BULGARIAN ECONOMIC TOP NEWS DIGEST
WEEKLY REPORT ( 6 – 13 MARCH 2009 )
Sections/headline briefs:
MACROECONOMY:
· EU gives Bulgaria € 2.8 billion for "Green" projects
· Hong Kong buys Bulgarian wines
· Bulgaria's balance with the EU for 2008 is negative
· Bulgaria’s business switches to Euro
· Crisis to postpone adoption of the Euro
· Bulgaria's finance minister claims higher compensations over nuclear reactors shutdown
· Macedonia gives up Belene NPP project
· Plovdiv and Sofia host energy summit
· Russians buy Bulgarian hotels by the kilo
· Bulgaria and Netherlands have potential to develop economic relations
· Cuba open for cooperation with Bulgaria in energy & tourism
· Ambassador Lang: Bulgarian-Hungarian relations are excellent
· Bulgaria third in the EU on smoking
· EIB provides € 455 M to Bulgaria in 2008
· EBRD Head: Eastern Europe to avoid debt default
· Bulgaria’s new car sales halve as crisis bites
- Haskovo to boast new modern railway station in May
INVESTMENTS:
· Energy park worth € 200 M near the Danube
· Israeli firms invested in Bulgaria €1 billion in 2 years
· Enel looks into new investment prospects in Bulgaria
· € 80 M port in Tsarevo to attract yachts
· Income from Russian visas to be invested in Bulgaria's tourism
· Czechs interested in building a tunnel under Shipka
· Plovdiv could attract a € 20 M project
· Balkan Energy to build wind farm
COMPANIES:
· Devnya Tsiment delays new factory project
· Microsoft Bulgaria celebrates innovation day with opening of new IT center
· Bulgarian company Bianor presented business solutions on CeBit 2009
· Carrefour opens first shop in Bulgaria
· Warren Buffett subsidiary eyes Bulgaria
· Bulgaria with a 429 square meters stand in the world's biggest tourist market
· American GFF buys paper mill in Nikopol
GLOBAL FINANCIAL CRISIS ANALYSIS AND NEWS:
· Newsweek: Crisis in Europe to trigger new migrant wave from Bulgaria
· Expert: Bulgaria will not be bypassed by the crisis
· Manufacture in Bulgaria crumbles due to Crisis
· New decrease in the construction sector
· Industrial zones veiled in fog
· Over 150,000 Bulgarian emigrants return home
· Bulgaria’s foreign trade gap widens further
Articles:
MACROECONOMY:
EU gives Bulgaria € 2.8 billion for "Green" projects
By 2013 Bulgaria will receive over 2,822 million euro to invest in "green projects" or projects, the implementation of which is closely related with environment protection. The EU will invest a total of 105,000 million euro in green economy, which accounts for over 30 per cent of the budget, allocated for the cohesion policy in the 2007-2013 period, European Commissioner in charge of regional policy Danuta Hubner said on Monday. The highest amount of funds, 934,903,309 euro will be allocated for the water sector, followed by railway transport - 464 million euro, waste management - 300,521,138 euro, energy efficiency and energy management - 125,619,935 euro. A total of 98,861,283 euro will be extended for direct protection of nature and increasing biodiversity and 66,491,830 euro for the production of energy from renewable resources.These projects, including the amount of the funds for their implementation, are specified for each country. Commissioner Hubner said that there could be certain change and transfer of funds between projects given that the big goal of protecting the environment and, simultaneously, increasing employment, remains unchanged. In the case with Bulgaria and Romania over 50 per cent of the funds for cohesion policy will be spent for the green economy. "I am glad that an increasing higher number of people in the EU, Bulgaria inclusive, are aware that extending of more funds for the green economy is important," said she. This entails not only environment protection and job creation but also increasing of living standards," added the Commissioner.
Hong Kong buys Bulgarian wines
Hong Kong opens doors for import of Bulgarian wines. The Bulgarian wines gain more and more popularity in the city where duties on import of beverages has been recently removed, reported Mary Chow, Hong Kong Special Representative for Economic and Trade Affairs to the European Communities. She took part in a business seminar where Hong Kong Economic and Trade Office in Brussels informed the representatives of the Bulgarian business about the opportunities for export to the Asian market. Over 100 representatives of the Bulgarian business showed interest in the forum.
Bulgarian enterprises could also find a niche in the electronics and telecommunications markets, reported Winchell Cheung, Director, Germany and Central Europe of the Hong Kong Trade Development Council in Frankfurt. Cheung recommended that Bulgarian companies should open branches in Hong Kong to get maximum profit from exporting on the Asian and primarily the Chinese market.
Bulgaria's balance with the EU for 2008 is negative
Bulgaria's balance with the EU in 2008 is negative, as import exceeds export by more than 10 billion les, preliminary data on the foreign operations with partners from the EU for the past year shows, the National Statistics Institute announced. The preliminary analysis of 2008 shows that the tendency for the main part of the foreign flows of Bulgaria to be directed towards the EU continues. More than 60% of the merchandize, exported by Bulgaria, is directed towards the Community or these are deals worth almost 18 billion levs, while the imported merchandize is 57% of the value of the total import or 28 billion levs. Compared to 2007, the export for the EU has increased by 11,8%, while import - by 12,1%.In 2008 the major trade partners of the country within the EU are Germany, Italy and Greece. For these countries Bulgaria exports 46% of the merchandize, traded in the EU, while the share of the imported from these countries merchandize is 44%.Bulgaria's export to the EU includes mainly metals and other commodities, classified according to the type of the material, which form 32% share of the import of the Union, finished products (clothing, shoes, furniture, measurement instruments) with a 23% share, machines and equipment - 17%. The structure of the import from the EU shows a preponderance of the group machines, equipment and transport with a share of 40% from the total import from the EU. The share of finished products is over 20%, while that of the chemical substances and products - over 12%.
Bulgaria’s business switches to Euro
More and more Bulgarian firms are giving up the national currency, lev and switching over to euro crediting, according to Bulgarian National Bank statistics for January 2009. And that’s no news: credits in the common European currency are rapidly replacing loaning good old levs. The loans in euros exceed three to four times those in levs and ten times those in dollars. Translated in figures, this amounts to 15,198 billion euros, 4,371 billion levs, and 550 million dollars. “The business loans in euros have increased by 95 percent in the last few years,” BNB Governor Ivan Iskrov admitted.
Crisis to postpone adoption of the Euro
The adoption of the euro is a secondary priority for Bulgaria to securing macroeconomic stability and a prudent fiscal policy, finance minister Petar Oresharski said in Brussels. In an interview for Bloomberg after a session of the Economic and Financial Affairs Council (Ecofin), Oresharski said that Bulgaria’s entry into the European exchange rate mechanism ERM 2 and the subsequent adoption of the euro could only happen when the economic crisis has subsided. The minister reiterated his upbeat forecast about the Bulgarian economy this year, saying that the government expected a rise in the range 0-2%, where zero growth was the downbeat scenario. Echoing the calls by rating agency Moody’s, Oresharski said Bulgaria should not be put on a par with Romania, which has reached out for international financial assistance and has a free-floating currency. Bulgaria, on the other hand, has a currency board pegging the lev to the euro, a comfortable fiscal reserve and had a surplus of 3% last year.
Bulgaria's finance minister claims higher compensations over nuclear reactors shutdown
During the regular ECOFIN sitting, Bulgaria's Finance Minister Plamen Oresharski has tabled a declaration at the EU headquarters in Brussels demanding higher compensations for the shutdown of NPP Kozloduy's reactors 3 and 4, sources from the Finance Ministry informed.The declaration voices Bulgaria's claim for extension of the compensation payments over 2010-2013. Last week PES MEP Atanas Paparizov said Bulgaria could rightfully receive 500-700 million euro extra in compensation for the closed nuclear facilities. To support his statement Paparizov noted that EU members Slovakia and Lithuania have negotiated with the bloc compensations in the size of EUR 700 million and one billion, respectively, for the shutdown of their nuclear reactors, whereas Bulgaria is to receive only EUR 550 million. EU Energy Commissioner Andris Piebalgs said Bulgaria might receive extra compensations, but he was firm that the European Commission would not allow a restart of the shut down facilities of NPP Kozloduy.
Macedonia gives up Belene NPP project
Macedonia has shelved plans to take part in the construction of Bulgaria’s second nuclear power facility, state news agency BTA reported. A new strategy drawn up by the Macedonian Academy of Sciences and Arts estimates the country could build its own nuclear power capacities by 2025. The Bulgarian state owns 51% of the Belene project and the rest is in the hands of German utility RWE, so no third investor is needed, explained Gligor Kanevce of the academy.
Plovdiv and Sofia host energy summit
The energy summit will take place both in Plovdiv and Sofia in parallel. Bulgaria's two main cities will host meetings of leading politicians and businessmen from around the world on April 24-25. In the city of Plovdiv presidents, PMs and ministers will discuss energy problems. Bulgaria's partners from the EU, Russia, the USA, Azerbaijan, Ukraine, Turkey, Georgia, Kazakhstan, Turkmenistan and Egypt will have discussions under the motto' Natural gas for Europe - Security and Partnership'. The idea for organizing the energy summit in Bulgaria was launched by president Georgi Parvanov. A day before PM Sergei Stanishev announced his project Bulgaria to become the 'energy Davos' and to host early talks on the energy future of Europe. While the forum in Sofia is in progress end-April a parallel energy summit will be held in Sofia. Top managers of the leading international companies will attend it, The Bulgarian Energy Holding informed. Among the invitees are the German energy giant RWE, OMV of Austria, MOL of Hungary, Gas de France, companies of the USA, Iran, Uzbekistan, Turkmenistan, etc. The aim of the meeting is to launch a parallel debate among the top managers of the big energy companies harmonized with the discussions held in Plovdiv. The construction of the southern gas transit corridor, Nabucco pipe including, will be the main agenda of the forum in Sofia. The other priority topics are the link between the gas transit networks of Bulgaria and Greece, building of a port terminal at the Aegean coast for the supply of liquefied gas from Algeria, etc.
Russians buy Bulgarian hotels by the kilo
Rich Russians are buying hotels at the Bulgarian seaside for peanut money, real estate brokers reported. Many of them have commissioned special property agents to hunt for cheap estates. Owners on the brink of bankruptcy are the most wanted for their unfinished properties and ‘unrepayable’ debts. Undeveloped projects that have been refused crediting are in high demand, too. Ten seaside hotels change hands already, all of them sold at an average price of 500 euros/sq. m since the beginning of the year. The best deal was for a 1000-sq.m four-storey hotel at a rough construction stage that was sold for the mere 300,000 euros. In spite of the lethargy on the Bulgarian property market, Russians don’t stop investing over fears that their money may lose value. Moreover, more and more Russians are losing confidence in their country’s banking system, experts explain.
Bulgaria and Netherlands have potential to develop economic relations
Small and medium-sized businesses, farming, food-processing and tourism are the areas where Bulgaria and the Netherlands have potential to develop their economic relations, Mihail Mihailov, Director of the Bulgarian Trade Representation Office in the Bulgarian
Embassy in the Netherlands, said. Mihailov took up his post in November 2008. Part of this potential is expected to be showcased at the latest edition of the traditional tourist and culture fair Betoverend Bulgarije, Enchanting Bulgaria, opening on March 7 in De Grote Kerk, the Great Church, the biggest church in the Netherlands. The exhibition marks the start of the Days of Bulgaria in the Netherlands celebrating the centennial anniversaries of the declaration of Bulgaria's independence and of the establishment of diplomatic relations between Bulgaria and the Netherlands. The Days of Bulgaria are organized by the Bulgarian Embassy and the Bulgarian Tourist Information Office. The Netherlands is among the leading foreign trade partners of Bulgaria. Since 1999 commercial exchange between the two counties has grown steadily. The Netherlands is also among the biggest foreign investors in Bulgaria. Mihailov urged Bulgarian companies in the food processing sector which want to sell on the Dutch market to pool their efforts in the marketing of their produce, rather than act alone. Mihailov singled out shipbuilding as an area where serious success has been achieved from the Bulgarian-Dutch cooperation. An exhibition of Bulgarian and Dutch artists called Two Points of View, one Beauty was opened Thursday evening in the Bulgarian Tourist Office in Rotterdam. The exhibition is part of the Days of Bulgaria in the Netherlands and continues until April 9. The idea of the exhibition where artists show their opinions of the beauty of the other country is wonderful, art history professor in the Rotterdam High School Marianne Lindhout said at the opening.
Cuba open for cooperation with Bulgaria in energy & tourism
Cuba is open for Bulgarian investments in energy, Cuban Ambassador Gerardo Suarez Alvarez said while visiting town of Sliven Thursday. The Ambassador recalled that many of the dams in his country constructed in the second half of the 20th century were built by Bulgarian engineers. According to the diplomat, now when the Cuban government plans to build small hydro-power stations on these dams it is only natural for Bulgarian companies to show interest in such undertakings. Ambassador Gerardo Suarez Alvarez also said that tourism, renewable energy sources, biotechnologies, pharmaceuticals, information technologies, health care and culture are other areas where Bulgaria and Cuba could expand cooperation.The Cuban Ambassador provided data showing that bilateral commercial exchange in the past four years was in the range between 15 and 20 million U.S. dollars \annually while before the political changes in the 1990s the figure was 500 million dollars.The Bulgarian-Cuban mixed intergovernmental commission is holding its ninth session in Sofia in May, the Cuban Ambassador said. The meeting is expected to discuss ways to expand and deepen the bilateral relations in the new conditions.In Sliven Ambassador Gerardo Suarez Alvarez met in succession with Regional Governor Hristina Cholakova and Deputy Municipal Mayor Radost Kostova. The diplomat is also meeting representatives of the local chapter of the Bulgaria-Cuba Friendship Association. In Sliven the Ambassador is accompanied by his wife and Chairperson of the Bulgaria-Cuba Friendship Association Stanka Shopova.
Ambassador Lang: Bulgarian-Hungarian relations are excellent
Speaking at a news conference on Thursday Hungarian Ambassador in Sofia Judith Lang defined relations between Bulgaria and Hungary as excellent, both at political and economic level. Undoubtedly, this is largely preconditioned by the two countries' membership of EU and NATO, Lang observed adding that "we have similar interests and are working together to protect them."Trade relations also mark excellent development with two-way trade exceeding 685 million euro.According to Ambassador Lang, further efforts may be paid in the areas of culture and tourism. She noted that a Week of Hungarian Cuisine will be held at Hilton Hotel from March 16 to 22, where connoisseurs would be able to taste traditional Hungarian dishes and vintage wines. The Malev Hungarian Air Lines, along with a Bulgarian tourist agency, will organize trips to Budapest from March 20 to April 5, when the Budapest Spring Festival will be held.The Hungarian Cultural Institute will also organize a series of events in March. The Hungarian film "Bahrtalo" [Luck] will be shown within Sofia Film Fest Thursday evening.
Bulgaria third in the EU on smoking
One in three youths between 10 and 19 years of age is an active smoker. These are the observations from the campaign "HELP - life without smoking" from last year, zdrave.net reported.Half of the pregnant women in Bulgaria also smoke. on number of smoked cigarettes per day Bulgarians take third place among Europeans, as they need a pack per day. In Bulgaria active smokers are 1,9 million people. In 1986 women smokers in Bulgaria were 19%, now they are 38%. Men smokers are 52.4%.The European Commission continues the fight against smoking through the campaign.It will be realized in the next two years. It is planned exclusively for young people and it will follow the recommendations of experts, who participated in the health conference in Brussels after October 2008.
EIB provides € 455 M to Bulgaria in 2008
In 2008 the European Investment Bank (EIB) provided 455 million euros in loans to Bulgaria, EIB's annual report for 2008 says. on Monday the report was presented by EIB President Philippe Maystadt. Out of the total amount, 105 million euros were provided in a loan to the Sofia Municipality for extending the underground. This was the first EIB loan to a Bulgarian municipality. one hundred million euros were made available for extending the mobile telephony network while 175 million euros were provided to improve the access to long-term loans of small and medium-sized businesses. Relations between EIB and Bulgaria date back to 1990 and currently develop on the basis of a cooperation agreement signed in 2006.According to official data of the Bank, since 1990 to date it has provided a total of 2,800 million euros to Bulgaria. Transport accounts for the greatest share in the amount, 54 per cent, followed by the water sector, 15 per cent. The EIB committed itself last September to boosting SME finance to help smaller businesses weather the financial and economic storm. As a result, the Bank signed loans for SMEs worth 8,1 million euros in 2008, more than half of this in the fourth quarter alone, against 5,7 million euros in 2007, while also making the lending process simpler, more flexible and more transparent, EIB said in a press release. At the same time, the European Investment Fund, the EIB GroupТs specialized financing arm for small businesses, provided commercial banks with 2,000 million euros in loan guarantees for SME lending and invested more than 400 million euros in venture capital funds. By 2011 EIB plans to provide 30,000 million euros in loans to SMEs in the EU, half of which amount is expected to be made available in 2008-2009.
EBRD Head: Eastern Europe to avoid debt default
Eastern European economies will avoid debt defaults and "bounce back strongly" after the global financial crisis, said Thomas Mirow, president of the European Bank for Reconstruction and Development, as cited by Bloomberg agency."What we are now facing in some countries in eastern Europe is a severe recession but not a collapse," Mirow said in a speech at the London School of Economics. "It would however be a grave mistake to paint the future in colors too bleak. The situation today is serious, but it is manageable."The economies of former communist countries have been shaken by the drying up of credit and investment after years of unprecedented growth as the region integrated with the wealthier West. Some, including Hungary, Latvia, and Ukraine were forced to take international bailouts to stabilize their finances.Ukraine faces an economic contraction of as much as 10 percent in 2009 after nine years of growth. The Hungarian economy may slump 3.5 percent this year and record its worst performance in 16 years."There are strong underlying fundamentals in eastern Europe which remain in place and need to be protected," said Mirow. "We believe that eastern Europe will come out of the present crisis, perhaps bruised and battered, but not beaten."
Bulgaria’s new car sales halve as crisis bites
The big trouble for Bulgaria’s new car dealers is yet to come, shows data of the local car manufacturers’ association. In January and February, auto dealers sold 4,645 new cars, trucks, buses and motorcycles in comparison with 9,290 a year earlier. This makes a reduction in half against 47% in January and the staggering 76% in December. New bus sales plummeted almost sixfold -- 12 against 71 units -- and lorries slumped more than threefold to 183 from 614 units. Dealers registered a sharp drop in demand for small and medium sized vans, which are used by many companies. Auto sales are being depressed by the financial crisis that put car purchases on hold as well as by tight credit and leasing conditions. Luxury makes are still faring better than common brands, with BMW debuting in the top 10 brands with 110 deals. The runner-up was Mercedes with 107 units. Jaguar is one in five manufacturers that boosted sales compared to last year, selling five units against zero in the previous period. The outlook seems to be most optimistic for Subaru, which sold 55 vehicles in January and February versus 30 last year. Porsche BG with Volkswagen moved from number fourth last year to came out top of the table after striking 555 deals and grabbing 12.47% of the market. Next came Citroen’s Automotor Corporation with a 10.58% market share and Ford’s Moto-Pfohe. Last year’s number one, Opel, dropped to fifth with 321 units.
Haskovo to boast new modern railway station in May
The railway station in Haskovo will be renovated and modernized at the cost of 270,000 leva, it emerged Wednesday during the visit of Transport Minister Peter Moutafchiev there. He was accompanied by General Director of the National railway Infrastructure Company Anton Ginev.Moutafchiev inspected the works and expressed the hope that by the end of 2009 and the beginning of 2010 the remaining railway stations in the country would undergo similar repairs.The Transport Minister was in Haskovo on his way to Greece where he and his Greek counterpart Evripidis Stylianidis will sign a cross-border agreement in the field of railway transport. The signing of the agreement, scheduled for March 12, will open the opportunity for the development of two joint stations on the territory of Bulgaria and Greece. The railway station chosen for the Kulata-Promachon border crossing is that of Koulata, while that for the Svilengrad-Dikaia crossing will be Dikaia station.This will make the crossing of passengers and laods between Bulgaria and Greece easier, and will aslo reduce stopovers and the duration of travel.
INVESTMENTS:
Energy park worth € 200 M near the Danube
The Japanese Mitsubishi Corporation and the Bulgarian Dei Energy will build an EUR 200 M ecological energy park near the Northern Bulgarian city of Pleven, the Pari Daily reported.The park will be built on 1,800 dekares of abandoned land in the Gulyantsi Municipality, in the Pleven Region. There project will include both wind mills and photovoltaic panels with a total capacity of 160 MW. The construction is scheduled to begin in 2010, while the completion is planned for 2012. Many local contractors will be involved."Our research in the region shows that the wind mills will be able to operate nearly 2 000 hours a year, and the investment amount will be recovered in 8-10 years", the Dei Energy CEO, Ivan Tihov, explained. The photovoltaic panels will be located on the Danube river's shore, producing energy of 1,200-1,300 hours a year, he added.Dei Energy has had similar projects near Bulgaria's Sliven. The company will start another wind park there in the next few days. Its power will be 150 MW."We plan to build several renewable energy parks around Bulgaria with total a power of 500-600 MW", Tihov said.
Israeli firms invested in Bulgaria €1 billion in 2 years
The world financial crisis will not stop the investment programmes of Israeli companies in Bulgaria. This was announced by the Israeli ambassador in Bulgaria Noah Gal Gendler at a press conference in Dobrich, cited by BNR.The ambassador pointed out that on March 19 the Israeli company will open in Plovdiv the biggest mall in Bulgaria.According to him, this is one example that the big companies are not suspending their investment activity although there is a certain slowdown of this process.Israel is among the biggest investors in Bulgaria, His Highness pointed. He informed that only in the last 2 years Israeli firms have invested over 1 billion Euro in the country.Noah Gal Gendler informed that there are opportunities for the development of tourism. Each year over 100 000 Israeli tourists visit Bulgaria, mostly the Black sea resorts.The Israeli ambassador will meet the mayor of Dobrich Detelina Nikolova.
Enel looks into new investment prospects in Bulgaria
Economy and Energy Minister Peter Dimitrov met with John Clark, Enel's regional manager for Bulgaria, the Economy and Energy Ministry said in a press release on Friday.Clark reportedly said that the rehabilitation of Enel Maritza East 3 was an achievement for the energy industry in Bulgaria. He voiced hope that market conditions would improve and that the plant would restore its full output. Enel Maritza East 3 invested over 700 million euro in the rehabilitation, with 160 million euro of these in environmental improvements.During the meeting it transpired that Enel is looking into new investment prospects in Bulgaria, mainly in the area of renewable energy sources, the Economy Ministry said. Clark said that two wind parks are being constructed near Shabla and Kamen Bryag on the Black Sea coast. They are expected to start operation mid-year with initial output capacity of 39 MW.
€ 80 M port in Tsarevo to attract yachts
Although that yachts could rarely be seen on the Bulgarian Black Sea coast the projects for building centres to shelter them are not so few. one of them, Yachtpolis, was presented during the week and will be realized in Tsarevo by the Italian company De Ferrari JSC. The latter has already signed a memorandum of cooperation with the local authorities and will apply for a Class A strategic investor certificate. According to the initial evaluations, the project will cost approximately EUR 80 million. It will be managed by a public-private company which has to be soon set up. The Tsarevo municipality's mayor Petko Arnaudov said that he expected the investor to present the plans for the port development, as well as the scope of its trade activities so as these issues to be discussed by the Municipal Council. De Ferrari's architect Giorgio Ricchetti whо has drawn up the project said that the basic idea pertained to the construction of a luxury yacht port with no harms to the nature. "Just like this we can attract well-off tourists", Ricchetti added. Moreover, in accordance with the agreements that the local authorities and De Ferrari have achieved, the existing fishing port will be renovated and included in the future complex. However, it is not clear how the financial crisis will affect the project. Just several days ago two similar projects in Sozopol were frozen. Their first sod was turned in September 2008. The investors, namely Yachting BG and Marina Port Sozopol, announced that they have faced financial difficulties for building a yacht port and a hotel complex for a total EUR58 million. They will therefore postpone the construction works by one year.
Income from Russian visas to be invested in Bulgaria's tourism
The income from visas issued to Russian tourists visiting Bulgaria will be reinvested in the country's tourism business.The news was announced Monday by Milen Keremedchiev, Bulgarian Deputy Foreign Minister, after a meeting with the Chair of the State Tourist Agency, Aneliya Krushkova, and representatives of tourist agencies working on the Russian market.It is still unclear how this is going to happen, and how the companies and organizations that will receive the profit will be chosen. According to Krushkova, this is a way to help the tourist business in Bulgaria during the financial crisis. Bulgaria's PM, Sergei Stanishev, also supports the idea.In addition, Bulgaria is going to issue free visas to individuals under the age of 18 whose visit's purpose is education. Keremedchiev explained that this will be a part of the agreement between the European Union and the Russian Federation for facilitating the visa procedures for citizens of both sides.Each year, Bulgarian authorities issue around 4,000 visas for Russians under the age of 18. The visas for children under 6 are free while those for children and teenagers from 6 to 18 years of age cost EUR 35.
Czechs interested in building a tunnel under Shipka
A Czech company is expressing interest in the construction of a tunnel under peak Shipka, BNR announced. In order to get acquainted with the project and to discuss opportunities, the municipal manager Svetlozar Todorov will meet in Gabrovo the director of the International department of "Metrostaf" and the representative of the company for Bulgaria.A decision for research regarding the construction of the tunnel, the Gabrovo management makes more than 110 years ago, but the procedure for checking the investor interest in the construction has still not been initiated.
Plovdiv could attract a € 20 M project
Plovdiv could attract a 20 million Euro investment, which is to be for the construction of new parking lots (underground and above ground level), Darik radio reported. The investor interest comes from the Luxembourg company 3EПarking, which expressed its intention to Dimitar Yazov, owner of the real estate company in the city.3EПarking has demanded that the terrains are in the center of the city and at least 250 park places are provided.The projects can be realized through a public-private partnership, in which the Luxembourg company will be a majority owner. It is possible that the investment is 100% private. This was announced by Saba von Ksiki, who is an Executive Director of 3Eparking. It is expected that he will make several inspections of the sites in Plovdiv in May.We remind you that in the beginning of this month the municipal administration in Plovdiv determined five suitable terrains, as it is expected that the procedures for placing them on a sales competition will be submitted in Municipal council within a month.
Balkan Energy to build wind farm
Balkan Energy AD will build wind power park with 23 generators near the village of Dobrin, Krushari municipality. Varna regional inspection of environment has given its agreement. The power capacity will be 70 mW. The land the power farm will be constructed on is not in the eco protected location of Natura 2000. The company expressed its investing interests in 2007 and plans are the realisation of the project to start this year.
COMPANIES:
Devnya Tsiment delays new factory project
Bulgarian cement mill Devnya Tsiment stopped production lines for repair ahead of schedule and sent some workers on a leave by the end of the month, HR head and spokeswoman Valentina Grozdanova told Dnevnik.She explained the company has sent home employees with days-off from previous years who are directly involved in clinker production. This makes around 60 people. The crisis will postpone by ten to 14 months the development of Devnya’s most ambitious project, worth more than BGN 500 million, which will see the construction of a new production line. The company planned to flick the switch on the new facility in 2010. Back in 2007 Devnya was awarded a first-class investor certificate, clearing the way for fast-track administrative support for what is seen as one of Bulgaria’s biggest industrial investment in the past 20 years. Grozdanova said the company had not scrapped plans, but was banking on higher costs of steel and other products as raw materials are falling. She added the firm was now designing the plant and sifting out suppliers. Flagging cement demand in the US and Turkey prompted Devnya to slash output by around 20% last year and focus on the domestic market. Devnya reported a 20% drop in revenue for the first two months of the year but the acutest problem it faces is unofficial cement imports from Turkey, which do not need to comply with the eco rules of the European Union and the Kyoto Protocol and buy no carbon dioxide allowances, Grozdanova said. Bulgaria’s cement mills may seek government protection, a proposal they will discuss at this month’s session of the industry association.
Microsoft Bulgaria celebrates innovation day with opening of new IT center
An Innovations Center was officially inaugurated Wednesday at Sofia's Technology University as part of Innovation Day 2009, organized by Microsoft Bulgaria for the third consecutive year.The center was opened by the CEO of Microsoft Bulgaria, Ognyan Kiryakov, the US Ambassador to Sofia, Nancy McEldowney, the President of the Technology University, Professor Kamen Vesselinov, and the Deputy Chair of the Bulgarian State IT Agency, Dimitar Stanchev.The new center is a joint project of Microsoft and the University. It will be used by both students and professors to access the most contemporary computer systems and to develop projects based on the newest Microsoft platforms and technologies. The investment is estimated at BGN 25,000.In addition, Microsoft announced on Tuesday the start of the new global program Microsoft BizSpark, designed to provide support for new IT companies in Bulgaria. The three-year long membership is free and offers free access to software solutions and platforms, technical maintenance and support, and provides contacts with potential partners, clients and investors. Upon membership termination, the companies will only have to pay a one-time fee of USD 100."These are very exciting programs. They represent the best Microsoft traditions in the aim to help Bulgaria develop its full potential, the same way the "Gates" Foundation strives to make the world a better place," Ambassador McEldowney said Wednesday, during the opening ceremony, which also included demonstrations and test runs of Microsoft newest products such as Windows 7, Internet Explorer 8, Windows Azure Services Platform и Microsoft Surface.
Bulgarian company Bianor presented business solutions on CeBit 2009
Bulgarian software company Bianor presented its innovative business solutions from the family MobiECO Business Solutions during the IT exhibition CeBIT in Hannover. “We attracted good interest” said Stephen Lilov, manager Business Development in the company. “I am not surprised because at the moment all businesses are focused on cost and process optimization”.The advantages of MobiECO Optima and MobiECO Sales Force are decrease of the enterprise bills for mobile communications and increase of clients communication efficiency.
Carrefour opens first shop in Bulgaria
Carrefour, the French retail chain, will open its first store in Bourgas on March 26. It is in Bourgas Plaza, the first for the town mall, and is situated on 13,000 sq. m. The store will offer over 50,000 nutritious and non-nutritious goods. The strategy of the chain is great variety and low prices, executive director of the company for Bulgaria Jean Antoine said.
Warren Buffett subsidiary eyes Bulgaria
Berkshire Hathaway International Insurance Limited, a subsidiary of the investment company of US investment billionaire Warren Buffett, has expressed interest in entering the Bulgarian market.In a letter to Financial Supervision Commission, the insurer said it plans to write payment protection policies on the Bulgarian market.The firm says on its website it sells motor vehicle insurance in the UK. BHILL is one of 254 EU insurance firms that have said they want to set foot in Bulgaria under the single passport rule, which allows EU-registered banks and insurers to operate in any of the community markets without the need to apply for a local licence.French life insurer Axeria Prevoyance and general insurer Axeria IARD have already opened local branches.
Bulgaria with a 429 square meters stand in the world's biggest tourist market
Bulgaria will present itself on a 429 square meters stand on the world's biggest tourist exhibition in the world - ITB Berlin. The focus of the national participation will be represented on an eco, agriculture and adventure tourism, the tourism agency announced. For the first time on a big forum will participate the first tourist region in the country - the Sofia region. The municipalities Nessebar and Balchik, big tour operators and hotel-keepers, as well as the national transport company "Bulgaria air" have signed up to participate.ITB announced that over 11 companies from 187 countries will take part in the forum. They will be placed in a total of 26 halls.The newest country in the world Kosovo will also have a stand. Moreover, countries, which did not participate for years in the market, will return, the organizers announced. These are Malawi, Gabon, Turkmenistan, Tajikistan and Bahrain. Official partner of ITB this year will be the Ruhr region, chosen for European capital of culture in 2010.The conference programme will be supported by Turkey, which significantly increased its advertising this year. Many round tables on the world crisis, which already hit the industry hard, will be included. Leading experts and 120 Ministers of tourism are expected to take part.The market in Berlin is being organized for the 43rd time and will continue until March 15. It is expected that it will be visited by 160 thousand guests.
American GFF buys paper mill in Nikopol
The American company GFF, represented by George Frage, is the new owner of the closed cardboard factory of Austrian company Mayr Meinhof Karton AG in the Bulgarian town of Nikopol."The acquisition of the mill is a strategic step forward for us, for investment in technology, equipment and production facilities with which we can revamp the facility and become competitive on the European market," said a spokesperson from GFF.The factory lies on a 260 ha parcel of land with more than 35 000 sq m of it already being built on, with expansive warehouse facilities. Most of the infrastructure was left intact, which the American company believe is ideal for paper production as new equipment and technology can be transported without obstruction.The deal has been hailed as "acceptable" by both sides, and the initial investment in the facility will be up to four million euro, which later on can be doubled. Within 12 months, GFF believe they will be able to manufacture a wide variety of paper and packaging products for industrial use, as well as products for daily use such as toilet paper, kitchen wrapping paper and folio, cardboards and others.Frage said that "Nikopol has more than 40 years of tradition in paper production which makes it a very appropriate location for a substantial investment in such a mill. We think that Nikopol will be able to bellow out 150 tons of paper daily".Nikopol's local economy will also be boosted significantly with the creation of more than 200 permanent jobs. Initial estimates contemplate that 25 per cent of the factory's production will be sold domestically and the rest exported to the European market.GFF are banking highly on the advanced infrastructure that is already present in Nikopol, as well as the ferryboat complex which services the line Nikopol - Turnu Magurele in Romania, and the future thermal power plant Enemona which is under construction.GFF has been active on the Bulgarian market since 1990, and until 2002 owned the Nova Brasilia coffee brand which was widespread in Bulgaria. GFF also created the Sanitex factory in Kostinbrod, the natural juices California, as well as being a major investor in real estate construction, predominantly in Sofia.
GLOBAL FINANCIAL CRISIS ANALYSIS AND NEWS:
Newsweek: Crisis in Europe to trigger new migrant wave from Bulgaria
New waves of migrants from countries like Bulgaria, Romania and Ukraine can be expected as a reaction should the West close markets and shut off capital flows, wrote the US based Newsweek.According to the article if French President Sarkozy's vision of a protectionist Europe of subsidized companies and an unraveling single market prevails, it will mean the likely death of Eastern Europe's economic-development model of tying into the global economy via Western neighbors."Ultimately, though, the closing of markets and shutting off of capital flows will ricochet back to the West - via collapsing exports and defaulted loans, not to mention new waves of migrants from down-and-out countries like Romania, Bulgaria and Ukraine."The article, written by Stefan Theil and William Underhill, argues that this is the first time in decades that not just European banks but entire countries could become insolvent.
Expert: Bulgaria will not be bypassed by the crisis
Mary Stocks, chief analyzer in the leading agency for economic analysis "RGI Monitor" considers that Bulgaria will not be bypassed by the world economic crisis and financial crisis. The expert forecasts a big delay of the economic growth in Southeastern Europe, as for Bulgaria, according to her, it will be zero. The decrease of export and the suspended credit are guarantees for new shocks, Mary Stocks forecasts.According to her, the fact that one and the same group of banks, mostly West European, have the most powerful presence in the different countries in the region, creates a danger of financial "infection".
Manufacture in Bulgaria crumbles due to Crisis
Industrial manufacture in Bulgaria has shrunk with 19% for January alone due to the crisis, the National Statistic Institute reported Tuesday. The overall index for the industry depends to a great extent on the processing industry that had shrunk activity by 21.4%. There has also been a great reduction of metal production (machines excluded) by 66.5%. Manufacture of food products has also shrunk with 24.8%. Growth however has been registered in the manufacture of medical products - 211.2%, as well as in the production of raw metals (20.6%).
New decrease in the construction sector
In January 2009 the construction production is 10.2% lower than the December 2008 level. Building construction has a significant relative share (70.7%) in the general construction production and registers a decrease of 7.6%, in the civil/engineering construction - 15.8%, statistics by the National Statistics Institute points out.The general construction production in January 2009 decreases by 6.1% compared to the same month of the previous year, which is a result of the decrease of 7.0% of building construction.Civil construction marks a decrease of 3.9% compared to January 2008, but because of its smaller relative share does not affect significantly the general index of the construction production.The unfavorable climatic conditions for work in the open and the registered lower decrease of civil construction compared to January 2008 are indicative that in the beginning of the year construction entrepreneurs are having difficulties in completing the started buildings and are directing their efforts towards finalization of construction facilities.
Industrial zones veiled in fog
One of the anti-crisis measures to be taken by the Government pertains to the establishment of industrial zones. A total BGN 100 million will be allocated to this end. The Economy and Energy Ministry already set up Industrial Zones National Company. The latter will be in charge with the establishment and maintenance of land plots which will have electricity, water-and-sewage systems, gas and transportation. The move aims at doing away with the bulk of the bureaucratic obstacles that impedes the foreign companies in Bulgaria and at attracting as much as possible companies to invest here. "Thus they will have one and only partner who will have carried out everything needed. The foreigners will have just to start building and producing", Deputy-Minister of Economy and Energy Yavor Kuyumdzhiev told Banker weekly. The Government has reached this decision after having surveyed the experience of other countries and talked with foreign investors. The concrete occasion, however, is an event from a year and a half ago. R representatives of a Western company have come to the Economy Ministry willing to produce in Bulgaria. After asking where they could build they have been taken to a would-be industrial zone. The zone in question has turned out to be a weedy filed with a total 18 owners. The land plot has needed consolidation, as well as a lot of permissions. So, the investors have immediately gave up their plans, took their luggage and went away. "There are approximately 20 mid-size companies that are willing to invest in new markets and we have to persuade them of doing it here. If we sum up the investment interest that has been shown so far it would come to EUR4 billion", Kuyumdzhiev said. The zones that are planned for the time being number sixteen. The state will hold more than 51% in each of them while the remaining stakes will be offered to the relevant investors or municipalities. Their establishment will cost BGN6 million and will finish within a year. And the reason why they number exactly 16 is quite simple - the money is sufficient just for that much. A further BGN100 million will be allocated if the initiative proves to be a success. The problem is that fog has covered the criteria which define the location of the future zones. Just the two basic principles have been revealed so far (and they are too general, though), i.e. the availability of big state-owned land plots and the population structure (age, education, unemployment). But Industrial Zones National Company is yet willing to discuss and it will take the business' request and requirements into account. According to Bulgarian entrepreneurs, the present land plots are enough and are capable to completely match the market needs. Moreover, the initiative looked quite belated against the background of the global financial crisis. Having such zones at hand, Romania has already managed to attract good fresh money. And nobody knows why did our country sleep over this time...It is true that Bulgaria boasts good geographical location, low taxes and low labor costs but it lacks infrastructure. The country has not even one highway completed. However, Kuyumdzhiev deems that the zones in question are the one and only thing the country lacks and he gives as an example exactly Romania whose roads are not good, too. "The state gave a helping hand to the private companies. It gave them free lands and services, i.e. it provided them with industrial zones", he emphasized. And exactly this has most likely inspired our governors. The Economy and Energy Ministry is even ready to sell the entire land with its infrastructure for just BGN1 if a top company appears on the horizon. For the time being, however, everything is just a wish. The initiative may be a success but it may fail as well. And no leading companies have shown interest towards Bulgaria so far, Kuyumdzhiev himself admitted.
Over 150,000 Bulgarian emigrants return home
The world financial and economic crisis is to send back home many Bulgarian emigrants working abroad. Some 150,000 Bulgaria are forced to return home, show surveys of trade unions and sociologists. More and more Bulgarians give up working abroad and prefer staying home, The Standart found out. Thousands of Bulgarians have already returned home. Most of them worked in the UK and Spain where presently the unemployment rates are record-breaking. Huge number of small-sized firms in the EU go bankrupt and cannot rely on the otherwise cheap Bulgarian work force.The fear of downsizing due to the crisis made even foreigners seek job in Bulgaria. Most of the newcomers are not high-skilled, they find jobs as construction workers and gardeners. Still, there are foreigners who start working for international companies based in Bulgaria.
Bulgaria’s foreign trade gap widens further
Bulgaria’s foreign trade gap widened further in 2008 to reach 17,13 billion levs (1 euro = 1.95 levs), National Statistical Institute Officials announced. Export last year grew by 13,1 percent to 29,88 billion levs but was still outpaced by the import and its 49 billion levs, including transport and insurance costs, or 15,9 percent growth rate. The global crisis is affecting both export and import of the Bulgarian enterprises. Last December, the foreign trade deficit shrunk by 1,26 billion levs as the export and import dropped respectively by 14,4 and 16,8 percent. Nonetheless, this still is 20 percent less set against the same period in 2007. Bulgaria’s major partners in trade within the EU are Germany, Italy and Greece. The country exports mainly metal and other articles classified according to the type of their material, which constitute 32 percent of the entire export to the EU. The finished goods such as clothing, shoes, furniture, gauging devices, etc. comprise 23 percent of Bulgaria’s export to the Union.