불가리아 주요 경제뉴스 ( 27 FEBRUARY – 6 MARCH 2009 )

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT ( 27 FEBRUARY – 6 MARCH 2009 )

 

 

 

Sections/headline briefs:

 

 

MACROECONOMY:

 

 

·        IMF senior representative: Bulgaria to struggle posting economic growth in 2009

·        Banks start year with a profit

·        Bulgaria business climate worsens in February 2009

·        Biomass may reach 9% of Bulgaria's gross domestic energy consumption in 2020

 

 

INVESTMENTS:

 

 

·        Bulgaria is the cheapest place for investment in EU

·        Investment Agency Head: Bulgaria no less competitive than China's east coast

·        Bulgaria cuts in half threshold for investor certificates

·        EVN invests EUR 50 M in new thermal power plant in Bulgaria city of Plovdiv

·        Bulgaria foreign minister entices Indian business with investment opportunities

·        Bulgarian consul in Dubai announces UAE tourist and investment plan

·        Italians to build port in Tsarevo

·        Romanian and Greek businesses escape to Bulgaria to avoid financial crisis

 

 

 

 

 

COMPANIES:

 

 

·        Swedish media giant announces merger of Bulgaria broadcasting assets

·        Bulgarian milk processing company shuts down over Global Financial Crisis

 

 

GLOBAL FINANCIAL CRISIS ANALYSIS AND NEWS:

 

 

·        Deputy Finance Minister: Bulgaria already feels positive crisis effects

·        Currency board saves Sofia from Western Europe's tragedies

·        EC President announces possible financial crisis support for Bulgaria

·        Bulgaria transport minister: New Varna-Kavkaz ferry is anti-crisis measure

·        Credit crunch squeezes mobile phone sales in Bulgaria

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Articles:

 

 

MACROECONOMY:

 

IMF senior representative: Bulgaria to struggle posting economic growth in 2009

Bulgaria will struggle to achieve any economic growth in 2009, International Monetary Fund (IMF) senior regional representative for Romania and Bulgaria Juan Jose Fernandez-Ansola said on March 5, as quoted by Dnevnik daily.Bulgaria's Cabinet decided to stick to its optimistic economic growth target of 4.7 per cent in the Budget macroeconomic framework, but the Finance Ministry and central bank have been leaning towards a more conservative target of 2-2.5 per cent.In December 2008, an IMF mission said it expected Bulgaria's economy to grow by two per cent, a drastic cut from the previous 6.3 per cent forecast by the Fund.The European Union economy, the main destination for Bulgarian exports, is expected to contract by two per cent this year, which would "make it difficult for gross domestic product (GDP) in other countries to grow," Fernandez-Ansola said in an interview to be published in full by Kapital weekly on March 7.Bulgaria could see an extended period of time during which wages would not grow, he said. "Clearly, the devaluation of the currencies of other countries in the region means more competition for Bulgaria," Fernandez-Ansola said.With the Bulgarian lev pegged to the euro under the terms of a currency board agreement, it was possible that wages would have to be cut for Bulgaria to stay competitive.Fernandez-Ansola's term as representative for Romania and Bulgaria expires at the end of March. He will be replaced by Tonny Lybek.

Banks start year with a profit

The Bulgarian banking sector posted a profit of BGN 73 million in January as its counterparts across the world turned in grim performances. Still, the profit of local lenders is 35% lower than a year before, showed data of the Bulgarian Central Bank. Assets surged 21.1% to BGN 69.02 billion. Household and corporate loans rose 30.4% to BGN 49.5 billion. Capital swelled 29.9% year-on-year to BGN 8.149 billion. Total attracted resources topped BGN 60.1 billion, up 20.3%. Compared to December 2008, however, assets and total attracted resources slumped, even though loans and capital increased. Assets shrank by BGN 540.6 million and attracted resources were down BGN 794.2 million. Corporate deposits fell BGN 616.6 million as firms pulled out to build operating cash in the face of the crunch and demand for current account waned amid the ebbing credit. In January, households opened BGN 339.7 million worth of new deposits, lured by juicy interest rates by banks fighting for resources from the domestic market. Household deposits grew for a second successive month, following withdrawals in October and November. Total loan portfolios expanded both on the month and on the year, but household loans dropped by BGN 15.145 million. Business loans, on the other hand, rose by BGN 261.4 million. Capital grew by BGN 218 million on the month. All banks but the market’s top five and foreign branches reported bigger assets and loan portfolios. Their profit fell by BGN 12.441 million. The assets of the five largest lenders shrank by BGN 347 million month-on-month, and their profit was down BGN 25.9 million from last January. Household loans slumped BGN 32.1 million.

Bulgaria business climate worsens in February 2009

Bulgaria's Composite Business Climate Index has declined by 3,3% in February 2009, according to data of the National Statistical Institute released Friday. The respective business climate indexes in industry, trade, and services all show declines, and only the Business Climate in Construction Index retains its levels from January 2009.Thus, as the Bulgarian economy is increasingly becoming affected by the effects of the global financial crisis, the country's Composite Business Climate Index is now going down to its 2001 levels.The managers of top Bulgarian manufacturers expect that economic situation would worsen in the next six months as a result of the widespread economic insecurity, and the steady decline of export orders from abroad.According to the NSI data, Bulgaria's February production activity has decreased by 11%, and the export orders from abroad have declined by 4,7% compared to their January levels. In January 2009, Bulgaria's Composite Climate Business Index declined by 0,6% compared with December 2008. With the February decrease, Bulgaria's business climate has declined for the fifth consecutive month, after the initial decrease in October, 2008.

Biomass may reach 9% of Bulgaria's gross domestic energy consumption in 2020

 

At Bulgaria's present capacity, by 2020 biomass may reach some 9 per cent of gross domestic energy consumption or 111 per cent of end energy consumption, Economy and Energy Ministry expert Kostadinka Todorova said Thursday. She was addressing participants in a forum titled "Biomass - an alternative to natural gas in Bulgaria" organized by the Bulgarian Energy Forum. It is expected that in 2020 38 per cent of the biomass in the country will be used for the generation of electric power, Todorova said. According to data for 2007, biomass takes up 3.6 per cent in the structure of gross domestic consumption. The share of biomass in renewable energy resources used in gross domestic consumption stands at 72 per cent, geothermal energy - at 3.2 per cent and water - at about 24.6 per cent. In turn, Erato Holding CEO Krassimir Stanchev pointed out that in case 2,600 kilo tonnes of oil equivalent of biomass are used, fossil fuels in Bulgaria could be replaced entirely.

 

 

 

 

 

 

INVESTMENTS:

 

 

Bulgaria is the cheapest place for investment in EU

 

Economy and Energy Minister Peter Dimitrov called on the participants in the The Bulgaria Business and Investment Summit, Invest in Bulgaria 2009 since this is the cheapest place to invest among EU member states. Costs for making business in Bulgaria are about 46 per cent from the average in the EU, Dimitrov said.The factors which make Bulgaria attractive for investment in the conditions of a global economic crunch are low labour costs and low taxes.  Bulgaria has also sent a notification to the EC of a proposal about a zero profit tax for a period of five years for investments over 5 million euro in any economic sector, Dimitrov said.Foreign direct investment in Bulgaria in 2008 is estimated to reach 6,000 million euro. Growth is reported in investments in the processing industry in the past two years from 3.8 per cent to 11.9 per cent.Dimitrov said that the currency board arrangement in Bulgaria is an additional stabilizing factor in attracting foreign investment."Bulgaria is characterized by an excellent banking system and macroeconomic framework, which is a dream for many countries in Europe," Bulgarian National Bank Governor Ivan Iskrov said in his statement, which is published on the BNB Website."Some investment bankers, independent analysts or simply speculators rushed to explain how bad the economic situation in Central and Eastern Europe is, which seems absurd when one looks at the data, and even more absurd when one looks at what stands behind the data," Iskrov said. "It is important that all observers never forget what actually caused the crisis and from where it began," he added."The present financial crisis is the result of inadequate regulations and supervision of financial markets in the most developed economies, as well as of the exceptional greed of some participants on the market,"  is the opinion of the BNB Governor. According to him, it is comical that the institutions that criticise this country most are precisely those that most need government aid in order to cope with the holes in their financial balance. "Be careful when you read or interpret them, always make the difference," Iskrov appealed to investors."The practice to make conclusions about the state of the entire region, which includes countries with different economic characteristics, is like comparing tomatoes and cucumbers," Iskrov pointed out. "In the present conditions, decision-makers and market participants should be acquainted with the specific characteristics of each country and economy," he added. "Central and Eastern Europe no longer exist - this is a purely geographical designation.","The risks in our region are not larger than the risks in the old EU member states," Iskrov went on to say. According to him, the fall of the Iron Curtain created enormous opportunities not only for the former communist countries, but for Western Europe as well. "If the old member-states, and particularly neighbours like Austria and Greece, for example, had not invested in our region and had not benefited from the integration of Central and Eastern Europe in the European economy, then where would their capacities for investment have been today," he added, stating that in the future the only region in Europe which would have a more considerable economic growth would be Central and Eastern Europe, in spite of the current short-term difficulties imported from the developed financial markets.From 1998 until now the Bulgarian government implements either a balanced budget or considerable budget surplus, Iskrov said. In this period the government debt was reduced from nearly 100 per cent of GDP in 1998 to 16 per cent of GDP in 2008. "Even now, when we expect economic growth to slow down, the Bulgarian government prepared a budget providing for a budget surplus,' Iskrov pointed out. He noted that the main aim of the policy implemented was to preclude the opportunity for the government to find itself in a situation of dependence on the international financial markets to fund budget costs."The Bulgarian economy  has the advantage of a policy based on the principles of currency board and fixed exchange rate. No matter what adaptation the Bulgarian economy will pass through as a result of the global financial and economic crisis, this adaptation will be effected within the existing regime of currency board and at the existing currency rate level of BGN 1.95583 per euro," Iskrov commented. "Bulgaria will not engage in any experiments and speculate with its currency regime, which is the cornerstone of Bulgarian macroeconomic and financial stability," the BNB Governor was adamant.Addressing the forum Deputy Prime Minister in charge of EU funds management Meglena Plougchieva said that macroeconomic stability and strict financial discipline are among the positive factors for foreign investments here. Plougchieva said that in the past 20 years 62 per cent of foreign investments were made in the period 2006-2008, which she attributed to Bulgaria's membership in the EU, the political stability in the country and its good legislative and tax policies.

Investment Agency Head: Bulgaria no less competitive than China's east coast

 

The Director of the InvestBulgaria Agency, Stoyan Stalev, said Thursday that Bulgaria was not less attractive for foreign investors than the world's top investment destination, the East Coast of China. Stalev spoke at the Invest in Bulgaria 2009 Summit, which took place in the Sheraton Hotel in Sofia, elaborating on Bulgaria's investment advantages. The InvestBulgaria Agency head pointed out that Bulgaria was mostly attractive for foreign investors because of its potential as an export location close to markets with some 800 million inhabitants in the EU, Russia, Turkey, the Middle East, and Central Asia. Stalev pointed out that the main investment strategy of the Bulgarian government, which his agency supported, was to put forth Bulgaria's combination of advantages, which included the macroeconomic and political stability, the really favorable taxation policy, the qualified labor force, the general low production costs, and the improving bureaucracy. Data presented by Stalev showed that foreign companies invested EUR 30 B in Bulgaria since 1990, and EUR 19 B of these were invested only in the 2006-2008, i.e. after Bulgaria completed its EU accession negotiations in 2004. Most of Bulgaria's Foreign Direct Investments in 1996-2008 came from Austria (15% or EUR 4,6 B), the Netherlands (12% or EUR 3,6 B), Greece (9% or EUR 2,8 B), the UK (9% or EUR 2,7 B), Germany (6% or EUR 1,8 B), Cyprus (5% or EUR 1,5 B), Belgium (4% or EUR 1,3 B), Hungary (4% or EUR 1,2 B), USA (4% or EUR 1,1 B), and Switzerland (3% or EUR 1,05 B).Stalev pointed out the InvestBulgaria Agency was trying as a priority to attract investors from France within the EU, and from China, Japan, and Korea from the potential non-EU investors. According to the data presented by Stalev, 22% of Bulgaria's total foreign investments in 1998-2008 were in the real estate sector (or EUR 6,7 B), 20% in finance (or EUR 6,04 B), 18% in manufacturing (EUR 5,4 B), 16% in trade (EUR 4,94 B), and 7% in construction. The Invest in Bulgaria 2009 Summit is organized by the Brussels-based European Finance Convention. Novinite.com (Sofia News Agency) is official media partner of the event.

Bulgaria cuts in half threshold for investor certificates

 

First-class investor certificates, the highest investor rank in Bulgaria, will be awarded to companies with a minimum investment volume of BGN 32 million, not BGN 70 million, the government decided on Wednesday.The investment volume for a second-class investor certificate is decreased from BGN 40 million to BGN 16 million. Investors in municipalities, whose unemployment rates are equal or higher than the average for the country, will land first-class certificates and be promoted by means of various measures if they make an investment of at least BGN 16 million, down by at least BGN 20 million from the current levels. The investment volume for a second-class investor certificate in these municipalities goes down from BGN 20 -25 million to BGN 8 million.The government said that the cut in the threshold by more than two times will help create new jobs, fuel the economic development and reduce differences between regions across the country.

EVN invests EUR 50 M in new thermal power plant in Bulgaria city of Plovdiv

The Austrian-owned Bulgarian electricity provider EVN is going to invest between EUR 50 M and EUR 60 M in a new thermal power plant in the city of Plovdiv.The news was announced by Peter Lair, member of the company's governing board, as quoted by Darik Radio.The new facility is expected to be completed in two years. Its capacity will be 100 MW, and it is going to provide both electricity and central heating. EVN Bulgaria has already started the procedures for receiving construction and environmental permits.

Bulgaria foreign minister entices Indian business with investment opportunities

 

The Bulgarian Deputy Prime Minister (PM) and Foreign Minister, Ivaylo Kalfin, talked Monday to representatives of the Federation of Indian Chambers of Commerce and Industry (FICCI) about investment opportunities in Bulgaria, the Foreign Ministry press center informs.Kalfin met with FICCI representatives as part of his official visit to India.FICCI is an association of business organizations in India, headquartered in the national capital New Delhi. It was founded by J.D.Birla and Purushottam Takkur in 1927, on the advice of Mahatma Gandhi. It has a nationwide membership of over 1500 corporates and over 500 chambers of commerce and business associations.70 prominent Indian businessmen, owners of some of the largest Asian trade, industrial and IT companies, attended the meeting with the Bulgarian Foreign Minister Monday.Kalfin made a presentation titled: "Bulgarian Economy and the Global Financial Crisis and Business and Investment Opportunities in Bulgaria."After listening to Kalfin, many of the Indian businessmen have stated that they will include Bulgaria in their future investment plans.In order to intensify trade and economic relations between the two countries, Indian businessmen insisted on having a direct flight connection between Sofia and Delhi and on updating the agreement between the Bulgarian Chamber of Commerce and Industry and FICCI.Bulgaria's President, Georgi Parvanov, accompanied by a large Bulgarian business delegation, is scheduled to visit India at the end of 2009, while three joint Bulgaria-India Commissions - for Defense, Science and IT, are going to meet in April and May.

Bulgarian consul in Dubai announces UAE tourist and investment plan

 

Zdravelin Georgiev, Consul General of Bulgaria in Dubai, has announced that Bulgaria is planning to launch a campaign to boost two-way investment and tourist traffic with the UAE, Zawya, a business information company in Dubai, reported late Tuesday.Georgiev stated that the campaign, to be launched within weeks, was aimed at creating greater awareness in the UAE and the Gulf of Bulgaria's "immense tourism and investment prospects.""The investment climate in Bulgaria remains good despite the current global meltdown. one of our goals is to promote two-way investment and tourist traffic with the Gulf region," Georgiev told the UAE newspaper Khaleej Times.He said by the middle of this year, Bulgarian Airlines would launch direct flights between Sofia and Dubai as part of the government's effort to encourage tourists and businessmen to the country.Georgiev said tourist flow from the Gulf region to Bulgaria remained low, partly because there were no direct flights. Last year, the Bulgarian Consulate General issued 2 000 visit visas in the UAE. "This is a very small number given the myriad of tourist attractions of a country like Bulgaria of 7.5 million people" he said.In June 2007, Bulgaria and the UAE signed a treaty for the avoidance of double taxation and restriction of income and capital tax evasion. There are more than 7 000 Bulgarians living the UAE, Georgiev concluded.

 

Italians to build port in Tsarevo

                                                                                                                      

Italian De Ferrari JSC and municipality of the town of Tsarevo on the Black sea signed an agreement for the joint construction of Yachtpolis in the town. The project amounts to EUR 80 million. The investors will apply for Class A certificate and hope that to quicken the implementation of the project. The aim is to serve wealthy tourists. The port complex will have also a fishing terminal.

Romanian and Greek businesses escape to Bulgaria to avoid financial crisis

 

Romanian businesses have started to move on mass to Bulgaria, in an attempt to avoid the worst affects of the current global financial crisis in their home country, Bulgarian daily newspaper Standart reported Thursday.The Bulgarian border city of Ruse has already seen a boom in rental property business and is expecting this to continue well into 2009.This business orientated migration comes about due to the lower running costs of businesses in Bulgaria, up to 40% less according to some experts. Wages for staff are much lower along with insurance payments and electricity bills according to Kamen Kolev the Director of the Bulgarian Industrial Association.Kolev also added that multi-national companies from Bulgaria's Southern neighbor Greece are also starting to move their attention to Bulgaria for the same reasons. He added that the average wage in Bulgaria is EUR 267 while in Greece it is EUR 1400.The Greek newspaper ‘Vima' concluded that cheaper running costs are attracting Greek companies and multi-nationals to Bulgaria, stating that Tate&Lyle Greece, Unilever, US company Crown Cork & Seal and German firm Triumph have already started or completed the move North.

 

 

 

 

 

 

COMPANIES:

 

Swedish media giant announces merger of Bulgaria broadcasting assets

 

Swedish media company Modern Times Group will merge its broadcasting assets in Bulgaria into a single entity, the company reported late Tuesday in an official press release.The company said it has reached agreement with Apace Media Plc to merge part-owned Balkan Media Group Limited into Modern Times Group subsidiary Nova Televizia.The Swedish company has owned 50% of Balkan Media, with Apace holding the remainder, since March 2007 and completed the 100% acquisition of Nova Televizia in October 2008."This change will substantially simplify the ownership structure of our operations in Bulgaria and is in line with our overall media house strategy," Modern Times chief executive Hans-Holger Albrecht said.Following the non-cash transaction, Modern Times will own 95% of the enlarged Nova Televizia group and will continue to fully consolidate the results of the combined operations, the company said, while Apace will own 5% of the merged entity.The assets being transferred from Balkan Media include Diema, Diema Family, Diema 2 and MM channels in Bulgaria, as well as Albanian language channel ERA TV in Macedonia. Nova Televizia operates the Nova TV channel, which is Bulgaria's second most watched television station. Modern Times Group is a Stockholm-listed, international entertainment broadcasting group with the second largest geographical broadcast footprint in Europe.

Bulgarian milk processing company shuts down over Global Financial Crisis

 

The Bulgarian milk processing company "Serdika-90" shut down over the global financial crisis.93 of a total of 120 employees of the company, which is situated in the Northeast city of Dobrich, were fired.The employees found out about the layoff Wednesday from a list of names put at the front door of the company's factory, BGNES reported.The Dobrich Labor Office Directorate and the city's municipal administration have still not been officially informed about the dismissal. The Confederation of Independent Bulgarian Syndicates (KNSB) and the Labor Confederation "Podkrepa" ("Support") received information about the layoff at 5 pm on February 27.The Spanish fund "Jet", which is the owner of "Serdika-90", has justified the closure with the negative effect of the financial crisis, the decrease of the market's volume, and the competition of the "gray economy".The milk buying department, the pasteurization department, and the cheese, and kashkaval (yellow cheese) departments were closed. The work of the financial department, the quality control department, and the technical supplies department has been reduced.The fired employees do not have a collective labor agreement, and can expect up to two monthly salaries as a compensation. The average wage in the company is BGN 500.KNSB and "Serdika-90" CEO Dorel Radu are going to meet Thursday to discuss the formation of a team, including representatives of the Dobrich municipality administration, and the Labor Office Directorate, to try to find jobs of the fired employees, even by changing their field of work.It is still unclear whether some of the former employees will be sent to the other "Jet"-owned company in Dobrich, "Fama", which produces milk and yogurt.

 

 

GLOBAL FINANCIAL CRISIS ANALYSIS AND NEWS:

 

Deputy Finance Minister: Bulgaria already feels positive crisis effects

Bulgaria is already experiencing the positive effects of the global financial crisis, according to the Deputy Minister of Finance, Lyubomir Datsov.During a conference dedicated to Bulgaria's "Financial Sector in the Context of the Global Financial and Economic Crisis" in the city of Plovdiv on Wednesday, Datsov said that Bulgaria was to benefit as the crisis was going to reduce its inflation and current account deficit. According to Datsov, Bulgaria is going to have an inflation of between 3,5% and 4,5% in 2009, which is a substantial decrease compared to the 12% in 2008. The economic growth, however, is expected to be below 2%.At the same time, while the current account deficit might be reduced, the crisis would also mean a decrease of the attracted foreign investments.The official figures of the Bulgarian government in the 2009 State Budget envisage an economic growth of 4,5% in 2009.

Currency board saves Sofia from Western Europe's tragedies

Bulgaria was not affected by the financial crisis to the extent some other countries in the Western Europe were. This is due both to the currency board active in Bulgaria and the fact that the country lacks the so-called toxic funds in its financial system, unlike many other economies. The Bulgarian economy heads to a real soft landing namely because it does not suffer the problems of many other countries. The Bulgarian economy, however, will slow down its growth. The foreign investments will not be in the amounts that were anticipated a couple of months ago. The economic growth in the country is namely a result of the foreign capitals. Besides, many of the Bulgarian immigrants will lose their jobs. Many of them will return to Bulgaria and their numbers will increase the unemployment rates. Hence, the Government will have to provide additional budget funds for investing and for supporting those who have lost their jobs. Bulgaria's ambition to enter the euro zone is not a bad idea as a whole. Every country, which has entered the zone, has benefited in way or the other. The Government, though, will have to carefully consider and weigh up all pros and cons for introducing the euro suggested by the experts in the course of the discussions on this important matter.

EC President announces possible financial crisis support for Bulgaria

 

The President of the European Commission, Jose Manuel Barroso, has suggested that Bulgaria could receive EUR 500 M from preliminary payments through European Programs to help the country through the financial crisis, Bulgarian National Radio reported late Thursday.Barroso's announcement came after a meeting with Bulgarian PM Sergey Stanishev who is currently visiting Brussels and also met with the European Commissioner on Energy Andris Piebalgs and on Economic and Monetary Affairs, Joaquin Almunia.Barroso added that Bulgaria has stood up quite firmly to the current financial crisis that has hit all the EU countries and according to him this is due to Bulgaria's considerable economic growth in last few years and the country's ability to sustain a healthy fiscal status.During his talk with Piebalgs, Stanishev said that the compensation on the part of the EU for the decommissioning of blocks 1-4 of the Bulgarian nuclear power station at Kozloduy should continue to be supplied after 2009.He pointed to the enormous losses the country has been subjected to during the gas crisis, roughly EUR 250 M, as a reason for his request.

Bulgaria transport minister: New Varna-Kavkaz ferry is anti-crisis measure

 

Bulgaria's Transport Minister Petar Mutafchiev inaugurated Tuesday the new railroad-ferry line between the Bulgarian sea port of Varna and the Caucasus region, Darik radio informs.The Minister stated that nearly 500,000 tons of cargo will be transported each year, adding that, according to experts, by the year 2013, the loads' volume could go up three times - to 1,500,000 tons.Mutafchiev pointed out that the new ferry line could be considered a measure against the global financial crisis.At the moment, the freight transportation is going to be performed by a Russian company, but according to expectations, a Bulgarian carrier would be designated by the end of 2009. It is reported that at least two Bulgarian accompanies have expressed interest in operating the new ferry line.Mutafchiev further explained that his Ministry was working on relocating the Varna-East port, but joked that pre-election ground breaking was not forthcoming.

Credit crunch squeezes mobile phone sales in Bulgaria

The penetration of mobile phone services in Bulgaria has reached 142 per cent, according to statistics of the local operators.Local electronic retailers Germanos estimated that active prepay cards passed the 11 million mark.The bulk of the handsets - about 60 per cent, according to unconfirmed reports - are sold at the offices of the market’s three wireless carriers, Mobiltel Globul and Vivatel, as well as by exclusive partners such as Handy, 2be and Germanos.Official statistics on sold mobiles are not available but retailers estimate they have sold between 1 and 1.8 million units without giving details about market size.Sales have been shrinking in the recent months dragged by the global economic downturn, with chains speaking of a 10 to 30 per cent decrease. Bulgarians reportedly buy new gadgets once in two to three years.Avenir Telecom Bulgaria, which acquired mobile electronics retailer Da Da about two years ago, saw its sales slide by about 20 per cent, said commercial director Petar Petrov. He added new subscriber numbers have fallen by as much, while SIM-free phones have suffered more than 50 per cent drop in demand.Another retailer, Hendy, said sales dropped by 30 per cent in February compared to November.According to 2be executive director Svetlana Arnaudova, the crisis squeezed to 25 per cent leasing contracts, which traditionally account for about 70 per cent of electronic goods sales. Some firms such as BNP Paribas Personal Finances have scrapped mobile phone leasing and the rest offer contracts only to former customers with clean credit records.