Bulgarian banks amassed BGN 1.318 billion in profit from January to November, up 25.8% from the same period of 2007, showed central bank data. The profit is expected to surge to BGN 1.5 billion for the full 2008. Attracted resources switched back to steady growth gaining BGN 90.338 million during the eleven months of the year to BGN 60.186 billion after shrinking by BGN 831.8 million in October as the global financial gloom and doom had both households and companies scrambling to withdraw deposits. In December, corporate deposits dropped by a tiny BGN 40.3 million compared to BGN 924.5 million in October against a respective 12 months before. Such minor fluctuations in attracted resources are an indication of strong confidence in the Bulgarian banking system despite the global financial uncertainty, the Bulgarian National Bank said in a statement. Household deposits made the biggest contribution of 36.2% to banks’ attracted resources. Resources from non-lending companies and institutions accounted for 31%. Resources from lending institutions picked up 3.5% on the month. The combined assets of Bulgarian banks hit BGN 68.8 billion in November 2998, posting a 25% rise over the year and up BGN 164 million on the month after shrinking BGN 737.3 million month-on-month in October.
Source: Dnevnik (05.01.2009)

Changes in the Act of consumers' credits, according to which credit holders can reimburse their loans without a penalty interest, brought confusion in the first days of 2009. In the first business week, a lot of people wanted to take this opportunity, but the bank officers were not familiar with the details. Many of the credit holders had not paid attention to the fact that these changes are only for the newly granted loans
Source: Pari (09.01.2009)

Soaring Prices Eat up Bulgarians' Wealth Soaring prices are eating up the wealth of the Bulgarian people. Last year the savings of the Bulgarian citizens increased only by six percent, compared to 38% in 2007, says a report of UniCredit Group on the wealth of the households in Central and Eastern Europe. Given 7.8% inflation for last year, the soaring prices have eaten up the wealth of the Bulgarians. The poor performance of the Bulgarian companies on the international financial market is the main reason for the high inflation rate in the country, the analysis reads. As a result, the wealth of the Bulgarian households is expected to shrink to 20% of the country's GDP, compared to 34% in 2007. Having in mind the low money-saving rates, the not so favorable economic climate and the credit crunch, this year the Bulgarian households may experience certain financial difficulties, says Debora Revoltella, UniCredit Group Chief CEE economist.
Source: Standart (27.01.2009)

UniCredit Bulbank granted the first part of the contracted loan for the construction of Bulgaria Mall, after the investors in the project Salamanca Capital and LSProperty successfully fulfilled all the conditions for receiving the resources. The investment credit by which the project valued at EUR 220 million is secured, was agreed in early October and provided by UniCredit Bulbank together with Bank Austria. The total amount of the loan is over EUR 100 million. It will be paid in two stages, as the second will be immediately after the completion of excavation works. The whole credit must be used until June 2011. By the granting of the first part of the loan the excavation works are expected to be completed in short term (until the end of April). Bulgaria Mall is located on the crossroad of Bulgaria Blvd and Todor Kableshkov Blvd. in Sofia. The total area of the mall for rent is 63 thousand square meters, 33 thousands of which are for commercial center. The rest area is provided for offices. The commercial center of Bulgaria Mall will be opened for Christmas 2010, and the office part will be ready in the summer of 2011.
Source: investor.bg (11.02.2009)

Factoring specialists admitted that their service is wanted more in times of crisis as factoring companies evaluate the risk both for the seller and buyer, Philip Genov, executive director of UniCredit Factoring, said. The company held 80-90% of the local market by the end of last year. In 2008, this type of financial services reported rise by 30% to BGN 800 million. Clients that use factoring at present are registering higher profits.
Source: Pari (16.02.2009)

Unicredit Bulbank JSC - Sofia has appointed Annual general meeting on 31.03.2009. Meeting agenda includes: adoption of the Annual Report for Year 2008.
Source: Registry Agency (23.02.2009)

UniCredit Bulbank said it has received a BGN 20 million credit line from majority state-owned Bulgarian Development Bank to support micro, small and medium-sized enterprises. Unicredit Bulbank will use the funds to extend loans of up to BGN 2 million for a period of up to 10 years, it said in a statement. The interest rate on the loans will be 8% with a possibility for a grace period of up to three years. The loans will be extended to SMEs for medium- and long-term investments, equipment upgrades, projects under EU structural funds and short-term pre-export financing. UniCredit Bulbank was Bulgaria's biggest lender at the end of December with BGN 11 billion in assets, according to company data.
Source: Darik Radio (05.03.2009)

UniCredit Bulbank will grant a total of BGN 20 million to Bulgarian micro, small, and medium-sized enterprises under the credit line of Bulgarian Bank for Development. The credits are for medium- and long-term investments in the business. The maximum amount a company can get is BGN 2 million for the maximum term of ten years. The interest is 8% and the companies can have up to three years grace period.
Source: Pari (05.03.2009)

Young millionaire Ivo Prokopiev’s impire (publisher of Capital) is falling to pieces. World crisis, unfavorable development on the real estates’ market and half-baked economic strategy of the otherwise ambitious entrepreneur played him a bad joke. The company Alfa finance, where he is a main shareholder is practically insolvent. The acquired shares do not cost even EUR 100 million at present, though they were purchased a year and a half ago for 210 million. It turned up that Prokopiev owes money to several banks, including Unicredit Bulbank, Post bank and DSC. Just to redeem his interest, he needs EUR 10 million. The bad news is that he can’t collect enough from the rent of the properties his company owes. The fist formal sign of bankruptcy is present. Prokopiev’s most ambitious project – the free daily City newspaper was stopped this week. His journalists from Capital and Dnevnik are threatened with dismissal, too
Source: Dobrudzhanska tribuna (06.03.2009)

UniCredit Bulbank signed a EUR 15 million credit line agreement with the European Bank for Reconstruction and Development. The bank will finance energy efficiency and renewable energy projects of local companies. It will lend up to EUR 2.5 million under the programme and offer additional funding for larger projects.
Source: Dnevnik (18.03.2009)

Until a year and a half ago, 60% of applications for credits in Bulgaria were for the purchase of a second home, bankers revealed for Pari daily. In their opinion, people bought housings with the aim to gain speculative profit from the rise of their price. Stiliyan Vatev, CEO of United Bulgarian Bank, said that application for mortgage credits dropped nearly ten-fold for one year. The reason is the serious misunderstanding between the expectations of customers and sellers. The former are waiting for the prices to fall, the latter are waiting for the market to recover and do not drop the prices. Both bankers and brokers, however, notice another tendency: clients become fussier. That is so as no bank at present gives credit for 100% of the property. Next month I expect two types of customers to appear on the real estate market, executive director of CreditCentre Tihomir Toshev comments. The first are those with great deposits and stable incomes that will come on the market in the coming 3-6 months. The second are those who are not included in the statistics as their savings are either kept in cash at home or come from the grey sector. In his opinion, they also seek 20-30% financing from the banks. Brokers expect a wave of housing purchases in a six-month time.
Source: Pari (24.03.2009)

Control over non-bank institutions becomes stricter after the new changes in the Credit Institution Act according to which those that are not licensed or registered under any other act, should be written in Bulgarian National Bank register in order to have the right to operate. The changes, however, do not affect factoring companies in the country. They are a kind of credit institution that buys receivables and offers monetary resources.
Source: Pari (25.03.2009)

Varna Business Park expands AFI Europe from Israel opened its third office building in Varna Business Park, executive director said. This is the biggest investment of the company in Bulgaria. The project includes the construction of a total of 200,000 sq. m for over EUR 200 million. The new building offers 30,000 sq. m office space, which is being rented by big international and regional companies like Siemens, Schneider, E.ON, Porsche Bulgaria, etc.
Source: Pari (30.03.2009)

The whole profit for 2008 of BGN 292 million of UniCredit Bulbank will be reinvested, decided the shareholders. The aim of the decision is the bank to make more loans to businesses and households in what is seen as a tough year for the Bulgarian economy. Despite the global financial crisis, the net profit of UniCredit Bulbank has increased by 14% compared to 2007. The bank will pay taxes of nearly BGN 33 million. In 2008 UniCredit Bulbank became the first bank in Bulgaria with assets of over BGN 11 billion. Their increase compared to 2007 is 21.5%, exceeding the average for the sector of 17.7%.
Source: Insurance.bg (02.04.2009)

Bulgaria’s largest lender UniCredit Bulbank will reinvest the whole of its 2008 profit to the amount of BGN 292 million, chief executive Levon Hampartzoumian said. The move is aimed at enabling the bank to make more loans to businesses and households in what is seen as a tough year for the Bulgarian economy, he explained. Bulbank has halted lending not for a single day and will continue to stand behind its customers, said the lender’s chief operating officer Andrea Casini. The bank posted a 14% rise in net profit and will pay taxes of nearly BGN 33 million. Hampartzoumian said the lev’s peg on the euro has more pros than cons for Bulgaria and so should not be removed. The currency board should be accepted as a necessary evil that brings more stability and predictability of environment than negative impacts. If the government abstains from sizeable spending, the Bulgarian macroeconomic stability will not be endangered, according to the official.
Source: Dnevnik (02.04.2009)

The company is registered in Territorial administration Big taxpayers and insurers towards 2009, 04.30
Source: Tax Administration (30.04.2009)

European Bank for Development and Reconstruction (EBDR) extended a credit line amounting to EUR 50 million to UniCredit Bulbank. The aim of the five-year loan is to support financially the small and medium-sized enterprises in Bulgaria. The credit is part of the joint initiative between EBDR and UniCredit Group for continuing of investments in Eastern Europe and providing financing for real economy.
Source: Pari (08.05.2009)

EBRD, UniCredit pledge over EUR 430m for Eastern Europe The European Bank for Reconstruction and Development (EBRD) will provide EUR 432.4 million to subsidiary banks of Italy’s UniCredit Group in eight countries in Eastern Europe, the institutions said in a statement. The project forms part of joint efforts to resuscitate the region, which was badly hurt by the global financial and economic crisis. Bulgaria will receive EUR 50 million through the local subsidiary of the Italian financial institution, UniCredit Bulbank. The five-year loan will be distributed among companies with up to 249 people on the payroll and a turnover of up to EUR 50 million, the Bulgarian lender explained.
Source: Dnevnik (08.05.2009)

With funds from privileged shares issue, Chimimport will implement its investment plans. During the crisis the company would like to seize the good opportunities opened to acquire perspective business and loans of companies. Financing through the stock exchange is cheaper than credits. The privileged stock issue numbers 90 million at BGN 2.2 per share and with guaranteed annual cumulating dividend of 9%. On the seventh year of the issue they will be transformed into ordinary shares.
Source: Pari (15.05.2009)

Balkan Progetti Management, importer of auto-cosmetics and accessories, will sell properties to pay a bank credit of EUR 2.5 million on overdraft to UniCredit Bulbank. The decision is expected to be taken at the general shareholders' meeting on June 28, 2009. The company plans to delist from the Bulgarian stock exchange less than a year after it was listed. The board of directors will propose the net 2008 profit of BGN 529,000 to be distributed as dividend.
Source: Pari (15.05.2009)

UniCredit Bulbank offers investment credits to small and medium-size enterprises (SMEs) under the programme of the Bank for Development from the Council of Europe. The funds are part of the negotiated credit line worth EUR 30 million between UniCredit Group and Bank for Development. The criteria for the credits are the SMEs to preserve or create new jobs in the branches of industrial construction, water and gas supply etc.
Source: Pari (27.05.2009)

The banking office of UniCredit Bulbank on Rockefeller Str. in Petrich was robbed, police reported. The signal for the breaking into the bank was made at 8.00 a.m. in Monday by the security guard. It is still not clear how many cash-boxes were robbed. It is claimed that the unknown robbers entered in the bank through a tunnel. Several months ago another office of UniCredit Bulbank was robbed in the same way.
Source: Darik Radio (02.06.2009)

BORICA JSC - Sofia has appointed Annual general meeting on 14.05.2008. Meeting agenda includes: adoption of the Annual Report for Year 2007, amendments in the statute.
Source: Registry Agency (15.06.2009)

T he National Guarantee Fund (NGF), which is a subsidiary of Bulgarian Bank for Development, signed an agreement with five commercial banks for portfolio guarantees worth BGN 50 million, Sevtlin Statkov, the fund's executive director, announced. The main goal of NGF is to ease the access of small and medium-sized companies in Bulgaria to credits. It will cover up to 50% of the credit risk and the rest 50% will be covered by the partnering bank.
Source: Pari (24.06.2009)

UniCredit Bulbank economists forecast a 6% decline in gross domestic product in 2009 and another 3% in 2010. It this comes true, Bulgaria's economy will come down to the level of 2007. The worst is still to come, we may hit the bottom in the third quarter of 2009, Kristofor Pavlov commented to the Pari Daily. In his opinion, revival might be registered at the beginning of 2011.
Source: Pari (15.07.2009)

Rating agency Standard and Poor’s has confirmed at BBB the rating of Bulgaria’s UniCredit Bulbank, the lender said. This is the highest possible assessment as a financial institution cannot be rated above the country where it operates, according to S&P rules. Bulgaria is also rated at BBB by the agency. S&P retain the negative outlook on UniCredit Bulbank, also mimicking its outlook for Bulgaria. "UniCredit Bulbank is adequately positioned to withstand the current downturn due to ongoing parental support and its own development and enterprise risk management strategies, which are both more conservative and better developed than the corresponding strategies of its domestic peers", according to the agency.
Source: Dnevnik (31.07.2009)

With assets amounting to BGN 11.4 million UniCredit Bulbank holds the first place in Bulgaria concerning market share with 16.5%. Net profit of the financial institution for the first half of 2009 is BGN 133.4 million, down 13.8% compared to the same period the year before. Capital's redeemability is 18.5% against 11.9% for the entire bank system. By the end of June credit rate of Bulbank rose 15.4% year on year.
Source: Pari (12.08.2009)

The first batch of 150,000 preference shares of Bulgarian industrial conglomerate Chimimport were converted into ordinary shares at the end of last week and the start of the new week, showed data by the Central Depositary. The conversion of three packages of 50,000 stocks each was confirmed by UniCredit Bulbank, the company’s conversion agent. The move is the first of its kind and comes almost two months after the registration of the first capital increase by a new class of shares to combat the crisis performed by a Bulgarian company. The preferred stock entitles shareholders to a guaranteed dividend of 9% of its issue price of BGN 2.22 plus liquidation value. The shares are non-voting but could be converted into common stock anytime within the next seven years at the desire of the holder under specific conditions and with the approval of the issuer. In June 2016 they will be mandatory converted into common stock. Analysts pinned the conversion on perked-up demand for ordinary shares by institutional investors thanks to the higher liquidity and the uncapped investments in new issuances. Despite the preferences, the two types of stocks trade even at the moment, both closing flat at BGN 2.61 yesterday. Analysts explained that as the dividend payout, scheduled for mid-2010, approaches, the preferred stocks will gain more weight. The capital hike from May and June fetched a total of BGN 199 million as investors subscribed for 89.646 million shares.
Source: Dnevnik (19.08.2009)

BNB Sets Record Low Basic Interest On September 1, the Bulgarian National Bank (BNB) set the basic interest rate at the record-low 1.57%, against 1,71% in August. This has been the lowest basic interest rate since the fall of communism. Economists say such a record low level of the basic interest rate could be a positive sign of revitalization of the financial market in Bulgaria. The interests on bank loans will go down in the economic situation in Bulgaria returns to normal, says Levon Hampartsumyan, CEO of Unicredit Bulbank. "The interests on bank loans are hardly likely to reach their pre-crisis levels soon," Mr Hampartsumyan added.
Source: Standart (02.09.2009)

Assarel-Medet wins Pari daily's big prize Assarel-Medet won Pari daily's big prize for socially responsible company of the year. Prize winners in the five categories are Roca Bulgaria (responsibility towards environment), Stomana Industry (responsibility towards employees), Eurobank EFG (ethical business behaviour with stakeholders), AstraZeneca (participation in projects with long-term social effect) and DSK Bank (charity).
Source: Pari (25.09.2009)

Currency Board Protects Bulgaria from Rise in Bad Credits "The currency board that functions successfully in Bulgaria is holding back the levels of bad credit," UniCredit Group Head of Central and Eastern Europe Banking Operations Federico Ghizzoni told journalists during an international media meeting in Milano. Mr Ghizzoni explained that the stability of Bulgaria's currency board had protected Bulgaria's national currency - the lev (1 euro = 1.95 levs) - from devaluation and thus prevented Bulgarian households and companies from getting into any serious trouble repaying their credits.
Source: Standart (30.09.2009)

EUR 10 to 15 per sq. m rent in Pearl Park Mall The monthly rent in Sofia's Pearl Park Mall will range between EUR 10 and 15 per sq. m. The price is three or four times lower than in other malls. More than 50% of the commercial space has been rented out already. The mall will be officially opened in March 2010. The project was financed with a loan from UniCredit Bulbank but the exact investment was not announced.
Source: Pari (01.10.2009)

Bulgaria Loses BGN 83 Billion Due to Crisis The global crisis pinched off BGN 83 billion from Bulgaria's households, mainly due to the crash in real estate prices. "This amount represents 130 percent of Bulgaria's GDP," UniCredit Bulbank senior economist Kristofor Pavlov said in a roundtable discussion at the Euromoney Regional Finance and Investment Conference for South East Europe. "Ever since the beginning of the crisis, property prices in Bulgaria slid by 24%, and continue to dip," he added. In Pavlov's opinion, a recovery is likely no sooner than the second half of next year, when GDP is expected to go up. But still, UniCredit Group see a 2.5% downturn in Bulgaria's economy at the end of 2010. The crisis will grow to be felt as even more painful next autumn due to a rapid surge in the rates of unemployment. Unemployment will reach its peak 12 months after the Bulgarian economy "hits the bottom," which is currently the situation. This means that the loss of jobs will continue to reach its peak at the beginning of next winter, the economist explained. The crisis increases the savings of the Bulgarian households, which now put aside some 6%-7% of their incomes. Data shows that in Bulgaria an increase of the savings by 1% usually results in a drop-down of BGN 300 million in the GDP, which means that the country's GDP goes down by 0.5%. The credit spread is narrowing which is another manifestation of the crisis. In the past months of 2009 the newly granted credits are by 70% less than they were in the same period of 2008. Most of them are actually re-negotiated existing loans which means that the current credit rates stand at 0%. The reason for this is not to be searched in the banks, which can ensure a credit growth of some 5%-6%, but in the low demand for credits, commented the expert of UniCredit Bulbank. The start of getting out of the crisis will happen where the crisis itself began in Bulgaria - the industry and not the domestic demand, experts from the bank believe. The sectors which will lead the economy out of the crisis will be agriculture and food productions, also the textiles and furniture industries. The main impulse for development will come from the development of infrastructure - the construction of roads and highways as well as the absorption of EU funds. Economists have calculated that if Bulgaria manages to absorb 100% of the planned EU funds for the country by 2013, the economy growth resulting of absorption of EU funds will be 4% every year.
Source: Standart (21.10.2009)

UniCredit Bulbank is the best bank in Bulgaria in the area of cash management, the ranking of the international magazine Euromoney shows. Every year it rates the best financial institution in the area of cash management. In addition to UniCredit Bulbank in Bulgaria, UniCredit Group won the leading position for management of liquid resources in Austria, Croatia and Slovenia via its branches in those countries. The cash management services that UniCredit Bulbank offers were assessed by leading international and Bulgarian companies in the food industry, insurance, financial services, telecommunications and other sectors. A total of 13,000 companies participated in the survey. The ranking is based on special criteria in the same way as the Bank of the Year ranking organised by the Pari daily, UniCredit Bulbank's CEO Levon Hampartsumyan said. That is an objective assessment. UniCredit Group and its banks are among the most innovative, capable and efficient institutions in the field of cash management for companies regardless of their size. The good management of liquidity is of primary importance in our attempts to support the business and development of our partners, Sergio Ermotti, deputy CEO of UniCredit Group responsible for corporate and investment banking, said.
Source: Pari (29.10.2009)

Agriculture scooped up the lion’s share of the increase in loans given by Bulgarian banks in the third quarter of 2009, showed central bank figures. The runner-up in terms of lending growth was the hotel industry, with trade snapping at its heels. The farming sector saw an increase to the tune of BGN 93.7 million, with the hotel industry and trade posting BGN 77 million and BGN 71 million, respectively. The reshuffle comes after two quarters when construction, the hotel sector, professional activities and scientific research dominated the rise in banking loans. Loans made to the processing industry staged a second month of decline after picking up between January and March. Expectations that after the burst of the property bubble investment will be channeled to the industry did not materialise even though the mining and quarrying sector saw lending surge by roughly BGN 14 million. The combined business loan portfolio of Bulgarian banks added up to BGN 30.818 billion at the end of September, with the average at BGN 237,000. The volume swelled by 1.1% from the previous quarter and 3.4% on an annual basis. Euro-denominated loans again sliced off a larger share, reaching 72 percent of the total portfolio. The finger of blame for the anemic growth in lending is put on soft demand, UniCredit Bulbank said earlier this week at the presentation of the group’s quarterly report on the banking sector in Central and Eastern Europe. UniCredit Group does not expect immediate rebound of lending against the backdrop of forecasts that the economy will be slow on the road to recovery to growth rates close to the potential rates.
Source: Dnevnik (11.11.2009)

The cash BG Agro will raise from its initial public offering on the Bulgarian Stock Exchange will be invested in energy projects, the chairman of the company's board of directors, Nenko Nenkov, told the Pari daily. The bulk of the money will go to the construction of a big wind park. We are still buying land for the project, he added. The company will offer up to 8,071,488 shares. The price will be determined under a book-building method by lead manager UniCredit Bulbank. The offering will be successful if at least 4,035,744 shares are sold. We expect the issue to be successful, because our business in not cyclical, Nenkov pointed out. The company's free-float will be at least 10%. BG Agro expects to raise BGN 10 to 15 million from the flotation. Pari daily reckons that the subscription will be opened on November 23 and continue for four business days. BG Agro sales slumped 33.3% in the first nine months of 2009, the consolidated report of the plant protection chemical and fertiliser distributor shows. At the end of the September they stood at BGN 47.2 million, compared with BGN 70.7 million a year earlier. Total income dropped 31.8% year on year and turnover declined to BGN 49 million in Jan-Sep. Total operating expenses registered a 30.9-percent drop to BGN 44.25 million at the end of September. BG Agro nine-month profit fell 29.7% on an annual basis to BGN 4.3 million. A year ago the profit stood at BGN 6.1 million.
Source: Pari (16.11.2009)

Properties’ prices will stabilize after a 5-10 % decline Prices of properties in Bulgaria are to drop by 5-10 % in months to come. After that lasting stabilization will follow. The process of decline’s retardation in premises’ value is actual. During the last three months real estates’ prices have decreased by nearly 4%. Specialists forecast that interests of credits and deposits are to fall. The process will be gradual and is expected to start next year. As early as 2012 interests will reach their value of 2008, in the period before the start of the economic crisis. This is to say that their level in debts will drop from 11.67 % to 9.8 % on the average, while in deposits the decrease will be from the present 5.22 % to 3.94 %. In the next ten years there will be no such interests as those in the period 2005-2007. In financial experts’ opinion 2010 will be the hardest for Bulgarian banks. In the second half of that year the peak of unattended credits will occur. For such are considered those which are not repaid for more than 90 days. They are expected to be 10 % of all credits. Losses for financial institutions will reach BGN 3.7 milliard till the end of the year. Bank sector’s recovery will be a long process, which will start in 2011.
Source: Stroitelstvo Imoti (16.11.2009)

Mortgages More Affordable in Bulgaria Housing loans are going cheaper in Bulgaria. As a result of the pressure on the commercial banks to cut down the interests on their loans, the mortgage plans have become more affordable. The latest decrease of the interests comes in the form of a preferential mortgage offer by UniCredit Bulbank, just days after Finance Minister Simeon Djankov's meeting with representatives of the Association of the Bulgarian Banks. Meanwhile, a rumor has been going on that the money from the fiscal reserve will be deposited in commercial banks, following a publication of Financial Times. The government planned to deposit about one billion leva, or 12 per cent of the fiscal reserve, with Bulgarian subsidiaries of foreign-owned banks in an attempt to lift the economy out of recession, FT quoted Djankov as saying. This information was later refuted by Bulgaria's Finance Ministry. "Minister Djankov's quote is an old one and it is no longer up-to-date. The focus of the Finance Ministry is now on balancing the 2009 Budget and passing the 2010 Budget bill," the ministry's press service said in a statement.
Source: Standart (17.11.2009)

Sofia Seeks Quick Euro Adoption "Unfortunately, there is some fatigue in the old member states, some concentration on internal issues and less and less willingness to open the door to new members. We are now in a position of shooting at a moving target," Bulgarian National Bank (BNB) Governor Ivan Iskrov said during a discussion on the challenges to the adoption of the common European currency, Euro, organized by the Open Society Institute in Sofia. Mr. Iskrov went on to say that Bulgaria was trying hard to meet the technical requirements for Eurozone entry, bur added that there were no explicit requirements for entering the pre-Euro exchange rate mechanism ERM-2. "The government is planning to file an application for ERM-2 entry at the beginning of 2010 and I am sure that the governing council of Bulgarian National Bank will support such a move," Mr. Iskrov said also. "Together with the government we will do everything possible to convince our European partners that the answer (to Sofia's application) has to be "yes", that the time has come and that it is our right and obligation (to join the Euro Zone) and not a privilege," Iskrov said. Iskrov said the central bank cannot commit to a target date for the adoption of the euro because, to his words, the process was very complicated, especially behind the curtain. Had it been for Sofia's will alone, we would have adopted the euro long time ago, but such a decision is not unilateral and Sofia is thus dependent on the political will of the Euro zone member states," he went on. "According to surveys of the European Central Bank, in the first years following the adoption of the Euro by a EU member state, inflation rate tends to be lower than it was before the adoption of the common European currency," Mr. Iskrov made it a point.
Source: Standart (08.12.2009)

Bulgarian-American Credit Bank (BACB) will issue bonds to refinance debts and finance its credit portfolio. This is BACB's seventh mortgage bond issue, the financial institution said. UniCredit Bulbank has been chosen as lead manager of the issue. The flotation will amount to EUR 15 million at par value. It will have a term of three years with maturity date set on December 7, 2012. The bonds are secured with BACB mortgage loans. BACB's profit slumped 45.5% to BGN 23.9 million for the nine months of 2009. The main reason is devaluation of financial assets to BGN 24.7 million, compared with BGN 5.8 million for the year-ago period. Assets for sale brought a BGN 262,000 loss while the previous year they secured a BGN 1,000 profit.
Source: Pari (10.12.2009)

Bulgarian American Credit Bank, a unit of Allied Irish Banks, has issued EUR 15 million three-year mortgage-backed bonds, according to a bourse announcement. The bonds mature on December 7, 2012 and have an annual fixed coupon of 7.50%, payable every six months. The arranger of the issue is Unicredit Bulbank. Debt issues are an established means of financing for the Bulgarian lender, but this year it launched a foray into the deposit market as international capital markets stagnated and domestic banks scrambled for somewhat depleted local currency resources amid the crisis. It started to offer deposits to businesses and individuals under conditions that surpassed the average for the market.
Source: Dnevnik (10.12.2009)