The privatization procedure of Biohim bank will start officially on January 7. Informing letters have already been sent to 12 banks potential buyers that also took part in the past rounds of the bank's privatization. Within the end of January will be ready the reports of the bank for 2001. The auditors are Deloitte & Touche took the responsibility so the potential buyers can check the conmdition of Biohim.
Source: Standart (02.01.2002)

The Commission for election of primary dealers of state securities has elected 24 financial institutions for primary dealers, was reported from the press-centre of the Ministry of Finance. Trade Bank Biochim, BNP Pariba - Bulgaria, Bulbank JSC, Bulgaria-invest JSC, Bulgarian Post Bank, State Saving Bank DSK, Eurobank, Ingbank, Neftinvestbank JSC, United Bulgarian Bank, Municipal Bank, First Investment Bank, Raiffeisenbank (Bulgaria), Rossexim JSC Expressbank JSC, Economic and Investment Bank, Central Cooperative Bank, Union Bank, the Sofia branch of Citibank, Hebros Bank JSC, Bulbrokers JSC, Elana JSC, State Insurance Institute DZI - invest JSC, Eurofinance JSC were elected for a term of six months.
Source: BTA (02.01.2002)

As of today to February 28 may be exchanged currency of the 12th countries from EU for the new monetary unit EURO in 5 Bulgarian banks - BNB, Bulbank, UBB, Biochim and Post bank. After February 28 BNB will start to exchange the euro banknotes against levs. EURO is sold in the exchange bureaus.
Source: National radio (02.01.2002)

The profit in Bulgarian bank sector continued to increase in November 2001, according to Bulgarian National Bank. The positive financial result for November last year increased with EUR 16.770 million in comparison with October and reached the amount of BGN 309.412 million for the first eleven months of 2001. The profit’s increase is less compared with the previous month, when it was more than the amount of BGN 17 million. The banks with total assets more than BGN 800 million, which are included in the first bank group according to the BNB’s classification - Bulbank, United Bulgarian Bank, and Bank DSK, increased their profit with BGN 9.5 million up to BGN 230.7 million for the first eleven months of 2001, which is 75 per cent of the total profit in the sector. The banks included in the second group with total assets between BGN 500 and BGN 800 million: SG Expressbank, First Investment Bank, BNP-Paribas, Biochim, Hebrossbank and Post Bank, ended November with a profit in the amount of BGN 55.55 million, which is with BGN 5 million more in comparison with October. The two bank groups form 93 per cent of the total profit in Bulgarian bank sector.
Source: Dnevnik (03.01.2002)

The Executive Director of Bank Consolidation Company Mrs. Neli Kordovska, announced that at least five applicants will make full legal and financial analysis of Biochim. Among the Bulgarian applicants are Rosseximbank, Trade Bank Hebros and Bulbank and among the foreign - Societe Generale and Bank Austria. The auditors from Deloitte&Touche have to finish the balance sheets and the reports of the bank up to 31 March so that the applicants will be able to make their offers on the basis of the latest data.
Source: Dnevnik (04.01.2002)

The Bulgarian banks reported a net profit of BGN 309,412 million for the eleventh months of the year. The financial result which was reported in November is about BGN 16.769 million, which represents a growth of 5.7 per cent monthly growth. The amount of the granted credits as for the end of November are about BGN 4.144 billion. For the last month they have grown with 3.75 per cent. The main part of the increase comes from the credits for private companies.
Source: Black sea (04.01.2002)

The tender for the "Biochim" bank officially starts today. Letters of invitation were sent out to 12 banks which took part in the previous sale-off rounds, said deputy minister of economy and member of the bank's supervisory board, Sofia Kassidova. The auditors, "Deloitte and Touche" will attest the annual reports on the financial status of the bank for 2001 by the end of January, so that the candidates be able to get acquainted with them. In her estimation, "Biochim" has shown very good financial results.
Source: Standart (07.01.2002)

Bank Austria is within the six candidates for Biochim JSC - Sofia which have already submitted letters of intention. Societee General, Commercial Bank of Greece JSC, Rosseximbank JSC, Hebrosbank JSC and Bulbank JSC are the other aspirants, said Mrs. Neli Kordovska - Executive Director of the Bank Consolidation Company (BCC). Letters of confidence had been already sent to all candidates. They can start the due diligence in Biochim JSC from January 14 on. Each of them will dispose 10 working days to get closely acquainted with the actual state of the treasury. The auditor's team to map up the report on the financial results of the bank in 2001, will start working at end-January. Deloitte & Touche Ltd. pledged to get ready with the audit by end-March, Mrs. Kordovska said. The preliminary dead-line on bids submission expires on April 15.
Source: Standart (08.01.2002)

TBI Holding was invited to participate in the privatization of Biochim, announced the Executive Director of Bank Consolidation Company Mrs. Neli Kordovska. The holding was elected in a consortium with MEBO for the privatization of State Insurance Company DZI, but the procedure was ceased. Besides TBI Holding applicants for the privatization of Biochim are 6 other banks - Bank Austria, Societe Generale - Branch Sofia, Rossexim, Trade Bank of Greece, Hebrosbank and Bulbank.
Source: Standart (09.01.2002)

RTC Mobikom reported that its subscribers have already been able to pay their accounts directly from the keyboard of their cell phones. In this way its clients can also charge pre-paid minutes for conversations. For this service the subscriber has to possess a debit card from defined banks - First Investment Bank, Rossexim, Bulgaria invest, Raiffeisen, Hebros, Municipal bank and Biochim.
Source: BTA (16.01.2002)

The initial price for the whole state share of Biochim (99.6 per cent) is BGN 95 million, announced the Minister of Finance Mr. Milen Velchev, who is the Chairman of the Board of Directors of Bank Consolidation Company. At the Meeting of the Board of Directors of the company were decided the criteria and the procedure by which will be sold the State bank. The applicant purchaser for the bank must have at least five years of experience in bank activity, full license and net assets in amount of at least BGN 100 million. A consortium may also participate but it has to be led by a bank which will take 51 per cent of the stake.
Source: Pari (18.01.2002)

Sofia City Court registered changes for TB Biochim JSC. As members of the Supervisory Board are wrote off Mr. Velizar Stoilov and Mr. Evgeni Chachev and are registered Mr. Krasimir Kutev and Mr. Gaati Al-Djebury. The Supervisory Board consists of Bank Consolidation Company, represented by Mrs Sofia Kasidova, Mr. Krasimir Kutev and Mr. Gaati Al-Djebury.
Source: State Gazette (18.01.2002)

The whole Treasury department of Raiffeisenbank (Bulgaria), including the Director of the Department - Mr. Bojidar Kunov is leaving the credit institution. It is expected that most of the employees who left Raiffeisenbank will start work in the new bank - Hipoferainsbank - branch office Bulgaria (Bayerisch-Bulgarische Handelsbank) which is the biggest rival of Raiffeisenbank.
Source: Banker (21.01.2002)

The General Meeting of Association of Commercial Banks will take place in the new building of the Association. At the Meeting will be elected two new members of the Board of Management who will take the positions of Mr. Momchil Andreev - Executive Director of Raiffeisenbank (Bulgaria) and from Mr. Dimitar Atanasov - former Executive Director of BULBANK.
Source: Banker (21.01.2002)

The State does not hold now shares in Sopharma. Mr. Andrei Breshkov will be the new representative of the State in the Board of Directors of the pharmaceutical company. The election of Mr. Breshkov is a result of the agreement between the majority owner of the company - Elpharma and the Deputy Prime Minister Mr. Nikolay Vasilev, which says that the State will keep one place in the Board of Directors.
Source: Banker (21.01.2002)

The French bank Credit Agricole reported that it would increase its share in Trade bank of Greece. At the moment Credit Agricole is the minor owner in Trade bank of Greece with 8.67 per cent. Trade bank of Greece has had a license for banking activity in Bulgaria since 1997 and is one of the cabdidates for privatization of Biochim.
Source: Capital (21.01.2002)

Sofia City Court registered changes for Trade Bank Biochim JSC. As a member of the Board of Managem,ent is wrote off Mr. Alexander Lichev and are registered Mr. Luibomir Minchev and Mr. Nikolay Kavardgikliev. As an Executive Director is wrote off Mr. Ventzislav Luibomirov and is registered Mr. Nikolay Kavardjikliev. The court registered as members of the Board of Management which consists of Mr. Tzvetan Tzekov, Mr. Plamen Dobrev, Mr. Ventzislav Luibomirov, Mr. Liubomir Minchev - Chairman and Mr. Nikoaly Kavardjikliev. The company is represented by two or three of the Executive Directors: Mr. Tzvetan Tzekov, Mr. Plamen Dobrev and Mr. Nikolay Kavardjikliev.
Source: State Gazette (22.01.2002)

Rosseximbank elected for its strategic partner the second biggest Russian Bank Mejprombank, Both institutions will participate together in the privatization of Biochim, became clear after the visit of the Ministry of Economy Mr. Nikolay Vasilev in Moscow. He was accompanied by 60 businessmen among which was the Director of the Bulgarian Bank Mr. Emil Kiulev. The capital of Mejprombank is in amount of USD 1.1 billion and its assets are more than BGN 5 billion.
Source: Standart (24.01.2002)

Hebros Bank finished the year with a profit of BGN 22 million. The increase in the profit is in amount of BGN 2 million. In the end of March the major shareholder of Hebros Bank Regent Group Limited will invest additionally USD 2.5 million in accordance to the privatization contract.
Source: Standart (24.01.2002)

The biggest creditor of Vinarna-Lyaskovets - Hipoferainsbank - branch office Bulgaria (Bayerisch-Bulgarische Handelsbank) requested the wine-cellar to be declared in insolvency. The credit institution financed the wine-cellar with BGN 2.5 million but the debt has not been paid by this moment. The case for the insolvency will be put forward in the end of the month in Veliko Tarnovo District Court. The Executive Director of the company Mr. Ivan Valchev will be replaced by will be replaced by Mr. Petko Vasilev by a request of the Bank.
Source: Standart (25.01.2002)

According to the Governor of BNB Mr. Svetoslav Gavriiski it is not necessary to hurry with privatization of Biochim and DSK Bank. He said that IMF and World bank did not define any deadlines. The reserves in foreign currency are more than enough. At least BGN 150 million have to be required by the buyer of Biochim. Mr. Gavriiski thinks that at first DSK has to be restructured and then to be sold.
Source: Novinar (25.01.2002)

First Eastern International Bank is the fifth credit institution in Bulgaria after BULBANK, United Bulgarian Bank, First Investment Bank and Bulgarian-American credit bank that was graded by the world rating agency Moody's. The agency granted to the bank the rating of B 2. This is the highest rating that any Bulgarian bank can receive at the moment since it is the same that was given to the long-term deposits of Bulgaria by Moody's. The financial stability of First Eastern International Bank is marked with Å+.
Source: Banker (28.01.2002)

Hebros bank will open a new branch in Sofia, was reported from the credit institution. It is situated on Tzar Boris Bul. The branch will perform all kinds of bank services.Within the end of the year will be opened new branches and offices of the bank.
Source: Monitor (28.01.2002)

The grain base Dralfa has been sold as an isolated part of Pobeda – Turgovishte, although since 1993 it has been a part of the assets of Zarneni Hrani SP JSC. From 2000 on, Zarneni Hrani SP JSC is in liquidation. In 1996, Ministry of Agriculture and Food Industry issued an order, through which the companies Jitomel – Sofia, Zlaten Klas – Veliko Tarnovo, Zarno – Veliko Tarnovo, Byala Zvezda – Haskovo, Stratesh 898 – Lovech are united in the company Zarneni Hrani. Zarneni hrani assumed all the assets and liabilities of the mills Bakadjik in Yambol, grain base Orizovo with Parvi May SP Ltd. – Chirpan, grain base Dralfa with Pobeda – Targovishte, and grain base Vyatovo with MK SP Ltd. – Sofia. According to specialists, the reasons for the uniting of these companies in a major group are political. The buyer of the grain base is Doverie – United Companies SP JSC, later re-named to Indistial Holding Doverie. The deal was concluded with an order by the former Minister of Agriculture Mr. Ventsisla Varbanov dated July 19 1999. According to the contract, within a period of 5 years, the buyer has no right to transfer the ownership to a third party. As early as April 5 2000, however, Doverie – United Companies exchanged half of the grain base for half of a building in Sofia’s Druzhba district. The building is owned by Chimatech – Sofia.
Source: Pari (30.01.2002)

Hebros Bank elected MARK Communications for its PR - Agency. Both companies will work together for an year over the relations with the media, the crisis and the internal communications. After the privatization of Hebros Bank during 2000, the PR-services and the advertisement of the institution were performed by S Team Saatchi & Saatchi. Together with MZ Communications, United Partners and Weekpress it was among the companies which participated in the cmpetition for PR-agency of the financial institution.
Source: Capital (04.02.2002)

TB Hebros will be probably forced to participate in the bidding for the purchase of TB Biochim in a consortium with another financial institution. The cooperation is needed because of the requirements of Bank Consolidation Company, according to which the applicant-purchasers have to have net assets in amount of at least BGN 100 million. Last week Rossexim announced that it will participate in the auction for the sale of Biochim in a consortium with the Russian Mejprombank by the same year. According to the data for the Executive Director of Hebros Bank Mr. Gautam Vir, the bank in the end of the December the net amount of the assets of the bank is BGN 95 million. It is expected that during March the credit institution will raise its capital with BGN 2.5 million. Thus it will be able to satisfy the requirements of the credit institution and to participate alone, as it was according to the previous privatization procedure. The Director Of Bank Consolidation company Mrs. Neli Kordovska explained that for the evaluation of the net assets the company uses the data as for 31 December. This means that Hebrosbank will have to participate in a consortium.
Source: Dnevnik (05.02.2002)

Deloitte & Touche is starting an audit in Biochim, announced the Director of Bank Consolidation Company Ms. Nelly Kordovska. She also added that the schedule on which the candidate-buyer will start pre-privatization researches was not still prepared. Ms. Kordovska explained that there was not an official letter from the consortium between Rosseximbank and the Russian Mejprom for participation in the procedure.
Source: Standart (07.02.2002)

Bulbank, DSK Bank, Biochim, Rosseximbank, Post bank and Economic and Investment Bank are the sixth financial institutions that were selected for winners in the tender for service of the customs-offices.
Source: Capital (11.02.2002)

The Association of the Trade Banks will conduct a General Meeting next month. At the meeting will be made changes in the Board of Management of the company. From the management will be officially released Mr. Spas Dimitrov and Mr. Dimitar Atanasov. According to the bankers appropriate applicants for the positions are the Chairman of State Saving Bank Mr. Krasimir Angarski and the Chief Executive Director of Rossexim Bank Mr. Vladimir Vladimirov. The other members of the Board of Management of the Association are Mrs. Vania Vasileva, Chirman, Mr. Stilian Vatev, who is he Chief Executive Director of United Bulgarian Bank, Mr. Dimitar Kostov, Executive Director of TB Bulgaria Invest, Mrs. Anna Sabeva-Chairman of the Board of Management of First East International Bank and Mr. Tzvetan Tzekov - Chief Executive Director of TB Biochim.
Source: Dnevnik (13.02.2002)

One of the biggest Russian banks - Mejprombank, which applies in a consortium with the Bulgarian Rossexim for 99.6 per cent of the capital of Biochim, is probably attracted by the favourable tax regime in Bulgaria. Although it is not an off-shore zone the rate for profit tax in Bulgaria is one of the lowest in Europe - 15 per cent. Also Bulgaria is not in the black list of the Russian Central Bank.
Source: Dnevnik (26.02.2002)

The Supervisory Board of Bulbank JSC Sofia, convenes an Annual General meeting on April 4, 2002. The agenda of the meeting includes the following: 1. adoption of the annual report of the company for 2001 2. election of an auditor 3.changes in the statute of the company
Source: State Gazette (01.03.2002)

Bank Austria started an investigation of the status of Biochim bank, announced the Executive Director of the bank holding Mrs. Neli Kordovska. The research will continue up to March 22. During the period March 25 - April 5 Hebrosbank had its own research, and Rosseximbank in a consortium with the Russian International Industrial Bank will start their investigation on April 8. The bank holding is still expecting Hebrosbank to prove that it satisfies all the preliminary terms. The minimum price for the bank is BGN 95 million.
Source: Standart (05.03.2002)

The Executive Director of TB Biochim Mr. Tzvetan Tzekov was released from his position with an order of the Supervisory Board. According to the Deputy Minister of Finances Mr. Krasimir Katev, Mr. Tzekov was released because his activities were not expedient.
Source: Capital (11.03.2002)

Bank Austria is the first candidate-buyer that entered Biochim bank for auditing activity. The audit will continue by March 22, announced the Director of Bank Consolidation Company Ms. Nelly Kordovska. Rosseximbank in consortium with the Russian Mejprombank will make due dilligence from April 8 to April 19. Trade Bank of Greece will be in cooperation with the audit company KPMG. Each of the candidate-buyers has two weeks to check the state of Biochim.
Source: Standart (12.03.2002)

The fourth by size mutual fund in USA - Pioneer Investment will offer its products in Bulgaria through BULBANK. In the bank was created a special team that will prepare the introduction of the fund at Bulgarian market and will service its operations. The Directors of BULBANK are still discussing with State Security Commission the schemes on which will be offered the products of the fund. Pioneer Investments was established in 1928 by Mr. Philip Karet in USA. At the moment he has subsidiaries in Great Britain, Germany, France, Italy, Poland, Czech and Slovenia. In the middle of 2000 the fund was bought by UniCredito Italiano that several months later acquired 93 per cent of the capital of BULBANK.
Source: Banker (12.03.2002)

The amount of the taxes paid by the bank system as for is BGN 123.681 million, was reported from Bulgarian National Bank. The total amount of the profit for the same period is BGN 319.4 million. The taxes which were paid to the budget for the period are with 9 per cent less as compared to the same period in 2000. The banks have paid then taxes in amount of BGN 134.762 million, while their profit was BGN 287.7 million. Most of the taxes were paid by the banks which according to the classification of BN are in the first group - Bulbank, United Bulgarian bank and State Saving Bank DSK. The second group of banks, which includes TB Biochim, SG Expressbank, BNP-Pariba, TB Hebros, Post Bank, First Investment Bankare are the most active ones. The total amount of their assets is between BGN 300 - 500 million.
Source: Dnevnik (13.03.2002)

The Public Relations of the biggest Bulgarian Bank - Bulbank are in entrusted to Mrs. Liuba Neikova since Monday. The credit institution, which is property of Unikredo, Allianz, International Financial Corporation and Simest was searching for an image-maker for the last six months. Mrs. Neikova is a former employee of Biochim.
Source: Dnevnik (18.03.2002)

Mr. Levon Hampartzumian from Bulbank, Mr. Vladimir Vladimirov from Rossexim and Mr. Raiko Karagiozov from DSK are the new members of the Board of Management of the Trade Banks Association. According to the statute of the association the Board of Management can include only active Executive Directors.
Source: Standart (20.03.2002)

State Securities Commission decided to register Hipoferainsbank Bulgaria SPLtd-Sofia in the register of the investment intermediaries , was reported from the Commission on Wednesday. From the register is wrote off Stolekom JSC - Zlataritza. The commission will present the information system Extended Data Base of the iIssuers on Thursday.
Source: Dnevnik (21.03.2002)

Bustrad holds 21.78 per cent of the insurance market in Bulgaria, announced the Executive Director of the company Mr. George Vasilev. The incomes from insurance operation of the company for the last year are in amount of BGn 206.4 million. According to the preliminary financial results the net profit of Bulstrad is in amount of BGN 564 000. The amount of the paid taxes is BGN 3.64 million. Clients of Bulstrad are companies such as Mtel, Bulbank and State Saving Bank. The assets of the company in the end of 2001 were in amount of BGN 112.3 million.
Source: Standart (25.03.2002)

Hebrosbank will participate in the bidding for Biochim in a consortium with the investment company Charlemagne Capital. Charlemagne Capital is an independent company, specialized in management of public and private investment funds in Central and Eastern Europe. The distribution of the shares in the established consortium is 99 per cent for Hebrosbank and 1 per cent for Charlemagne Capital. In accordance to the preliminary schedule of Bank Consolidation Company, the private bank will make an audit of Biochim up to April 5. In order to get acquainted to the financial and the legal status of the state Bank Hebrosbank will use the services of Price Waterhouse Coopers.
Source: Pari (25.03.2002)

Bulstrad IRC has a new company sign, was reported from the company. The logo is in green and orange. The green colour is a symbol of the free market strategy and the orange shows the belonging of the company to the structures TBIH Group. The market share of Bulstrad is 21.78 per cent. The company is an owner of the London-based brokerage house EIRB. Among the biggest clients of the insurance company are Bulbank, State Saving Bank, Bulgargas, Balkan Airline, Hemus Air.
Source: Banker (25.03.2002)

The Minister of Finances seized the Chief Prosecutor and the Supreme Cassation Prosecutor's Office for the illegal actions of the former Minister of Finances Mr. Muravei Radev. The present member of the Parliament has broken the law by concluding an agreement with Unikredo Italiano and Allianz.
Source: Sega (26.03.2002)

The seizing of the Prosecutor's Office for the violations of Mr. Muravei Radev, related to the Bank Consolidation Company will not lead to brokening of the deal for the privatization of Bulbank, explained the Minister of Finances Mr. Milen Velchev. Th owner of the bank - UniCredito is one of the most authoritative financial institutions. Mr. Radev has obliged the State not to close Bank Consolidation Company for a certain time. This is a violation as the guarantees should be accepted by the Parliament.
Source: Standart (27.03.2002)

The changes in the Bank Laws, which limit the off-shore participation in the bank capital, which are prepared by the Central Bank will not affect the application of Hebrosbank for purchasing of Biochim, announced Mrs. Emilia Milanova, Director of Bank Supervision. If Hebrosbank is elected for purchaser of Biochim by the Bank Consolidation Company, Bank Supervision will review the publicity and legality of the capital of the participants in the consortium once again.
Source: Monitor (27.03.2002)

For the last year Hebrosbank granted 2180 credits including the loans with a right of overdraft, was reported from the private bank. The amount is BGN 145.160 million. The growth of the credit portfolio is with BGN 12 million in comparison with 2001. The increase compared to 2001 has been with BGN 23 million since the beginning of the year or the growth is 20 per cent. Hebrosbank offers a full service of its corporate clients and provides financial products and service that suport the business development.
Source: Pari (02.04.2002)

IRigent Group Limited, owner of Hebrosbank and TZUM, takes interest in the privatization of BTC. The registered at Man Island company Sharleman Capital that is included in the group, will take part in the privatization of Bulgarian telecom in consortium with other telecommunication companies. By the end of the week experts of Hebros will finish the due-dilligence of Biochim.
Source: Standart (03.04.2002)

The new owners of Bulbank have released the money from the guarantee for the purchaser inn the privatization. The sum of EUR 15 million was released from a special account on April 2, announced the Chairman of the Supervisory Board of the bank Mr. Roberto Nikastro. The term of the guarantee has expired and the money were released in favour of Bank Consolidation Company. A week ago the Minister of Finances Mr. Milev Velchev announced that the former Minister Mr. Muravei Radev has concluded a secret agreement with which he has blocked another BGN 100 million as a guarantee to the purchasers of Bulbank.
Source: Standart (05.04.2002)

The General Meeting of Bulbank JSC decided to be distributed dividend in amount of BGN 0.33 per share with face value of BGN 1. About BGN 55 million will be distributed as dividends. The profit of Bulbank is in amount of BGN 179 million, which is with 50 per cent more than the average level of the profit in the bank sector. The market share of the bank as for 2001 is about 22 per cent of the total amount of the assets in the bank sector. In the end of March the deposit base of the bank is about 22.3 per cent. The total capital adequacy of the bank is 55 per cent.
Source: Pari (05.04.2002)

Bank Austria is continuing its expansion on the Balkan peninsula. The financial group established a subsidiary company in Bulgaria as well - Hipoferainsbank, was reported from the new credit institution. By this moment the Austrian bank, which is a part of HVP Group and in the frames of the concern is responsible for its expansion in Central and Eastern Europe, is presented in Bulgaria by its branch in Sofia and its representatives in Bourgas and Rousse. Hipoferainsbank is 100 per cent subsidiary company of Bank Austria. The total amount of its assets is BGN 215 million. The services of the Bulgarian branch are destined for both private and corporate clients.
Source: Pari (05.04.2002)

Sofia-based company Idema will construct a small plant for manufacture of macaroni products in Borovan Municipality, announced the District Governor Mr. Lachezar Borisov. The project plans the cycle of manufacture to be closed. For the needs of the company near the Dobrolevo village will be sown 30 000 decares of a special sort of wheat. The plant will work with modern Italian equipment. The company has already received a credit in amount of BGN 50 million from Bulbank. Most of the final products will be exported in Italy.
Source: Shans Express Vratza (05.04.2002)

Kustendil District Court appointed Mr. Ivan Petkov as a syndic of Elko company. Mr. Petrov is a former manager of Teximbank is Kustendil. There are several cases against Elko, which were initiated by Hebrosbank and suppliers for debts in amount of BGN 2 million. Elko factory has inherited the former munitions factory Elektron in Kustendil. Five years ago the company was declared in insolvency by TB Hebros.
Source: Pari (05.04.2002)

Hebrosbank reported a profit in amount of BGN 13.3 million for the last year. At the General Meeting of the bank, which was conducted in Plovdiv was explained that the main part of the profit will be used for rising the capital as the face value of a share is raised from BGN 2 to BGN 3. 16 offices of the bank will be closed this year as according to the analysis they are not profitable. Hebrosbank will finish the review of Biochim as an applicant for its privatization, announced the Chief Executive Director Mr. Guatam Vir. He explained that if Hebrosbank wins the auction both banks will most probably merger.
Source: Standart (08.04.2002)

The State raised the capital of Bakancar-Sredetz with BGN 133 000 at an Extraordinary General Meeting of the company. The Ministry of Economy becomes a major owner of the company instead of Balkancar holding, which also is a state property. According to the experts the purpose of the Ministry is to preserve the holding from bankruptcy as against the parent-company are initiated claims for insolvency and the subsidiaries will be sold as self-contained parts. At the same time the interest of the creditors of the company - Rosseximbank, Biocim and United Bulgarian Bank are violated.
Source: Pari (08.04.2002)

The purchaser of Varna Shipyards - Navigation Maritime Bulgare paid the sum of BGN 35.5 million before the deadline for the deal has expired, was confirmed by the Director of the Shipyards Mr. Ivan Boyadjiev. In order to provide the money the Board of Directors of Navigation Maritime Bulgare had negotiated with several banks among which are Central Cooperative Bank, Societe Generale Expressbank, State Saving Bank DSK, Bulbank and Rosseximbank. The company have requested a state guarantee for a credit from a foreign bank. Finally the sum was provided by Raiffeisenbank. No state guarantee as given for the loan, was reported from the Ministry of Transport.
Source: Standart (09.04.2002)

The General Meeting of the shareholders of Hebrosbank reported a net profit in amount of BGN 13.335 million for 2001, was reported from the bank. The amount of the shareholders capital of the company will be raised to BGN 41.103 million. The amount of the attracted by the bank finances is with 23 per cent more as compared to the previous year and reached BGN 310.320. The bank was privatized during 2000 by I Regent Group Ltd. and by the moment is the biggest British investment in Bulgaria.
Source: Dnevnik (09.04.2002)

Bank Consolidation Company /BCC/ JSC will prolong the term for submission of offers for the privatization of Biochim Commercial Bank JSC - Sofia. Probably the dead-line will be fixed between May 15-20, 2002. This was announced by the BCC's Executive Director Mrs. Neli Kordovska. The current dead-line was April 15, 2002.
Source: Dnevnik (10.04.2002)

Kustendil District Court has appointed Mr. Ivan Dimitrov Petkov syndic of the promulgated in insolvency company Elko Ltd. - Kustendil. The plants has been promulgated in insolvency by the request of Hebrosbank JSC. Elko Ltd. has had 75 creditors.
Source: Struma - Blagoevgrad (10.04.2002)

Raiffeisenbank-Bulgaria is not interested in Biochim. The bank sector in Bulgaria is dynamic and the bank does not want to participate in a privatization process with unknown result and undefined parameters, explained Mr. Johan Jonah - Chairman of the Managing Board of Raiffeisenbank, which is part of the Austrian financial group Raiffeisen. The group is not interested in the purchase of shares in another Bulgarian financial institution. This decision was made last year when the managers of the bank decided to raised the number of the branches of the financial institution in Bulgaria.
Source: BTA (11.04.2002)

The Board of Directors of Bank Consolidation Company decided that the deadline for participation in the privatization of Biochim is May 15. Officially the deadline for application of the offers expires on May 15, at 16.30 o'clock. In the next days the applicants will receive special instructions for the applying of their offers.
Source: Standart (15.04.2002)

The profit of Varna-A Holding JSC for 2001 is BGN 628 000. This was reported after the General Meeting of the company‘s shareholders on April 15, 2002. The holding’s shareholders decided to be distributed dividends in amount of BGN 300 000 or BGN 0.30 per share. The payment of the dividends will start on July 7, 2002 in the branches of CB Biochim JSC. The net dividend is BGN 0.255 per share.
Source: Company information (17.04.2002)

Hebrosbank has granted credits at total value of more than BGN 2 million on the programme Perspectives for financing of small and medium-size enterprises, announced the Chief Executive Director of the bank Mr. Guatam Vir. The programme started during September 2001. In it is used a credit line granted by the European Bank for Reconstruction and Development in amount of EUR 6 million. The project is executed mainly by two of the fourth regional head-quarters of Hebrosbank - West with centre in Sofia and South with centre in Plovdiv.
Source: Pari (17.05.2002)

Alleviated crediting procedure for SMEs (Small and Middle Enterprises) will be initiated by Hebrossbank, CEO Gautam Vir said. The number of documents required by the bank will be reduced. The client will get an answer if he's given a credit in 7-day term. The crediting program 'Prospects' gives the chance for drawing circulation and investment credits with reimbursement term of 1 or 2 years. The maximum loan amounts to 125,000 euros. The European Bank for Reconstruction and Development (EBRD) allotted 6 million euros to Hebrossbank.
Source: Standart (18.05.2002)

The offers for Biochim will be publicly opened on May 21, decided the Board of Directors of Bank Consolidation Company. The offers may be applied up to May 20. In the bidding will participate Bank Austria, a consortium between Rosexim and the Russian bank Mejprom, Hebrosbank and Commerce bank of Greece. Bank Consolidation Company announced a minimum price of BGN 95 million for 99.59 per cent of Biochim. The candidates for consulting the sale of the other state-owned financial institution DSK Bank JSC have to submit their offers up to June 17, 2002.
Source: Standart (18.05.2002)

At least three offers will be applied today for 99.59 per cent of the capital of Biochim. The deadline for the offers expires in 16.30 o'clock. It is expected that Bank Austria, the consortium of Rosexim and the Russian Mejprombank and the Consortium of Hebrosbank and Charlemagne Capital Ltd, property of iRegent group will participate in the procedure. The fourth applicant - the Commercial bank of Greece may not apply an offer as its request for prolongation of the term for preliminary research of Biochim was not satisfied.
Source: Standart (20.05.2002)

Three offers were submitted in Bank Consolidation Company for privatization of 99.59 per cent of the capital of trade bank Biochim, announced the Executive Director and member of the Board of Directors of the company Ms. Nelly Kordovska.The candidates are Bank Austria, the consortium between Rosseximbank and Russian International industrial bank and the consortium between Hebrosbank and Sharlemain Capital.
Source: BTA (21.05.2002)

Bank Austria was selected an exclusive buyer for the 99.59 per cent of the capital of Biochim JSC - Sofia. The decision was taken by the Board of Directors of the Bank Consolidation Company JSC /BCC/ at its meeting yesterday. This was announced by the BCC’s Chairman and Minister of Finance Mr. Milen Velchev. Bank Austria has a three-weeks term to reach an agreement with BCC and sign the contract. If the agreement will not be finalized the BCC will start parallel negotiations with the other two candidates.
Source: Dnevnik (31.05.2002)

Overgas concluded contracts with 5 banks that will grant credits to the consumers of natural gas, serviced by the companies of Overgas. These are UBB, DSK, Bulbank, Post bank and Citibank, announced the Executive Director of Overgas Mr. Sasho Donchev. The amount of the credit could be BGN 2 500 - 3 000.
Source: Sega (03.06.2002)

Topenergy will be closed after the General Meeting of Gazprom on June 24, 2002. The subsidiary company of the Russian gas monopolist in Bulgaria initiated so many scandals that it became inconvenient for its owners. On January 8, 1996 were accepted new partners and the share participation was distributed as it follows; RAO Gazprom kept its quota of 50 per cent, Bulgargas reduced its share to 25.1 per cent. The new shareholders hold: Overgaz Inc. - 8.25 per cent, Multigroup- Bulgaria holding - 8.25 per cent, First Private Ban - 3.2 per cent, Bulbank - 3.2 per cent and Chimimport - 2 per cent.
Source: Banker (10.06.2002)

Only three offers for BTC were submitted yesterday when expired the deadline. Only the representatives of the Turkish consortium Koch holding - Turk telecom presented themselves. The rest participants did not declare which companies represent. Most probably these are the registered on Cayman Islands off shore company Sharleman capital that is a part of the group IRigent and is owner of TZUM-Shopping & Office Cente. 10 minutes before the deadline was submitted the last offer that was by the name of the American investment fund Advent international. The Greek telecom OTE give up the bidding for BTC in the last moment. One week ago the Minister of Transport and Communications Mr. Plamen Petrov announced that there were bought 12 information memorada for BTC and expected at least 10 offers.
Source: Standart (11.06.2002)

Hebros Optimum is the new service of Hebrosbank. This is a fixed deposit for one or two years with regular payment of the interest. The minimum amount of the deposit is BGN, EUR or USD 2000 and the term of the contract is up to two years. After the signing of a deposit contract, Hebrosbank assumes the obligation to pay interest due over the deposit each month.
Source: Standart (19.06.2002)

The State buys up shares of DZI before the forthcoming privatization, according to order of the Council of Ministers. The Government also regulates the upcoming buying up by the State of shares of Biochim in the Bank Consolidation Company.
Source: Standart (21.06.2002)

The former Executive Director of BIOCHIM Mr. David Tweights who manages the bank during Mr. Ivan Kostov's Government, sent a letter to the Minister of Finance Mr. Milen Veltchev and his Deputy Mr. Krassimir Katev with which insists on investigation of Mr. Tzvetan Tzekov for a criminal breach of trust.
Source: Banker (24.06.2002)

The results of the negotiations between Bank Austria and Bank Consolidation Company will be announced on Thursday, announced the Executive Director of Bank Consolidation Company Mrs. Neli Kordovska. The negotiations for the purchase of 99.59 per cent of the capital of TB Biochim were finalized yesterday, but they have to be officially approved by the Board of Directors of Bank Consolidation Company on June 27. The reason for the postponement is the absence of the Minister of Finances and Chairman of the Board of Directors of BCC Mr. Milen Velchev. If the agreement between Bank Austria and BCC is approved the Austrian Bank will be announced for purchaser of Biochim.
Source: Sega (25.06.2002)

The deal for sale of Biochim bank to the preferred buyer Bank Austria is expected to finish on July 11-12, said the Minister of Finance Mr. Milen Veltchev. The representatives of Bank Consolidation Company and Bank Austria finished the negotiations on the sale of Biochim. Tomorrow is expected the Board of Directors of BCC to approve formally the conditions of the contract and to define the deals' parametres. The Board of Directors of BCC selected Bank Austria for exclusive buyer of the bank on its meeting on May 30.
Source: BTA (27.06.2002)

The fourth traditional reward of PARI newspaper received Ms. Maia Georgieva who is Executive Director of First Investment Bank. The bank is the complex winner on all indicators among the 28 participants in the list of the banks. The prize for market share was given to Bulbank, for Dynamics of development - Corporate bank, for Efficiency - Bulgarian-American credit bank and for Market presence - United Bulgarian Bank.
Source: Pari (27.06.2002)

The Board of Directors of Bank Consolidation Company will consider the offer of Bank Austria for the purchase of Biochim and decided to approve the project contract only if it is signed no later than July 26. This was stated on Friday by the Minister of Finance and Director of the bank holding Mr. Milen Velchev after meeting of BCC. The only item in the Agenda was the approval of the final offer of the Austrian Bank for the purchase of Biochim.
Source: Dnevnik (28.06.2002)

The Board of Directors of Bank Consolidation Company considered the offer of Bank Austria for the purchase of Biochim and decided to approve the project-contract under the circumstance that it is signed no later than July 26. This was stated by the Minister of Finance and Director of the bank holding Mr. Milen Velchev on Thursday after a meeting of BCC. What is known is that Bank Austria is buying the complete state stake in Biochim, which is in the amount of 99.59 per cent. The Austrians will also obtain the whole profit of the Bulgarian bank for the previous year, which is in the amount of almost BGN 20 million. It also became clear yesterday that the International Financial Corporation (a part of the World Bank) is interested in becoming a co-investor in Biochim. If Bank Austria is interested in this, it is possible to happen, but not before the signing of the contract. If the contract with Bank Austria is not signed by July 26, negotiations with one or two of the other candidate-buyers, which submitted offers for Biochim shall start. These are the two consortiums- of Rosseximbank with the Russian Mezhprombank and of Bank Hebros with Scharleman Capital Limited. Biochim is the fourth largest bank in the country and the second (after DSK) in development of the branch network. Its assets as of the end of March 2002 are BGN 638 million, and its profit - BGN 2.415 million.
Source: Dnevnik (01.07.2002)

Russia started the payment of its debt to Bulgaria. The Ministry of Finances of the Russian Federation has transferred to the of the Ministry of Finances account in Bulbank USD 15 million. The transfer was executed in accordance to the addition to the intergovernmental agreement for the regulation of the mutual claims. According to the agreement within June 30 will be paid USD 15 million. Bulgaria will reduce the amount of the debt with USD 25 million.
Source: Sega (02.07.2002)

Sofia City Court entered changes concerning Commercial Bank Biochim JSC: enters as Executive Director Ms. Emiliya Stefanova Palibachiyska; the company shall be represented jointly by any two of the four executive directors Mr. Plamen Stoykov Dobrev, Mr. Nikolay Genchev Kavardzhikliev, Mr. Rumen Stanchov Beremski and Ms. Emiliya Stefanova Palibachiyska.
Source: State Gazette (02.07.2002)

The Chairman of LVC Gamza in Suhindol Mr. Trifon Dragiev is being investigated. According to preliminary information, he is being investigated for intentional squandering of more than BGN 7 million. There is still no indictment raised against Mr. Trifon Dragiev. About USD 2 million and more than BGN 4 million are the amounts in the initiated investigation. The Suhindol-based cooperation exported wine to Moldova for more than USD 1.5 million over the period 1997-1999. Although no money were received after the first tranche, two more contracts for export to Moldova again were signed. Mr. Dragiev is guilty of draining production from the cooperation, which is given, without being paid and in spite of previous debts of the contracting party. Mr. Dragiev was a shareholder in CCB until 1998.
Source: Borba - Veliko Tarnovo (03.07.2002)

Bulgarian Posts SP JSC is going to approach the Commission for Communication Regulation with a complaint, that the courier companies break the monopoly of the company. This was announced by the General Executive Director of Bulgarian Posts Ms. Stana Hristova. According to the Post Service Act, the company has monopoly right until the year 2003 to offer the cheapest delivery of consignments no heavier than 350g and a license for main post operator. The private courier companies can deliver such consignments, but only in return of a price, five times bigger than the price of the standard letter, which is no heavier than 20g. This means BGN 1.25, and they offer this service at a lower price, explained Ms. Hristova.
Source: Dnevnik (04.07.2002)

The rating company Standart&Poors announced that it will raise the long-term rating of UniCredito Italiano from A+ to AA-. The Italian bank holds 85.19 of the capital of Bulbank. The short-term rating of the bank was raised from A1 to A1+. There is no risk the investments of the bank abroad, including those in Bulgaria to affect its stability, was reported from the agency.
Source: Banker (08.07.2002)

Another four banks were added to the list of the initial dealers state securities, which will be valid over the period July 1 - December 31. Demirbank (Bulgaria) JSC, Corporate Commercial Bank JSC, First East International Bank JSC and HVB Bank Bulgaria JSC obtained the right to participate in the auctions of state securities.
Source: Capital (08.07.2002)

BGN 8 million have been invested in the reconstruction of the resort complex Slanchev den over the new season, was announced by the owner Mr. Georgi Gergov. The season was officially open during the weekend. A part of the funds were invested by Bulbank, and another part - by the German tour operator ITS, whose tourists are resting in the resort.
Source: Pari (08.07.2002)

The Board of Directors of Bank Consolidation Company decided to distribute the finances for management among five trade banks and BNB. The sum of the finances of the company is USD 20 million and EUR 53 million, which turned into national currency makes about BGN 135 million. The money will be distributed in deposit and payment accounts in BNB, Bulbank, First Investment Bank, SG Expressbank, BNP Pariba ( Bulgaria) and Raiffeisenbank (Bulgaria). BCC will get interest rates of about 5 -7 per cent annually.
Source: Banker (22.07.2002)

On July 12 Bank Austria Kreditanschtalt and United Bulgarian Bank have concluded a contract with Cosmo Bulgarian Mobile for six-month bridge loan in amount of EUR 70 million. The money will be used for financing of the project for the construction of a telecommunication network of Globul. Cosmo Bulgarian Mobile - the company which owns the GSM-operator Globul and is 100 per cent property of the Greek telecommunication company OTE will get an access to the one-year credit line in amount of BGN 75 million, granted to the consortium by Bulgarian and Austrian Banks.
Source: Banker (22.07.2002)

To reduce the capital of Neftinvestbank JSC from BGN 47.98 million to BGN 16 million. This was decided by the shareholders at a general meeting. The capital was raised because of a deal for bank Biochim, the way it was requested by the Bank Supervision of BNB. The condition was satisfied, but the deal was not realized. The permission of the Central Bank for the reduction of the capital is expected in the coming two-three months. The difference over the BGN 16 million will be distributed between the shareholders according to their shares. The financial results for 2001 can be defined as good. This is stated in the annual account of the Managing Board.
Source: BTA (22.07.2002)

Sofia District Court postponed for the second the case against the former Executive Directors of Sirbank JSC Mrs. Milka Valkova, Mr. Ivan Kalvachev, Mr. Nikolay Pavunchev, Mr. Iliyan Zafirov, Mr. Peter Paskalev, Mr. Chavdar Goranov and Mr. George Patev, who were accussed in crimes by position. The reason for the postponement is that other information for accusations against the defendants is needed. The aim of the Prosecutor's office is to be united all accusations.
Source: Pari (23.07.2002)

The Austrian bank Bank Austria Creditanstalt which is represented in Bulgaria by HypoVereinsbank purchased 99.95 per cent of the capital the fourth biggest bank in Bulgaria - Biochim. The price of the deal is EUR 82.5 million. The initial price for the bank was EUR 48.59 million. The contact for the sale was concluded in on Friday by representatives of Bank Consolidation Company and Bank Austria Creditanstalt. According to the privatization contract the new owner is obliged not to transfer or sell shares from the capital of the bank for the next three years, unless to another company from the group of the new owner. The Chairman of the Managing Board of Bank Austria Creditanstalt intends to merger the assets of Biochim with those of the subsidiary bank HVB - Bulgaria. Thus the market share of the group will reach 7 per cent.
Source: Standart (29.07.2002)

In 2000 Sopharma JSC was privatised as well. For USD 24 mln. Elpharma (founded by Unipharm JSC and Electroimpex JSC) bought 66.94% of the capital of Sopharma. The buyer undertook the investing of USD 7.5 mln. in three years.
Source: Dnevnik (29.07.2002)

Competition Protection Commission confirmed the merger of the assets of Bank Biochim and the subsidiary of Bank Austria with one voice. In the end of last week, the Austrian bank bought for EUR 82.5 million the fourth largest bank in Bulgaria - Biochim. Bank Austria has been operating in Bulgaria since 1986 through Hypovereinsbank, and since 2002 it has established a subsidiary bank. Its assets will merge with those of Biochim and its market share will reach 7 per cent.
Source: Monitor (02.08.2002)

BIRS SP Ltd. opened a five-star hotel Marina in the Golden Sands resort complex. The amount of the investment made in the hotel is BGN 26.8 million. The project was finalized for the short period of five months due to a credit granted by Bulbank JSC.
Source: Black sea (05.08.2002)

Sofia City Court registered changes for Bank Centre for Education and Training Ltd. As partners are wrote off United Bulgarian Bank JSC and Bulbank JSC. As a partner is registered Mr. Goran Goranov.
Source: State Gazette (06.08.2002)

The syndic of the bankrupted Bank for Agricultural Credit Mrs. Iglika Logofetova announced that she intends to sell all share participation of the bank by the end of the year. During the separation of the shares of the Bank for Agricultural Credit in Bankservice a year and a half ago the former syndic of the company Mrs. Tatyana Stefanova has neglected the requirement s of the Trade Law the shares to sold at an auction. She preferred to take into consideration the statute of the company. In accordance to this statute the shares of the company which are property of bankrupted banks will be distributed among the other shareholders. Thus Mrs. Stefanova has transferred the shares to Teximbank and Biochim.
Source: Banker (12.08.2002)

About USD 9 million from the total amount of the USD 9.5 million loan taken by the Central Universal Store CUM will be used for the payment to the owners of the store who had invested over their obligations on the privatization contract, announced the Executive Director of the trade centre Mrs. Tanya Gyurova. She explained that the sum of the investments on the privatization contract - USD 9 million have been already paid and the h owners have invested BGN 431 million in the reconstruction of the building. The bigger amount of the investments was necessary in order to be executed a quality reconstruction of the building.
Source: Monitor (14.08.2002)

The present Executive Director of Biochim Mr. Plamen Dobrev was released from the Managing Board of the bank. Thus the Managing Board remains with 3 members - Mr. Rumen Beremski, Mr. Nikolay Kavardjikliev and Mrs. Emilia Palibachiyska. Recently four Directors of the branches of the bank were dismissed as well. The General Meeting of the bank which will be conducted on September 3, 2002 will decide if the profit of the bank in amount of BGN 11.5 million will be distributed as dividends. A part of the sum will be referred in Reserves Fund. It is expected that shareholders will elected KPMG Bulgaria for an auditor of the bank instead of Deloitte & Touche.
Source: Capital (19.08.2002)

By order of the Board of Management of Biochim the lawyers of the bank demanded from Smolian District Court to declare the textile company Nitex in insolvency. The bank claims that Nitex owes BGN 1.66 million. But the textile company does not intend to pay back anything, considereing the paragraph 6 of the former Act for transfer and privatization of the state-owned and municipal companies. According to it the banks has to inform the privatising body - an agency or a ministry, if they have receivables from any state-owned company that is declared for sale. If they do not do that in a defined term, they will lose the right to take the money from the privatized company. Nitex has been private since 1999.
Source: Banker (19.08.2002)

The leaders in the foreign investors top list among the countries are Italy (chiefly due to the purchase of the biggest Bulgarian bank - Bulbank), Greece (with its investments in the bank sphere, the former factory KOCM Stilmet", Sheraton hotel) and others. The former factory KOCM (currently Sofia Med) is representative of the non-ferrous metallurgy in Sofia. In 1997, it was privatized by the company Bulmetal Sofia, owned by the former deputy Mr. Tzvetelin Kunchev. In 1999 the company became ownership of the Greek industrial group Viohalko. Due to legal arguments, an investment of EUR 88 million in the company was blocked about a year ago. " Currently, however, everything is all right and we are expecting to finish the re-equipment in about a year," commented Mr. Anton Petrov, member of the Managing Board of Sofia Med. The industrial group Viohalko invested USD 12.5 million in the construction of a new factory for aluminum profiles Stilmet. Currently, a new equipment to the value of around BGN 6 million is being delivered to the company. After its putting into action, the owners are hoping that the enterprise's productivity will grow by around 45 per cent. In this way, the total investments made by Viohalko in Sofia will reach EUR 100 million in Sofia Med and USD 16 million in Stilmet.
Source: Capital (26.08.2002)

At its extraordinary meeting State Security Commission approved the prospectus for public offering shares of Pioneer Investment Management S.A., Luxemburg. The investment fund that is a property of Unicredito Italiano revealed in the end of the last year its intention to develop its activity in the State. The company has head-offices in Boston, Dublin and Milano and representatives in another 13 towns among which Paris, Monaco, Prague, Madrid and Miami.
Source: Dnevnik (27.08.2002)

The major shareholder of Trade Bank Hebros IRigent group limited that holds 99.03 per cent of the bank soon will be changed. The name is not still familiar since it is about a newly registered company with a head-office in Holland. However it will be 100 per cent property of IRigent. The change is imposed by BCC in connection with clearing the bank system of shareholders - offshores. As it is known IRigent is registered on the offshore zone Man island.
Source: Dnevnik (29.08.2002)

Deputy Minister of Economy Mrs. Sofia Kasidova will become a member of a second Managing Board of a trade company since yesterday the Council of Ministers approved her for a Bulgarian representative in the management of Black Sea Bank for International Development. Mrs. Kasidova will replace at this position Mr. Rumen Avramov. Mrs. Kasidova is member of the Managing Board of NEC. Before the privatization of Biochim bank she was the representative of the Bank Consolidation Company in its management.|
Source: Sega (30.08.2002)

The profit of Biochim as of 2001 in amount of BGN 13 092 000 will remain in the bank, Bank Consolidation Company decided during the week. At the forthcoming General Meeting of the bank on September 2 will be adopted the decision BGN 3.7 million from the profit to be referred as Reserves Fund and the other BGN 9.3 million to be Referred as Non-distributed profit. It is expected that the shareholders will elected KPMG, to replace as an auditor of the company Deloitte & Touche.
Source: Capital (02.09.2002)

The major stake of shares of Hebrosbank will be transferred to a company, registered in Holland, announced the Minister of Finance Mr. Milen Velchev. The transfer of the shares was signed by the current owner of the bank I Regent Group Limited. The company, which will acquire the control over Hebrosbank, is not yet established, but according to the Minister of Finance, it is going to be 100 per cent owned by I Regent Group Limited.
Source: Capital (02.09.2002)

The biggest bank in Bulgaria - Bulbank, is ready to grant a loan of EUR 40 million to the American company Entergy for its project for the modernization of HPS Maritza Iztok 3, announced a source close to the Ministry of Energetics. The loan will be for a term of 10 years. In the beginning of 2002, the State Commission of Energy Regulation issued a license to Entergy, and one of the conditions is to finish the financial package on the project by the end of the year. It is to the value of USD 470 million.
Source: Dnevnik (02.09.2002)

The former members of the Managing Board of CB Biochim Mr. Plamen Dobrev, Mr. Tzvetan Tzekov, Mr. Ventzislav Lubomirov and Mr. Alexander Lichev, as well as the former members of the Supervisory Board Mr. Petar Zhotev, Mr. Velizar Stoilov and Mr. Evgeni Chachev not to be exonerated from responsibility. This was voted on Tuesday by the bank's General Meeting of Shareholders - the last one, in which a representative of the state voted as a major shareholder with 99.6 per cent. In the end of July the major stake of shares was bought by Bank Austria for EUR 82.5 million, but the decisions of BNB and of the Austrian anti-monopoly agency for the finalization of the deal are still expected.
Source: Dnevnik (04.09.2002)

Bank Austria (a part of Hypovereinsbank Group) will increase the number of members of the supervisory board of bank Biochim from three to seven people, and will prepare a new statute in accordance with the requirements of the new owner. The Austrian credit institution was selected for buyer of the state bank in the end of July, and it engaged to buy the record price of EUR 82.5 million for 99.59 per cent of the capital. The new Supervisory Board will include Mr. Anton Knet, Mr. Wibald Chernko, Mr. Wilhelm Hemmetsberger, Mw. Wolfgang Edelmuller, Mr. Heinz Meidlinger, Mr. Harold Hograsek and Mr. Kristian Brukner. They will be elected at an extraordinary general meeting of the shareholders of Biochim, which will be held on October 7. The new members of the Supervisory Board will have a mandate of three years.
Source: Dnevnik (09.09.2002)

The Bulgarian meat-processing company Tandem-V invested more than EUR 4 million in the construction of a brand new meat-processing enterprise in Sofia. 2/3 of the funds were invested in new equipment and technologies. The production output is 30 t of ready production a day. 150 people will work in the factory. A part of the money for the investment was provided through a credit, and the remaining part is provided by the company itself. The foreign financing is by the German Hypovereinsbank and Central Cooperative Bank (CCB). The loan should be repaid within a period of three years.
Source: Dnevnik (23.09.2002)

The World Bank will be watching closely the development of the most important privatization deals, one of which is the sale of Bulgartabac. This was stated by the Head of the press service of the financial institution Mr. Georgi Kurtev yesterday. According to him, the exact time, in which we will receive the first amount of USD 150 million from the loan PAL depends on the execution of the program itself. Mr. Kurtev did not deny that the key step in it is the privatization of bank Biochim, State Insurance Institute (DZI) and Bulgartabac. Biochim and DZI are already private. The sale of the tobacco holding will be delayed in time, after Supreme Administrative Court decided to stop the deal until it delivers its judgement about the three litigations by the candidates, which were not approved. Bulgaria should receive a total of USD 450 million under the structural loan of World Bank - PAL.
Source: Monitor (23.09.2002)

Daewoo-Bulgaria sentenced the taximeter company IMPRESS-96 to pay USD 50 946. Partner with 70 per cent and manager of the limited liability company is Mr. Petar Alexandrov Vitzov. He and his family, however, are in Portugal and will not come back from there. Previously, Mr. Vitzov has also been sentenced to pay BGN 5000 to Eurobank. The legal proceeding against Mr. Vitzov was initiated by Daewoo-Bulgaria because he received 19 leasing cars, which he 'forgot' to pay to the company.
Source: Borba - Veliko Tarnovo (26.09.2002)

Sofia City Court declared Balkancar holding in a procedure of insolvency by request of Rosseximbank. It is interesting that with the decision, the Court declares the insolvency with a back date - from May 15, 1996. That means that all concluded contracts by the management of the company after this date are invalid. This can be appealed in Sofia Appeal Court in 7-day deadline as of its publishing in State Gazette. The Court declared directly the company in solvency.
Source: Pari (26.09.2002)

Pension insurance companies and their shareholders: PIC Doverie JSC 9 BZP - 85.33 per cent, KNSB - 13.17 per cent and five branch federations - 1.5 per cent), PIC Suglasie JSC (Orel Invest Holding JSC - 16.2 per cent, Orel G Holding JSC -40.9 per cent, BIA - 20 per cent, IC Vitosha JSC - 15 per cent, CB Bulbank JSC- 6 per cent, others - 1.9 per cent), BPIC JSC (BZP Group JSC - 67 per cent, DZI SP JSC - 27 per cent and others - 6 per cent), SCPIC Rodina JSC (Bulgarian American Enterprise Fund - 36.20 per cent, Bank DSK SP JSC - 59.30 per cent, CCU - 4.50 per cent and others), PIC Allianz Bulgaria JSC (Allianz Bulgaria Holding - 65.4 per cent, NEC - 34 per cent, and others - 0.6 per cent), PIC ING JSC 9 ING Continental Europe Holding - 100 per cent), PIJSC Newton-Power (Newton Financial Management BG Ltd. - 98.75 per cent, and others - 1.25 per cent, PIC LUKoil-garant Bulgaria JSC, LUKoil Bulgaria SP Ltd. - 50 per cent, LUKoil-Neftochim Burgas JSC - 50 per cent).
Source: Pari (27.09.2002)

The Amsterdam registered SWC B.V. is the new owner of 99.65 per cent of the capital of Hebrosbank, as it inherited the registered on Man island I Regent Group. SWC B.V. is a company which was established during May 2002. It is 100 per cent property of another off-shore company, which is considered to be a part of the structure of I Regent Group. In accordance with the privatization contract for Hebrosbank which was concluded in November 1999, I Regent Group has to own the shares of the Bulgarian credit institution for at least five years. In order the change of property to become efficient is needed the permission of the Bank Consolidation Company and Bulgarian National Bank.
Source: Banker (30.09.2002)

On September 23 in the branches of Biochim will star the payment of the dividends of Bulgartabak holding as for 2001. The dividend after taxation in amount of 15 per cent (for the physical persons) is BGN 0.9616.
Source: Banker (30.09.2002)

The Executive Vice President of the International Financial Corporation and Executive Director of the World Bank Mr. Peter Voike announced at a meeting with the Deputy Prime Minister Mr. Nikolay Vasilev in Washington that the corporation is observing the development of Biochim with interest. It is possible the corporation to participate in raising of the capital of the bank and thus to become a co-shareholder of Bank Austria.
Source: Sega (01.10.2002)

Sofia City Court postponed for November 25 the case by request of IBE Trans, a subsidiary of US company IBE Trade, for returning its property in Chimko-Vratza. The magistrates demanded additional documents connected with the case. Then is expected to be taken a decision by the Court. In 1999 IBE Trade bought 57 per cent of the shares of the fertilizers' plant through the subsidiary IBE Trans. At the moment 71 per cent of Chimko are held by AVST Trading and Jagoil limited.
Source: Sega (02.10.2002)

On September 30 the specialized financial magazine Global Finance honoured Bulbank as the best bank in Bulgaria for a fourth consecutive time. The prize was given to the Chairman of the Board of Management Mr. Levon Hampartzumian. Bulbank takes this prize as a confession for its contribution in the development of Bulgarian economy, for its efficiencyand for its leading role in the financial sector of the State. The specialized financial magazine for Central Europe - Finance Central Europe gave 4 prizes to Bulbankk - it declared the bank for the Best Bank in Bulgaria for 2002. The rest three prizes were for amount of the assets, of the capital and of the gross profit.
Source: Banker (07.10.2002)

Mr. Emil Kiulev was elected for a Chairman of the Board of Directors of General Insurance Company DZI. He will be the only Executive Director of the company. The other members of the Board of Directors are the Chairman of the Managing Board and Executive Director of Rosseximbank Mrs. Diana Mladenova and Mr. George Georgiev. At the General Meeting were proposed three Procurators - the present Director of DZI Mr. Dancho Danchev, one of the former Directors of the Insurance company - Mr. Valeri Alexiev and Mr. Nedyalko Chandurov.
Source: Banker (07.10.2002)

The General Meeting of Biochim accepted a new statute of the bank and selected a 7-member Supervisory Board for a period of 3 years. The Board includes Supreme Managers in Bank Austria. The meeting dismissed the former Supervisory Board and voted them BGN 30 000 bonus remuneration. The members of the Supervisory Board also selected the new Board of Management. The shares of Biochim were transferred to Bank Austria Creditanstalt and in this way are finalized all procesures connected with its sale. The Austrian bank become owner of 99.6 per cent of Biochim. On October 9 were paid off EUR 82.5 million that is 90 per cent of the amount.
Source: Pari (08.10.2002)

AES is searching for partners for the its share of the financing of the new capacities in TPS Maritza Iztok 1 and Entergy - for the modernization of TPS Maritza Iztok 3, announced the Minister of energy Mr. Milko Kovachev. The American companies are trying to lower the risk in the execution of the two biggest energetic projects in Bulgaria. The value of the projects is USD 1.5 billion. Both companies will participate with 25 per cent own finances and 75 - attracted capital.
Source: Dnevnik (09.10.2002)

PIONEER investment management S. A. will start a public offering of securities of the Luxembourg registered mutual fund - Pioneer Funds. Pioneer Funds is one of the most famous mutual funds from open type. It is 100 per cent property of the Italian bank UniCredito. Pioneer Funds has many sub-funds for shares and bonds from all over the world and is established in accordance with the Luxembourg law. A month ago the State Securities Commission approved the prospect of Pioneer investment management S. A. for offering of the securities of Pioneer Funds in Bulgaria. This is the first international investment fund which will offer its shares in Bulgaria.
Source: Pari (09.10.2002)

The Vratza-based company Vratitza invested nearly BGN 6 million in the new manufacture, which was opened on Saturday. The company has used a credit in amount of EUR 980 000 from Hypovereinsbank - Bulgaria for the purchase of the equipment. The rest of the sum were own finances of the company. The new equipment will provide 75 new work-places, announced the Chairman of the Managing Board of Doverie holding, which is the major owner of the company Mr. Tzonio Nedyalkov.
Source: Dnevnik (14.10.2002)

hebrosbank distributed for a first time dividends to its shareholders after the privatization in 2000. The General Meeting of the bank decided to distribute BGN 4.156 million among the shareholders as a remuneration. This is non-distributed profit from 1999 and 2000. Each shareholder will receive about BGN 0.30 per share.
Source: Capital (21.10.2002)

Bank Consolidation Company will request its voluntary liquidation after the privatization of State Saving Bank DSK, which is expected to be finalized by the end of March. Right after that the State which is the majority shareholder in the company with 97.9 per cent of the capital will request the liquidation of Bank Consolidation Company. Thus the money from the bank privatization will enter directly the State budget as liquidation quota.
Source: Capital (21.10.2002)

The American company Entergy is negotiating with four companies for a partner for its share in the financing of the project for the rehabilitation of TPS Meritza Iztok 3, announced the Minister of Energetics Mr. Milko Kovachev. The four companies are the Belgian company Tractable, the British National Powers, the German RWE and the Italian Enel Producione. It is not clear yet what part of the financing will be from the partner. According to the experts it is a question of minority participation of the partner in the project, as Entergy will keep its leading role. The total value of the project for the rehabilitation is EUR 470 million.
Source: Dnevnik (08.11.2002)

Sofia City Court decided to invalidate all the decisions of the General Meetings of Neftinvestbank as of April 8, 1998. Thus the city returned the legal state of the bank as of this date. At that time the name of the bank was International Orthodox Bank St. Nikola and was property of a group of shareholders, united by the former Chairman of the Managing Board Mr. Tzvetan Nachev. Bulgarian National Bank decided that in Neftinvest bank were appointed questors. The questors are Mr. Alexander Mechkarski and Mr. Tzvetan Tzekov. Mr. Tzekov was a former Executive Director of Biochim. Mr. Mechkarski has worked in BNB, Economic and Investment Bank and in Eurobank and at the moment is pensioner.
Source: Banker (18.11.2002)

The finacial result of Bulgartabac hiolding JSC as for the ninth month of the year is positive, announced the Chairman of the Board of Directors Mr. George Kostov. He did not announce the exact amount of the profit because the accountant report is not adopted by the Board of Directors yet. About 80 per cent of the finances for the buy-out of the yield of oriental tobaccos are provided. The holding is in a process of negotiations for the other 20 per cent with several big banks, among which are State Saving Bank, Hebrosbank and Biochim.
Source: BTA (19.11.2002)

The merger of Biochim bank with the branch of Bank Austria Creditanstalt in Bulgaria will be finalized by the end of December, announced at a press-conference the representatives of the three banks - Biochim, HVB Bulgaria and Bank Austria Creditanstalt. The acquisition bank will be Biochim, explained the Director of Bank Austria Creditanstalt and Chairman of the Supervisory Board of Biochim Mr. Anton Knet. On July 26 Bank Austria Creditanstalt concluded a contract with Bank Consolidation Company for the purchase of 99.6 per cent of the capital TB Biochim.
Source: BTA (26.11.2002)

Mr. Nikolay Vasilev announced a minimum price of EUR 100 million for the sale of State Savings Bank DSK. He recommended the same strategy which was used for the privatization of TB Biochim, which means the defining of a minimum price equal to the amount of the net assets. Mr. Vasilev announced that he expects that the minimum price will be EUR 100 million and for 80 per cent of the capital of the bank will be received EUR 200 million.
Source: Dnevnik (26.11.2002)

The General Meeting of Biochim on November 29, 2002 decided to acquire all assets and liabilities of the bank Hypofereisbank Bulgaria. The two credit institutions are property of Bank Austria when in October it bought 99.9 per cent from the shares of Biochim for EUR 82.5 million. The meeting also voted for increase of the shareholders' equity of Biochim from BGN 28 757 157 to BGN 36 842 360 through issue of 8 085 203 personal shares with face value BGN 1 per each. In this way the capital of Hypofereisbank Bulgaria merges in this of Biochim.
Source: Banker (02.12.2002)

The shareholders of Bulbank will make changes in it Supervisory Board which will be conducted of January 8, 2003. At the moment the Supervisory Board consists of seven members, among which are Mr. Roberto Nikastro - Chairman, Mr. Alberto Galmarini, Mr. Ivan Stanchov and Mr. Dimitar Zhelev. Apart from the changes in the Supervisory Board at the General Meeting will be made changes in the Internal Control department of the bank.
Source: Dnevnik (06.12.2002)

The Italian group Macegalia will initiate in January technical survey of Kremikovtzi in order to decide if it is profitable for it to purchase the metallurgic plant, announced the son of the founder of the company Mr. Stenio Marcegalia - Mr. Antonio Marcegalia. According to him the review will continue for several months. It is still too early to be discussed the amount of the investment, which will be made, but it is clear that the investment will be financially supported by Bulbank, which is property of the Italian group Unicredito.
Source: Dnevnik (06.12.2002)

Bulbank JSC received the annual prize of the Bulgarian Hotel and Restaurant Association for Investor N 1 in tourism. The hotel complex Riviera beach took the prize for the most effective prize and hotel complex Tanne-Bankso for the most effective investment.
Source: Pari (20.12.2002)

Hebros Bank concluded a contract for the purchase of 100 per cent of the shares of Orel Leasing JSC. The shares of the capital of Orel will be gained after the receiving of a permission from the Bulgarian National Bank.
Source: ComputerWorld e-Daily (27.12.2002)

Bulbank received a rating by the International rating agency Standard&Poor's that is the same, given by the agency of the State. The rating agency Standard&Poor's increased the long-term credit rating of Bulbank from ÂÂ- to BB. The prospective was also increased from stable to positive. Bulbank is the sole Bulgarian bank whose rating is in accordance with the State's rating.
Source: BTA (29.12.2002)