불가리아 주요 경제 뉴스 (8 - 15 June 2012)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (8 - 15 June 2012)

 

Sections/headline briefs:

 

MACROECONOMY:

       Retail sales in Bulgaria flat m/m in April 2012 – Eurostat

       Bulgaria's Non-EU Exports Drop by 2% Y/Y Jan-Apr 2012

       Bulgaria's Exports to EU See 4.6% Drop Y/Y Q1 2012

       WB Forecasts 0.6% Economic Growth for Bulgaria

       Bulgaria’s foreign trade gap more than doubles in Jan-May 2012 as exports drop

       Bulgarian official unemployment rate eases to 11% in May

       Bulgaria has negotiated 11.8 billion of EU funds

 

INVESTMENTS:

       Austria’s EVN says investments in Bulgaria top EUR 511mn

       Luxury BMW Seats to Be Produced in Bulgaria

 

COMPANIES AND INDUSTRIES:

       CEZ to invest EUR 10.2mn in grid upgrade in Sofia region

       Bulgaria launches tender to sell cargo unit of State Railways

       Chinese Astroenergy completes 50MW solar PV power plant in Bulgaria

       Kaufland Bulgaria To Open New Store in Plovdiv

       EC Approves Funding for Project for Integrated Public Transport in Sofia

       Tender for sale of state construction company Technoexportstroy fails again

       Bulgarian Fertilizers Maker May Move Abroad over Red Tape

       Bulgarian parliament partially removes ban on fracking

 

 

 

Articles:

 

MACROECONOMY

 

Retail sales in Bulgaria flat m/m in April 2012 – Eurostat

The volume of retail sales in Bulgaria remained flat on the month in April 2012, following a 4.6% m/m/ rise in March, Eurostat data showed. on an annual basis, the retail trade volume continued to decline but the fall eased to 0.3% from 1.8% a month earlier. The April annual decrease was the slowest in the past six months. Overall retail sales in the EU edged down by 1.1% m/m in April, following a 0.8% rise in March. Sales dropped by an annual 1.9%, after advancing by 0.9% y/y in the previous month. 

Bulgaria's Non-EU Exports Drop by 2% Y/Y Jan-Apr 2012

Bulgaria's exports to non-EU countries decreased by 2.0% year on year in the period January-April 2012, according to preliminary data released by the country's National Statistical Institute. Bulgaria's total exports to non-EU countries in the period amounted to BGN 4.9 B. Turkey, China, Russia, Serbia, The Former Yugoslav Republic of Macedonia and United Arab Emirates formed 50.6% of Bulgaria's exports to non EU countries between January and April 2012. The exports to United Arab Emirates, Canada, Syria and Brazil increased significantly, while the most considerable decreases were observed in the exports to Singapore, India, South Africa and Iran. In April 2012, Bulgaria's exports to non-EU countries decreased by 5.0% compared to the corresponding month of the previous year and amounted to BGN 1.2 B. Bulgaria's imports from non-EU countries increased by 13.3% year on year in the first fourth months of 2012, reaching BGN 6.5 B. The most significant growths were reported in imports from Peru, Bosnia and Herzegovina and Brazil, while the largest decreases were observed in imports from Kazakhstan, Israel and Ukraine. In April 2012, Bulgaria's imports from non-EU countries grew by 22.2% compared to the corresponding month of the previous year, exceeding BGN 1.9 B.

 

Bulgaria's Exports to EU See 4.6% Drop Y/Y Q1 2012

Bulgaria's exports to other EU countries decreased by 4.6% year on year in the first quarter of 2012, amounting to BGN 5.4 B (approximately EUR 2.8 B), according to preliminary data. The country's main trade partners in that period were Germany, Italy, Romania, Greece and France, forming 66.7% of its total exports to the EU member states, Bulgaria's National Statistical Institute says. The most significant growths were observed in Bulgaria's exports to Cyprus and Portugal, while the most notable falls were registered in its exports to Luxembourg and Belgium. In March, Bulgaria's exports to the rest of the EU increased by 1.8% compared to the corresponding month of the previous year and exceeded BGN 2.0 B. Bulgaria's imports from other EU countries increased by 8.9% year on year in the first quarter of 2012, exceeding BGN 6.6 B. The most significant growths were reported in Bulgaria's imports from Cyprus, Estonia, Netherlands and Portugal, while the largest decreases were seen in imports from Malta and Finland. In March 2012, Bulgaria's imports from the EU grew by 12.1% compared to the corresponding month of the previous year, exceeding BGN 2.5 B at CIF prices.

 

WB Forecasts 0.6% Economic Growth for Bulgaria

The World Bank forecasts an economic growth of 0.6% for Bulgaria in 2012 with a growth of 1.7% of the GDP for 2011. The forecast is published by the WB in its new report World Economic Perspectives, cited by the BTA. The WB expects that the GDP of Bulgaria in 2013 and 2014 grows by respectively 2.5% and 3.3%.

 

Bulgaria’s foreign trade gap more than doubles in Jan-May 2012 as exports drop

Bulgaria’s FOB foreign trade gap widened to BGN 2.376bn (EUR 1.2bn) in the first five months of 2012 from BGN 849mn a year ago, as exports decreased and imports increased, the statistics office said. Exports fell by 1.7% y/y to BGN 12.291bn, while imports jumped 9.8% y/y to BGN 14.667bn. Bulgaria’s trade with EU countries showed a deficit of BGN 1.084bn, higher than a year ago when the gap stood at BGN 385mn. The trade gap with non-EU countries also widened to BGN 1.292bn in January to May 2012 from BGN 463mn in the same period of 2011. 

 

Bulgarian official unemployment rate eases to 11% in May

Bulgaria's jobless rate fell to 11 percent in May from 11.4 percent in April, the national employment agency announced on Wednesday. A total of 360,114 people were registered as unemployed last month in the European Union's poorest member, 13,410 less than the previous month, it noted. About 24,352 people said tyhey had started a job last month.
Official data covers only people registered with the employment agency. Trade unions had meanwhile estimated that the total number of people seeking work already exceeded 15 percent of the workforce in May. The unemployment rate last year averaged 10.1 percent.

 

Bulgaria has negotiated 11.8 billion of EU funds

The Bulgarian National Radio (BNR) quotes Bulgarian EU Funds Minister Tomislav Donchev as saying that Bulgaria has negotiated BGN 11.8 billion of EU funds and has received BGN 3.6 billion of that amount for the time being. Mr. Donchev’s statement came at a meeting with the businesses in the town of Haskovo. He added that at present Bulgaria was carrying out or had carried out projects for BGN 11.8 billion which was more than 75% of the entire financial framework. He pointed out that the volume of the money used was not the only important thing and stated that the results achieved were also essential. The 24 Chasa and Standart dailies quoted a statement of PM Boyko Borisov that until the end of the current government’s mandate 80% of EU funds should be absorbed, with 40-45% until the end of the year.

 

 

INVESTMENTS:

Austria’s EVN says investments in Bulgaria top EUR 511mn

Austria's energy company EVN has so far invested more than BGN 1bn (EUR 511mn) in Bulgaria, the local unit of the firm said in a statement on its website. Since buying the power distribution units in Plovdiv and Stara Zagora in southeast Bulgaria in 2005, EVN Bulgaria has invested BGN 850mn on upgrading and maintaining its power grid in the country. The company has replaced 1.5mn power metres, installed 15,000 km of new and repaired power lines and build 1,500 power substations and three mobile substations. EVN has invested BNG 150mn in the Plovdiv heating utility, it bought in 2007. The company spent also BGN 16mn on building two photovoltaic power plants in the country. EVN Bulgaria said in January the company plans to invest BGN 128mn this year. 

 

Luxury BMW Seats to Be Produced in Bulgaria

South Africa company ALC will open a production facility Tuesday for luxury seats and interior for BMWcars in the village of Musachevonear the town of Elin Pelin, just outside of Bulgaria's capital Sofia. The invesment made by the company amounts to EUR 4 M, and it has opened 500 jobs, which will build seats for the luxury BMW Series 5 and 7. South African company Automotive Leather Company (ALC) has a long tradition of working with premier car producers, such as Mercedes, Volkswagen, Nissan, in addition to BMW. It was interested in the village of Musachevo because of its nearness to Bulgaria's capital, the good infrastructure, and the good connection with international roads. At present, the Bulgarian facility will be used only for sewing together of the seats, at 50% of the factory, but it is planned to be expanded. Bulgaria's PM Boyko Borisov and Minister of Economy and Energy Delyan Dobrevare going to be present at Tuesday's opening of the facility.

 

 

COMPANIES AND INDUSTRIES:

CEZ to invest EUR 10.2mn in grid upgrade in Sofia region

Czech energy group CEZ plans to invest BGN 20mn (EUR 10.2mn) in upgrading its electricity grid in the Sofia region next year, CEZ Bulgaria manager Peter Dokladal told BTA news agency in an interview. Overall, the company will spend BGN 151mn on upgrading its network in western Bulgaria in the year to July 2013. CEZ has invested nearly BGN 550mn in developing its network in Bulgaria since 2004 when it bought the power distributing companies serving the capital Sofia and parts of western and northern Bulgaria. In February 2012, CEZ said it will invest BGN 100mn in its coal-fired power plant in the northern Black Sea city of Varna. The project aims to extend the plant's exploitation by 2030 and to reduce the carbon dioxide emissions. 

 

Bulgaria launches tender to sell cargo unit of State Railways

Bulgaria's sell-off agency has launched a tender to sell 100% of the cargo unit of state-owned railway operator BDZ, the agency said in a statement. The deadline for submitting binding bids expires on the 135th day after the notice for the tender is published in the State Gazette. Strategic investors will be required to have been operating in the rail freight sector in the last 10 years and had an annual turnover of at least EUR 400mn in each of the last three years. Financial investors are required to have had an equity capital of at least EUR 20mn and manage assets or have had equity holdings of EUR 1bn in each of the last three years. 

 

Chinese Astroenergy completes 50MW solar PV power plant in Bulgaria

Chinese Astronergy, part of Chint Group, has finalised the construction of a solar polycrystalline (PV) power plant with an installed capacity of 50 MWp in Bulgaria, capital.bg reported citing a statement of the company. The plant is expected to produce 1.9mn MWh of electricity in the next 25 years. Astronergy specialises in research, development and production of solar modules. It is the first large scale producer of high-efficiency thin film PV modules in mainland China, and has been a provider of monocrystalline and polycrystalline PV modules since its founding in 2006. 

 

Kaufland Bulgaria To Open New Store in Plovdiv

Discount retailer Kaufland Bulgaria said it will open its fourth store in the city of Plovdiv. Construction works on the new retail unit have already started, Kaufland Bulgaria confirmed for SeeNews on Tuesday. The store will have a built-up area of 5,645 square metres and 248 parking spaces. The project will be implemented by local construction company Argogroup Exact. Germany's Kaufland, which runs over 9,000 stores in seven European countries, set foot on the Bulgarian market in 2006. Kaufland Bulgaria operates 41 stores in the country.

 

EC Approves Funding for Project for Integrated Public Transport in Sofia

The European Commission has approved funding of 42.5 million euros for a project for integrated public transport in Sofia, the Sofia City Hall said in a press release Wednesday. The national co-financing in the project stands at 7.5 million euros. The project provides for the purchase of 50 new trolleybuses, the construction of a new tram line in the eastern part of Sofia, the modernization of another tram line through the city centre, the design of a smart system for traffic management which will give right of way to public transport vehicles, and the installation of 600 new electronic displays at public transport stops. 

 

Tender for sale of state construction company Technoexportstroy fails again

Bulgaria's privatisation agency has stopped the procedure for the sale of the full-stake of state construction company Technoexportstroy due to lack of investor interest. The initial price was set at BGN 60mn (EUR 30.7mn), down from BGN 68mn at the previous auction, which also failed as neither of the three companies that bought tender documents placed a bid [the companies were Greece's Aktor (constructing segments of Trakia and Struma Motorways), and two local companies - Advance Properties and AT Engineering 2000]. Technoexportstroy is headquartered in the capital city of Sofia. It provides project services, which include engineering, design, architectural and similar services; operations and maintenance services, and construction services, which include direct-hire construction and construction management services. 

 

Bulgarian Fertilizers Maker May Move Abroad over Red Tape

Bulgaria's Devnya -based chemical fertilisers maker Agropolychim has hinted that it may leave the country. Agropolychim has a total staff of 1100 people. "We informed the trade unions that we shall have to start talks for mass layoffs because we can no longer work normally. We shall dismount the installation and move abroad," company CEO Vasil Aleksandrov said in a Wednesday interview for news portal dnevnik.bg. Alexandrov suggested that the decision had been triggered by the fact that the company's efforts to launch the construction of a new waste depot had been blocked for eight years by the Ministry of Agriculture and Food, the owner of the terrain. He noted that the existing depot was almost full due to the 60 000 tons of waste generated by the company each month, adding that there was a governmental decree from 2006 on the matter. The CEO of Agropolychim explained that a special panel chaired by a person appointed by Agriculture Minister Miroslav Naydenov had to prepare the documents for the construction permit on the basis of the appraisal of the terrain. He noted, however, that the final appraisal was being delayed. Alexandrov went on to say that the case also involved lost documents, while some letters to the Agriculture Minister, the Minister of Energy, Economy and Tourism and the Prime Minister had remained unanswered. About two weeks ago, the other CEO of the Bulgarian fertilizers maker, Philippe Rombaut, said he was planning to send a letter to Prime Minister Borisov to tell him that "your bureaucrats are ruining your efforts to find investors." Meanwhile, Bulgaria's Energy and Economy Minister Delyan Dobrev dismissed the scenario of Agropolychim moving abroad. "Over the last few weeks, I have been repeatedly assured by Agriculture Ministry officials that all of the paperwork is ready and all necessary orders have been issued," Dobrev announced, as cited by the Bulgarian Telegraph Agency (BTA). He claimed that the case was rather about an unpleasant delay.

 

Bulgarian parliament partially removes ban on fracking

Bulgarian parliament has partially removed the ban on prospecting and exploration of gas using the method of hydraulic fracturing (fracking) that was imposed in January, BTA News Agency reported. The decision refers to exploration of conventional gas only, energy minister Delyan Dobrev said, and will allow to access the 3 to 6 billion cubic metres of proven gas deposit in the Devenci gas field that will cover the whole local gas consumption for a period for 1 to 2 years. In the beginning of the year, the parliament imposed a ban for indefinite period on prospecting and exploration of shale gas using the method of fracking or similar methods. All companies, which already held permits to prospect and explore under the said method had to prepare alternative projects excluding hydraulic fracturing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported by:

Georgi Iliev

KOTRA Sofia

Korea Trade-Investment Promotion Agency

Commercial Section of the Embassy of the Republic of Korea