Five Italian lenders are featured in the list of the most endangered eurozone banks in terms of sovereign debt, it transpires from reports in the Italian media. The chart reflects the ratio between the base assets of each bank and their exposures to risky bonds from PIGS (Portugal, Ireland, Italy, Greece and Spain) countries. Italy’s Banca Monte dei Paschi di Siena is placed on top with vulnerability ratio of 382.8%. Next comes the Spanish BBVA with 234.5%, followed by French-Belgian Dexia with 234.4% and Portuguese Banco Comercial Portugues with 210.8%. The fifth and the sixth positions are reserved for Italian lenders Banco Popolare and Intesa Sanpaolo with 183.1% and 180.1% respectively. Banco Popular Espanol ranks seventh with exposure ratio of 170.7%. Italy’s UniCredit is placed on the eight position with 143.4% (EUR 52.6 bn worth of PIGS exposures against base assets of EUR 36.4 bn). Banco Santander is ninth with 133% and UBI Banca is in the bottom with 103.6%.
Source: Duma (03.01.2012)

Economists: Lower VAT as of July 2012 An analysis of UniCredit Bulbank recommend to Bulgaria's cabinet to reduce VAT as of July 2012. Chief economist of the bank Hristofor Pavlov maintains that due to the positive effect of the measures for collection of taxes in Bulgaria, the cabinet may allow itself to reduce the VAT. It is also expected that from the middle of the year the interests on the credits for business could be also lowered due to the drop in the price of external financing which the banks use. The analysis was presented at a meeting of the Euroclub of the Bulgarian Chamber of Commerce and Industry on the occasion of Denmark's taking the EU Presidency. The analysis recommend to the cabinet to emit enough quantity of new debt in the middle of 2012 in order to support the fiscal reserve. The expectations for a drop in the rate of unemployment are that this becomes a fact as of 2013.
Source: Standart (11.01.2012)

Companies to start unblocking their investment projects in the middle of the year Companies in the country will start unblocking their investment projects in the middle of the year which will stabilise the employment rate, according to an analysis of UniCredit Bulbank, presented by the bank's Chief Economist Christopher Pavlov, at a meeting of the EU Club with the Bulgarian Chamber of Commerce and Industry. The report stated that the willingness of investors to take risk will begin to recover and capital inflows to the country will increase, albeit slowly. According to Pavlov, a permanent growth in employment will become a fact after 2013. Higher expectations of a favourable outcome of the debt crisis and the lower risk that Greece will abandon the Euro will send a clear positive signal to Bulgarian companies and households. People will start changing their behaviour over the year and the purchase of durable goods will not be postponed for as long as it has been until now. There are forecasts that the demand for loans will start recovering as well, compared to the unsatisfactory level at present. The ideas as to what level of financial leverage might be regarded as sustainable will evolve in a positive direction, thus further decreasing the pressure on households and private non-financial corporations to continue reducing their liabilities, stated the Chief Economist of UniCredit Bulbank.
Source: Class (12.01.2012)

Software development company Bianor has opened the reports season with a loss for the last quarter of 2011 amounting to BGN 41,000, the company’s report published on the BSE website shows. A year earlier the company registered a profit of BGN 26,000. In the end of the first quarter of 2011 an agreement for a revolving loan was concluded between UniCredit Bulbank and Bianor Services. According to its conditions, the subsidiary company could take advantage of an up to EUR 400,000 revolving loan distributed in two tranches for circulating capital needs (including salaries). Bianor Holding’s debts to bank and non-bank financial institutions decreased BGN 245,000 on an annual basis to a total of BGN 1.34 million by end-December 2011.
Source: investor.bg (20.01.2012)

Banks with Bulgarian capitals will increase their influence on the banking market in 2012, UniCredit Bulbank has forecasted. Foreign financial institutions that had gained an 84% share on the Bulgarian market in terms of assets in 2009 have reduced it to 77% in 2011. UniCredit noted that a further decrease of their share to 75% was likely in 2012. The reshuffle is no surprise as such a tendency has been observed for the past 3 years. Last November a Bulgarian bank – First Investment Bank (Fibank) ousted Postbank as the fifth largest financial institution on the Bulgarian market. Thus the five major Banks operating in Bulgaria became UniCredit Bulbank, DSK Bank, United Bulgarian Bank, Raiffeisenbank and Fibank. Postbank was ranked sixth, followed by Corporate Commercial Bank (CCB). International Asset Bank that is assumed to be a bank with Bulgarian owners has outstripped Bulgarian American Credit Bank (BACB). Central Cooperative Bank occupies the 10th position, while the state-owned Bulgarian Development Bank (BDB) assumed the prestigious 14th position. Other banks with Bulgarian capitals are Investbank, Municipal Bank and Teximbank. These are the banks that are expected to issue 25% of credits in 2012. UniCredit Bulbank has also forecasted that the assets of the five largest Bulgarian financial institutions would be reduced below 50% of the total assets of the bank system for the first time in 2012. UniCredit’s Chief Economist Christofor Pavlov told Investor.bg this would happen mainly due to Greek banks operating in Bulgaria. UniCredit also expects that the growth of crediting would intensify to 3.1% in 2012, while there will be a particular slowdown for deposits.
Source: Monitor (20.01.2012)

Bank profits decrease to their 2005 levels At the end of last year, the profits of banks in the country returned to their 2005 levels, according to data of the Bulgarian National Bank. Banks ended the year with positive financial results of BGN 586 mln. A similar result was recorded six years ago – BGN 584 mln, but in all other years of the mentioned period profits were higher. Overall 9 out of 31 banks in Bulgaria reported losses. In 2011, Alpha Bank recorded the greatest negative result of BGN 44.05 mln, followed by the Bulgarian American Credit Bank with BGN 34.21 mln. The Emporiki Bank ranked third with a loss of BGN 11.25 mln. UniCredit Bulbank achieved the largest profit of BGN 232.04 mln. The difference between the first and the second bank in the ranking was BGN 146.7, since DSK Bank reported a positive financial result of just BGN 85 mln, followed by Corporate Commercial Bank with BGN 60 mln. The practice of saving money for a rainy day, however, continues. Households and companies deposited the total of BGN 1.4 bn in the last three months of 2011 and the amount of BGN 2.6 bn in the entire 2011. Thus the share of the local resources in the total attracted capital of banks increased and at the end of December 2011 it stood at 80.7%.
Source: Class (01.02.2012)

The Smarts won the competition announced in January for a new advertising agency of UniCredit Bulbank and will serve the bank next year. The Agency presented the best creative concept among other contestants - Reforma, NextDC, Saatchi § Saatchi and Grey Bulgaria. None of the bidders in the pitch has had any experience in the banking business to the sole exception of Grey, which has been servicing UniCredit Bulbank over the last couple of years. Duration of the contract between the financial institution and The Smarts is set at 1 year and there is an option for extension.
Source: Capital (08.02.2012)

Friederike Kotz will replace Dieter Hengl as member of UniCredit Bulbank’s Supervisory Board, it was decided at an extraordinary general meeting of the bank’s shareholders. Kotz will also enter the bank’s Audit Committee. The reason for the replacement was the choice of Hengl as member of the Management Board of Bank Austria. Since the beginning of 2011 Mr Kotz has been the head of CEE Risk Control at Bank Austria. He begun his career at Bank Austria in 1986.
Source: Standart (02.03.2012)

NRA sells former factory Steel Tubes in September The Sofia office of the National Revenue Agency announced an auction of the former factory Steel Tubes in the city in Septemvri. The property includes nearly 490,000 square meters of land, divided into four plots, one of which has 23 buildings - administrative, residential, bus stations with waiting room, garage with charging station, auto-scales, construction and repair shop, 4 warehouses, pumping and treatment plant. In the remaining three property plots there is built railway line to Septemvri. Bidding will start at BGN 7,470,715. Inspection of property can be made from 19 to 23 of March, the review of the proposals is scheduled for March 27.
Source: Dnevnik (20.03.2012)

Some 54% more millionaires in Bulgaria for the last two years The number of wealthy Bulgarians is increasing despite the economic crisis. This fact was confirmed by experts of UniCredit Bulbank in a presentation of the current trends in private banking. According to official data of the Bulgarian National Bank, deposits of over BGN 1 mln in late December 2011 numbered 533 compared to only 360 two years ago. This is a growth of 54%. In fact, a total of BGN 1.3 bn were held in these accounts or 50% more that two years ago. The volume of deposits of the wealthy Bulgarians has also increase substantially: current accounts of more tha BGN 200,000 number 4,467 vs a total of 3,037 in December 2009 (45% growth) . Overall BGN 3.3 bn were deposited in their accounts versus some BGN 2.3 bn compared with December, which was a 42% growth for the period). There is an incrase in the number of savings deposit accounts holding more than BGN 500,000. As of December 2011, they reached 1043 compared to 783 two years ago. The overall amount of the deposits held is BGN 726 mln compared to BGN 555 mln at the end of December 2009. It turns out that some 11% of the total of all deposits in the country are held within accounts worth more than BGN 200,000 According to Ivan Dzhonov, Director of UniCredit Bulbank Private Banking, the main reason for the growth of deposits both in number and in amount was predetermined by the interest rates. The positive growth of the deposited funds of the wealthy clients was also influenced by the fact that company owners have reallocated their profits or dividends generated by their business activity into their personal accounts. During the crisis, rich people in Bulgaria and Europe, reduced their risk exposures and withdrew from the stock and bonds market. Some of the Bulgarian millionaires sold their real estates, while others did not manage to do so successfully and currently have highly illiquid assets. Another change that was registered was the suspension of offshore banking operations. Besides, outflow of capital from Cyprus was reported, commented Dzhonov. According to the last estimates, however, the positive growth in private banking will continue, although not at the same pace. The share of financial instruments is expected to increase at the expense of the deposits volume. "Furthermore, interest in investment instruments is slowly being restored," indicated the expert.
Source: Class (20.03.2012)

Some 150 brands to compete for "The favorite brands" in Bulgaria award Some 150 domestic and foreign brands listed in 25 categories are competing in the contest "The favorite brands" organised by the Bulgarian magazine BUSINESS LADY. The first part of the ranking ended this Tuesday, while each section top ranked 6 brands with the most nominations. For the first time, the chart list included two companies involved in the production of bioproducts. These are the brands Balev Bio Market and Harmonica. A second contest round was scheduled for April 02 -12, 2012. At www.mylovemarks.eu, each Internet user can vote in each category for a maximum of three of the six brands in the 20 categories. Internet users can nominate or vote, by confirming their selection via a link e-mailed to them automatically at the indicated e-mail address. The unconfirmed votes will not be taken into account. The selected 75 brands will compete at a third stage ( April16 - 26 2012) in the fight for first, second and third top ranks in their category. In the latter stage of the ranking, the Internet surfers will vote for one of the 3 brands in each category, while the voting will end with a special ceremony on April 26, 2012. The Grand Prix and the title "Favorite brand for 2012" will be awarded to the product, which received the most votes. For the first time this year, the contest included the category Television, where bTV, NOVA, TV7, Television, Fox Life, National Geographic are competing. Besides, the section of print media dropped out. Bulgarians top rated six insurance brands involving Allianz, Armeec, Victoria, Bulstrad, DZI, BulIns, while the competing banks comprise DSK, UniCredit Bulbank, First Investment Bank, Alpha Bank, UBB and Raiffeisenbank.
Source: Class (29.03.2012)

U.S.-based solar project developer SunEdison said on Thursday it has completed a 155 million euro ($206.7 million) non-recourse debt financing arrangement for the construction of a 60.4 megawatts-peak solar power plant in Bulgaria. The International Finance Corporation (IFC) has provided 46.1 million euro and mobilised an additional 41.1 million euro from UniCredit Bank Austria through a syndication loan, while Overseas Private Investment Corporation (OPIC) extended $50 million (37.5 million euro) parallel loan, SunEdison said in a statement. Bulgaria's UniCredit Bulbank has further provided a local currency VAT facility worth 58.7 million levs ($40 million/30 million euro). The solar power plant will be built on 100 hectares at Karadzhalovo, in southern Bulgaria, and will have 42 photovoltaic blocks of variable capacity. In the first full year of operation, the system is expected to generate sufficient energy to power 27,000 homes. All of the generated output will be sold to Bulgaria's national electricity company, NEK, under a 20-year power purchase agreement. The project was launched in September last year and was interconnected in March. SunEdison said it expects to complete the sale of the equity of this power plant in 2012. “The investment in Karadzhalovo is our largest single solar financing to date,” the statement quoted IFC director for Europe and Central Asia Tomasz Telma as saying.
Source: Capital Dàily (30.03.2012)

Our homes depreciate by BGN 12.6 bn in a year Residential property purchased with private funds or credits, depreciated by 12.65 bn in the last year. At the end of 2011, these assets stood at BGN 207.9 bn, compared to BGN 220.6 bn in December 2010, showed an analysis of the wealth and liabilities of households, conducted by UniCredit Bulbank. In general, however, the financial wealth of Bulgarians increased by a record figure of BGN 4 bn in 2011. In the last quarter of the year alone it surged by BGN 1.8 bn to the amount of BGN 19.2 bn. This was primarily due to the bank deposits, which jumped by BGN 1.4 bn in the period September - December. According to the analysts of the bank, deposits recorded a double-digit annual growth in the last quarter of 2011. By the end of December, these were 77.3% of the total financial assets. Only in a year, the savings increased from a total of BGN 27.34 bn to BGN 30.88 bn. Deposits in the national currency (BGN) increased nearly four times faster than those in foreign currency and even outstripped them. By the end of 2011, deposits in BGN exceeded the amount of BGN 15.5 bn, showed the data further. The great increase in the savings in BGN is due to the higher yields. Along with the increase in savings, the population continues to settle its debts - by the end of 2011, debts came below 52%, compared to the record figure of 71% in early 2009. "Liabilities are expected to decrease to about 47% at the end of this year, and to start stabilizing in 2013 at the earliest," said Milen Kasabov, senior economist at UniCredit Bulbank.
Source: Class (06.04.2012)

Banks with Bulgarian shareholders continue increasing their market share in contrast to subsidiaries of big European banks, BNB data for the fourth quarter of 2011 shows. From the end of 2010 to the end of 2011 the share of local banks has grown by 4.2% to 23.5% of the Bulgarian market. The market share of foreign banks in end-2011 is 69.7% compared to 73.7% from a year earlier. The main reason for that is the fact that many local banks have been funding big projects and deals in recent years. The banks which have increased their market share the most are the Corporate Commercial Bank (CCB) by 89.7%, the First Investment Bank (FIB) by 52.3%, and the Central Cooperative Bank by 41.29%. Those figures did not come as a surprise as a great part of the energy companies in Bulgaria have deposited the bulk of their money in the CCB, while it grants them loans. FIB on its part funds a lot of projects for the ski tracks in Bansko, as the concession company Yulen is associated with one of the shareholders of FIB, Tseko Minev. At the same time subsidiaries of European banks in Bulgaria are affected by the crisis which hit their parent companies. At the end of 2011 only UniCredit Bulbank and Societe Generale increased more substantially their market share, while the rest of the banks saw only a modest growth.
Source: Sega (09.04.2012)

Bulgarians pay their debts to the state in 14 banks without being charged transaction fees Bulgarian citizens will now be able to transfer payments to government institutions at the ATM terminals in 14 Bulgarian banks without being charged any transaction fees. Unicredit Bulbank, CIBANK, UBB, International Asset Bank, Municipal Bank, CCB (Central Cooperative Bank), Bank D, FIB (First Investment Bank), DSK Bank, CCB (Corporate Commercial Bank), Tokuda, Allianz, Reiffeisen Bank and Invest Bank have already signed the framework contract with the Ministry of Finance (MF) on the payments and collection of revenues via card payments, announced the Ministry of Simeon Djankov. MF representatives said that, in the near future, several Bulgarian banks are expected to join the initiative. In the coming months, according to the already set schedules, all ministries, their territorial entities and municipalities, as well as the NHIF (National Health Insurance Fund) and universities will have to provide devices for bank card payments. The negotiations with commercial banks were held for nearly a year, while the project was monitored by the Vice Finance Minister Vladislav Goranov. As early as a year ago, he explained that, according to estimates of the MF, the costs of bank fees incurred by the budget will be much lower than the financial benefits to citizens and the increased collectibility rate. At the same time, the price conditions of the transaction service are the same for all banks which signed the framework agreement. The financial institution will be charged BGN 0.55 per transaction, regardless of the amount transferred and BGN 0.25, VAT excluded, per month for using a single ATM device. In practice, the citizens who pay state fees, taxes or fines will no longer spend money on bank transfers or over-the-counter charges, which reach BGN 3-4. The Ministry of Finance has not yet estimated as to how much this will cost the budget because no one knows really what interest people will show, as well as the exact number of transactions.
Source: Class (21.04.2012)

Real estates of the woodwork and doors producer Dograma have been offered for public sale, it transpires from the register of private enforcement agents. The reason was a debt to UniCredit Bulbank of its related company Btex that has already been declared bankrupt. The assets were pledged as security under the loan. In spite of the tender announcement Dograma was operating as usual and its turnover even exceeded last year’s levels, the company’s manager said. The private law enforcement agent Tanya Madzharova believes that even though the real estates were located at attractive destinations it would be difficult to find buyers due to the price of over BGN 3 million. She was selling other real estates in Burgas due to the debt of Btex to UniCredit, belonging to Veno Holding. Veno Holding is the owner of Btex and the main shareholder at Dograma. Madzharova explained that UniCredit did not have the policy to buy the real estates of its debtors, while if there were any serious investors they would first contact the bank or the owners of the real estates and only afterward present an offer for the tender.
Source: Capital Dàily (10.05.2012)

Mall Galleria Burgas opens today The project is assessed to EUR 76 million, while funding has been insured by a syndicated credit between European Bank for Reconstruction and Development and Unicredit Bank Austria. Mall’s construction started in November 2009. It will dispose with a total demised area of 35 000 square meters. It will comprise 52 shops, a supermarket with an area of 4 653 square meters, eight restaurants with a total area of 534 square meters, as well as a dining room-637 square meters, a separated restaurant (921 square meters, a cinema with nine cinema halls, service facilities for administrative and technical staff, storage areas and a covered parking. Thus in 2012 Bourgas will rank second in number of newly opened malls in the country. Besides Galleria Burgas, till the end of the year Strand Burgas is expected to open. The latter will have three levels on a total area of 300 thousand square meters. Mall Galleria Burgas is being constructed by a technology, with which it pretends to be the sole ecological shopping and entertainment center in Bulgaria.
Source: citybuild.bg (15.05.2012)

Georgi Gergov has pledged the assets of the Plovdiv Fair against a EUR 14.7 million loan from UniCredit Bulbank in June 2010, data in the Commercial Register shows. In the frames of the deal Gergov’s company Puldin Tourinvest, that is the majority owner of the fair, was a guarantor for the loan, while the sum drawn was equal to the stake of Puldin at the fair or slightly over 50% of its capital. In the coming days the Supreme Court of Cassation should rule on an appeal of the state against the decision of the Plovdiv Appellate Court to leave the fair in the hands of the businessman. On 7 May Gergov concluded a deal, practically with himself, placing the entire control of the fair in his own hands without considering the state stake.
Source: Standart (06.06.2012)

Bankruptcy of tour operators' Alma Tour has entered a new stage. Because of nonperforming bank loans the company which was declared bankrupt last September, is about to part with one of the most valuable assets - apartment and hotel complex Templar in Bansko. The property is offered for public sale by a private bailiff with a starting price of BGN 17.4 million .Offers shall be accepted until June 19. Hotel Templar is owned by Alma tour hotel Templar. It was acquired by Alma Tour BG in 2007 with the intention of the then owner Lubomir Pankovski to develop the investment, building apartment area, waterpark, conference center and other sites.
Source: Capital (14.06.2012)

Bulgaria's dominant factoring company UniCredit Factoring said on Tuesday it appointed Asya Baeva as its new chief executive officer. Baeva will replace Filip Genov, who will serve as business development director in the marketing department of Italy’s UniCredit Factoring, the Sofia-based company said in a statement. Baeva has worked for more than 16 years in banking - in corporate strategy, planning and sales management. Bulgaria’s UniCredit Factoring was set up in 2006 through the spin-off of the factoring division of local UniCredit Bulbank.
Source: econ.bg (20.06.2012)

Bulgarian company Elia will perform the energy part of the KCM – Plovdiv’s project, to build a new lead factory on the territory of the company. The order is assessed to nearly EUR 9 million. The company has been selected after a contest in competition with three other candidates - Enemona, Risk Engineering and Star Engineering has been held. The site will be constructed with SAT’s partnership. The term for completeion of contract is October 2013. The whole plant is to start work by January 1 2014. Modernisation in KCM started in March. The new facilities will be built to replace the old plant without disrupting production. Existing eight furnaces will be replaced by one, which will significantly reduce energy costs. By replacing coke with coal and natural gas as fuel, the company expects to slash greenhouse gas emissions - up to 24 thousand cubic meters, as compared to the present 300 thousand cubic meters.
Source: Capital (21.06.2012)

After a long period of decreasing sales, Bulgarian producers of icre-crea are expecting better results and head to new investment. Ice-cream producer Izida has invested BGN 650 thousand from the strat of the year, which increased volume of production by about 15%. Money is invested in machinery for new products and refrigerators for commercial network. Another ice-cream producer Veliko Turnovo based Deny plans significantly expand its production by building a new factory in nearby Debelets. Investment will be over EUR 2 million and the project will be completed within two years. Company is expected to open 100 new jobs. Capacity of Deny to grow to four times
Source: Capital (22.06.2012)

Subsidiary of the German concern for industrial automation Festo plans to double its production and warehouse space in Sofia by the end of next summer. This will result in doubling of jobs in the plant. The investment is assessed to EUR 10 million and is funded by an inner credit from the parent company. The new building will be situated on the territory of the existing company, which disposes with 30 thousand square meters in Druzhba district. Construction is to start in September and is to finish till the end of Augist 2013. One reason for the extension is that production areas are already fully occupied, and the company expects orders to continue growing. The production of the Bulgarian unit is very specialized and behind the term "magnetic sensors" stand actually important elements in pneumatic cylinders which signals to the control units of the machines. Festo Production sells their produce directly to the parent company and only a small portion placed on the Bulgarian market through a commercial firm Festo.
Source: Capital (22.06.2012)

Bulgaria’s economic growth to "cool down" to 0.5% Bulgaria's economic growth will be 0.5% this year and just 1.5 % in 2013, given that GDP growth reached 1.7% last year. The figures are from the last quarterly economic analysis of the countries from Central and Eastern Europe, prepared by the analyst team of UniCredit Bulbank. In practice, the bank has revised its growth forecast three-fold - from 1.5% at the beginning of the year. According to the report of UniCredit Bulbank, Bulgaria's GDP will amount to ˆ39.4 bn this year and it will reach ˆ40.8 bn in 2013. In the first quarter of 2012, GDP growth slowed down to almost zero after exports lost their positions. Following the signals of a slowdown in the Eurozone and in the global economy as a whole, Bulgaria seems to lag behind, compared to other countries in Central and Eastern Europe. Suppressed domestic demand due to reduced indebtedness and an unfinished adjustment of the real estate market is deemed to be the main reason for this development. The country’s large exposition to Greece is also considered an obstacle to recovery, experts reported. UniCredit’s estimates are slightly more pessimistic than those of another large financial institution in the country. Only ten days ago, Raiffeisenbank (Bulgaria) confirmed its forecast for 1% GDP growth in 2012. Latest World Bank’s figures indicate an economic growth of 0.6% for 2012 and a stronger acceleration of 2.5% and 3.3% in 2013 and 2014, respectively. In the spring, IMF experts adjusted downwards their growth assessment - they expect the country’s GDP to increase by 0.8% in 2012, instead of the 1.3% reported before.
Source: Class (22.06.2012)

Bulgarian flexible packaging manufacturer Plastchim-T will invest BGN 32.9 million ($21.1 million/16.8 million euro) in a new production line.The money will be spent on a new extrusion installation for production of polypropylene films, films slitter and a recycler. Plastchim-T produces biaxially oriented polypropylene (BOPP) films and plastics used in the construction, transport, printing as well as in the food and chemical industries. In Monday the company was granted class A investor certificate, which insures administrative and tax alleviations. The new ware house is to strat work next year and will create 50 new jobs. The goal is doubling the current capacity.The foils are mostly used in food and chemical industries, construction, transport and printing.
Source: Capital (26.06.2012)

Rough construction of Paradise Centre completed The completion of the rough construction of Paradise Centre was marked on 23.The Lifestyle Paradise Centre, the first lifestyle centre in Sofia, is the largest Bulgarian mall in which about EUR 150 million was invested. This would be a building that had no analogue in Europe, the investor, a Bulgarian company with international capital – Bulfeld, said. The funds were secured through a loan from UniCredit Bulbank and co-financing by the company. Paradise Centre should be opened in end-2012 and is to offer 80 000 square meters commercial area and 25 000 square meters of attractions. Indoors and outdoors fountains, water arches, light, atria with different design will be situated there. The project is made by the international company RTKL in cooperation with the local Proarch and Planing.
Source: Construction City (02.07.2012)

UniCredit Bulbank: Mortgage credits decrease for the first time Household mortgage credits shrank for the first time on a quarterly basis - by BGN 42 mln – and stood at BGN 8.76 bn at the end of March 2012, showed the most recent quarterly analysis of UniCredit Bulbank (released July 6) on the wealth and indebtedness of households in Bulgaria. This type of credits increased more than 40 times between 2002, when they were first introduced on a mass scale, and 2011. Strong growth was recorded during the housing market boom between 2005 and 2008, when mortgage lending rose by over BGN 6.7 bn. According to UniCredit Bulbank’s economists, after entering a period of accelerated repayment of most of these credits, we may observe a significant reduction in the overall indebtedness of households. Consumer loans also shrank in Q1 2012 – by BGN 126.8 mln, compared to Q4 2011 and stood at BGN 10.9 bn, registering a decline for the tenth consecutive quarter. Financial leasing contracts also decreased by over 20% year-on-year because of the persisting weak appetite for buying cars. Household indebtedness as a whole decreased at the end of March by BGN 196 mln to BGN 20.5 bn. On an annual basis, the decrease was almost the same – BGN 185 mln. As a result, the total net wealth of households increased by BGN 365 mln, reaching BGN 227.56 bn in Q1 2012. This growth interrupted a long series of quarterly declines.
Source: Class (10.07.2012)

Direct foreign investment in Bulgaria posts a six-fold increase Direct foreign investment in Bulgaria posted a six-fold increase for the period January-may and reached EUR 437.8 million compared to BGN 72.2 million from the same months in 2011. That was revealed by data of the Bulgarian National Bank (BNB), which also show an increase in investment by 61.5% over the last 12 months (June 2011 – May 2012) compared to the previous 12 months. Foreign investments are important because they are considered as the first factor which will revive Bulgaria’s economic growth in terms of employment and income in order to boost consumption and bank lending. Despite the positive trend, growth comes from a very low base and the impressive figures do not transform into economic growth which stood at a meagre 0.5% on an annual basis and 0% on a quarterly basis in first quarter. Foreign companies’ investments in Bulgaria for the first five months account for just 18% of the amount invested during the same months in 2008. Christofor Pavlov, Chief Economist in UniCredit Bulbank, also noticed a number of positive signals. “We see proof that Bulgaria may be a better place for business than many people and investors are ready to admit. We still have many advantages such as low taxes, low public debt, acceptable level of corruption for the standards of a developing economy, as well as cheap labour force. There are investments in export oriented sectors and activities, which are pushing import into the background, which is also a positive development,” Mr. Pavlov explained. He pointed out a few factors of international importance which will have a positive effect on investment in Bulgaria. For instance, Bulgaria and Romania are the last EU member states that are expected to post a growth in income and these perspectives will attract investments. Other advantages of Bulgaria are that it offers business environment in a EU member states and is simultaneously close to Turkey, which is projected to be among the fastest developing economies over the next decade. According to Mr. Pavlov, however, unless the annual volume of investment reaches between 28%-30% of GDP, there will be no conditions for an increase in labour productivity.
Source: Capital (17.07.2012)

Erste group Immorent launches a new office building on a market, hungry for good areas TAO, an office building of the Austrian company for financial services Erste Group Immorent îôèñ enters market in the capital city. Construction of Todor Alexandrov offices started at the peak of the crisis in 2009, when few dared to build and finished in time in which tenants are that tenants recovering. Export of jobs to Sofia continues. Todor Alexandrov offices attracts with modern office area with a great flexibility and comfort. The building has 670 square meters GLA, ten floors and is located within walking distance from the center of Sofia.
Source: Construction City (19.07.2012)

A bankruptcy procedure was opened for the glass factory Rubin that has been registering increasing losses for the past several years, at the request of its creditors, by decision of the Pleven District Court dating 16 July 2012. Among the creditors is Corporate Commercial Bank that is indirectly related to the majority shareholder of the company. The company was declared bankrupt as of 30 April 2011. The motives of First Instatement Bank (Fibank) to ask for the company to be declared insolvent match those of the company’s management itself. Rubin was incapable of repaying its debts, totalling up to BGN 48.7 million by end-April 2012. It owes Fibank BGN 4.1 million by 15 June 2012. Òhe glass factory’s largest creditor is CCB with overdue loans for a total of BGN 26.3 million. Rubin has another debt of EUR 12 million to UniCredit Bulbank
Source: Capital (23.07.2012)

A supplier asked for the insolvency of Roads Holding Yet another infrastructure company controlled by Vasil Bozhkov is threatened with insolvency – an unknown construction company has asked for a bankruptcy procedure to be initiated for the Roads Holding. On 3 August the Groupstroy company, registered in the city of Levski, has filed and appeal at the Sofia City Court. The Roads Holding responded that it had no debts to Groupstroy. Representatives of the holding told the Capital Daily that in 2008 the company supplied it with concrete elements, but as it turned out that they were of poor quality, the company had to pay damages for the losses suffered. More than a year ago another company of Bozhkov – Moststroy, went bankrupt, mainly due to debts to United Bulgarian Bank (UBB). The Roads Infrastructure Holding Company asked for such procedures to be launched for some of its subsidiary companies. In September 2011, by request of UBB, the accounts of Roads Holding at UniCredit Bulbank and First Investment Bank (Fibank) were levied a distraint upon to the amount of BGN 7.6 million due to a debt of Infracom 2007 that the holding was a co-debtor to. In end-June the credit from UniCredit Bulbank was already overdue and under renegotiation. In the first few months of the year the credits of the Roads Holding from Fibank were also renegotiated. Asked on whether they were facing difficulties in repaying their loans the Roads Holding representatives said that that they had undertaken the necessary measures to meet their obligations. The report of the holding for the first half of 2011 shows a loss of BGN 2.6 million compared to BGN 6.4 million a year earlier. Its income almost halved to BGN 4.3 million. Debts with a redemption date in over 12 months amount to BGN 137.6 million or 5% more compared to end-June 2011.
Source: Capital (07.08.2012)

The portal for online payments ePay.bg announced a new tariff for its Bulgarian users. The change is effective as of August 7 and comes in line with MasterCard’s new charge on transactions with Maestro cards. A number of services on ePay.bg - payments, money transfers via Easypay and depositing on micro accounts – already cost 0.035% of the amount (not less than BGN 0.01) for Maestro users. Transactions with VISA credit and debit cards are also subject to charges ranging between 0.65% and 0.95% on the amount. For VISA cards issued abroad ePay transactions will cost considerably more. It was not long ago that the local banks raised the fees for ATM cash withdrawals with debit cards. There are lenders that still does not charge cash withdrawals from own dispensers – Allianz Bank, UniCredit Bulbank, Societe Generale Expressbank and Alpha Bank.
Source: Standart (08.08.2012)

The claim for insolvency of Holding Roads Jsc, submitted by Grupstroy two days ago, was withdrawn, the company controlled by Vasil Bozhkov informed. The holding received a message by the company that had submitted the claim for insolvency informing that it had given up the procedure due to “lack of claims”. According to the balances of Holding Roads, the company has no liabilities to Grupstroy. As a whole, however, the holding is indebted. Last September UBB demanded that the holdings accounts in UniCredit Bulbank and First Investment Bank (Fibank) were seized because of an outstanding debt to Infracom 2007. At the edn of June, the company’s debt to UniCredit Bulbank was overdue and is being renegotiated. The company’s loans to Fibank were also restructured. Other road construction companies, controlled by Vasil Bozhkov, were also claimed insolvent. That is what happened to Moststroy because of debts mainly to UBB.
Source: Capital (09.08.2012)

Bulgarian banks rank 4th in Europe Bulgarian banks are among the best in Europe, showed the Mystery Shopper survey of International Service Check. Our country ranks 4th in the final rating of all financial institutions on the Old Continent and Societe Generale Expressbank, Allianz Bank and Piraeus Bank found their place among the best credit institutions. The Mystery Shopper survey is conducted via a personal visit to the respective branch where dummies pretending to be clients evaluate the banks. First Investment Bank (FIB) is among the best 1,000 banks in a global ranking of the prestigious British magazine The Banker, representatives of the financial institution boasted. FIB is the only bank with Bulgarian capital which has found a place in the international ranking according to the Tier One Capital indicator. The Banker has been ranking the Top 1,000 World Banks since 1970, including financial institutions in Asia, the Middle East, Africa, the US and Latin America, Central and Eastern Europe. The entire ranking has already been published in the July issue of the The Banker. The top 10 banks in the world are: Bank of America, JPMorgan Chase & Co, ICBC, HSBC Holding, Citigroup, China Construction Bank Corporation, Mitsubishi UFJ Financial Group, Wells Fargo & Co, Bank of China and Agricultural Bank of China.
Source: Class (30.08.2012)

Standard & Poor's raises UniCredit Bulbank's ratingInternational rating agency Standard and Poor's raised the short-term rating of UniCredit Bulbank to A-2, the bank informed. The bank's long-term rating and outlook were confirmed to BBB and “stable”, respectively. Thus, UniCredit Bulbank's rating equalled that of Bulgaria again just days after Standard and Poor's changed the short-term rating of the country, which was published on August 10. This makes UniCredit Bulbank's rating the highest possible at present because of the restriction that the rating of a financial institution cannot exceed that of the country, where the institution operates. In their special report on UniCredit Bulbank's rating upgrade, analysts at Standard and Poor's point out that they assess the bank as one of the strategically important subsidiaries of UniCredit Group. “Therefore, our assessment of the bank is based on the support from shareholders it can rely on. Due to this support, the bank's rating could be even higher,” Standard and Poor's stated in its report. “The stable outlook reflects our long-term assessment and projections that UniCredit Bulbank's financial profile will not change substantially in the next 12 months,” analysts at the agency point out. According to the report, the outlook reflects the view of experts at Standard and Poor's that the bank will maintain its ability to generate capital and revenue. UniCredit Bulgaria's credit rating is similar to the rating of short-term government bonds in local and foreign currency. UniCredit Bulbank has recently been announced as the best performing bank of all banks operating in Bulgaria by the Top 1000 World Banks ranking of The Banker magazine. UniCredit Bulbank has the best results among all participants in the ranking of Bulgarian institutions in terms of capital and assets.
Source: Class (11.09.2012)

Eurolease asks for a debt rescheduling yet again Eurolease Auto asked for the rescheduling of one more of its bond issues, the custodian bank, UniCredit Bulbank, announced. The company this time asked for an extension of one year for its EUR-10-million bond issue from 2007 maturing in the end of the month. In March, the creditors deferred six months the payment of another bond issue for EUR 5 million, even though the company asked for two years. Now the leasing company, that is part of Eurohold Bulgaria, wants for the EUR-10-million debt payment to happen on 27 September 2013, instead on the same date in 2012. Bondholders will take a decision at a general meeting set for 24 September. The company’s bondholders are banks and pension funds. According to the proposal, payments on the principal should be deferred and instead of the reaming EUR 1.25 million being paid in two weeks, three instalments would be made. EUR 250,000 would be transferred this year and another EUR 1 million in two equal instalments in March and September 2013. So far, Eurolease paid EUR 8.75 million on the principal only, the company noted. The Executive Director of the company, Asen Asenov, explained that Eurolease needed financial resource for eventual new projects. “With this market, we can not speak of expansion. Rather, bank financing became more difficult, especially for leasing companies, and we are trying to develop the business of related companies with own funds,” he commented. He added that the company was working on several new projects that could be financed by the European Bank for Reconstruction and Development (EBRD) and Bulgarian crediting institutions, but until this happened, Eurolease needed own funds. The company report for the first half of 2012 shows a drop in profit from BGN 319,000 at the same time of 2011 to BGN 222,000 in 2012. Income for the period decreased 25% to BGN 5.3 million. For the first six months of 2012, lease contracts fell 14% to BGN 70.6 million.
Source: Capital (12.09.2012)

Revocation of the management company Standard Asset Management’s license will help another company to increase its assets under management. Financial Supervision Commission will soon approve of the company which will take up funds of Standart’s mutual funds, which license was revoked on the 5th of July. A total of five companies want to manage the money. In accordance with the law depositary bank can store the money of a company with a revoked license for up to three months after the transfer, i.e. to 9th of October. After that date it is to be transferred to the new manager. Money of the four mutual funds was transferred to Unicredit Bulbank on the 9th of July. Immediately after the transfer the bank stopped buyback. As a whole there is no stark interest towards taking money of Standard AM.
Source: Capital (13.09.2012)

Plovdiv-based printing office Fort plans to expand its production, as it builds new warehouses. The planned investment is to the amount of EUR 3-4 million, which is to be insured by equity capital and bank credits. The company bought neighbouring lots, around Kuklensko shosse Boulevard. Capacity of Fort will be increased three to four times with the new investment. The new investment will create 35 new jobs, with which the company’s personnel will reach 110 people. At present Fort’s production is destined to the domestic market. Just 5-10% are exported.
Source: Capital (21.09.2012)

International rating agency Fitch confirmed its assessment of two Bulgarian banks. Fitch confirmed the Support rating of UniCredit Bulbank at 2. The assessment reflects “the high support that UniCredit Bulbank would receive by its major shareholder UniCredit in need. The Italian banking group owns directly 92% of its Bulgarian division through UniCredit Bank Austria. “That is the highest possible rating support that the bank can receive at the moment”. According to Fitch, Central and Eastern Europe and Bulgaria in particular are a “strategically important region for UniCredit in medium term. Fitch states in its report that UniCredit Bulbank is a strong local bank and ranks first in terms of assets. Two years ago Standard & Poor’s raised UniCredit Bulgaria’s rating after Bulgaria’s rating was also increased. Fibank’s rating was also confirmed: its support rating was 3, while its long-term rating is BB- with a stable outlook. The bank’s market share continues growing. At the end of the first half of 2012, Fibank ranked fourth in terms of its volume of assets (8%) and its volume of deposits (14%).
Source: Capital (21.09.2012)

Two of the management companies related to Chimimport will merge, a report on the activity of Finance Consulting Holding, which is close to the company, revealed. Concord Asset Management and Saglasie Asset Management are the companies that will merge. However, the type of merger is not known yet. Some market sources claim that the new company will inherit the assets of Standard Asset Management whose licence was taken away by the Financial Supervision Commission. The last value of the company was about BGN 2.5 million which are deposited in UniCredit Bulbank at present. Concord’s assets at present amount to nearly BGN 20 million, while those of Saglasie stood at almost BGN 13 million on Wednesday. Interest of the Chimimport group in the financial sector will soon reach the Central Cooperative Bank, Armeec Insurance Company and a few more management companies.
Source: Capital (21.09.2012)

Bulgaria's economy should begin showing more signs of recovery in 2013, according to UniCredit Bulbank's latest Quarterly Macroeconomic Update on Central and Eastern Europe. Analysts of the bank suggest that Bulgaria should be able to win back foreign investors' confidence as financial market tensions are not expected to escalate much further. According to the report, these factors, combined with a very solid absorption of EU funds, should be enough to push gross fixed capital formation (GFCF) up by around 5% in 2013, adding roughly 1.1 pp to the GDP. Though to a smaller scale, final consumption expenditures are also expected to improve. The planned increase in the minimum wage and in pension rates after they had been kept frozen for the past three years should alone boost average households' income by a nominal 3%, while weaker food prices pressure should boost purchasing power, according to the report f UniCredit. "Against the background of all these factors, we decided to keep our GDP growth forecast unchanged at 0.5% in 2012 and 1.5% in 2013," says Kristofor Pavlov, Chief Economist for Bulgaria at UniCredit Bulbank, as cited by the bank's press office. In Q2, 2012, GDP growth remained lackluster at 0.3% quarter on quarter, equivalent to 0.5% year on year for a second quarter in a row. The growth was due to stronger individual consumption and exports. Exports rose by 3.4% quarter on quarter and by 3.9% year on year, while private consumption went up by 2.4% quarter on quarter, according to the quarterly report. In July 2012, the consumer price index (CPI) posted its strongest month on month increase (1.5%) in 4 years amid food and energy price spikes. Meanwhile, core inflation, which excludes volatile energy and food components, rose a meager 0.1% month on month and 0.2% year on year, reflecting the significant slack in the economy which continues to operate below capacity, Unicredit Bulbank reports. According to Kristofor Pavlov, higher inflation helps to alleviate the borrower's woes as it reduces the real value of debt. The UniCredit Bulbank Chief Economist for Bulgaria explains that the higher inflation rate creates more incentives for consumption and could therefore be a component of the medicine needed to end cash hoarding, which is one of the factors that hold back domestic recovery.
Source: econ.bg (25.09.2012)

UniCredit Bulbank's projection: Bulgaria's economy will start gaining momentum in 2013 The relief of financial market tensions, the gradual recovery of confidence and the stable rate of EU funds absorption will speed up the recovery of the Bulgarian economy at the end of 2012 and the beginning of 2013. This was revealed by the latest quarterly analysis of UniCredit Bulbank on the development of the Bulgarian economy and the economy of other Central and Eastern European states. Individual consumption will increase next year, the analysis projected. The increase in the minimum working salary and pensions, which was frozen over the last three years, should support the average household's nominal income by about 3% a year. Expectations of weaker growth in food prices will raise the population's purchasing power. “Having in mind these factors, we leave our projection for GDP growth unchanged at 0.5% in 2012 and 1.5% in 2013,” Christophor Pavlov, Chief Economist at UniCredit Bulbank, said. Thus, the pressure to reduce indebtedness will ease, and incentives to boost investment and growth will be guaranteed. Inflation in Bulgaria posted its greatest monthly increase for four years in July of 1.5%. UniCredit's analysis revealed that high inflation further hampers the recovery of households. “However, against the background of high private sector indebtedness and feeble internal recovery, the increase in inflation is not completely bad news,” Christophor Pavlov commented. Higher inflation reduces the real value of debt. Projections expect an average inflation of 2.5% for the entire 2012 and 3% at the end of 2012. Prices are expected to increase by an average of 2.7% next year.
Source: Class (25.09.2012)

UniCredit: The Average Salary in Bulgaria May Reach 805 Levs The average monthly salary in Bulgaria will grow to 805 levs, (413 euros) in 2013, the UniCredit Bulbank's economic analysis for the last trimester reads. The average pay rise that the bank forecasts is 7.5%. Unicredit Bulbank's analysts continue their highly-optimistic analysis saying that in 2014 the average monthly salary in Bulgaria will increase by another 7.9% to 869 levs (446 euros). In their view, the decision of the government to increase the minimum monthly salary from 290 to 310 levs, as well as the retirement payments, frozen for the past two years, is a step in the right direction, which should lead to a three-percent increase in the nominal annual incomes of the households in Bulgaria. The conclusion of their report is just as optimistic: the domestic consumption in Bulgaria will increase considerably over the next two years.
Source: Standart (25.09.2012)

Eurolease Auto extends 10 mln euro bond redemption by 12 months Bulgarian leasing company Eurolease Auto said its bondholders approved a proposal to extend by a year the redemption deadline on a 10 million euro ($12.9 million) debt issue. The decision was adopted at a meeting on September 24 called by the bond’s custodian bank, UniCredit Bulbank, according a Eurolease Auto statement filed with the Bulgarian Stock Exchange on Monday. Under the proposed restructuring plan, Eurolease Auto should make one 250,000 euro principal repayment at the end of September 2012 and two 500,000 euro repayments in March and September 2013 respectively. The company has so far repaid 8.75 million euro on the five-year bond issued in September 2007. The bond carries an interest rate equal to the six-month EURIBOR plus 5.0%, but no less than 6.0% per year, the company said. Eurolease Auto, a subsidiary of Sofia-based financial and insurance group Eurohold Bulgaria, has placed five bond issues since 2007 worth a total of 28 million euro.
Source: Capital (26.09.2012)

Bulgaria Air registered a profit for 2011 thanks to uncollected fines and damages from the bankrupt Alma Tour. The bankruptcy of Alma Tour from 2011 cast a blow on Bulgarian tourism, on relations with Russia, on several banks, the Armeec Insurance Company and the national air carrier Bulgaria Air. Now it turns out that there is a positive aspect of the story for Bulgaria Air. According to the company’s report, for 2011 it registers a profit of BGN 1.5 million, for which the fines and damages due to a claim against Alma Tour have a great contribution. Even though the money has yet not been received, the company considers it as part of its income. The problem in the entire operation is that Bulgaria Air will hardly be able to collect the funds. It was before the problems from October 2011 that Alma Tour BG was pledged in favor of UniCredit Bulbank and Central Cooperative Bank (CCB) against loans for around EUR 13.2 million. Alma Tour Fly is pledged in favor of Emporiki and Bulgaria Air. The bank has only EUR 1 million to collect, but is the first in the list of creditors.
Source: Capital Dàily (27.09.2012)

Further EUR 150 million are planned for the small businesses in Bulgaria Some new EUR 150 million will be lent to SMEs next year, Capital Daily informs. The funds under OP Competitiveness will be granted by banks as part of the guarantee scheme of the JEREMIE initiative. The deadline for applying was from July 27 to September 28, 2012. The guarantee will cover 50% of potential losses on loans. According to the fund’s requirements the interest rate for SMEs will be calculated as a weighted average of two components – the interest rate offered by banks and the one required by JEREMIE (it will be 0%). SMEs should absorb the funds within 36 months. The banks granting loans under that initiative are UniCredit Bulbank, UBB, Raiffeisenbank, CIBank and ProCredit Bank. The volume they should grant is about EUR 400 million.
Source: Capital (04.10.2012)

More of the same loans Credit price remains unchanged but banks started offering reduction of interest rates for existing clients. Instead of refreshing loan terms, banks extend them – this way interest rates remain unchanged, without reductions. The rule has some exceptions – banks offer actual reductions and some of them are quite attractive at first glance. A month ago MKB Unionbank offered a loan with zero interest rate for the first three months and no installments on the principal for the first year of the loan term. Such offers were quite attractive during the peak of crediting from 2007. This marketing approach was regarded as “the war of the zeroes”. An offer even appeared for a mortgage loan in local currency with interest rate that was lower than the interest for EUR denominated loans. The offer came from UniCredit Bulbank. There is a new line in the bank’s interest rate policy. At this time is not a trend yet – reduction of interest rates on existing loans. Banks with leading positions on the market have also implemented the measure. In August Raiffeisenbank reduced interest rates on all existing loans in BGN and EUR for private clients, SME and corporate clients. The bank reduced the bank interest rate (one of the pricing components of the interest rates for end-clients). Days ago Postbank announced it will reduce interest rates on existing housing loans in BGN, EUR and CHF. UniCredit Bulbank also made steps in this direction. UBB has special program under which loyal clients receive 0.5 percentage points reduction of their interest rate. Such actions are logical taking into consideration the drop of deposit price. Banks also had their image tarnished over the past few years because of the raise of interest rates on existing loans
Source: Capital Dàily (05.10.2012)

Two of Greece's biggest banks, NBG and Eurobank, are in merger talks to create the country's biggest lender, Reuters reported on Friday. If the merger materializes, the lenders’ Bulgarian subsidiaries UBB (NBG) and Postbank (Eurobank) may also merge. Greece's banks are under pressure to merge after suffering steep losses from the country's debt restructuring, heavy deposit withdrawals and rising bad loans. Cash-strapped, they have no option but to swap shares in order to merge and create a large financial institution to stabilize the banking system and provide the cash flow for the economic rebound in the country. According to estimates of 24 Chasa daily, based on the latest BNB data (end-June 2012), a follow-up merger in Bulgaria will result in the creation of a real heavyweight on the local market. At the moment, UniCredit Bulbank is the nation’s largest bank in terms of assets – BGN 12.174 billion, while UBB and Postbank rank fifth and sixth with assets of BGN 6.553 billion and BGN 5.816 billion respectively. If the amounts of their assets remain unchanged, a possible merger between the two lenders will give birth to a bank with assets of BGN 12.369 billion. The new bank’s loan portfolio will be roughly around BGN 10.91 billion and its deposit base will be BGN 10.40 billion.
Source: Capital (08.10.2012)

Financial wealth of households grows by 12% in a year Households’ financial wealth increased by 12% on an annual basis to nearly BGN 41.8 bn at the end of June 2012, became clear from the most recent quarterly analysis of the wealth and debts of Bulgarian households, drafted by the analytical team of UniCredit Bulbank. The BGN 945 mln growth of financial assets in Q2 2012 was mainly accounted for by bank deposits. Households’ savings in banks rose by 14% in a year, totaling BGN 32.4 bn by June 30. Savings in pension funds increased by BGN 196 mln in Q2 2012 thanks to the compulsory contributions and exceeded BGN 5 bn. Life insurance reserves again contributed to the growth in households’ wealth. They reached BGN 628 mln, registering an increase of nearly 14% in a year. The investments directly connected with the local financial market developed unfavourably. Investments in stocks declined by BGN 140 mln and these in special-purpose investment companies – by BGN 21 mln. The total net worth of households to June 30, 2012 amounted to BGN 229 bn. By comparison, a year ago its value was almost the same, but for the second consecutive quarter, reported growth. This is due to the rapid growth of financial assets, compared to the drop in residential property. The total volume of mortgage loans decreased by 0.5% year-on-year during the second quarter of 2012 to a little more than BGN 9.3 bn. Mortgage credits borrowed from non-banking institutions declined by 12% to BGN 566 mln at the end of June 2012. Mortgage credits from banks dropped by nearly BGN 27 mln over the last year. At the end of Q2 2012, these stood at BGN 8.8 bn.
Source: Class (09.10.2012)

Crisis Eats up Savings in Bulgaria Crisis eats up the wealth of the Bulgarians. Within a year the net assets of the households in Bulgaria stayed at the level of BGN 229 billion, shows the data of the trimester analysis of UniCredit Bulbank on the assets and debts of the Bulgarians. The main reason for this unpleasant result is the global crisis. The real estate market shrinks. The Bulgarians prefer saving money instead of spending or making investments. The financial wealth of Bulgarian households increases by 12% within a year to reach nearly BGN 41,8 billion end-June 2012. The biggest share of this money is the bank savings of the Bulgarians, which increase by 14% in one year to reach BGN 32,4 billion. The savings in pension funds also grow by BGN 196 million due to the compulsory contributions in universal funds. The life insurances also grow by 14%. At the same time the investments in stocks decrease by BGN 140 million, in REITs by BGN 21 million.
Source: Standart (09.10.2012)

Insurance company Armeec entered the Top 100 ranking of the largest insurance companies in Southeast Europe, taking the prestigious 21st spot. The ranking is done in three categories - companies, insurers and banks. A total of 21 Bulgarian insurers ranked, among them DZI General Insurance, Bulstrad, Lev Ins, Allianz Bulgaria, Bul Ins, UNIQA Insurance, Euro Ins , Energia and Victoria. 13 Bulgarian companies are among the leaders of the South-Eastern Europe in the SeeNews TOP 100 - Lukoil Neftochim occupies the prestigious 3rd place in the overall ranking, which gives it the first place in Top 100. The 6 th place in Southeast Europe is taken by Aurubis Bulgaria. The Top 100 also includes NEK, Bulgargaz, CEZ Electro Bulgaria, Mobiltel and others. Top 100 banks in Southeastern Europe include 18 Bulgarian lenders. UniCredit Bulbank is 7th and the rest that enter the Top 100 are DSK, UBB, Raiffeisenbank, FIB, Post Bank, Corporate Commercial Bank, SG Expressbank, Central Cooperative Bank.
Source: Standart (12.10.2012)

Shares of CEZ Distribution Bulgaria JSC worth another BGN 19 mln traded on BSE Another 12,796 shares of CEZ Distribution Bulgaria JSC were traded on the Bulgarian Stock Exchange (BSE) at an average selling price of BGN 1,452.99 per share for a total of BGN 18.6 mln. Thus, only 2,441 stocks out of the 63,624 offered by the State have remained unsold. The maximum price at today’s auction was BGN 1,490 per share and the minimum – BGN 1,444 per share. The remaining 103 shares of CEZ Electro Bulgaria JSC, representing about 2% of the company’s capital, attracted no interest.
Source: Class (01.11.2012)

Just like before the crisis: 80% of the shopping center rented before end of construction 80 % of commercial areas in Trakia plaza, one of the newest and most luxurious Plovdiv situated complexes, which is still being constructed are already rented. Residential and trade complex Trakia plaza is situated in the heart of one of Plovdiv biggest neighborhoods- Trakia. The building has a mixed purpose and disposes with more than 2500 square meter of area for more than 25 commercial sites at the ground floor and over 100 apartments. Trakia plaza is planned to be finished in December.
Source: expert.bg (01.11.2012)

Bulgarian financial watchdog strikes Orgachim from register of public cos Bulgaria's financial regulator has struck local coatings producer Orgachim from the register of public firms, the company said on Tuesday. The Financial Supervision Commission adopted the decision on November 21, Orgachim said in a statement to the Sofia bourse. Malta’s Whitebeam Holding, Cyprus’ Tidal Wave Trading and Romania's Policolor bought out the Orgachim shares they did not already own in a buyout bid earlier this year.
Source: money.bg (28.11.2012)

Bulgaria's UniCredit Bulbank has sold out for an undisclosed sum its minority stakes in the two local power distribution units of CEZ Bulgaria controlled by Czech energy group CEZ, the units said on Tuesday. On November 1, UniCredit Bulbank sold 10,412 shares of CEZ Razpredelenie [BUL:3CZ], or 5.4% of the company's capital, CEZ Razpredelenie said in a filing with the Sofia bourse. On the same day, the lender disposed of 495 CEZ Electro [BUL:1CZ] shares, representing 9.9% of the company's capital, CEZ Electro said in a separate filing. CEZ Electro supplies electricity to over 1.9 million customers in the Sofia region and parts of western and northern Bulgaria. CEZ Razpredelenie, which operates in the same region, is licensed for the transmission and distribution of electricity and the operation of the distribution grid. State-owned shares in the two companies, representing stakes of 33% in each one, were listed on the Bulgarian Stock Exchange on October 29 and by November 2 Bulgaria had sold them, raising 115 million levs ($76.8 million/58.8 million euro) in sale proceeds. UniCredit Bulbank, controlled by Unicredit Bank Austria, was the biggest Bulgarian bank by assets at the end of October, according to data from the Bulgarian central bank. Bulgaria has 24 domestically-registered banks and branches of seven foreign lenders.
Source: Capital (05.12.2012)

The ex- editor in chief of 24 chasa Venelina Gocheva officially takes up management of Media Group Bulgaria Holding. She remains manager of the company that issues newspapers Trud and 24 chasa. The creditor- Unicredit is changed with Investbank, which takes up the EUR 10 million loan. In September Venelina Gocheva’s company News Pro Ltd. has given a loan of BGN 11.7 million to Media Group Bulgaria Holding against the mortgage of the building of Poligraficheski kombinat together with the earth below. Ognqn Donev, Lubomir Pavlov and BG Printmedia owe the group.
Source: profit.bg (05.12.2012)

Investbank undertook a EUR-10-million loan issued to the co-publishers of the Trud and 24 Chasa newspapers last year by UniCredit Bulbank. Ognyan Donev and Lyubomir Pavlov received the loan in the name of the Media Group Bulgaria Holding. The cession agreement between Investbank and UniCredit was concluded on 22 November, 2012, according to the Commercial Register. The former editor-in-chief of the 24 Chasa Venelina Gocheva is listed as the Manager of Media Group Bulgaria Holding. Last week a private enforcement agent lifted a distraint upon the shares of Pavlov in the holding over another debt of his to another publisher – Nedyalko Nedyalkov. However, the distraint levied upon his share by the prosecuting magistracy over trials for financial fraud and money laundering remains
Source: Capital (06.12.2012)

Bankers: Interest rate on credits and deposits will fall in 2013 Interest rates on both deposits and loans will continue to decline, Bulgarian bankers predict. According to Levon Hampartzoumian, Chairperson of the Executive Board of the Association of Banks in Bulgaria and CEO of UniCredit Bulbank, next year will be difficult for banks as their clients are characterised by a relative poverty. “The state of banks in our countries is stable and the introduction of a tax on the interest on term deposits will not affect it. Financial institutions will probably not require a fee for remitting their customers’ tax to the Treasury, or if they introduce one it will be trifling,” Hampartzoumian stated on Darik radio. “There is a downward trend, regarding both interest rates on deposits and credits. We are interested in having lower interest rates,” he specified. According to Hampartzoumian, the so-called “deposit tourism” cannot be expected due to the introduction of a tax on the interest incomes. People are conservative, they estimate the risks. Products must be in compliance with the law,” stated the banker. “Now, there are no sectors of the economy which are not being credited. The most important thing is for borrowers to persuade banks that they have a good project and will be able to service their loans. I expect a slight decrease in interest rates on both deposits and loans,” predicted the Executive Director of Bulgarian Development Bank Assen Yagodin. The decrease, according to him, will not be more than 1%. “But it is not cheap loans that are most important to businesses,” Yagodin commented on TV and radio Bulgaria ON AIR. According to him, the most important thing is for business people to overcome their fear of accumulating new debt. Another important thing to look for is new markets. Consumption is still shrinking, but it will stir up in a few years because technology becomes outdated and will have to be replaced,” predicted the banker.
Source: Class (07.12.2012)