European Bank for Reconstruction and Development will finance the construction of 8 stores from Picadilly chain, against which will receive a share from the capital of the companies Picadilly and Boliari, announced the owner of Boliari Mr. George Papurov. He specified that in each store will be invested about EUR 3 million. The first two objects on the new scheme will be built in Varna and Burgas during the next year. The contract for financing will be signed in the end of February.
Source: Dnevnik (05.01.2004)

Sofia-based company Energocable was declared in insolvency and it will be managed by the temporary appointed Syndic Mr. Veselin Bankov. Sofia City Court made this decision on a claim of one of the creditors of the company – Glencor Investment. The debts of the company are in amount of about USD 16 million. The greatest creditors of the company are SG Expressbank and Biochim. Energocable has debts of USD 6 million to each of these banks.
Source: Banker (12.01.2004)

Mr. Peter Harold became Director of Biochim, the bank announced. He was elected in the position of Mr. Harald Edlinger-Zecher, who will assume his new responsibilities in the group of Bank Austria Creditanstalt – Vienna. Mr. Harold will head the International Markets department. BNB is expected to approve his appointment.
Source: Standart (13.01.2004)

Hebrosbank granted the first credit on the programme of the American International Development Agency for guaranteeing of credits for agriculture. The credit is in amount of BGN 100 000, with a term of four years. The credit was granted to a sole proprietor from Svishtov and will be used for the purchased of agricultural land. The American Agency guarantees half of the amount of the credits, granted by Hebrosbank on this programme.
Source: Pari (13.01.2004)

Hebrosbank reported pre-tax profits in amount of BGN 14.591 million as compared to BGN 5.319 million as of 2002. The growth of the profit of the credit institution is in amount of BGN 9.632 million or 181 per cent. The credit portfolio of the bank has increased with 49 per cent. There is a growth of 832 per cent in retail credits.
Source: Sega (27.01.2004)

There will be changes in the Supervisory Board of Biochim as a result of the changes in the management of the owner of the bank - Bank Austira Creditanshtalt /BA-CA/. It is expected that Mr. Fridrih Kadrnioska will leave the Supervisory Board. Most probably Ms. Regina Prehofer will replace him. Ms. Prehofer will take the functions of Mr. Kadrnoska in the Managing Board of the bank and will be in charge for the operations in Central and Eastern Europe.
Source: Pari (28.01.2004)

Financial difficulties and problems forced the renown hotel businessman Mr. Plamen Hrankov to offer for sale his last two hotels from the chain. He confirmed this information and added he had announced a price of around BGN 8 million for his five-star hotel The Castle Hrankov and a price oEUR 3.5 million for the four-star hotel Hawaii Hrankov, which is located in the Dragalevtzi residential area.
Source: Dnevnik (03.02.2004)

The average insurance in the 20 most loyal companies insuring a staff to 15 employees is BGN 908, the National Social Security Institute’s information showed. Over 264 people work in these companies. The companies with a staff of 100 to 250 people employ a total of 4127. The average insurance income there is BGN 726. Top 20 of the most loyal employers in these criteria includes the names of Sheraton ­ Sofia-Balkan, publishing house 168 Hours, Mines Maritsa Iztok, Moto Pfoe, Bulgartabac Holding, etc.
Source: Cash (06.02.2004)

Zelin JSC is starting to sell off a part of the tangible assets of the former plant for production of wallpapers and floorings Plastchim – Botevgrad. The company bought 75 per cent from the state-owned enterprise on November 16 2002 for USD 5 555 555 55, and the money were provided through mortgage credit from Bulbank. In 2002, the financial state of the enterprise aggravated and it stopped paying its employees. By permit issued by the Ministry of Economy and the bank creditor, the enzyme and pharmaceutical production was sold to the Peshtera-based company Biovet. The deal was to the value of USD 1 million, which were transferred to Bulbank. As of the end of 2003, Zelin JSC owed to Bulbank USD 4 million, and to the employees – around BGN 800 000. The company also has another BGN 3 million outstanding debts.
Source: Trud (12.02.2004)

Bulbank bought Unileasing that will be renamed to UniCredit leasing-Bulgaria. A priority in its activity will be services in the sphere of the financial leasing for corporate clients – for purchase of technics, equipment and others. The plans of the leasing company envisage a development of the subsidiary UniCredit auto leasing-Bulgaria that will finance auto purchases.
Source: Sega (13.02.2004)

BGN 215.483 million are the debts of the fifty biggest debtors to the National Social Security Institute in the end of 2003. The amount includes the principal and the calculated interests. The top list is headed by the metallurgic plant Kremikovtzi, then follow Stomana-Pernik, Varna shipyards and Vidachim. The average insurance income in the 20 most correct companies with 15 employees is BGN 885. In these companies are working 267 people. Among them are Siemens business services, Coca-Cola Bulgaria, Daewoo-Bulgaria, Crown Agents, TBI leasing and others.
Source: Pari (17.02.2004)

The threelateral agreements for transfer of all obligations and rights from Bank Consolidation Company (BCC) to the state will be sent this week to the buyers of Bulbank, Biochim and Bank DSK, Ms. Neli Kordovska, Executive Director of BCC said. The agreements have been approved by the Ministry of Finance and Council of Ministers. They are expected to be signed by the end of March and be ratified by the National Assembly in April. The agreements will be signed between BCC, the state, represented by the Minister of Finance, and the respective buyers – UniCredo, Bank Austria Creditanstalt and OTP Bank.
Source: Pari (17.02.2004)

Bulbank opened the first credit center for individual and family banking in Bulgaria, located in the bank’s central office. The center will offer mortgage and consumer credits, credit cards and overdraft. Besides credit for home construction, purchase and repair, the new center is also going to offer financing of house building jointly with the construction company or real estate agency, as well as maintain permanent connection with Sofia’s major real estate agencies.
Source: Pari (18.02.2004)

All clients of Post bank will have a 24 hours access to their accounts, thanks to the new site for electronic banking - e-postbank.bg. Through it can be executed all kinds of payment, included in our bank system, including currency transfers too. For each operation through Internet the clients will be informed with SMS, å-mail or fax. Meanwhile Bulbank opened the first in Bulgaria credit centre.
Source: Novinar (19.02.2004)

LUKoil Neftochim received the award 2003 Biggest Tax Payer. The prize was awarded to the company’s Director Mr. Valentin Zlatev during an official ceremony by Minister of Finance Milen Velchev personally. In 2003, LUKoil Neftochim paid taxes in the amount of BGN 1.5 billion. Bulgaria’s major tax payers consist of around 500 companies, that pay 66 per cent of all taxes paid in Bulgaria. In 2003, they paid in the budget almost BGN 4.5 billion. The companies nominated for the award Big tax payer were divided in eight categories according to their activity. The winners were Blagoevgrad BT, Bulgargas, BTC, Metro Cash and Carry Bulgaria, Albena, Bulbank, GBS – Sofia, Balkan News Corporation.
Source: Standart (23.02.2004)

The contract for sale of BTC was finally signed. The buyer Viva Ventures, a property of the American fund Advent international will pay EUR 230 million for 51 per cent from the telecom and right after the shares’ transfer the capital of BTC will be increased with EUR 50 million and its share will reach 65 per cent. The deal for BTC is the biggest in the Bulgarian privatization history with total financial effect for over EUR 1.1 billion. The sale can be compared with these of Bulbank and DSK, for which were paid over EUR 300 million per each. The contract was officially signed by Mr. Ilia Vassilev and the Managing Director of Advent international Ms. Joanna James.
Source: Dnevnik (23.02.2004)

The voluntary, the occupational and the universal pension funds of Pension-insurance company Doverie has gained over 5 per cent of the mortgage bonds of Bulgarian American Credit Bank each. The stake was sold by Zlaten lev holding. After the deal the share of the holding is less than 10 per cent. The operation for the transfer was executed with through the mediation of TB Biochim, which initially gained the stake and than sold it.
Source: Pari (24.02.2004)

Black Sea Technological Company received a license for a term of 25 years for the construction of the gas-distribution network in Dobrudja region. Black Sea Technological Company is property of the Italian company AMGA. BGN 90 000 000 will be invested in the construction of the gas-distribution system in 18 municipalities in the region. 100 per cent of the industrial, 70 per cent of the administrative and 50 per cent of the consumers will be covered by the gas-distribution system.
Source: Black sea (02.03.2004)

2 850 pairs of shoes for BGN 29 650, as well as other materials – glues, leather, labels, etc, were sold in the end of last week from the warehouses of the insolvent shoe factory Dobrich. Before the start of the sales in the end of last year, the factory’s syndic Mr. Yanko Stoyanov announced there were some 90 000 pairs of unsold shoes stored in the plant.
Source: Monitor (08.03.2004)

The owner of Biochim, Bank Austria Creditanstalt /BA-CA/, is financing 85 per cent of a project in the amount of EUR 43 million for construction of a new hospital for children in Sofia. The rest of the funds will be provided by the Bulgarian Government. The deadline for spending the credit is 2.5 years and this is also the deadline of the construction. The term of the credit’s payment is 10 years and its beginning is after the gratis period of 6 months. The Austrian company VAMED Engineering and the bank signed an agreement with the Government, represented by the Minister of Finance Mr. Milen Velchev.
Source: Pari (11.03.2004)

Bank Consolidation Company (BCC) started evaluation of liquidation value the holding’s assets and liabilities, as well as the 2003 regular financial audit Ms. Neli Kordovska, Executive Director of the company, announced. The annual reports will be certified by BCC’s auditor Deloitte & Touche, and the liquidation value – by an evaluation company, selected through competition. The results will be reported on the company’s annual General Meeting of shareholders
Source: Pari (12.03.2004)

Hebros Leasing, a property of Hebrosbank, registered a net profit in amount of BGN 488 000. This indicator has risen with 380 per cent since the company became property of Hebrosbank one year ago. The gross profit is BGN 636 000. The leasing portfolio in 2003 increased with about 280 per cent in comparison with 2002. In 2003 the company concluded 457 new leasing contracts at the investment amount of over BGN 17.2 million. The company has developed own leasing software - The Integrated Leasing Information System /ILIS/, which allows automation of the processes. The leading leasing services for 2003 were of automobiles, of construction machines, of office technics and equipment.
Source: Pari (12.03.2004)

Four new members entered the Managing Board of Atanas Burov foundation – the CEO of Biochim Ms. Emilia Palibachiiska, the chairman of the Supervisory Board of Investbank Ms. Petya Slavova, the chairman of the Managing Board of Prista Oil Mr. Plamen Bobokov, and the CEO of Raiffeisenbank-Bulgaria Mr. Damyan Damyanov.
Source: Pari (15.03.2004)

Biochim is granting credits ranging from BGN 1000 to BGN 7000 for heat isolation of flats and one-family houses with materials, made by the Austrian company Baumit, Mr. Nikolay Buchvarov, Manager of Baumit Bulgaria announced. The credits are granted for periods between 1 and 5 years. The client receives a free life insurance, he/she is free of credit capacity assessment fee, and uses 10 per cent discount off the original price of Baumit’s products. The bank is only financing the cost of the materials, and the credit receiver should cover the expenditures on their installation alone.
Source: Pari (16.03.2004)

Bulgaria's Agropolychim, the Devnya-based fertiliser producer, will increase its capital by BGN 9.466 million at a general shareholders' meeting in April, an announcement in the Official Gazette shows. The shares will be subscribed and paid by the majority owner, US Acid & Fertilisers (which holds 97.8% of the capital), and the minority shareholders: the ministry of economy, KCM of Plovdiv, Sveta Sofia Holding, Central Cooperative Bank and Eurobank. The capital will be used for a new investment project, executive director Vassil Alexandrov said. The enterprise will launch an installation for new products, which will be exported. The annual revenues are expected to amount to BGN 120 million. The investment is assessed at USD 10 million. Besides the capital raise, the company will also use a credit from Bulbank to finance the project. Recently Agropolychim signed a licensing agreement with Belgium's Ecophos for implementation of two new technologies in the field of phosphate production.
Source: Pari (17.03.2004)

Hebrobank will abolish the fees on ATM transactions made with cards issued by the bank as of March 22. The bank has introduced centralized processing of the debit cards. By the end of the month, Hebrosbank will increase its ATM network with 40 per cent. Thus, the clients will receive much higher value against their money, which is the bank’s main goal for the year 2004.
Source: Pari (17.03.2004)

Over BGN 5 million were robbed from the South Park branch of bank Biochim. The thieves broke 44 safes and stole their contents. According to unofficial sources, half of the stolen money were owned by an alcohol company. The rest of the money were in different currencies and were in the other safes.
Source: Monitor (24.03.2004)

Four banks will be showing their products during the traditional exhibition STROIKO 2000. They are Biochim, Post Bank, Roseximbank, and SG Expressbank. Post Bank will focus on the promotion of its house credits “My Home”, released by the bank in September. Biochim has increased with 200 per cent its credit portfolio for mortgage credits last year compared with 2002, reaching a 5.5% share in the house crediting. Over 700 Bulgarian and foreign companies will be presented at the exhibition.
Source: Pari (24.03.2004)

The Chairman of Biochim's Managing Board Mr. Rumen Beremski announced on March 25 he had filed his resignation.
Source: Banker (29.03.2004)

Biochim and Overgas signed Agreement for Cooperation and Frame Contract for the development of consumer gasification in Bulgaria, the bank announced. The credits for purchase of appliances for consumer gasification, which will be granted by Biochim, will be granted without warranter. Their term is up to 5 years and will be in the amount of up to BGN 7000, depending on the value of the appliances, indicated in the proforma invoice.
Source: Pari (31.03.2004)

Bulbank is going to celebrate its 40th anniversary today. Bulbank is the biggest bank in Bulgaria by assets, net profit and own capital. Over the past three years, following its privatization in 2000, the total amount of investments in Bulgarian economy as credits and securities has grown almost four times, reaching BGN 1.3 billion, the bank announced. The increase of the port folio since 2000 has reached 260 per cent, or BGN 620 million.
Source: Pari (01.04.2004)

Financial Supervision Commission approved six trade banks, offered by BNB, for inclusion in the list of the banks-guarantees of pension funds, was reported from the commission. The approved banks are Municipal bank, Economic and investment bank, Rosseximbank, First Eastern International Bank, Corporate trade bank and CB Investbank. The Commission approved these six banks since BNB sent their documents only. It is expected to be received the documents of the other candidates within several days – Bulbank, DSK Bank, ING Bank, CB Biochim, CB Allianz-Bulgaria and DSK Bank.
Source: Pari (08.04.2004)

Bulgarian American Credit bank issued the fourth consecutive issue of mortgage bonds. The issue is in amount of 10 000 bonds with face value of EUR 1000 each. The bonds are for a term of five years, ordinary, interest-bearing, paperless, personal and transferable. The bonds are with fixed interest rate of 6.125 per cent annually. With this issue the total amount of the mortgage bonds reached EUR 28.7 million, which makes it the leading issuer of bonds in Bulgaria.
Source: Pari (08.04.2004)

At the Extraordinary General Meeting of the shareholders of Hebrosbank, which was conducted on April 15, 2004 was decided that the bank would issue a bond issue in amount of up to BGN 20 million. The face value and issue value of each bond will be BGN 1000. The bonds will be ordinary, personal, transferable and interest-bearing bonds. The maturity of the issue is 36 months after it was issued.
Source: Pari (16.04.2004)

The Board of Directors of European bank for Reconstruction and Development approved the additional financing for the sector of the small and medium-sized companies of EUR 41 million, announced the Deputy Prime Minister and Minister of Economy Ms. Lidia Shuleva. From them Post bank and DSK Bank will receive per EUR 10 million, Hebrosbank – EUR 6 million. The leasing companies of Bulbank and TBI will take per EUR 2.5 million and UBB is going to receive EUR 10 million for projects in the field of agriculture. Bulgaria won’t issue euro bonds during this year except a back buying out of brady bonds is not realized or preliminary debts to IMF are paid.
Source: Pari (19.04.2004)

Bulbank registers a net profit of BGN 93 million, announced the Chief Operative Director and Deputy Chairman of the Managing Board of the bank Mr. Alesandro Deco. BGN 65 million of the profit will be allocated as a dividend, which makes BGN 0,39 per share, pointed also he. Compared to 2002, the bank registers a growth of the profit with 18 per cent. The incomes increased with 10 per cent up to BGN 174 million and the total amount of assets reached BGN 2,837 billion. Credit portfolio increased with 63 per cent up to BGN 917 million, which is equal to 31 per cent of all assets of Bulbank.
Source: BTA (21.04.2004)

Biochim Bank and Bulgarian Stock Exchange signed a contract for use of the system for electronic trade of BSE through Internet COBOS. Biochim is the second bank – subscriber after Unionbank that will offer to its clients an independent direct access to the system for trade of BSE through Internet. We intend to increase the number of the deals and the volume of transactions that the bank realizes, said the CEO of Biochim Mr. Peter Harold.
Source: Pari (21.04.2004)

The former banker Mr. Hristo Alexandrov was released from prison yesterday, against a BGN 30 000 bail. He is defendant in three lawsuits. One of them is known as the MIC case, in which the former director of Agrobusinessbank and his accomplices are accused of peculating some BGN 208 million. The next session of the court will be held on Friday. The second lawsuit is related to Hebrosbank – for misappropriating a currency deposit, according to which FBH received USD 2 million. The third process is related to the so-called Agrobusiness case – for draining the financial institution. Mr. Alexandrov has been under home arrest for almost two years.
Source: Maritsa (21.04.2004)

Hebrosbank reported a BGN 5.5 million net profit for the first quarter of the year. Compared with the same period of last year, this represents a growth of 308 per cent. Back then, the net financial result of Hebros was BGN 1.345 million. The pre-tax profit for the first quarter this year was BGN 6.6 million. The bank’s credit portfolio has grown with 45 per cent from same period last year, reaching BGN 339 million in the end of March 2004. The credits, granted to citizens, were in the amount of almost BGN 64 million, which represents a 753 per cent increase.
Source: Pari (27.04.2004)

The financial results of BZOK Zakrila as of 2003 placed it on the first position by incomes among the health-insurance companies. The total amount of the incomes of the company is BGN 5.649 million or 88.2 per cent of the total amount of the incomes in the branch. The amount of the paid compensations as of 2003 is BGN 2.533 million. As of April 7, 2004 the total number of the person insured by the company is 114 537. The company is sole proprietor Medical-dental centre Zakrila SP Ltd, which was registered during 2000.
Source: Cash (30.04.2004)

Bank Austria Creditenstalt (BA-CA), owner of Biochim, and the Bulgarian bank are starting a system for fast payments abroad called FlashPayment this month, the financial institution announced. The new product may be used by both corporate and private clients in all banks, owned by HVB Group in Central and Eastern Europe, Austria and Germany. The payments using this system can be completed within a day. The system has been developed especially for EU’s expansion on May 1 2004. The only requirement is the sender and the receiver to have an account in Bayersiche Hypo-und Vereinsbank and Vereins-und Westbank in Germany, Ba-Ca (Austria) or another subsidiary bank from the group in the 11 countries in Central and Eastern Europe (Biochim in Bulgaria, Bosna and Herzegovina, Czech Republic, Croatia, Hungary, Poland, Romania, Serbia, Slovak Republic, Slovenia).
Source: Pari (04.05.2004)

Hebrosbank and EBRD are going to sign contract for a credit to Hebrosbank under the program for financing of SMEs of EBRD and EU, Hebrosbank announced.
Source: BTA (11.05.2004)

Bank Consolidation Company (BCC) received from UniCredito, Bank Austria Creditanstalt and OTP Bank the comments on the draft agreements for transfer of all duties and rights, taken by the bank holding to the State, said the Executive Director of BCC Ms. Nelly Kordovska. At the moment in the consolidation company are being reviewed the remarks on the projects that BCC sent to the buyers of Bulbank, Biochim and DSK Bank in the second half of February.
Source: Pari (11.05.2004)

Following bank Biochim’s privatization in 2002, the number of its clients has jumped with 50 per cent, and in 2003 alone they have increased with 36 per cent, Mr. Peter Harold – Biochim’s CEO announced. The number of individual clients is up 40 per cent, or with 85 000 people, and the number of corporate clients – with 13.1 per cent, or with some 5600 companies, chiefly SMEs. The bank’s assets as of the end of last year reached BGN 1.124 billion, which represents a 20 per cent growth from 2002. Its credit portfolio has increased with 72.6 per cent to BGN 803.3 million, and operational incomes from the bank’s activity have soared from BGN 76 million in 2002 to almost BGN 80 million in 2003, as a result of the business expansion. The bank’s 2003 pre-tax profit is in the amount of BGN 22.36 million, and the amount of the profit after taxation is BGN 16.22 million.
Source: BTA (12.05.2004)

EBRD granted an EUR 6 million credit to CB Hebros. The funds will be used for the crediting of SMEs. Another EUR 388 thousand are granted in the form of technical and financial aid by the European Commission. They will be invested in the training of the bank’s staff. “Our research proves that with each EUR 10 000, granted as a credit to SMEs, 3 new jobs are created. This credit line will help for the hiring of another 1800 people, which is good for Bulgaria”, Mr. John Chomel-Doe.
Source: Dnevnik (12.05.2004)

Hebros bank rejected the reconstruction plan of Prima -M JSC - Polski Trambesh. At the General meeting of the creditors was decided to be opened a procedure for declaring in insolvency, announced the representative of the bank Ms. Iliana Zaharieva. According to the syndics of Prima – M JSC the debts of the oil-factory exceed BGN 7 million. Hebros bank is the greatest creditor of Prima -M JSC. During 1998 the credit institution granted a credit in amount of BGN 2.5 million.
Source: Dnevnik (19.05.2004)

Currently Bank Consolidation Company (BCC) is leading final negotiations with representatives of UniCredito, Bank Austria Kreditanschtalt and OTP Bank on the draft agreements, with which are going to be transferred the debts of the bank holding to the Ministry of Finance as a representative of the State. The three foreign institutions are buyers of the last privatized banks in Bulgaria – Bulbank, CB Biochim and DSK Bank. The draft agreements were sent to the new owners in the end of February. The final texts are going to be ready by the middle of June, was reported from BCC.
Source: Dnevnik (20.05.2004)

The restructuring of Hebros Bank, which started in March 2003 and includes establishing of modern sales centers, optimization of the branches in new places and offering of new bank products, is expected to end by September 30 2004, Hebros Bank’s CEO Mr. Gautam Vir announced after the official opening of a joint sales center in Rousse. Hebros Bank has opened such centers in Pernik, Pavlikeni, Haskovo and Pazardjik as well. Such center will soon be open in Bourgas as well.
Source: Dnevnik (20.05.2004)

UniCredit Leasing is changing its registration from SP Ltd. to SP JSC, decided the Board of Directors of the company at the first meeting. The company is going to have one-tire structure of management with Board of Directors. Mr. Kiril Stafanov is Chairman of the Board, who is also a member of the Managing Board of Bulbank. Bulbank signed a contract for purchase of 100 per cent from Unileasing Ltd. in the middle of February 2004 and renamed it to UniCredit Leasing Bulgaria with sole owner of the capital – Bulbank.
Source: BTA (21.05.2004)

Will Bulgarian banks reach last year’s levels of distributed dividends? The answer to that question is not clear yet, since the annual meetings of only six credit institutions have passed so far - United Bulgarian Bank, SG Expressbank, Eurobank, Bulbank, Municipal Bank and Encouragement bank. The total amount of dividends their shareholders voted to distribute is some BGN 103.1 mln. Last year all banks together paid dividends for 2002 to the amount of BGN 120.2 mln. A quick review of the financial markets shows that shares of most Bulgarian banks are quite a fair source of income. Here is the evidence: the annual interest on the deposits with the credit institutions is 6 percent at most, and the yields on government bonds and mortgage-backed bonds do not exceed 8 percent. However, the yield on all the three instruments is several times lower than the dividends some banks have already distributed from their 2003 profits. It is noteworthy that the highest dividends (both as a percentage from the par value of the shares and as a total amount) have been offered by the big privatized banks. This is easy to explain – the big gun foreign investors have been recovering their money. Along with them, the Bulgarian firms and individuals holding small shares from these banks have reason for joy. Bulbank observed the tradition of paying the highest dividend again – now from its 2003 profit. It has been going like that since 1994, when Commercial Bank Bourgas and Commercial Bank Stara Zagora fused in the former Bulgarian Foreign Trade Bank. For almost ten years the bank has been distributing regularly among its shareholders the whole profit or at least a substantial part of it. Until its privatization in November 2000, chiefly the state, which owned 98 percent of the shares of Bulbank through the Bank Consolidation Company, profited from this policy. Private shareholders in the former Bourgas and Stara Zagora banks also made good money from the solid positions of the mother-bank. For nine years it has increased its share capital in USD more than 2.5 times (now it is BGN 166.37 mln, divided in 16,637,000 shares at face value of BGN 10. Besides, since 1994 Bulbank has distributed so far total dividends to the amount of USD 317.2 mln (nearly three times more than its present share capital). When Bulbank was owned by the state, its management never forgot either the interests of the treasury, or the interests of the minority private shareholders, even during the years of financial crisis. Even for 1996, when 16 banks went bankrupt and the financial system collapsed, the dividend was 35 percent. It even paid the 15-percent dividend tax owed by the shareholders. This gesture was designed to protect the interests of the minority shareholders, but it never recurred. The bank though kept on giving high dividends during the following years. In 1997 the dividend was 50 percent of the shares’ par, for 1998 – 40 percent, and for 1999 – 61 percent. Since 2001 most of the profit has been going to its new owner – the Italian bank group UniCredito Italiano. In November 2000 it bought 95 percent of the shares of Bulbank for EUR 360 mln, inheriting its enormous end-of-year profit of BGN 186 mln. As early as 2001 the Italians were nippy with taking BGN 183 mln back. A year later they got from Bulbank a 33-percent dividend, equal to BGN 52 mln, and the one for 2002 was BGN 51 mln. The tradition was observed again. The general meeting of the shareholders, held on April 20, 2004, decided that Bulbank’s shareholders take BGN 65.12 mln as a dividend from its 2003 profit. BGN 55 mln of the amount are allocated to UniCredito. Thus for three and a half years since they bought Bulgaria’s biggest bank, the Italians has got BGN 341 mln or EUR 174 mln as a dividend from it. In 2001 UniCredito got additional EUR 26.7 mln from the sale of Bulbank’s shares to the Italian small and medium-sized enterprises agency Simest and the International Financial Corporation (a unit of the World Bank group). So for the time being its earnings from Bulbank are nearly EUR 201 mln. In other words UniCredito has already recovered some 56 percent of the money (the EUR 360 mln), spent in 2000 on the acquisition of Bulbank. Distribution of dividends has also become a tradition for the United Bulgarian Bank (UBB), which is to transfer over BGN 24.5 mln to the accounts of its shareholders. The general meeting of the shareholders which was held on March 2, 2004, decided so. BGN 21.74 mln of the total amount of the dividend will run into the accounts of the National Bank of Greece, which holds 88.9 percent of the shares of the UBB. The EBRD, which owns 10 percent of the capital of the Bulgarian credit institution, will get BGN 2.46 mln, and the remaining BGN 246,000 will be distributed among several scores of minority shareholders, who have bought a total of 0.1 percent of the UBB. This is the fifth year in a row that the UBB has delighted its owners with a dividend. Until 1999 they did not get money from the bank. The UBB’s shares were to be listed on the Bulgarian Stock Exchange and start free trading. Five years later this has not yet happened, but since 2000 the UBB has regularly been paying dividends. This radical change in the bank’s policy was not because the managers were moved by the lamentations of the minority shareholders. It was rather because its majority shareholder – the NBG (which paid in September 2000 EUR 185.2 mln for 88.9 percent of the bank’s capital) has been recovering its investment bit by bit. Four and a half years after it paid USD 39 mln for 97.95 percent of the shares of SG Expressbank at the end of 1999, the French financial giant Societe General got dividend from its Bulgarian acquisition for the third time in a row. The general meeting of the shareholders, held on April 15, 2004 in Varna, voted over BGN 8.84 mln of the bank profit for 2003 (totaling BGN 15.38 mln) to be paid to its shareholders. This means that they we get BGN 0.31 per share at a par of BGN 1. The lion’s share in the dividend – BGN 8.67 mln, will of course go to the accounts of Societe General. For three years the owner of SG Expressbank has received from the Varna credit institution dividends totaling BGN 20.77 mln – some USD 11.8 mln. It appears that from the distribution of the profit only the French has recovered 30.3 percent from the price paid for their bank in Bulgaria. Eurobank also made its owners happy. It observed the last-three-year tradition and distributed most of the 2003 profit as a dividend again. The general meeting of the shareholders of the credit institution, held on March 23, 2004, decided so. According to the income statement audited by Deloitte & Touche, Eurobank has gained for 2003 an after-tax profit of BGN 3.448 mln. The shareholders decided to allocated just about a quarter from it (BGN 821,563) to the Reserves fund, and the remaining BGN 2.626 mln to distribute as a dividend. The lion’s share will fall to Eurocapital-Bulgaria – the company that owns 85.35 percent of the shares. The company itself is owned by Petrol JSC, above 90 percent of the capital of which is held by Naftex Bulgaria Holding – a company controlled by Mitko Sabev. In April 2002 Petrol paid BGN 14.5 mln for the bank through Eurocapital JSC. In 2004 Municipal Bank gave dividends for the first time. The fact is that the credit institution, in which Sofia Municipality owns 67 percent of the capital, has begun distributing a part of its profit under pressure. Immediately after the end of the local elections in November 2003 the new city councilors from the Union of Democratic Forces and from St. George’s Day began to sharply criticize Stefan Sofianski that the municipality was getting no earnings from the bank, in which it was a majority shareholder. To repel the attacks, in January 2004 the bosses of the credit institution offered the shareholders to pay them off a portion from the 2002 profit. At that meeting the shareholders voted BGN 980,000 from the 2002 profit to be distributed as a dividend. The municipal councilors did not omit to put the bank in a tragicomic situation even at the general meeting held on April 23, 2004, when the 2003 results of the financial institution were adopted. In their anxiety to somehow prevent Sofianski from taking part in the meeting, a day earlier the Sofia City councilors made one of their weirdest and completely nonsensical decisions – five persons to vote with the city shares in the bank – its chairman Vladimir Kissyov and his four deputies. They all but thought of (or deliberately omitted) specifying how their five representatives were to vote on the various items of the general meeting. The rumour has it that the CEO of the bank Vanya Vassileva had a many-hours talk with the five representatives of the city council to persuade them to vote unanimously on the various items. Ultimately, the shuttles took effect and the five made no problems at the vote. On April 23 the shareholders of Municipal Bank decided it to distribute BGN 1.2 mln as a dividend for 2003. Encouragement Bank has respectfully been allocating money to its shareholders for two years now. In 2003 the general meeting of the only state credit institution left voted BGN 612,000 to be distributed among its shareholders. The Ministry of finance, which holds 99.995 percent of the shares of the bank, got almost BGN 611,700 of the money, and Bank DSK, which owns 0.005 percent of the capital, took the humble BGN 300. The dividend to be distributed now from the 2003 profit is nearly twice higher than the last-year one. The general meeting of the bank shareholders, held on May 21, reported that the 2003 profit was BGN 2.729 mln. The shareholders voted BGN 365,000 of it to be allocated to the Reserves fund. Out of the remaining BGN 2.364 mln the Ministry of finance and Bank DSK will get BGN 1.182 mln, and the rest BGN 1.182 mln will fill in the additional capital of Encouragement Bank. By the end of 2004 a few credit institutions more are likely to join the group of the six above-mentioned banks that have pleased their shareholders. Bulgarian Post Bank, Hebrosbank and Bank DSK are very likely to pay dividends. Considering their annual results, it is not impossible for BNP-Paribas (Bulgaria) and Raiffeisenbank (Bulgaria) to do the same. Smaller banks however are not likely to distribute dividends. Their profit would rather be subsumed under their equity and they will thus defray the expenses for the renovation of their informational systems and for the introduction of new financial products in the market.
Source: Banker (25.05.2004)

Bank Austria Creditanstalt /BA-CA/, owner of Biochim forecasts foreign investments in Bulgaria for this and next year to reach EUR 2.5 billion. For this year BA-CA forecasts EUR 1.3 billion direct investments. The expectations of the Austrian bank for 2005 are the foreign investments to reach EUR 1.2 billion. Bulgaria is going to be at the fifth place during 2004 by foreign investments’ flow among the 11 countries from Central and Eastern Europe.
Source: Pari (26.05.2004)

The new name of Biochim, which is due to be officially adopted at the bank’s General meeting of shareholders today, will be HVB Bank Biochim. (written in English only). The change is made following the bank’s accession in the group HVB.
Source: Standart (26.05.2004)

The shareholders of hotel chain Hrankov JSC decided at the general meeting to sell the hotel Palace Hrankov in Dragalevtzi. The meeting’s agenda included only one item – an offering for payment of the company’s credit. Mr. Plamen Hrankov holds 97 per cent of the shares in hotel chain Hrankov JSC, Mr. Tzveti Tzvetkov and Mr. Emil Maslarski hold per 1 share. Even in the beginning of the year became clear that the hotelkeeper Mr. Plamen Hrankov was thinking out the sale of two bases of his chain. He announced in the media a price of about BGN 8 million for the 5-star hotel Palace Hrankov and EUR 3.5 million for the four-star Hawaii Hrankov in Dragalevtzi. The credit from Biochim is USD 3 million for 7 years and USD 700 000 for 2 years.
Source: Pari (27.05.2004)

Bulbank is launching a campaign of offering revolving international cards – Visa and MasterCard. The cards are offered in BGN, EUR or USD. They require a complete sinking of the debt that is spaced out, and only a monthly minimal is paid up in amount up to 6-7 per cent of the credit permitted on the card. The credit limit of the revolving card for current clients of the bank has maximum scale of BGN 10 000 (EUR/ USD 5 000). For the new clients of Bulbank the maximum limit is BGN 6 000 (EUR/USD 3000) and may be raised after 6 months. Bulbank requires on minimal monthly income of BGN 500.
Source: Dnevnik (03.06.2004)

Bulgarian National Bank gave permission for change in the name of Biochim, was reported from the financial institution. The new name of the credit institution is HVB Bank Biochim. Ms. Emilia Milanova, Director of Bank Supervision department and Deputy Governor of BNB issued the permission. With the approval of BNB the new name and logo of the bank may be registered at the court. The decision for the change in the name of Biochim was adopted at the Annual General Meeting of the shareholders of the bank, which was conducted on May 26, 2004.
Source: Dnevnik (07.06.2004)

The first legal action for draining credit cards of foreigners is against the hotel owner Plamen Hrankov. He is charged in draining from foreigners’ accounts BNG 1 mln. The Israeli Naftali Rofe and Cion Sherer are also accused. They are charged in draining nearly BNG 850 000 from Bulbank. There are a laptop, discs and bills for paying with credit cards in the evidence.
Source: Monitor (07.06.2004)

Thuega AG, a unit of German uber-utility group E.ON, has acquired 20% of Italian water and gas company A.M.G.A., news agency ANA reported on Monday. A.M.G.A. owns the Bulgarian Black Sea Technology Company (BSTC). E.ON could carve an even bigger presence for itself on the Bulgarian power market since it is currently pursuing the acquisition of a package of equity from Bulgaria's seven electricity distribution companies. Thuega will pay for the A.M.G.A. acquisition with its equity in Italian subsidiaries Co.Gas S.p.A and Delta Gas Energia. The German shareholding in A.M.G.A. will be boosted to 35% towards the year's end, BSTC managerial agent Nikolai Dukov said. BSTC has won the gas distribution licences for the Mizia and Dobrudja regions, two of the eight districts into which Bulgaria’s territory has been zoned for the award of contracts to build networks for household and industrial use of natural gas. The company intends to raise its market share from 20-22% at present to 28% if majority owner A.M.G.A. decides to enter the tender for the Dunav region, Dukov said, adding that BSTC is definitely not interested in the retendered licence for the Trakia region. BSTC has emerged as the main threat to the gas market expansion of Overgas Inc., the Gazprom-owned supplier that runs 28 gas distributors in 39 of Bulgaria's 256 municipalities. Investments for the Mizia and Dobrudja regions is seen at 200 mln levs over a 10-year period, Dukov said recently. The cash will come from own resources and Bulbank credits. BSTC plans to reach 640 industrial and 80,000 household customers over the next decade and is confident that the investment can be recouped from the 11th year onwards. The company, which is willing to acquire the heating companies on the territory of the municipalities where it operates, has so far installed 68 km of gas mains in Dobrich and Targovishte and services 341 subscribers.
Source: Dnevnik (08.06.2004)

National Social Security Institute published a list of the 20 “most upright employers having staff of over 250 people” for the first quarter of 2004. These 20 companies provide work for a total of 50391 people. The average social security income in these enterprises is BGN 621. 1. NPP KOZLODUY – KOZLODUY 2. LUKOIL NEFTOCHIM BOURGAS – BOURGAS 3. MINES MARITZA-IZTOK SP JSC – BRANCH PIT TROYANOVO-SEVER – village of KOVACHEVO 4. MINES MARITZA-IZTOK SP JSC – BRANCH PIT TROYANOVO – 1 – village of TROYANOVO 5. VIDIMA SEVLIEVO 6. STATE-OWNED COMPANY “AIR TRAFFIC DIRECTION” – SOFIA 7. MOBILTEL – SOFIA 8. TECHNOLOGICAL REGION OF LONG-DISTANCE COMMUNICATIONS “STTS” – SOFIA 9. BLAGOEVGRAD-BT JSC – BLAGOEVGRAD 10. MINES MARITZA-IZTOK JSC – BRANCH GROOVE TROANOVO-3 – village of MEDNIKAROVO 11. BULBANK – SOFIA 12. UNIVERSITY MULTI-PROFILE HOSPITAL FOR ACTIVE TREATMENT “ST. GEORGE” – PLOVDIV 13. TOPLOFIKATZIA SOFIA – SOFIA 14. ELATZITE-MED – village of MIRKOVO 15. STOMANA INDUSTRY – PERNIK 16. VAZOV’S MACHINE PLANTS (VMZ) – SOPOT 17. TPP MARITZA-IZTOK 2 –village of KOVACHEVO 18. BALKANPHARMA-DUPNITZA – DUPNITZA 19. PORT VARNA – VARNA 20. UMICORE MED - PIRDOP
Source: Other (08.06.2004)

The local mutual fund of the Pioneer Investments family has amassed assets worth over USD 11.7 mln in the first year of its operation here, rising to the top of the pile with a 55 per cent share of the domestic mutual fund market, the company said on Tuesday. Direct investment in the fund totalled USD 6.6 mln by early May 2004 while the Avangard structured deposit option has attracted USD 5 mln.
Source: Dnevnik (09.06.2004)

Financial Supervision Commission (FSC) listed Wednesday local insurer Bulstrad AD on the Bulgarian Stock Exchange-Sofia. The state will offer for sale 192,077 shares that make a 13.62% stake in the insurer. The FSC also registered a securities issue representing a legally registered share capital in the insurance company to the total worth of 14.1 mln levs, distributed in 1.41 mln registered uncertificated transferable voting shares with a par value of 10 levs each. The Bulstrad prospectus was submitted to FSC on June 4, Dimiter Alexandrov, chief of the United Bulgarian Bank's investment banking directorate, told Dnevnik. The UBB will handle the bourse trading of the insurer expected to start in two months at the earliest after the regulator reviews the prospectus. The majority owner of Bulstrad, with a 74.3% stake, is BZP Group where Dutch-registered TBIH holds most of the shares. Another 8.5% are Bulbank property while the state-owned Navigation Maritime Bulgare and the Bulgarian River Shipping Corporation control minor stakes. Bulstrad is the second insurance company after DZI to be listed on the local stock exchange.
Source: Dnevnik (10.06.2004)

BGN 650 000 will be transferred in Biochim Bank today. The money is purposed to pay 8.2 per cent of the unpaid wages of the Varna Shipbuilding former employees. Its granting will start on Monday and will continue till 26 June. BGN 1.1 mln were collected from the sale of assets in the bankruptcy mass. However BGN 550 000 remain in an account by request of National Social Security Institute. This account is already appealed by nearly 200 shipbuilders. NSSI will not receive the money before the final judgment of the Court.
Source: Black sea (10.06.2004)

Bulbank introduced on the local market the Bulbank Euro<26 debit card which has a target group people younger than 26. This is the first co-branded bank card on Bulgarian market and it may be either a Visa Electron or a Maestro. It is a classic international debit card with discounts in certain tourist and trade sites in Bulgaria and in Europe, granted by the International Youth Card Association Euro<26.
Source: Pari (11.06.2004)

Austria-based Bank Austria will present by the end of the week a preliminary non-committing offer for the purchase of a capital part in the Serbia-based Jubanka. Italian-based Intesa and Greece-based Bank of Piraeus also were interested in the state bank privatization. Germany-based HVB financial group filial will examine carefully the whole documentation for the Serbian bank sale before a final decision is taken. Serbian authorities invited international investors for the sale of 88 per cent of Jubanka.
Source: Dnevnik (15.06.2004)

Bulbank announced secret-bid tenders for the sale of material assets of Botevgrad-based Zelin (former Plastchim 99). The bank explained the sale is in execution of the Law on Registered Pledges and is a from of settling a credit, granted to Zelin, in installments. Since the company is not able to meet its debts, the creditor is to sell its assets, in order to get back their money. Written offers for participation in the tenders will be accepted no later than June 25, and 10 per cent of the deposit for participation in the procedure should be paid in no later than the following day. The tender starting at initial price of BGN 5000 will be held on June 28, and that for assets of over this price – on June 29.
Source: Dnevnik (16.06.2004)

The manager of South-eastern Europe of Bank Austria Creditanstalt /BA-CA and chairman of the Supervisory Board of HVB Bank Biochim in Bulgaria Anton Knet will join the Board of Directors of Poland-based branch of BA-CA-Bank BPH. The shuffle will be performed in September 1. Anton Knet will be the deputy manager and chief operative manager in the Polish bank. The owner of HVB Bank Biochim BA-CA is planning to extend the bank network in Central and Eastern Europe. 200 new branches will be put in operation.
Source: Pari (17.06.2004)

The negotiations between Bank Consolidation Company (BCC) JSC – Sofia and HVB Bank Biochim and Bank DSK SPJSC – Sofia - the Bulbank JSC - Sofia buyers, are expected to conclude by the end of the month. It is stipulated that the Minister of Finance Mr. Milen Velchev will sign the agreement on behalf of the state in the beginning of July. The documents then will be put forward in the Parliament for ratification in a way to take power. BCC hopes that the ratification will be ready by the third July’s week. This way the Parliament summer vacation will be avoided. The voluntary liquidation may start in the beginning of September if these terms are observed.
Source: Pari (18.06.2004)

In 2003 Hebros-Leasing SPJSC concluded 457 leasing contracts to the total investment amount of over BGN 17 mln, representing an over 236 per cent of annual growth of the investments, the company’s chief CEO Mr. Stanislav Tanushev announced in Plovdiv. The company is a part of Hebros Group. Hebros-Leasing reported a 280 per cent growth of its portfolio and a 380-per cent increase of its profit. The Plovdiv-based branch is to become the business center for South Bulgaria. Hebros-Leasing is the successor of the former leasing company of Orel G Holding, established in 1999. Hebrosbank bought it from Orel on March 11 2003.
Source: Pari (21.06.2004)

Bulyard and Navigation Maritime Bulgarie (NMB) have started negotiations about possible buy-up of NMB’s 25-per cent stake in Bulyard- Ship Industry, Mr. Nedyalko Panev- CEO of the Odessos ship repairing plant, announced. The company is one of the four shareholders in the consortium. Odessos drew a BGN 4 mln credit from Bulbank to pay for its 25 per cent in the deal. In order to receive the credit, the company mortgaged its shares in Bulyard and the assets of Odessos Invest, which holds 47 per cent in Odessos. The credit is due to be sunk in 4 years.
Source: Black sea (23.06.2004)

Bulgaria's Orbitel plans to double its investment this year from BGN 2 million in 2003. The operator is first in financial revenue for last year, according to a ranking of IDG Bulgaria. Orbitel is 16th in the Top 100 IT companies in Bulgaria for 2003. In the middle of last year the Commission for Regulation of Communications (CRC) issued a voice telephony license to Orbitel. Besides, Orbitel offers nation-wide access to Internet, domain registration, voice and video transmission via Internet. The turnover of the company from telecom services last year amounted to BGn 6.4 million. The total revenues stood at BGn 14.3 million. Internet services and data transmission make up 55% of the revenues. The remainder comes from telephone services. On Thursday the CRC is expected to approve the Bulgarian Telecommunications Company's proposal for the telephone prices that private operators' subscribers will pay for using the telecom's network. This is one of the conditions for liberalisation of the telecommunications market. Besides Orbitel, licensed landline operators include Netplus, Globaltech Bulgaria, Nexcom Bulgaria and East Telecommunications Company.
Source: Pari (24.06.2004)

The clients of Hebrosbank will be able to draw money from the bank’s ATMs free of charge, the financial institution reminded. However, if they draw money from another bank’s ATM, they will be charged BGN 0.40 for the transaction (compared with BGN 0.22 currently). The change will become effective on July 1.
Source: Standart (25.06.2004)

Banks are accruing minimum interest on the debit card accounts. Most people, however, don’t even know they are getting something in return to their deposits. Bulbank’s interest is 0.1 per cent, UBB’s – 0.2 per cent for BGN deposits and BGN 0.4 per cent for deposits in EUR. DSK’s annual interest rate is 0.5 per cent. The highest interest rate for debit card accounts is FIB’s – 3.5 percent.
Source: Standart (28.06.2004)

HVB Bank Biochim released on the market a special saving deposit for pensioners, the bank announced. The interest is higher for the months from May until October, which is related to the seasonal characteristics of the pensioners’ expenses and savings. The deposits will not be charged with fees for opening, servicing and closing of the account, which can be either in BGN, USD or EUR.
Source: Dnevnik (29.06.2004)

Yesterday Bulgarian Insurance and Pension Group JSC, a part of TBI Group, signed a contract with Bulbank JSC, buying the bank’s stake in IRJSC Bulstrad, Mr.Evgeni Popov, CEO of BIPG, said. Thus, the group acquired another 8.557 per cent from the company’s capital and currently owns 82.827 per cent of it, Mr. Popov explained. The deal was made at a price of BGN 19 per share. 120 656 shares were sold at a price of BGN 2.29. The state still holds 13 per cent of Bulstrad. The investment mediator UBB is preparing to float this stake on the stock exchange.
Source: Monitor (29.06.2004)

The funds from the government reserve, which were deposited with 5 commercial banks about a year ago, were withdrawn back to the BNB, said financial minister Mr. Milen Velchev. The draft-memorandum with IMF provided this to happen by this day as a measure for reducing bank liquidity. However the money of the National Fund with Bulbank will not be withdrawn and deposited with BNB, as the document stipulates. Further steps for cutting lending were not contemplated, said Mr. Velchev.
Source: Pari (30.06.2004)

HVB Bank Biochim JSC – Sofia will grant lower interest rate loans during the summer months. The 1.5 per cent decrease of the standard levels is concerning the loans received between July 1 and September 30, 2004. The low interest rate is valid for the whole credit period. This promotion is concerning the loans with over 3-years term.
Source: Standart (30.06.2004)

Central Co-operative Bank's entire profit for 2003, to the total worth of BGN 3.8 mln, will be transferred to reserves for a second year running, the bank's shareholders decided on Wednesday. The company's financial results saw a 20 per cent drop, by about BGN 1 mln, in a year-on-year comparison. Also on Wednesday the shareholders overhauled the CCB supervisory board, where only one member will retain his position. By end-2003 CCB's assets stood at BGN 356 mln, 35 per cent up from 2002, while credits increased by 75 per cent, to BGN 166.8 mln. It emerged at the meeting that CCB had acquired 1.5 mln shares in Bulbank, representing less than 1 per cent of its capital, as portfolio investment. According to unofficial information, Bank Austria has bought 2 per cent of CCB's capital. The central bank has still not granted Chimimport and structures connected to it permission to acquire 95 per cent of CCB. The plans are for 55 per cent of the shares to be held by Chimimport, 5 per cent by local insurer Armeets and 35 per cent by oil and gas prospecting company Neft i Gaz, all of which are believed to be connected to Varna-based economic group TIM.
Source: Dnevnik (01.07.2004)

Bulbank and VISA are starting a new promotion for the Olympic games Athens 2004, the financial institution announced. Each one of Bulbank’s card holders, who makes at least 15 transactions with his international VISA card by July 2004, has the chance to win a 7-day excursion for two for the Olympic games in August.
Source: Dnevnik (01.07.2004)

The ATM charges are rising. Bulbank’s clients shall be charged BGN 0.50 up from BGN 0.20. The charge rising is due to the inter-banks transaction charges increase to BGN 0.40 up from BGN 0.10. Only Bank DSK SPJSC – Sofia (BGN 0.22), EIBank (BGN 0.22), Hebrosbank JSC – Plovdiv (free) and HVB Bank Biochim JSC – Sofia (BGN 0.20) keep their rates. Most of the banks have not adopted a decision for charge change yet. For the time being their clients shall pay a transaction charge of BGN 0.20.
Source: Standart (01.07.2004)

Standard&Poor’s increased Bulbank’s credit rating. Thus Bulbank became the only local bank to have an investment rate, equal to Bulgaria’s.
Source: Pari (05.07.2004)

Raiffeisenbank- Bulgaria SPJSC – Sofia won the PARI daily's prize for the Bank of the Year. The Deputy Parliament Chairman Mrs. Kamelia Kasabova who is the chairman of the jury announced this. Raiffeisenbank owns 5 per cent of the whole bank system assets and its own capital is BGN 57 million. The 2003 increase of the bank deposits is 26 per cent up to BGN 511 million. The 2003 profit of the bank is BGN 14 million. Bank of the Year for development Dynamics Award was handed to ProKredit Bank (Bulgaria) JSC – Sofia. its part of the bank system assets is 1 per cent, and the credits given are 1.65 per cent of the whole bank system credits.
Source: Standart (06.07.2004)

Government suggested in Thursday that Parliament ratified two treaties and an agreement between Bulgaria and UniCredito, Allianz, Bank Austria Creditanstalt, OTP Bank and Bank Consolidation Company (BCC). The documents provide that ministry of finance will assume bank holding’s liabilities. One treaty is between the state, UniCredito and BCC for devolution of bank holding’s rights and liabilities, according to the agreement from July 7th, 2000 for the sale of 98 percent of Bulbank’s capital, to the state. It was signed on July 6th, 2004. The other treaty is a debt substitution on the basis of Biohim sale and is between the state, Bank Austria Creditanstalt and BCC. It was signed on July 6th, 2004. The third agreement is a liabilities swap and assumption of rights deal between the state, OTP Bank and BCC.
Source: Dnevnik (09.07.2004)

The three-lateral agreements for the transfer of the engagements from Bank Consolidation Company (BCC) to the state, assumed in the sale of Bulbank, CB Biochim, and Bank DSK were signed by the buyers, BCC announced yesterday. The contracts were signed by respectively UniCredito Italiano S.P.A., and Allianz A.G. for Bulbank, by Bank Austria Kreditenstalt for CB Biochim, and by OTP Bank for Bank DSK.
Source: Monitor (10.07.2004)

Eurobank JSC – Sofia may be the next Bulgarian credit institution to be under Greek control. Bulgarian businessmen and politicians claim that Piraeus Bank has started negotiations a month ago for gaining Eurobank JSC – Sofia. Piraeus Bank established a branch in Bulgaria in 1992. Greek family’s companies submitted an offer for the purchase of Bulbank JSC – Sofia in 2000. The owners of Piraeus Bank tried to buy the First Investment Bank JSC – Sofia in the next year but they did not agreed about the price and so the deal failed.
Source: Banker (12.07.2004)

Hebrosbank’s shareholders decided at the general meeting in Plovdiv on July 9, that bank’s managing board should be cut down. Executive managers will thus decrease from five to four. Steward Jack, whose three-year management contract expired in June, was discharged. So Hebrosbank’s managing board now comprises chairman Guatam Vir and members David Curl, Alexander Tzachev, and Vesselin Denchev. Shareholders decided also that 10 per cent of the profit for 2003 (totaling BGN 8.12 mln) should be allocated in the Reserves fund, and the other 90 per cent retained in the credit institution capital. According to the consolidated financial statement, which covers the bank and its leasing subsidiary Hebros Leasing performance, the total of the extended loans as of December 31, 2003 was nearly BGN 324 mln. This is 48 per cent more compared to 2002, when the company Hebros leasing did not exist and the bank granted BGN 219 mln.
Source: Banker (12.07.2004)

Bank Austria Creditanshtalt (BA-CA), owner of Bulgaria’s HVB Bank Biochim, was named by UK’s financial issue Euromoney Central&Eastern Europe’s best bank for the fifth year in a row. BA-CA was also acknowledged as Best Guarantee Bank for CEE also. It became Austria’s best bank for the twelfth year in a row. We intend to expand our positions in this region, and these awards prove we are moving in the right direction, Ms. Regina Prehoffer, member of BA-CA’s Managing Board with spring CEE commented.
Source: Pari (13.07.2004)

Hebrosbank will open new outlets in Sofia, Bougas and Stara Zagora this week. The outlet in the residential area Mladost in Sofia as well as the one in Bourgas will start functioning as of July 12, 2004. The outlet in Stara Zagora will open gates as of July 14. The new outlets will offer all of the bank's services. Automated-teller machines will be installed in the locations.
Source: Pari (13.07.2004)

Bulbank will take part in the financing of the building of the Brashov-Borsh highway in Romania. Romania has allocated EUR 150 mln for this project. EUR 73 mln will be provided by Reiffaisenbank’s Austria-based headquarters and its subsidiary in Romania. Besides Bulbank, the other investors are Greece’s Alpha Bank and two Hungarian banks. The construction of the highway should be completed before 2012, and according to Reiffaisenbank’s evaluation, will cost some EUR 2.8 bln.
Source: Pari (14.07.2004)

Bulbank was included in the world’s 2003 Top 1000 banks rating, prepared by the British issue The Banker. It is the only Bulgarian financial institution, included in the top list. The number one in the list is held by Citigroup for the sixth year in a row. The overall capital stock of Top 1000 has grown with 20.45 per cent y/y, reaching the record-high USD 2377.3 bln. Total pre-tax profit has jumped with 65.4 per cent to USD 417.4 bln.
Source: Pari (15.07.2004)

Local drug maker Biovet, 84 per cent-owned by Hapredak Holding, will invest EUR 10 mln in a project for the production of electricity from exhaust gas emissions, the company said. Biovet will purchase a 18MW gas turbine for an on-site co-generation power plant that will produce electric energy and industrial steam for production and heating purposes and has guaranteed the purchase from manufacturer GE with EUR 4.25 mln. The surplus output will be sold to the National Electricity Transmission Company. Biovet intends to enter the project in the fourth tender round of the Dutch ERUPT program for the delivery of emission reductions. According to the website of the Dutch Senter agency, approval of the project could secure for the Bulgarian side an additional financing of EUR 1.8 mln. The second phase of the co-generation project was completed in May and now Biovet is due to submit its final offer with more specific estimates of the emission reductions that can be delivered. The offer will then have to be confirmed by an UN-approved company. Other local projects participating in the tender round are the gasfication of Sofia by Overgas Inc.; a project by fertiliser plant Neochim for the use of a BASF catalyst to convert N2O to nitrogen and oxygen; and a co-generation project tabled by heating utility Toplofikacia-Plovdiv SP JSC.
Source: Dnevnik (15.07.2004)

The parliamentary budget and finance committee is expected to review the bill on ratifying contracts between Bulgaria and UniCredito Italiano, Allianz, Bank Austria Creditanstalt (BA-CA), OTP Bank and the Bank Consolidation Company (BCC) with regard to the state assuming the obligations of the latter, BCC CEO Neli Kordovska told the PARI daily. If the committee discusses the bill during the first half of the week, trilateral agreements may be reviewed in the plenary hall as early as this week. They will come in effect upon their publication in the Official Gazette. After these procedures are completed the BCC can move toward voluntary liquidation on account of depleted activity. According to regulations, the bank holding must be dissolved on August 14, 2004. The regular general meeting of shareholders will be held on July 30. However, there is no guarantee that toward this date the ratification law will come in effect. Therefore, BCC liquidation will have to be postponed until the end of the year. An ad-hoc meeting will be organised in the shortest term possible after July 30 with the aim to announce voluntary liquidation. The BCC will distribute a dividend for the year of 2003 to the amount of BGN 421 million. The total dividend amount for past years, including non-allocated sums, is BGN 496 million.
Source: Pari (20.07.2004)

The Bulgarian Socialist Party (BSP) has approached the regional prosecution in Dobrich and the Supreme Cassation Prosecutor's Office over violations committed by Dobrich municipality in the preparation and contracting of a EUR 2.6 million bond loan. According to the socialists, the municipality has breached the Public Procurement Act when selecting an investment intermediary for the issue. In the middle of February 2004 the municipality signed a contract with TBI Invest for preparation of a financial analysis of the market and the opportunities for a municipal bond issue in Bulgaria. The same company was later selected as investment intermediary, Vladimir Kalchev, municipal adviser of the BSP, said. The local authorities did not announce a public procurement procedure, the socialists claim. On April 9, 2004 the municipality invitations to Biochim, United Bulgarian Bank, Roseximbank and Allianz Bulgaria, asking them to present offers for issue servicing by the end of May. However, on April 13 mayor Detelina Nikolova signed a contract with TBI Invest, through Biochim proposed better terms. The municipality of Dobrich floated a EUR 2.6 million bond issue on June 3. It was subscribed by nine institutional investors. The funds are held on account with Economic and Investment Bank. They will be invested in street repair and reconstruction.
Source: Pari (22.07.2004)

International financial group HVB Group has ranked first in Bloomberg’s market share ranking as underwriter of bond issues of Bulgarian issuers. In Bulgaria HVB Group is a leading manager and underwriter of issues through Bank Austria Creditanstalt and HVB Bank Biochim. HVB Group headed the list with a market share of 28.5 per cent after the UBB’s issue of mortgage-backed bonds worth BGN 40 mln. The group is followed by Dresdner Kleinwort Wasserstein, WestLB AG, Deutsche Bank AG and JP Morgan.
Source: Dnevnik (22.07.2004)

DSK is the undisputed leader on the consumer credits market, holding a 50-per cent share in it. The bank has granted BGN 927 mln as of March 31 2004. The total amount of consumer credits granted by local banks reached BGN 1.925 bln. In this top list, DSK is followed by UBB (BGN 254.7 mln), Biochim (BGN 211.6 mln), SG Expressbank (BGN 171 mln), Postbank (BGN 71.5 mln), Hebrosbank (BGN 61.7 mln), FIB (BGN 54.7 mln), and Bulbank (BGN 41.8 mln).
Source: Standart (26.07.2004)

Each household signed a gas-supply contact with Overgas Inc. JSC – Sofia will rely on a credit granted by Bank DSK SPJSC – Sofia as well from the beginning of August. By now such credits were granted only by HVB Bank Biochim JSC – Sofia. Bank DSK will grant to the individuals up to BGN 10 000 credits, with interest rate of 10 per cent and a 7-year sinking term. Bank DSK may give a 6-month gratis period
Source: Sega (27.07.2004)

HVB Biochim is launching a new type of student credit, which could be paid up after graduation. The money will be granted annually, by months and semesters. The maximum amount is BGN 15 000 for a period of 10 years. Local banks have granted almost BGN 300 mln worth of credits in June, according to BNB statistics. Credits in the first half of the year reached BGN 10.8 bln.
Source: Standart (28.07.2004)

The voluntary liquidation of the Bank Consolidation Company (BCC), the authority in charge of the privatization of local banks, will likely end by the next summer, pumping some BGN 250 mln into the state budget, BCC executive director Neli Kordovska said after the general meeting of the company voted on July 30 to distribute BGN 422 mln as 2003 dividend. The shareholders extended the life of the sell-off regulator to December 31. An October general meeting will vote on the voluntary liquidation of the company. Last week, parliament relieved BCC of any obligations stemming from the acquisition of local Bulbank, DSK Bank and Biochim by foreign buyers.
Source: Dnevnik (02.08.2004)

Bulbank, Bulgaria's biggest bank in terms of assets, logged a net profit of 47.8 mln levs in the first half of 2004 with assets totalling 2.9 bln levs. The credit portfolio of the bank stood at 971.5 mln levs, including commercial loans worth 840.8 mln levs, 47.55 mln levs in consumer loans and home purchase credits adding up to 56.9 ml levs. The deposit portfolio of the bank was reported at 2.2 bln levs.
Source: Dnevnik (03.08.2004)

HVB Leasing is the new name of Biochim Leasing Bulgaria, the company said. The change follows the recent renaming of Bulgaria's Biochim bank into HVB Bank Biochim. HVB Leasing is a Bulgarian-Austrian joint venture, where Bank Austria Creditanstalt Leasing GmbH (BA-CA Leasing) holds 90% and HVB Bank Biochim has 10%. Both companies are part of HVB Group. HVB Leasing deals in financial and operation leasing of moveables and immoveables. The establishment of a subsidiary company in Bulgaria is part of BA-CA Leasing Group's expansive policy towards Eastern Europe.
Source: Sega (05.08.2004)

Hebrosbank was named as the leader in agricultural lending among EU aspirants by the EU/EBRD SME Finance Facility at the annual congress on SME investment in Central and Eastern Europe held in Munich. In May 2004, Hebros Bank signed a 6 mln euro loan agreement with EBRD in support of SMEs in Central and Eastern Europe.
Source: Pari (05.08.2004)

Tourist company Sts Konstantin and Elena AD posted an after-tax loss of BGN 119,000 for 2003, compared to a profit of 890,000 for 2002. The company decided not to pay out dividend. Sts Konstantin and Elena AD reported a loss of BGN 25,000 for the second quarter of 2004, compared to a loss of BGN 6,000 for the corresponding period of 2003. Net sales revenue jumped by 66% to a total of BGN 561,000 for the first half of 2004, up from BGN 338,000 for the first six months last year. Sts Konstantin and Elena AD posted a profit of BGN 291,000 for the first three months of 2004, compared to a loss of BGN 120,000 for the corresponding period of 2003. Kamen Zhelev was appointed member of the board of directors replacing at the position the legal entity Partner Consult, represented by Emil Radev. In 2003 the company made its first large investment after it was privatized Sts Konstantin and Elena allocated EUR 23 million in two hotels last year. The general shareholders' meeting entitled the management to acquire new fixed tangible assets, but company representatives denied to further specify.
Source: Pari (06.08.2004)

Fitch, the international credit rating agency, has upgraded three Bulgarian banks’ ratings, announced Reuters. United Bulgarian Bank’s rating, as well as Bulgarian Post Bank’s rating have been upgraded to BBB-. Their previous ratings were BB+. Bulbank’s supporting rating has been upgraded from 3 to 2. The ratings were improved only a day after the agency upgraded Bulgaria’s foreign currency credit rating. According to the agency, cited by Reuters, the decision for the banks’ ratings’ upgrade results also from Bulgaria’s investment rating. United Bulgarian Bank and Bulgarian Post Bank are thus rated similarly to the country at BBB- with steady outlook.
Source: Pari (06.08.2004)

The National Social Security Institute announced the Top 20 most law-abiding employers with personnel over 250 emplooyees for the first half of 2004. The Top 20 companies insure a total of 51,560 people with an average insurance income of BGN 622: 1. Lukoil-Neftochim JSC - Bourgas 2. Nuclear Power Plant Kozloduy SPJSC - Kozloduy 3. Mines Maritsa-Iztok SPJSC - Branch Troyanovo-North Pit, village of Kovachevo 15. Elatsite-Med JSC - village of Mirkovo 17. Mines Bobov Dol SPJSC - Bobov dol 19. Thermo-electric power station Maritsa-iztok-2 SPJSC - village of Kovachevo
Source: Other (10.08.2004)

HVB Bank Biochim reported a BGN 15.7 mln net profit for the first half of 2004, which is 14.2 per cent premium to the financial result registered in the same period of last year. According to the bank’s CEO Mr. Peter Harold, the good performance of the bank is a result of the bank business expansion. Over the review period, the institution has increased its credit port folio with 15.9 per cent reaching BGN 929 mln in the end of June.
Source: Sega (12.08.2004)

British magazine Euromoney gave Bulbank the distinction of "Best bank in Bulgaria - 2003". The bank's profit last year increased by 18% and the amount of non-serviced credits was reduced from 4.6% in 2002 to 3.1% in 2003. The return-on-investment rate reached 18%. The partnership between Bulbank and Pioneer Investments, also owned by UniCredit, has supported the bank in becoming the biggest mutual fund distributor in the country with a market share of 55%, credit institution representatives comment. In 2004 the bank management team plans to expand UniCredit Leasing, a subdivision of Bulbank. This year the bank also opened the first credit consultancy centre in Bulgaria.
Source: Pari (12.08.2004)

National Statistical Institute (NSI) reported a decrease in lending. In June 2003 each Bulgarian has charged BGN 6.40 as a credit, while this amount was BGN 5.84 in June 2004. At the same time most of the banks declared increase of their credit portfolios in 2004. Bulbank JSC – Sofia reported a growth from BGN 755 million up to BGN 971 million, First Investment Bank JSC – Sofia reported retail banking in 2004 to the amount of BGN 111.9 million compared to BGN 32.9 million for June 30, 2003. HVB Bank Biochim JSC – Sofia also showed an increase of 15.9 per cent.
Source: Sega (13.08.2004)

HVB Bank Biochim and Metro Cash & Carry have started offering a METROPlus joint card in all Metro stores in the country. The METROPlus card is designed for the purchase of goods from the whole Metro range. METROPlus offers an overdraft from BGN 2,000 to 15,000 with 10 days of grace after each purchase. The card is issued free of charge and payments through it are free of fees or commissions. The overdraft credit term is 6 months and the client may use it all together, as well as in parts.
Source: Pari (20.08.2004)

Hebros-leasing SP JSC– a part of the bank group Hebros, recently celebrated its 1-year’s anniversary. It has already signed 1407 leasing contracts, financing over BGN 50 mln worth of investments. The company has clients in more than 147 Bulgarian towns and 4 business centres – in Sofia, Plovdiv, Varna and Veliko Tarnovo.
Source: Cash (20.08.2004)

The banks are to impose limits over the compensations given for ransacked saves. Most of the owners of the ransacked saves in the South Park’s subsidiary of HVB Bank Biochim JSC – Sofia have been compensated over an extrajududcial agreement, announced from the bank. The amount granted to the suffered clients is still a secret. The insurer of the robbed subsidiary is Allianz Bulgaria. Few months after the robbery the banks are commenting upon limiting the banks’ responsibilities for saves’ ransacking.
Source: Sega (23.08.2004)

The shareholders of the Bank Consolidation Company (BCC) JSC – Sofia, 99.5% of whose capital is owned by the Ministry of Finance, are going to hold a new general meeting no later than the end of September 2004, which will be the third one held during the year. At the meeting they are going to discuss the possibility to plead liquidation of the company. This is the only procedure envisioned in the Commercial Act for discontinuing its activities and distributing the financial and physical assets among the shareholders.
Source: Banker (23.08.2004)

The investment fund Bank Austria Creditanstalt /BA-CA/ Capital Invest will enter the Bulgarian market, according to representatives of HVB Bank Biochim which is a BA-CA's subsidiary. The fund will offer possibilities for investing in shares, bonds, and other financial instruments traded on the world market. Minimum investment amount will be EUR 2,000. Participation fee will not exceed 5.0% and will depend on the invested sums. Bulgaria's Commission for Protection of the Competition (CPC) approved the Capital Invest funds structure on August 20. The clients may choose between Capital Invest America Stock which allocates money in U.S. blue-chip companies; Capital Invest Euro Corporate Bond, investing in corporate euro bonds, Capital Invest Dollar Bond - which focuses on bonds in dollars, Capital Invest Euro Government Bond, Capital Invest Select Europe Stock and Capital Invest Euro Cash. The total assets managed by Capital Invest reached EUR 18 billion. The company holds a 16% market share in Austria and operates subsidiaries in Croatia, Hungary, Poland and Romania. Direct sales in Bulgaria will be organised through the branch-office network of the group's subsidiary bank.
Source: Pari (24.08.2004)

The local Bulbank will loan EUR 35 mln to thermal power plant (TPP) Maritsa Iztok 2 for the rehabilitation for the facility's units 1 through 4. The 10-year loan agreement, which has been okayed by the State Energy Regulatory Commission (SERC), has a one-year grace period. The interest rate after the grace period is fixed at the six-month LIBOR plus 2 per cent. The power plant will pay a one-off loan management fee of EUR 175,000. The credit is secured with the future payments from the National Electricity Transmission Company (NETC) which has contracted Maritsa Iztok 2 to supply electricity for a five-year period. Japan's Mitsui will reconstruct units 1 through 4 of the plant and boost its capacity by 150-160MW whereby their useful life will be extended by 20 years. The EUR 226.2 mln project will be 85 per cent-financed by the Japan Bank for International Cooperation. The long-term power purchase agreement, approved by the SERC on August 25, was signed at the insistence of EBRD which has committed EUR 34 mln for the outfitting of units 5 and 6 of TPP Maritsa Iztok 2 with desulphurisation installations. The project, with an overall tab of 80.3 mln euro, will receive EUR 36.1 mln from EU's ISPA program while the plant itself will chip in EUR 10 mln. The loan agreement with EBRD is expected to be signed in October. Maritsa Iztok 2, which has eight units with a total capacity of 1,450MW, is located at the Maritsa East lignite coal mining complex in Southern Bulgaria that generates 30 per cent of the country's power.
Source: Dnevnik (27.08.2004)

Mutual and pension funds in Bulgaria, Turkey, and the central European states will experience a real boom by 2007, a survey carried out by the Italian bank group UniCredit and Polish Pekao showed. The rise will be connected with the increased volumes of citizens’ bank deposits in their way to EU integration. Households' investments in mutual funds in these countries will mark a 29% jump by 2007, while money allocated in pension funds will leap by 27%. Bank deposits in foreign currency will generate a rise of between 8.0% and 9.0%. The net assets controlled by the Bulgarian investment companies will remain low as compared to those in the other countries from the survey. At present the funds attracted by them hardly exceed BGN 40 million. The potential for growth, however, is immense, according to local analysts. The prospective changes in the legislation basis for setting up an investment fund will also contribute to the boost in the sector. UniCredit Group is the owner of Unicredito Italiano, which owns 85.2% of Bulbank. The Italian company is also the majority owner of the Poland's Pekao.
Source: Pari (08.09.2004)

A credit card without a minimum required residual amount will be launched by Hebrosbank September 13. The product targets the middle class in Bulgaria. Clients can use credits from BGN 500 and BGN 10,000 for all purposes and are not required to have a deposit with the bank. The monthly interest to be charged on the used credit is set at 1.3%. An annual BGN 39 fee will be paid for card maintenance.
Source: Pari (09.09.2004)

As of August, only 22 investment mediators, incl. bank and non-bank, are providing opportunity for trade through the system COBOS (Client Order-Book Online System). The mediators, providing this system, are: First FBH Ltd., Elana Trading, Euro Finance, Bulbrokers, Unionbank, Biochim, Aval In, Capman, Beta-Corp, Karol, Delta Stock, MacCap Brokers, Status Invest, Zagora Finacorp., Yug Market, Sofia International Securities, Bora Invest, Somoni 2001, TBI Invest, Varchev Finance, Benchmark Finance.
Source: Cash (10.09.2004)

Austrian Airlines and HVB Bank Biochim are to install in a month a POS terminal for the online sale of airplane e-tickets through debit cards from the Austrian airlines, Emil Olovanov, sales manager of the Austrian Airlines for Bulgaria, said. Now the e-ticketing service offered in Bulgaria by the European carriers British Airways, Lufthansa, Air France, Austrian Airlines, Al Italia and United Airlines does not allow paying for an e-ticket through a debit card, but only cash or by a credit card.
Source: Pari (16.09.2004)

HVB Bank Biochim, part of the HVB Group, admitted that Bank Austria is currently doing a due diligence at Plovdiv-based Hebros Bank with the view to an eventual merger. Eurobank is also on the cusp of an ownership changeover. Fuel retailer Petrol, its current owner, is said to be making headway in the negotiations to sell Eurobank to Greece's Piraeus Bank. Sources from the central bank said the banking license applicants include HSBC and a group of companies affiliated with local businessman Lyudmil Stoikov. HSBC confirmed unofficially that it was pursuing a local license for the benefit of its international clients. Stoikov owns a minority stake in Pernik-based steel plant Stomana Industry and assets in the tourism industry. The idea is to create a bank that would specialise in servicing tourism, metallurgical and food industry companies, told Stoikov, adding that the new bank does not intend to mix it up with the big hitters.
Source: Dnevnik (17.09.2004)

Bank Austria Creditanstalt, the owner of HVB Bank Biochim, is in a process of conducting due diligence in Hebrosbank, representatives of the Austrian bank confirmed for the PARI daily. It is early days yet to comment on prospective steps, bank official pointed out. An acquisition may take place after the results from the inspection of the bank's assets and liabilities become clear, insiders said. According to unofficial data, the price may reach EUR 100 million. Bulgaria is a strategic market for the development of our activities and we hope to strengthen our position here through a probable acquisition of Hebrosbank, Bank Austria Creditanstalt representatives, said. The sale is expected to take place after March next year. Hebrosbank is 99.65% owned by the Netherlands based SWC B.V.
Source: Pari (21.09.2004)

European Bank for Reconstruction and Development (EBRD) will organize a seminar to present its credit line for financing energy efficiency and renewable resources projects. The seminar will announce the bank's four loans totaling EUR 3.073 million. In this connection a credit line agreement with HVB Bank Biochim will be signed today.
Source: Pari (23.09.2004)

HVB Bank Biochim will start granting investment credits for renewable sources and energy efficiency projects under a EUR 10 million credit line by the European Bank for Reconstruction and Development (EBRD). Private companies will be able to obtain credits from EUR 5,000 to EUR 1.5 million. projects exceeding this sum will be finance by HVB Bank Biochim financial resources. The funds may be used for financing co-generation units, optimisation of processes, for power plants using water, sun or wind energy as a source for producing electricity. The maturity period of the loans is five years and there is a possible grace period of 12 months. EBRD signed a credit line contract for EUR 7.5 million with Bulbank under the same programme yesterday. Bulbank's credits will be granted to a maximum extent of EUR 2.0 million and for a period of up to six years
Source: Pari (24.09.2004)

The municipal guarantee fund for small and medium enterprises (SMEs) of Bulgaria's capital city has assisted in the extension of BGN 599,000 worth of credits to ten Sofia-based companies. The fund has assumed guarantees for a total of BGN 180,000. This emerged after an extraordinary meeting of the municipal council, where the chairman of the guarantee fund, Hristo Popov, presented a report. Five companies are currently in negotiations with the fund for credits.
Source: Pari (24.09.2004)

Bulgarian Municipalities have issued five bond issues so far. Only few of the operating in Bulgaria banks serve the Municipalities - Municipal Bank, Bank DSK, HVB Bank Biochim, Bulgarian Post Bank, and in lower degree - Raiffeisenbank- Bulgaria and Investbank, became clear on the round table organized by the aid of American Agency for International Development.
Source: Monitor (25.09.2004)

The Bulgarians hoard BGN 5 billion under mattresses. This accounts for one-third of the overall savings in Bulgaria. Over 9 billion is kept in banks. The larger part of the deposits are short-term - up to one month - regardless of the fact that the interest rates on them are lower. The Bulgarians prefer safety over higher gain, experts of the UniCredito Bank commented. They made a survey of the financial resources of the European countries. The Bulgarians don't believe in investing in securities, the survey shows. For this reason the investments in bonds, pension funds, etc. in Bulgaria account for only 2-3 percent of savings. The Poles put aside 11 percent for a second pension, while Croats invest over 13 percent in securities.
Source: Standart (29.09.2004)

The amount of the individual credits is to increase by BGN 1 billion per year according to the forecast of UniCredito. The banks are expected to grant BGN 4.4 billion in 2004. By 2007 their level will already be BGN 7.6 billion. However the total amount of the Bulgarians’ debts is still below the level in the other countries from the region. In 2003 it was 7.6 percent of the GDP in Bulgaria, and 9.1 percent in the neighbouring countries.
Source: Standart (29.09.2004)

HVB Bank Biochim’s syndics of the insolvent Mashproektingenering JSC - Stara Zagora appointed for November 1 the sale of all the assets and legal property of the company’s bankruptcy mass. The final value of the assets of the former Beroe enterprise is BGN 9.305 million.
Source: Pari (29.09.2004)

Bulbank, the nation's biggest bank in terms of assets, will allocate over BGN 111 mln of undistributed profit from prior years to reserves after the shareholders took a decision to this end at an extraordinary meeting on Wednesday. The transfer will raise the bank's capital base above BGN 400 mln. The dividend for the next three years has been capped off at 70 per cent of the net profit for the respective year. Bulbank's H1 profit was at BGN 48 mln, data of the central bank shows.
Source: Dnevnik (30.09.2004)

Andrea Moneta is the new member of the supervisory board of Bulbank, the extraordinary general meeting of the shareholders decided yesterday. Over BGN 111 million of undistributed profit from previous years will be transferred to the reserves fund. Bulbank’s capital base will thus exceed BGN 400 million and this will strengthen its position as the best capitalized Bulgarian bank. The general meeting fixed also the maximum amount of the dividends that may be distributed over the next three years – it may be up to 70 percent of the after-tax profit each year.
Source: Pari (30.09.2004)

The state has offered the former CEO of Bank Consolidation Company (BCC) Ms. Neli Kordovska for a company’s liquidator. The General Meeting of shareholders made the decision for the Holding’s liquidation on October 12. Three weeks ago the last escrow account over the Bank DSK’s deal was freed. The amount of EUR 31 110 000 is expected to be transferred by Bulbank to the BCC’s account in the Bulgarian National bank.
Source: Capital (04.10.2004)

The report and the program project of Mr. Rumen Bikov are the only serious document over the “companies and money abroad” affair. These two documents have been put forward in the Bulgarian parliament and were presented to the Parliament’s chair Mr. Stefan Savov, to the president Mr. Zhelyu Zhelev and to the PM Mr. Philip Dimitrov. Non of them helped to discuss and implement the report and program. In the program project Mr. Bikov noticed that the number of companies abroad was 395, as USD 350 mln have been invested in them. Looking for the truth for the money of the companies abroad, I came upon a list of the foreign companies where the mother companies, established these companies, were short-listed. According to him some of the mother companies and owners to June 1991 are: State-owned company Vamo.
Source: Monitor (04.10.2004)

HVB Bank Biochim, co-operating with Overgas, will already finance projects and construction of gas installations, announced from the bank. So far the bank has granted credits for the purchase of consumer gas-supply devices. The amount of the credit is up to BGN 7 000. The bank will not ask for a warrant. A free Life insurance for the client and the co-debtor will be offered along the credit if such is needed. The sinking term is from 1 to 5 years if only the sinking payments are paid. Bank DSK and SG Expressbank have been granting consumer gas-supply credits as well.
Source: Sega (06.10.2004)

Bulgaria's HVB Bank Biochim will finance the engineering and construction of natural gas installations jointly with Overgas, the bank said. Credit amounts will range between BGN 1,000 and 7,000. No warrantor is required for the loans, which will be extended for a period of five years. The bank will finance up to 100% of the amount necessary for installation of gas facilities. Interest rates will range between 10.2% and 10.7%. Candidate borrowers will receive reply to their applications in two business days. The bank offers free life insurance of borrowers.
Source: Pari (06.10.2004)

Slanchev Den AD of Varna is willing to buy between 98 and 100% of Sofia's central store, TzUM, for EUR 19.5 to 20 million. The decision was taken at a general shareholders' meeting early last week. To finance the deal, the company is going to borrow up to EUR 18 million from OTP Bank Ltd of Hungary and from Bulgaria's DSK EAD or Bulbank. The loan will be secured with a mortgage on the company's properties in coastal Varna and Sts Constantine and Helena resort, including hotels and land. All TsUM's shares that will be acquired, Slanchev Den's revenue and bank accounts, and the potential receivables in the event of TzUM's liquidation will also be used as collateral. Seller of TzUM's shares will be Southwise Trading Limited of Cyprus. Slanchev Den's capital amounts to BGN 471,929. Majority owner with 55% of the capital is Sunny Tour OOD of Plovdiv. Two natural persons own 20.39 and 20% of the resort company.
Source: Pari (11.10.2004)

Bulbank will be charging 8.88 percent interest rate on all mortgage-backed loans by the end of the year. The percentage is derived as a sum of the basic interest rate plus a premium at the moment of signing the contract. The bank discounted all the credit-related charges and commissions up to 50 percent, the bank said. Response to the loan application can be obtained in 72 hours from the submission of the necessary documents. Besides the standard housing loan, Bulbank offers also special purpose credits – for purchase or building of real estate, as well as for home repairs.
Source: Standart (14.10.2004)

The duties of the Bulgarian citizen is about to raise quicker than the wages in the years before our EU accession. This is in the report of the Italian Unicredit bank, owner of Bulbank, about the economical progress of the countries from new Europe. The prognoses of the specialists from the bank are that the wages in the country for 2007 will be EUR 193 compared with EUR 153 for this year (growth of nearly 23 per cent), and the average obligation of the population will increase with more than 70 per cent to EUR 467 for 2007 compared with EUR 274 nowadays. The analyses of the bank shows that the growth of the possessed earnings of the Bulgarian people will increase with about 2.5 per cent. This means detention of the rates in comparison with the previous years. More and more households will be able to save, which shall compensate the higher expenses for the family with higher possessed incomes. The savings of the population will rise quicker than the increase of the country GDP, but still its rate shall stay too low for the average in EU. The deposits will remain the preferred shape of savings for the householders. There won’t be any essential changes also in the structure of the financial assets of the families, where the cash dominates because of the gray economy. Nevertheless in long term period it is expected that the electronic payments shall be more popular, which naturally will decrease the cash-money in the financial assets of the Bulgarians in favour of the payment cards, is the opinion of the experts from Unicredit. 23 per cent of the money of the Bulgarians in 2007 will be in cash, as the data of the Italian financial institution prove that now it is almost 30 per cent. Suddenly the nominal value and the stake of the shares of the state companies like a part of the Bulgarian people money will increase. They will go up to BGN 425 mln. from BGN 194 mln. at the moment, but will still remain just about 2.1 per cent of the all financial assets, in Bulgarians possession.
Source: Dnevnik (15.10.2004)

By end 2004, the loans that are not being paid back will reach 700 million levs, which accounts for 5.2 percent of the total of bank loans, a forecast of Unicredito shows. The report is on the outlooks for Bulgaria's economy in the next couple of years till this country's EU accession. The quality of loans is expected to deteriorate as a result from the bank expansion, the report underscores. The process is expected to start as early as end-2004 and to go on till 2007. At that point the unpaid back loans are expected to total 1.4 billion levs, or 7 percent of the total of loans lent. The total of loans lent are expected to stand at 13.5 billion levs by end-2004. By end 2005 the amount will grow by 15.8 billion levs to further exceed 20 billion levs in 2007. The crediting growth, however, is expected to slow down and from 42 percent in 2004 to go down to 17.4 percent in 2005, the report stresses. Consumers' credits in 2004 are expected to shoot up to 66.8 percent. The Italian Group believes that the bank system in this country has a strong potential to develop. At present, there are 135 bank branches per 1 million people and next year the number of branches is expected to stand at 150.
Source: Standart (18.10.2004)

After almost three months of analyses of the legal and financial condition of Eurobank JSC – Sofia, it candidate-buyer – the Greek Piraeus Bank (Hiosbank) - branch office Bulgaria JSC – Sofia, have started the negotiations for the price with Petrol holding JSC – Varna, which owns 95.1 per cent of the shares. The chairman of the supervisory board of Eurobank JSC – Sofia – Mitko Sabev, who owns 27 per cent of the holding, have only said that the bank shall not sell under its net value, but he did not engage with a concrete number. Some of the financial analyzers think that after the increase of the capital of Eurobank JSC – Sofia to BGN 30 mln., her owner can’t sell it for less than EUR 30 mln. There is even an affirmation that Petrol holding JSC – Varna will try to reach price of EUR 35 mln. It is interesting that Petrol holding JSC – Varna did not announced the credit institution for sale, but Piraeus Bank (Hiosbank) - branch office Bulgaria JSC – Sofia have revealed interest to her. By the way, at the beginning of October it clears up that the Greeks are trying their options to buy not only with Eurobank JSC. They have shown interest also towards Hebrosbank JSC – Plovdiv. But their chances to start negotiations for her are too small. The reason is that at that moment the owner of the credit institution “Regent Pacific Group” is leading talks for its sale with Bank Austria” and with the representatives of its daughter firm HVB Bank Biochim JSC – Sofia.
Source: Banker (18.10.2004)

Bulgaria has the highest rate of credit growth of all countries in Central and Eastern Europe (CEE). For the last three years loans have risen 49%, said Marianne Kager, chief economist at Bank Austria Creditanstalt (BA-CA), citing data from the research conducted by the owner of Bulgaria's HVB Bank Biochim. Over the next ten years credits are expected to increase 357%, or by EUR 16 billion until 2013. Deposit growth over the same period will be 215%, so the volume of deposits will expand by EUR 13 billion, BA-CA forecasts. According to Kager, active lending in Bulgaria does not pose a risk at this stage, provided the process is managed well. It is very important to encourage private corporate lending, she believes. The development of consumer lending by Biochim is yielding very encouraging results, said Martin Gruell, senior general manager CEE. We want to be an engine of consolidation in the banking sector in each of the countries where we operate, Gruell added, commenting on the bank's plans to buy Bulgaria's Hebrosbank. A decision on the transaction will be taken within a few weeks, as BA-CA is still conducting a due diligence examination. Lending in CEE increases by some 15% a year, which is well above the average rate of 5% in the Eurozone, Kager went on to say. This shows that the banking market in the region will continue its dynamic development of the past three years, when the volume of credits grew by an average of 13%. For the same period lending in the Eurozone has risen just 4% a year. In terms of credit growth, Bulgaria is followed by the Baltic states, Croatia and Hungary. In the region, over the next ten years loans are expected to rise more than 250%, deposits, about 170%, BA-CA forecasts. The biggest increase is expected to be seen in the countries with least developed financial services. Romania will top the list of credit growth with 474% by 2013, followed by Serbia and Montenegro (362%) and Bulgaria. In terms of deposit growth, Bulgaria will rank fifth after Romania (326%), the Baltic republics (289%), Serbia and Montenegro (285%), and Bosnia and Herzegovina (247%). According to BA-CA analysts, the banking market in CEE will continue to grow and the total assets of banks are expected to increase 12% in 2004, year on year. In 2013 the assets of all banks in CEE will reach EUR 1,054 billion (up 10.9%). GDP of the countries in the region will rise 7.6% to EUR 1,077 billion. Credits and deposits will increase 13.9% and 10.4%, respectively, and will reach EUR 628 billion and EUR 598 billion.
Source: Pari (20.10.2004)

The Bulgarian Telecommunication Company (BTC) has been entrusted to organise and technically equip the call centre of MoneyGram in Sofia under a cooperation contract signed by the executive directors William Aylward and John Hempsey. The move is the first step towards the consolidation of Bulgaria as a preferred location for development of call centres in Europe, Aylward said. Bulgaria was chosen by MoneyGram among 25 countries, including the UK, India, Poland, Romania, the Czech Republic,Slovenia, Spain and Australia. The choice was made because of the economic and political stability in Southern and Eastern Europe, and because of the specialists with good education and good command of foreign languages in Bulgaria. The new call centre will open on October 25, 2004 and will provide money transfer service from the UK, France, Germany, Italy, Spain, Sweden and Ukraine. In Bulgaria MoneyGram services will be offered at the branches of Biochim, DSK Bank, HebrosBank, Raiffeisenbank, Factor IN, Roseximbank, First Investment Bank, EIBank and Unionbank. The money transfers will be made within 10 minutes and the sums should not exceed USD 20,000, MoneyGram said.
Source: Pari (20.10.2004)

The famous tourist boss Mr. Georgi Gergov became owner of Sofia’s central universal shop TZUM. The deal is expected to be finalized in November. The investment is in the amount of over EUR 30 mln. The businessman took a mortgage credit from Bulbank to finance the purchase. Mr. Gergov is owner of the tourist complex Sunny Day, as well as of the Plovdiv-based hotel St. Petersburg.
Source: Trud (20.10.2004)

Bulgaria's Slanchev Den JSC of Varna has bought 99.59 per cent of Sofia's central supermarket TzUM, the Bulgarian Stock Exchange bulletin shows. The deal was closed on October 19 and does not exceed EUR 20 million. Seller of the stake is Cyprus-registered Southways Trading Limited. The decision on the purchase of TzUM was taken by a general shareholders' meeting October 4. To finance the deal, Slanchev Den has decided to borrow EUR 18 million from OTP Bank of Hungary and Bulgaria's DSK Bank or Bulbank. The credit will be collateralised with a mortgage on the hotel company's real estate.
Source: Pari (25.10.2004)

Top 50 of the most loyal employers with a staff from 100 to 250 people insuring a total of 72 056 people, and with an average insurance income of BGN 670 for the period January – August 2004 ¹ Name Town 1. Bulgargas Varna 2. Prosecution of the Republic of Bulgaria – Prosecutor-general Sofia 3. Tax Administration Sofia 4. American University in Bulgaria Association Blagoevgrad 5. Corporate Commercial Bank Sofia 6. Bulgargas Sofia 7. Sap Labs Bulgaria Sofia 8. Unionbank CB Sofia 9. Automotor Corporation Sofia 10. Municipal Bank Sofia 11. Sofia Hotel Balkan Sofia 12. Commission for Regulation of Communications Sofia 13. Siemens Information and Communication Sofia 14. Polichrom POAP Sofia 15. DHL International-Bulgaria Sofia 16. Festo Production Sofia 17. Litasco Bulgaria Sofia 18. Eurobank Sofia 19. Financial Supervision Commission Sofia 20. Privatization Agency Sofia 21. Supreme Administrative Court Sofia 22. BNB Printing Works Sofia 23. Regional Tax Directorate Dobrich 24. ING Bank Bulgaria. - Sofia branch Sofia 25. Administartion of the President of the Republic of Bulgaria Sofia 26. Actavis Sofia 27. National Arts Academy Sofia 28. Sofia Regional Prosecution Sofia 29. Curtis-Balkan Sofia 30. Intersnack Bulgaria Sofia 31. Customs - Varna Varna 32. Bank DSK SPJSC – Varna branch Varna 33. BNP PARIBAS /Bulgaria/ Sofia 34. Regional Tax Directorate Shoumen 35. Allianz Bulgaria CB Sofia 36. Regional Tax Directorate – Big Taxpayers - ÑÎÔÈß Sofia 37. Regional Tax Directorate Sliven 38. UNIBANK Sofia 39. Petrol holding Varna 40. Hebrosbank JSC National Canter branch Sofia 41. Melexis Bulgaria Sofia 42. Ministry of Energy and Energy Resources Sofia 43. Regional Tax Directorate Vratza 44. Piraeus Bank JSC - Sofia branch Sofia 45. Regional Court Plovdiv 46. Bulgarian-American Credit Bank Sofia 47. Provadsol Provadia 48. District Court Plovdiv 49. Ministry of Labour and Social Policy Sofia 50. Veterinary Medical School Stara Zagora The data is provided by the personal PC of the National Social Security Institute to October 8, 2004
Source: Other (26.10.2004)

The National Social Security Institute's Top 50 of the most law-abiding employers with personnel over 250 employees, insuring a total of 417,877 people with average insurance income of BGN 468 during January-August 2004: 1. Mobiltel JSC - Sofia 2. Sofia University St. Kliment Ohridski 3. Bulbank JSC - Sofia 4. Bulgarian National Television - Sofia 5. Regional Tax Administration Sofia City - Sofia 6. Ministry of Foreign Affairs - Sofia 7. Ministry of Agriculture and Forestry - Sofia 8. Technical University of Sofia 9. Metro Cash&Carry-Bulgaria SPLTD - Sofia 10. Bulgarian National Bank - Sofia 11. Parliament - Sofia ... 47. Zagorka JSC - Stara Zagora 48. Radio-telecommunication company - Sofia 49. Sofia Municipality 50. University of Architecture, Construction and Geodesy - Sofia
Source: Other (26.10.2004)

Lord Anthony St John of Bletso, Chairman of the Investment Committee of Equest lures investors in Bulgaria. At a London Stock Exchange meeting to be held on Tuesday, British companies will get themselves familiarized with the business opportunities in this country. The Financial Times and The Banker, as well as Equest Investment Bulgaria Ltd. chaired by Lord St. John are co-organizers of the event. Recently, Equest Investment acquired four theatre cinemas in Sofia. Foreign Minister Solomon Passy will open the investment forum. Top managers, investors in this country, such as ImmoFinance, ADIS OOD, Elctropogress, Bulgarian Dreams, Bulbank, Greek EFG Eurobank, EBED among others will be represented. After the meeting, the top businessmen will attend The Legend performance by Bulgarian gymnast Lili Ignatova in Albert Hall.
Source: Standart (28.10.2004)

Unicredit Group, which includes Bulgaria's Bulbank, projects an annual increase by 8.4% in its operating profit for 2003-7, Bulbank said. The average annual growth in the group's revenue over the same period is expected to stand at 5.4%. In 2007 return on equity will be 20%, compared to 17.7% in 2003. Core tier 1 ratio is expected to reach between 6.8 and 7.2% in 2007. The projection figures are included in the group's development plan 2004-7, which was adopted by UniCredit board of directors. The group plans an average annual increase of 11.3% in earnings per share between 2003 and 2007, to be achieved as a result of improvements in revenue quality, customer relations, and the efficiency of operating processes. Enhanced processes and volume growth are expected to produce a decrease in cost/income ratio from 55% in 2003 to 50% in 2007.
Source: Pari (29.10.2004)

After the completion of a seven-week due diligence, the supervisory board of Bank Austria Creditanstalt (BA-CA) decided last Friday to submit a binding offer for a 90.77% of Plovdiv-based Hebros Bank. The price of the nascent deal was not revealed but the consensus in the financial community is for a figure above 100 mln euro. Hebros Bank is currently owned by SWC B.V., a division of Cayman Island-based financial group iRegent.com Limited, which was determined to woo the likes of Societe Generale if Bank Austria eventually opted out of the deal. BA-CA already owns 99.59% of HVB Bank Biochim, the nation's fourth largest bank, which it bought from the Bulgarian state for 82.5 mln euro in October 2002 . iRegent, then Regent Pacific Group, acquired Hebros Bank for $23.5 mln in 2000. If the deal with Bank Austria is a go, SWC B.V. will have to request the all-clear from the Bank Consolidation Company - the authority in charge of domestic banking sell-offs, because the privatisation contract bars the resale of the bank without the prior consent of the regulator before March 2005. In addition to creating the nation's third biggest bank in terms of assets (with a 10% share of the banking sector's overall assets), a likely merger between Hebros Bank and HVB Bank Biochim is also expected to get into gear the overdue consolidation of Bulgaria's banking industry. The Austrian bank has already contributed to the process with the 2002 merger of Biochim and HVB Bank Bulgaria.
Source: Dnevnik (02.11.2004)

Hebrosbank offers two new opportunities for the local SME’s managers – a new mortgage loan hebros Office and a micro-investment Hebros Microcredit loan, the company announced. The procedure for credits’ approval is quite a simple one - the applicants will file just a tax declaration and their cases will be taken up in two days only. Hebros Office will be granted in the amount from BGN 20 000 up to BGN 100 000, and the payment term will be 5 years. Hebros Microcredir will allow the businessmen to support their activity.
Source: Monitor (04.11.2004)

Biochim won the award for best Internet Finance website in the competition BG Site 2004.
Source: Standart (04.11.2004)

Austria Creditanstalt /BA-CA/ and its subsidiary in Bulgaria, HVB Bank Biochim, bought Hebrosbank for around EUR 115 million on November 3,HVB Bank Biochim representatives said. Bank Austria acquired 90% of Hebrosbank's shares, while HVB Bank Biochim took over the remaining stake. Around 0.1% of the share capital is held by minority shareholders. The acquisition price was slightly above the doubled book value of Hebrosbank's capital and it is in line with the strategic position of the deal, Erich Hampel, BA-CA CEO said. According to the official data, provided by the National Bank of Bulgaria, Hebrosbank's own capital stood at BGN 104.877 million at the end of June 2004. The value of the capital rose to BGN 108.248 million. The PARI daily's calculations on the price paid by BA-CA were confirmed by insiders who said the actual selling price was BGN 114.9 million. Bank Austria bought the local financial institution together with its leasing company Îptima Financial Services The deal has been the first bank acquisition in Bulgaria since the end of the mass privatisation and it opens the gate for longly awaited consolidation processes in the local bank sector. After taking over the tenth largest bank in the country, bank Austria gains a 10% market share locally. A merger between HVB Bank Biochim and Hebrosbank is scheduled for 2006. BA-CA was named Bank of the Year for Central and Eastern Europe by The Banker for third consecutive year in 2004.
Source: Pari (05.11.2004)

Germany's Bulchimex GmbH, connected to Varna-based economic group TIM, is in the process of acquiring apartments in Frankfurt and Amsterdam, an office in Paris and two houses in the Zimbabwean capital Harare, all of which are property of Bulgaria's bankrupt flag-carrier Balkan airlines. The deal is expected to be finalised in a month. TIM would not reveal the price of the acquisitions but said they were motivated by plans to bid in the upcoming privatisation of Balkan's successor, Bulgarian Air. Talks on the sell-off of Balkan Airlines property began early this year when three candidates showed up but only Bulchimex was prepared to seek settlement of the carrier's debts, said Balkan administrator Radoslav Tonev. An injunction has been imposed on the air-carrier's property. Balkan Airlines owe the Frankfurt airport alone some 1.2 mln euro. The administrators came under criticism from creditors for not selling the company's property. They have already signed an agreement with the foreign ministry for the future sale. To dispose of the other overseas property of Balkan Airlines, they will have to sign another special agreement with the ministry.
Source: Dnevnik (09.11.2004)

Bulbank, Bulgaria's biggest bank in terms of assets, has loaned a total of 10 mln levs to 1,300 small-sized companies after the launch of its 9.22% APR lending campaign. The bank expects to disburse as much as 20 mln levs for operating capital purposes to some 2,500 corporate clients during the campaign. The credit facility is available to companies with annual turnover of up to 1 mln levs with no business plan required upfront.
Source: Dnevnik (12.11.2004)

The Bulgarian HVB Bank Biochim, part of HVB Group, and Pharma Union Bulgaria (PUB), the association of Bulgarian pharmacists, have signed a framework agreement that entitles PUB members and their relatives to purchase banking products at preferential prices. Pending legislative changes will increase the number of potential customers among the PUB membership to 5,000. A Biochim market survey found that Bulgarian pharmacists with a Master's Degree fall into the segment of business clients with an annual turnover of up to 1.5 mln levs. This group of clients operates with sustainable cash flows and is very savvy about financial products, Biochim managing board chairman Peter Harold said on Wednesday. One of the products suited to the needs of the pharmacists running their own business is an investment credit that could finance up to 75% of the purchase value of a real estate property. A three-year credit is available for the purchase of equipment and a 18-month facility for the purchase of software.
Source: Dnevnik (18.11.2004)

Bulgaria's Biovet JSC will build a co-generation facility for electricity and heating production on the territory of the enterprise. The project will be funded with a EUR 9.5 million credit from Bulbank, under an agreement of November 15, 2005, reads an announcement posted on the bourse's site. Given the net profit of BGN 927,000 for the first nine months of 2004 and sales receipts of BGN 36 million, the investment appears to be quite large for Biovet's scale. Meanwhile Monday the company's stock increased 6.31% to BGN 4.72 per share. Analysts attributed the rise to the news about the power plant.
Source: Pari (23.11.2004)

Hebrosbank will be offering full banking insurance to its clients, the bank said. Customers will be able to take out the insurance policies they need in the offices of the credit institution. Hebrosbank has become representative of Allianz Bulgaria Life Insurance JSC in the life insurance sphere and Bulstrad Insurance & Reinsurance JSC in the field of general insurance. The bank would preserve its collaboration with the rest of the insurance companies.
Source: Pari (26.11.2004)

The macaroni plant in Dobrich is about to be bankrupted. The District Court started yesterday the lawsuit declaring insolvency of Makaronena fabrika JSC by the claim of State Receivables Collection Agency. The reason is the unpaid credit to the amount of BGN 1.4 mln granted by Hebrosbank in 1991. The company was privatized 7 year later, the owner Ms. Daniela Pelovska announced. She pointed that there was no contract’s clause for loan sinking.
Source: Standart (26.11.2004)

The deal for the purchase of Hebrosbank by Bank Austria and its subsidiary HVB Bank Biochim will be completed in February. By that time the Austria-based credit institution will have to receive an approval for acquisition of Hebrosbank by the Central Austrian Bank and the Bulgarian National Bank. After these permissions are given the bank should pay the contracted price to Regent Pacific Group – the current owner of Hebrosbank holding 99 per cent of the bank’s capital through its Dutch subsidiaries SWC, and SWR Investment.
Source: Banker (29.11.2004)

Hebros-leasing, 100 per cent owned by Hebrosbank, and European Bank for Reconstruction and Development will sign an agreement on November 29, according to which the leasing company will be granted a credit line for EUR 10 mln by the Euro bank. The money will be used for financing SMEs.
Source: Banker (29.11.2004)

The consolidated profit of Bulgaria's Biovet for the first nine months of 2004 stands at BGN 888,000, up 23.7 per cent year on year, financial statement data show. The consolidated net sales income, however, declines 14.44 per cent to BGN 37.5 million. The consolidated net profit of the company for January-September is lower than the non-consolidated profit, which amounts to BGN 927,000. This shows the subsidiaries as a whole post a loss. The net sales income of the subsidiaries for the first nine months of 2004 stands at BGN 1.48 million. A week ago Biovet said it was going to build a co-generating plant for production of electricity with a EUR 9.5 million credit from Bulbank. On Friday, the company's shares reached a new all-time high of BGN 6. The average price rose 10.06% to BGN 5.58.
Source: Pari (29.11.2004)

Hebrosleasing received a EUR 5 mln credit line from the European Bank for Reconstruction and Development (EBRD) and the European Union (EU). The funds will be used for leasing financing of local SMEs. The credit’s warrant is Hebrosbank the owner of Hebrosleasing. The bigger part of the projects, financed through the credit, is expected to be outside the big centers such as Sofia and Plovdiv. Hebros-leasing has more than 1800 SME clients in 182 regions of the country.
Source: Sega (30.11.2004)

Commercial bank Allianz Bulgaria placed successfully its EUR 15 million mortgage bonds issue. The five-year bonds that carry a 5.75% annual interest were fully subscribed. The securities are offered privately and the leading manager is Bank Austria Creditanstalt, which is part of HVB Group. The sale is organized through its subsidiary in Bulgaria, HVB Bank Biochim. Allianz Bulgaria will use the funds raised through the bond issue to finance its portfolio of mortgage loans and commercial credits. Bank's total assets came to BGN 372 million as at September 30, 2004. It has generated a growth of 12% since the beginning of the year. The deposits of individuals and households rose by 58%, while credits jumped by 60% over the same period.
Source: Monitor (30.11.2004)

A year after HVB Bank Biochim opened its Regional Corporate Centre East, the bank registered a 60% jump in its local credit portfolio, Evgeni Todorov, chief officer of the bank's representation in Varna. HVB Bank has a total of five regional centres and they operate with small and medium-sized enterprises with an annual turnover of between BGN 1.5 million and BGN 15 million. The Eastern centre covers 32% of Bulgaia's territory and works with companies from Varna, Bourgas, Dobrich, Shumen, Razgrad, Targovishte, Silistra, Sliven and Yambol. largest credits taken by clients are in the construction and tourism sectors. Most of the credits are around BGN 500,000.
Source: Pari (02.12.2004)

Sunny tour Ltd., the owner of 55 per cent of the shares of the Sunny Day JSC resort, mortgaged the tourist complex as a pledge for a bank credit, became clear from the announcement sent to the Bulgarian Stock Exchange. The Plovdiv businessman Mr. Georgi Gergov is the owner of Sunny tour. His son Mr. Tzvetomir Gergov holds 40 per cent of the shares, and other individuals hold 4 per cent. The credit has been granted by Bulbank and is to the amount of BGN 24.85, with a deadline on December 31, 2018.
Source: Sega (07.12.2004)

"Investment 2004" Award will be established by the Ministry of Economy and Invest Bulgaria Agency. Companies will vie in three categories: "New Investment", "Investment in Small and Medium-Sized Businesses" and "Investment in Tourism". The Awarding Ceremony is slated to take place on December 22 with Central Bank BNB's Governor Ivan Iskrov, Bulbank's head Levon Hampartsumian and the Dutch ambassador to Bulgaria, HE Henrietta van Lynden as members of the jury. This country draws 30 percent of the total of investments in the Southeast Europe countries. This year foreign investments here are expected to exceed 2 billion euros.
Source: Standart (09.12.2004)

HVB Bank Biochim has joined the likes of Bulbank and DSK Bank in marketing soft-term loan products to clients buying gasification equipment. The bank has teamed up with gas supplier Overgas to offer the unsecured credits that can range up to 7,000 levs in value and up to 5 years in maturity.
Source: Dnevnik (10.12.2004)

The EBRD will loan-finance with 50 mln euro the purchase of power-saving devices by Bulgarian households, extending the scope of the financial assistance beyond insulation improvements. The household credit scheme will be identical to the financing instrument for industrial energy-saving co-developed by EBRD and the local UBB, Postbank, Unionbank, Bulbank, HVB Bank Biochim and DSK Bank.
Source: Dnevnik (10.12.2004)

The Managing board of Napredak Holding JSC - Sofia convenes an Extraordinary General Meeting of the shareholders on January 17, 2005. The agenda of the meeting includes the following items: 1. Induction of Napredak Holding JSC - Sofia, as a joint debtor over a contract for bank investment credit ¹ 224/November 15, 2004, concluded between Bulbank JSC - Sofia, and Biovet JSC - Peshtera; 2. Issuing a peremptory and irrevocable corporate warrant to Bulbank JSC, covering all the obligations of "Áèîâåò" – ÀÄ to the bank; 3. Avalling of promissory note issued by Biovet JSC - Peshtera in favor of Bulbank JSC - Sofia, 4. Avalling a promissory note issued by Balkan JSC in favor of United Bulgarian Bank JSC - Sofia; 5. Avalling a promissory note issued by Balkanvelo JSC - Lovetch in favour United Bulgarian Bank JSC - Sofia; 6. Avalling a promissory note issued Advance Properties LTD - Sofia in favour of United Bulgarian Bank JSC - Sofia; 7. Other.
Source: State Gazette (10.12.2004)

HVB Bank Biochim opened its fourth regional corporate center Sofia and Southwest Bulgaria. Over the past few weeks, similar centers were also opened in Plovdiv, Pleven and Varna.
Source: Pari (13.12.2004)

Hebrosbank won the award for exclusive contribution to the national programme Children and Football for the second consecutive year.
Source: Pari (14.12.2004)

The 35 Bulgarian banks and foreign credit institutions operating in Bulgaria registered a BGN 335.4 mln profit for the first nine months of this year, according to information provided by BNB, published yesterday. The result for the same period of last year was BGN 294 mln. According to the available information, the most lucrative institution was Bulbank with BGN 69.7 mln of profit, followed by Bank DSK – BGN 52.5 mln, and UBB – BGN 47 mln.
Source: Monitor (14.12.2004)

DZI is the preferred company for insurance in Bulgaria. A poll conducted by the National Public Opinion Centre shows that 16.1% of respondents have an insurance with DZI. Another 6.5% name Allianz Bulgaria Holding, 5.9%, Bulstrad, 1.9%, Vitosha, 1.3%, Bulgarian Real Estate, 1.2%, Orel. Armeets and Victoria have 1% each, Levski Spartak and Bulins, 0.6%. According to the poll results, 35.3% of people would choose DZI for insurance. Allianz Bulgaria Holding is pointed out by 15.0%, Bulstrad, by 9.2%, Orel, by 3.7%, Vitosha, by 2.0%, Bulgarian Real Estate, by 2.0%, Armeets, by 1.3%, Viktoria, by 1.0%, Jupiter, by 0.9%, Levski Spartak, by 0.8%.
Source: Pari (15.12.2004)

Darik Radio declared Petrol JSC for the company of the year in its Golden Wallet competition. The company won among competitors as Yulen JSC and Lindner Bulgaria. The wallet award for bank management was given to Bank Austria Creditanstalt and to HVB Bank Biochim. The Lukoil-Bulgaria’s general director Mr. Valentin Zlatev received the big Golden Wallet prize.
Source: Standart (17.12.2004)

The Managing board of Biovet JSC - Peshtera convenes an Extraordinary General Meeting of the shareholders on January 21. 2005
Source: State Gazette (17.12.2004)

Kurdjali-Bulgartabac JSC starts buying up the 2004 tobacco crop as of Monday, the company’s CEO Mr. Jumer Jumer announced. He connected the delayed campaign start to privatization and financial problems. The money for buy up and tobacco processing have been provided by through a credit granted by Bulbank.
Source: Dnevnik (28.12.2004)

Bulgaria's Biovet of Peshtera has to build its own electricity and heating power plant within a year. This emerged after the State Energy Regulation Committee issued a licence to the company. The term of the permit is 12 years. It will allow Biovet to reduce production costs and become independent from the National Electric Company. Biovet plans to build an 18-megawatt power plant and a 67-megawatt heating utility. It will generate electricity, heating and hot water for the needs of the enterprise. The annual electricity output is projected at 216 mWh, the plant will start operating in July 2005. The investment will amount to EUR 10.5 million. As much as EUR 1 million will be provided by the company itself, the remainder will be borrowed from Bulbank. After the project was announced in the middle of December, Biovet's stock has risen 7.5%. Market players say the company has been long undervalued. During Tuesday's bourse session, Biovet's shares edged up slightly by 0.77% to BGN 6.56 per unit, the maximum price reached BGN 6.80. A total of 1,290 shares changed hands.
Source: Pari (29.12.2004)