49%, whereas the other 51% are owned by the private consortium Ropodska Initsiativa ("Rhodoppe Initiative") Jsc.
Enemona to build € 50 М administrative building
The local energy equipment and engineering firm Enemona has won a contract for the construction of an administrative building of the justice ministry valued at more than BGN 100mn (EUR 51.1mn). The project should be completed in 3 years. Enemona runs 14 subsidiaries active in engineering, construction, energy and gas distribution. Enemona received two first-class investment certificates from the state for building a 50MW cogeneration plant and for coal search and exploration works that could end up with the setup of a large thermo-power plant. The company separately carries out construction and repair works in the country’s largest coal-fired power complex Maritsa East.
Railway Infrastructure invests over BGN 12,6 M in train station repairs
National Railway Infrastructure Company has invested BGN 12,6 million in repairs of train stations, company’s executive director Anton Ginev said in an interview with Focus News Agency.“In 2007 and 2008 National Railway Infrastructure Company invested funds to improve the condition of many train stations, such as Dupnitsa, Blagoevgrad, Kresna, Petrich, Ognyanovo, Karlovo, Stamboliyski, Kermen, Gorna Oryahovitsa, Ruse, Varna, Han Krum, Prostorno, Polikraishte, and others.”In 2009 the company continues repairing train stations and their adjacent buildings so that they live up to the requirements provided for in European directives, Ginev added.In 2007 the company invested BGN 6,177 million in streamlining its stations.Anton Ginev announced that in 2008 the company shortened the duration of traveling by 10-15 minutes on the average.
COMPANIES:
Plovdiv-based Rosa Impex OOD has 16-year old history and holds 25% of Bulgarian hair dyes market and 15% of the white cosmetic market. It exports 85% of its production, Dimitar Georgiev, owner of the company, commented for Pari daily. The portfolio of the plant has over 300 hair and body care products. The plant employs 250 people and 55 tradesmen and has a factory and commercial offices in five big towns in Bulgaria.
Bulgaria Air raises passenger traffic by 10% last year
National flag carrier Bulgaria Air estimates a sales hike by 10% to about 2mn tickets last year due to new lines and more flights on previous destinations. Bulgaria Air, which is the largest air carrier in the country, has launched two new airplanes last year expanding its fleet to 11 airplanes. The country’s largest holding Chimimport controls Bulgaria Air and the second biggest airline Hemus Air and the smaller Viaggio Air. Chimimport thus holds about 30% of the local air navigation market.
Low-cost air carrier Wizz Air raises local sales by 143% last year
The local sales of the low-cost air carrier Wizz Air increased by 143% to 335,000 tickets last year. The passenger traffic to and from destinations in the country accounted for 5.7% of the total. Next year, the company is expecting to raise the number of sold tickets by some 50% in the country vis-à-vis 35.6% increase in total sales. Wizz Air will launch a new destination from Sofia to Venice as of March. It operates flights on eight other destinations from the capital of Sofia , including one domestic line to the northern Black Sea city of Varna .
Sopharma's sales revenue up by 6% in 2008
Sopharma's sales revenue rose by 6% to over 167 mln leva in 2008. The sales revenue from exports went up by 14%, while the sales on the domestic market declined by 6%, the company said through x3news.Sopharma booked more than 15 mln leva sales in December, which represents a 10-percent year-on-year decline. The exports of the company shrunk by 23% last month, while the sales on the domestic market increased by 2%.The company posted 15.7 mln leva sales in November, down by 5% compared to the same month in 2007.Sopharma's sales for the first eleven months of 2008 rose by 7.7%, compared to the year-ago period, including a 17.9-percent increase in exports and a 7-percent decline in domestic sales.The sales revenue of the company for the first nine months of the year went up by 9%, including a 22-percent rise in exports.Sopharma's stock appreciated by 0.09%, to 2.27 leva per share on the Bulgarian Stock Exchange (BSE) yesterday. The traded volume on the position came to 5,946 shares.
GLOBAL FINANCIAL CRISIS ANALYSIS AND NEWS:
Bulgaria 2008 Review: Global financial crisis and Bulgaria
Bulgaria's economic growth is expected to slow down significantly in 2009
Bulgaria's economic growth is expected to slow down significantly in 2009 because of the effects of the global financial crisis. The main forecast of the Bulgarian National Bank is that Bulgaria's economic growth would be 4,4% in 2009. The Bank's Director Ivan Iskrov announced in December the most pessimistic forecast was for a growth of only 1,2%-1,5%. In his words, the reduction in Bulgaria's economic growth rate was "imported" in the sense that it resulted from recession in the economies of Bulgaria's major foreign trading and investment partners. He predicted that the production of the Bulgarian export-oriented manufacturers would take off as soon as orders from the country's most important foreign partners like Germany, Italy, and Greece were restored. In December, Bulgaria's Ministry of Finance forecast a 2,1% economic growth in 2009. The Finance Minister Oresharski said the 2009 Budget included a moderately optimistic economic growth forecast of 4,7%. The European Commission had predicted Bulgaria's economy would grow by 4,5% in 2009. The Finance Minister has said repeatedly the 2009 draft budget included sufficient fiscal buffers, and that there was no reason for concern over the effects of the global financial crisis in Bulgaria. The latest forecast of the International Monetary Fund states that Bulgaria's economic growth was going to slow down to 2% in 2009. The International Monetary Fund also predicts a 4,5% inflation in Bulgaria in 2008 thanks to the decreasing food prices on the global markets. The IMF believes the global economic slowdown would have two consequences for Bulgaria. First, it would reduce the foreign demand for Bulgarian goods and services, and, second, it would reduce the foreign direct investments to the country.The Bulgarian Industrial Association has forecast a 2% economic growth for the country in 2009 as early as November. In an open letter to the authorities, the BIA insisted on emergency changes in the 2009 Draft Budget, including the lowering of the projected economic growth from 4,5% to 2%; the lowering of the projected inflation from 5,4% to 4,5% at the end of 2009; a current-account deficit of 24-26% of the GDP instead of the projected 22,2%; expectations for foreign direct investments of up to EUR 4 B instead of the projected EUR 5,3 B. The Association also insisted that the 2007 budget surplus be redistributed, and that more funds be allocated for transport infrastructure at the expense of the social expenditures. Its members call upon the Bulgarian political elite, the trade unions, and the employers to concentrate all of their efforts on anti-crisis measures and programs.
Bulgaria's Foreign Direct Investments Decline in 2008
The foreign direct investments in Bulgaria in the first ten months of 2008 have decreased by 9,2% compared to the same period of 2007, according to data of the Bulgarian National Bank released in December.In the first ten months of 2008 Bulgaria attracted EUR 4,868 B of foreign direct investments, which 14,3% of its GDP.During the same period of 2007, however, the FDI in the country were EUR 5,364 B, or 18,6% of the GDP.Bulgaria's revenue from real estate investments by foreign citizens in January-October 2008 amounted to EUR 1,188 B, compared to EUR 1,517 B in the same period of2007.
Bulgaria already loses jobs to Global Financial Crisis
According to various estimates, Bulgaria lost about 12 000 jobs in the last four months of the year as a result of the global financial crisis largely because of the declining foreign demand for its goods and because of the reduced investment dynamic.Most of the jobs that the Bulgarian economy has lost because of the global crisis so far were in the manufacturing (metallurgy, mining, fertilizer production, textile industry), construction, and transport. Bulgaria's tourism sector is expected to be hit hard by the global crunch in 2009.Bulgaria's northern neighbor Romania has reportedly lost 50 000 jobs to the global crisissofar.
Bulgaria: Recommended Measures to Tackle Global Financial Crisis Effects
In an interview for Novinite.com in November, the CEO of the largest fertilizer producer in Southeast Europe, Bulgaria's Agropolychim, Philippe Rombaut recommended that the Bulgarian government must lend support to farmers in getting credit lines in exchange for the grain that they have on stock in order to ease the effects of the crisis on the agriculture sector and the related industries. He pointed out that the exact form of the credit did not matter; what mattered was that the banks started lending money again. In the second place, Rombaut said the government must radically clear out the mess related to the stopped EU funds and find a system to pay the administration responsible for dealing with the funds in a decent way, or to outsource it to the private sector, and must tackle the inefficiency of its bureaucracy. In an interview for Novinite.com in December, the Commercial Counselor at the Austrian Embassy in Sofia Dr. Michael Angerer said Bulgaria had a great chance to reduce the negative effects of the economic crises by using the difficult times to improve its transport and environment infrastructure, and by increasing the efficiency of its economy, and improving the training of staff. The money for these steps should come from the EU funds, and therefore the Bulgarian authorities should speed up all efforts to develop projects with EU funding. According to Angerer, the government should use this difficult time to make Bulgaria`s business environment transparent and the bureaucracy efficient, which would attract foreign investors. In an interview for Novinite.com in December, the Commercial Attaché at the US Embassy in Sofia Scott Pozil said Bulgaria should try to make the most of the current global crisis by using it as a catalyst to bring needed structural changes to the economy. In his words, Bulgaria needed vision and leadership in order to use EU funds to create new cadres of "green collar" workers, to expand broadband coverage, to turn into an innovation powerhouse. Bulgaria must ensure the tranparent and efficient absorption of the billions of euros it is supposed to receive from the EU to build an innovative economy that meets 21st century needs. Pozil also said the government must continue the fiscally-conservative policies that had served Bulgaria well to date.
Economists: Bulgarian economy to slow down, some sectors to wince
All sectors of the Bulgarian economy will grow slower than usual in 2009 but only a small bunch will feel pressure from the global economic deterioration, leading economists told Dnevnik while none made any specific forecasts. Both businesses and the two governments which will steer the country next year will face mounting challenges as the crisis deepens and the domestic financial sector cools off. It is absurd to expect that the crisis will spare Bulgaria’s financial system, and any rash spending would be a disaster, Deloitte Bulgaria chairman Iliyan Vasilev told Dnevnik. Resort construction will be severely hit, and the housing, office and logistics segments will suffer milder effects, forecast Georgi Ganev of Center for Liberal Strategies. Segments of the processing industry integrated into global production chains slipping into deep recession are also in for trouble, according to Ganev. This year’s gross world product will inch up a humble 2.1% dragged by waning exports of emerging economies and the squeeze in global consumption, forecast Olivier Blanchard, economist at the International Monetary Fund.In Bulgaria’s financial sector, credit growth will cool down to some 10%, and a further slowdown is not out of the way, according to Georgi Ganev.On the other hand, deposits will continue to grow steadily and even speed up, squeezing net interest margin, experts say. Analysts made tentative projectsions on the development of the Bulgarian capital market in 2009. At any rate, investors will think twice before picking a company to spend on, said Kamen Kolchev, board chairman of Elana Financial Holding. Speculators will keep a low profile in 2009 as liquidity has dried up and the bearish trend persists, said Tsvetan Lazhanski, CEO of bottling company Devin, which trades on the Bulgarian Stock Exchange.
FT Deutschland: Bulgaria, Romania not spared by global crisis
In an extensive article published at the very end of 2008, the German-language edition of the Financial Times reviews the effects of the global financial crisis on Southeast Europe.
The author Friederike Meier-Burkert points out that Bulgaria and Romania had been considered in a better economic positions than most countries until very recently. Both states had high economic growth rates, expanding consumption, low labor costs, qualified laborers, and low flat tax rates - the perfect prerequisites for attracting foreign investments. The Financial Times Deutschland article mentions there were 1 200 offices of German companies in Bulgaria, that Norddeutsche Affinerie and Lufthansa Technik were the last two German concerns to present their investment plans for the country, and that the energy giant RWE formally joined the Belene Nuclear Power Plant project in December. The article points out, however, that Bulgaria and Romania had been living on credit, and beyond their own financial capabilities. The consumption and investments in both states had been financed through credit, which turned out to be a problem with the global financial crisis kicking in, the article states. It reminds Bulgaria's current account deficit stood at 24%, whereas Romania's was 14%. According to Meier-Burkert, the demand for credits was rising but there were not enough deposits to meet it, while foreign banks were reluctant to give credits. A number of real estate projects in Sofia and Bucharest are reported frozen, and even large international concerns have difficulty securing credits, according to the Financial Times Deutschland. The author stresses that the effects of the global crisis in Bulgaria and Romania necessitate the improvement of the productivity of the their economies. The top three spots on the foreign investors' wish list for Bulgaria and Romania are occupied by consistent fight against corruption, improvement of infrastructure, and improvement of the efficiency of the public institutions.
Deposits in Bulgarian banks to grow thanks to the financial crisis
Deposits in Bulgarian banks are going to continue to grow because of aggressive banking campaigning to attract fresh capital necessitated by global financial crisis.This is forecasted by the market research firm RNCOS in its new report "Bulgaria Banking Sector Analysis", published Friday at the paid website emailwire.com.The forecast states that before the global crunch, Bulgarian banks had easy access to credit, and had no incentive to launch aggressive campaigns to attract deposist.The report points out that Bulgarian banks were now offering unprecedented annual interest rates on deposits in BGN and EUR, and that Bulgarian consumers preferred bank deposits as investment instrument.Bank deposits accounted for 65.2% of the BGN 33,5 B in financial wealth accumulated by Bulgarians, rising by 28% over the previous 12 months (December 2007 to November 2008).
Bulgarians spend record BGN 800 M during winter holidays despite crisis
At least BGN 800 M were spent in Bulgaria during the Christmas and New Year's holidays, which is a record amount for the country.The news was reported Saturday by the 24 Chasa Daily, which cites data from the Gallup Agency, and points out that apparently the Bulgarians were not affected by the global financial crisis.The sum spent for food, presents, holidays, etc, at the end of 2008 is significantly greater that the BGN 740 M that the Bulgarians spent during the winter holidays in 2007.About BGN 300 M were spent on food and drinks during the holidays. The large Bulgarian hypermarket chain "Picadilly" saw a 10% increase in the volume of its sales even though most of that is said to be due to the inflation rather than the increase in the quantity of the purchased products.The Bulgarians spent some BGN 200 M on household appliances, TV sets, laptop computers, and mobile phones during the winter holidays, according to the owner of the "Technopolis" store chain. Technopolis is expected to register a 15-20% increase in its sales largely due to the dynamic consumption before September 2008. Another appliances store chain, Technomarket, saw a 23% increase in its sales in 2008.At least BGN 200 M were spent in Bulgaria during Christmas and New Year's for other types of presents such as clothes and children's toys. According to the Gallup Agency, each Bulgarian family spent BGN 102,35 on average on presents, which is BGN 18 more than in 2007.The Agency's data shows that 85% of the Bulgarians spent Christmas at home, and 73% stayed home on New Year's. Yet, according to data from the major tour operators at least BGN 100 M were spent for Christmas and New Year's vacations.Bulgaria's winter resorts Bansko, Borovetz, and Pamporovo were totally overbooked, and a number of Bulgarians did travel to Greece for New Year's despite the recent street riots there.
INTERVIEWS:
Plamen Oresharski: Tighten the belts, but not too tightly
Mr. Oresharski, an economic growth of 4.7% is provided in this year's budget, but what will happen if the growth and, respectively, the revenues to the Fisc happen to be lower?
To some extent, the prognoses for slower economic growth than the predicted are plausible and this is why we have provided several kinds of buffers, which would make up for the slowdown. September and October will probably be the hardest months. Should there be lower revenues, we are ready to cut down the budget layouts by ten percent. Also, there is an option for a budget surplus under three percent, if the macroeconomic indexes allow a freer fiscal policy. If the economic growth is lower, this means that the economic activity will also slow down. Under equal other conditions, the current account deficit will stop growing and it may even shrink a little. This means that the realization of a huge budget surplus will no longer be so vitally important.
Do you expect an expansion of the grey economy?
I am optimistic given a relatively lower level of the direct taxes, the large and medium-sized businesses are hardly likely to go back to the grey sector. Such a move could make their contacts with business partners and the banking sector more difficult. This is why I do not expect considerable changes in the status of the Bulgarian business.
Some say that payments in Euro should be unilaterally allowed in Bulgaria. Is this possible?
This issue could not be decided unilaterally, because, after all, Bulgaria is a member of the European Union. The introduction of the Euro is a bilateral process, which involves the implementation of procedures established by the Central European Bank and the European Commission. Each candidate for adoption of the common European currency is expected to participate in the ERM II for at least two years before joining the Eurozone.
What inflation rates do you expect this year?
The inflation provided in this year?s budget is 4.5%, but it depends on the business climate and the incomes policy. If the economy does better than expected, then the inflation may grow a bit higher. Equally, if the economy slows down, then the inflation rate will also go down.
Some agencies tend to lower the credit rating of Bulgaria. Why is this happening?
- Bulgaria is not the only country the credit rating of which has been lowered. It is noteworthy that not a single country of the world had its credit rating increased over the past six months. In the conditions of a global financial crisis, the credit agencies ought to reconsider the perspectives of most of the developing economies. Some countries like Romania had their credit ratings lowered even further than Bulgaria`s.
What is your wish for this financial year?
During the general elections and after them we should try to keep the financial position of Bulgaria stable and this is why a prudent budgetary policy is needed.
Do you expect pressure for an increase in the budgetary expenses before the vote?
There`s always some pressure, but over the past four years the ruling coalition showed that common responsibility takes priority over individual party interests.
The world financial crisis is a bluff that everybody rushed into believing in, says James Ray, the famous author of “The Secret”
James Arthur Ray is transforming the way the world thinks. James is a "World Thought Leader" who has traveled the globe devoting over two decades to studying the thoughts, actions, and habits of those who create true wealth in every area of their life. His current book, Harmonic Wealth: The Secret of Attracting the Life You Want, reached number five on the New York Times Best-Sellers list its first week on shelves.President and CEO of James Ray International, a multi-million dollar corporation, James is dedicated to teaching individuals to create wealth in all areas of their lives: financially, relationally, mentally, physically and spiritually. JRI was recently featured in the San Diego Business Journal as one of the most-successful and fastest-growing local businesses. James has also been selected by Toastmasters International as the recipient of their prestigious "Communication and Leadership Award" for his demonstration of proficiency as an outstanding communicator and community leader. James has studied and been exposed to a wide diversity of teachings and teachers - from traditional college and the schools of the corporate world, to the ancient cultures of Peru and Egypt, and the jungles of the Amazon. As a result, he has the unique ability to blend the mystical and practical into a usable and easy-to-access formula.
Does the law of attraction really work and what's the most important thing people should know about it?
- Of course it works. The most important thing you must realize is that you have to practice what I talk about in my book Harmonic Wealth as "going 3 for 3." Your thoughts, feelings and actions all must be in alignment. You look at anyone who's creating what they desire and deserve and they're going 3 for 3, anyone who's not is missing one of those components-most often the missing piece is action. Please remember that over 50% of the word attraction is action.
- What about its scientific accuracy? Do quantum physicist agree on the issue?
- Yes. Positrons and electrons in a common vibration circulate around a nucleus to form an atom, the basic building block of all creation. Atoms in a common vibration come together to create molecules, molecules come together to create cells, and cells create organisms. Thoughts, feelings and actions of being a victim will never attract victory.
- Can anyone be a millionaire without having a mystical lamp like Aladdin's, with a genie inside of it?
- We all have a lamp and it's called our unconscious mind. The challenge is that we need to train our Aladdin, or conscious mind, how to work most effectively with the lamp of our unconscious mind. Most people have a very poor relationship within themselves and as it's been written, "A house divided will not stand." The bulk of my work focuses upon helping individuals create harmony within all aspects of their being and once this occurs results are unlimited.
- Is it true that collective energy can cause collective damage? A financial crisis for example or an earthquake?
- Of course, it happens all the time. Everything in the universe is energy or consciousness. Our collective consciousness creating global warming is causing many natural disasters right now. Furthermore, most of those who truly understand know that Wall Street is driven by psychology. That's why Donald Trump stated that his studies of Carl Jung and psychology served him much better than his studies of business ever did. If an individual is watching the news currently and being told we're going into a recession, they'll begin to believe it. If you think recession you'll feel the fear of recession, and act upon the thoughts and feelings. It's not the external events that are creating the ongoing results... it's the consistent thoughts, feelings and actions regarding that external stimuli. There were more millionaires created during the Great Depression than at any other time in history. There are always plenty of resources we've just got to consistently think, feel, and act resourceful.
- How should we manage our negative thoughts? Should we be scared every time we think of something, that we do not want to see in our life experience?
- No. Contrary to pop ideas, thoughts in-and-of-themselves have very little creative power until carried through the entire 3 for 3 formula. Remember when you were a kid and you sat in your parents' car and turned the steering wheel back and forth? Nice fantasy but you went nowhere. Thoughts, like the steering wheel, are nothing more than a directional system. If you want to go anywhere you have to start the engine. The motor is the feelings. But you're still not going anywhere until you put it into gear and the wheels start moving into action. It's your consistent thoughts, feelings, and actions that determine the destination you achieve.
- How long does it take to manifest a thought?
- Well, hopefully by now we realize it has to be more than just thought-you have to go 3 for 3. That being said, it depends. In my book Harmonic Wealth I write about the 7 laws of the universe. The Law of Attraction is only one of the 7 and there are 6 others equally important. Most have very little knowledge of the 7 laws and therefore they can't align with them to create all they deserve. one of the other 7 laws is The Law of Gender. This law has many components that I won't go into in full detail, yet one thing it states is that everything has an incubation or gestation period. It takes 9 months to grow a baby, approximately 7 weeks to grow a carrot. How long does it take to manifest your vision/intention? I don't know, but what I do know is that it takes much longer to grow a mighty oak tree than it does a willow. If you're growing oaks you have to stay with it longer, have more determination, and discipline. I don't know about you, but if I'm going to grow something I'm going to grow an oak.