Holding Varna Acquires 2 Hotels of Bankrupt Tour Operator The controversial Holding Varna, which is connected with Varna-based security group TIM, has acquired two hotels formerly owned by Alma Tour, a Bulgarian tour operator that went bankrupt in 2011. Holding Varna, which is part of Chimimport, a major Bulgarian business operator, has thus became the owner of Hotel Atlas in the Bulgarian Black Sea resort Golden Sands and Hotel Astera Bansko (formerly known as Templar) in the ski resort of Bansko, Dnevnik reported citing an announcement of the Bulgarian Stock Exchange. Holding Varna has made the acquisitions through its subsidiaries MC Food Varna and Canisto Matti, which paid off Alma Tours debts to UniCredit Bulbank, Central Cooperative Bank, and the Bulgaria Air airline, the last two also known to be connected with TIM. Alma Tour was declared bankrupt in 2011 at the request of UniCredit Bulbank and Central Cooperative Bank because of failure to pay back its debts, amidst a diplomatic crisis as Bulgaria Air refused to carry out Alma Tour's charter flights and hundreds of Russian and Finnish tourists got stranded at Bulgaria's Black Sea airports. Secret US diplomatic cables from the US Embassy in Sofia leaked on WikiLeaks have mentioned TIM as one of the major organized crime groups in Bulgaria. None of TIM's activities has been investigated or prosecuted to date. Holding Varna has been notorious with its plans for resort construction in Varna's Maritime Garden, one of the largest parks in Bulgaria considered a national tourism attraction, which spurred civic protests in Varna, Bulgaria's largest port and Black Sea city.
Source: Capital (02.01.2013)

Bulgaria’s Holding Varna acquired Alma Tour’s hotels Holding Varna Plc, part of the Chimimport Group, officially acquired two hotels of bankrupt tour operator Alma Tour. In an announcement to BSE-Sofia on Friday the holding said it is the new owner of the Atlas Hotel in the Golden Sands summer resort and the Astera Bansko Hotel (the new name of the Templar Hotel) in the ski resort of Bansko. The two hotels were acquired by subsidiary companies of the holding - MS Food Varna and Kanisto-Mati, which covered the outstanding debts of Alma Tour to UniCredit Bulbank, Central Cooperative Bank (CCB) and Bulgaria Air. By request of the two banks, a year earlier Alma Tour was declared insolvent due to non-performing loans. The sale of the Templar Hotel was defined by private enforcement agents as the top deal of 2012 due to the record high price offered by its creditors – BGN 22 million. The buyers were two companies from the Chimimport Group – Finance Consulting and Chimimport Invest that undertook debts for BGN 13.9 million from the initial creditors of the travel company – UniCredit Bulbank and CCB. The price paid was slightly less than BGN 18 million, probably due to the penalties accumulated. The Atlas Hotel was acquired following a similar scheme. The situation around it was slightly more complicated due to Alma Tour’s attempt to transfer the hotel to Alpis Engineering and Hidrostroy Invest. However, the real estate was sold at a public tender in September, 2012, and is now officially owned by the Chimiport Group. The price paid on the hotel was BGN 20.3 million. According to the announcement to BSE-Sofia, with the new acquisition Holding Varna is planning to expand its investment portfolio in the field of tourism.
Source: Standart (03.01.2013)

Unicredit Bulbank AD: Savings will continue to grow, albeit at a slower rate Personal savings will continue to grow in 2013, albeit at a slower rate than the previous year, analysts at Unicredit Bulbank AD said in a report. The trend could be somewhat affected by the introduction of a tax on income from deposit interest rates. However, the tax is unlikely to turn individuals and households away from retail deposits, since they will remain the safest and relatively high-yielding saving instrument, according to the bank. Households are likely to remain cautious in their financial decisions given the high unemployment rate, sluggish income growth, small pensions and high food prices, the report said. Although the high interest rates on retail deposits of the last few years are a thing of the past, a dramatic rate cut in the first couple of months of the new year is a very distant possibility. The more likely trend is a gradual decrease towards pre-crisis levels. Still, one-off advantageous offers and campaigns by some banks can be expected. Personal savings have grown by nearly BGN 2.5 bn., or 8%, in the first 10 months of 2012, which is an increase of 12.7% over the same period of 2011. Despite the accumulation of savings the living standard of most Bulgarians can hardly be viewed as improving, the bank said. The average household in the country has only modest deposits – 75% of all deposits are under BGN 1,000.
Source: Class (04.01.2013)

UniCredit: Deposits in Bulgaria Will Grow in 2013 "The deposits of the Bulgarians will continue to grow in 2013 though at a slower pace than in 2012," Ekaterina Kirilova, head of Marketing and Client's Segments with UniCredit Bulbank, stated. "The introduction of the tax on deposit interests may, to a certain extent, have some negative effect on the time deposits but it will hardly lead to a serious loss of interest on behalf of the Bulgarians as bank deposits remain the safest and relatively profitable means of savings," Mrs Kirilova reckons. "In 2013, it is very likely that Bulgarian households will be very careful in their financial decisions," Mrs Kirilova added. The deposits of Bulgarians registered a new record in November 2012 when they grew with 409 million levs to reach a total sum of 35,3 billion levs, the data of the Bulgarian National Bank (BNB) shows.
Source: Standart (04.01.2013)

Plant for concrete elements in Industrial zone Rakovsky is put for sale by a private bailiff for BGN 1 386 720. Price proposals will be accepted in Plovdiv regional court till the 6th of February. The plant is owned by Sekdoor. It is located at an area of 16 acres. The reason for sale is debts towards Unicredit Bulbank and C finances group. Hus, a metal trader is pointed as a sole owner of the second creditor. Four foreclosures between 2011 and 2012 were made on the factory. The initial price is 80% of the market value.
Source: Maritsa (08.01.2013)

Investbank is the new owner of issuer of newspapers 24 chasa and Trud Vestnikarska Grupa Bulgaria. The deal on change of ownership was struck on the 21st of Decemner last year. In March last year Media Group Bulgaria Holding concluded loan to the amount of EUR 25 million with Unicredit bulbank. The remaining overdue principal to the amount of EUR 10 million was transferred on November 22 last year. EUR 10 million of these are loans that Unicredit Bulbank has awarded the Media Group Bulgaria Holding Ltd. and the remaining five million euros are loans that the bank has granted toContact Commerce 2010 LTD. After the transfer, Petya Slavova’s financial institution receives the building, located on Tsarigradsko chosse in Sofia, where offices of 24 chasa, Trud and 168 chasa are situated.
Source: econ.bg (10.01.2013)

UniCredit Bulbank wins the Best Trade Finance Bank award The international financial magazine Global Finance has awarded UniCredit Bulbank as the Best Trade Finance Bank in Bulgaria for 2013, the financial institution announced. UniCredit has been distinguished with the same award for Central and Eastern Europe. A survey among leading analysts, high-ranking corporate executives and experts in 83 countries was carried out for preparing the ranking. The criteria for selecting the winners are: the volume of transactions, global coverage, customer service, competitive prices and innovative technologies. “As a market leader, it is our duty to always provide to our clients services with high value added for them. The unique expertise of our team allows us to do this,” commented Michele Amadei, Head of Corporate, Investment and Private Banking division and Board member of UniCredit Bulbank. According to him, the availability of trade finance at reasonable prices is crucial to the “health of the global economy”.
Source: Class (11.01.2013)

Bulgarian satellite operator Bulsatcom has been awarded a mobile operator license by the country's Communications Regulation Commission, according to dnevnik.bg. Bulsatcom has thus become the fourth licensed mobile operator in the country after M-Tel, Globul and Vivacom. Bulsatcom has announced that its GSM services will be available for costumers by the end of 2013. The license is worth BGN 12 M.
Source: Capital (14.01.2013)

Unicredit Bulbank Optimistic in Their Outlook on Bulgaria for 2014 The analysts of Unicredit Bulbank appear to be quite optimistic in their outlook on Bulgaria for 2014. The Unicredit Bulbank’s report containing macroeconomic statistics about Bulgaria’s expected GDP growth was presented at Euromoney?s annual meeting in Vienna. In 2012, Bulgaria’s GDP grew 0.6% y/y and the outlook for this year is for an increase by 1.7% y/y. In 2014, Unicredit says, Bulgaria’s economy may grow by as much as 2.8%. All obstacles that were preventing Bulgaria’s economic growth throughout 2012 are expected to ease this year. Finally, the Bulgarian households are expected to start earning more and saving less in 2013.
Source: Standart (21.01.2013)

The Commission for Protection of Competition (CPC) allowed UBB to acquire Postbank, the Capital Daily writes. The deal is a result from the merger of the two banks’ parent institutions in Greece – the National Bank of Greece (NBG) and Eurobank EFG. The anti-monopoly commission announced that following an assessment and analysis of the respective market and the financial services offered by the two crediting institutions - banking, insurance, leasing, factoring, assets management etc., “the planned concentration will not lead to a strengthening of their dominating position on the market that would considerably limit or hamper efficient competition on the markets analysed.” In order to make its assessment the CPC requested standpoints and information from the Bulgarian National Bank (BNB), the Financial Supervision Commission (FSC), the Association of Banks in Bulgaria (ABB), the Bulgarian Association for Leasing (BAL) and the two banks’ main competitors on the market – UniCredit Bulbank, DSK Bank, Raiffeisenbank, Fibank, SG Expressbank, Corporate Commercial Bank, Piraeus Bank, MKB Unionbank, Allianz Bank, Central Cooperative Bank, as well as some of the two merging financial institutions’ main clients. The CPC established that the merged financial institutions will not have a market share exceeding 25% in any of the segments on the banking market. The merged financial institutions will be second on the market in terms of assets with a 15.3% share in retail banking, 23.2% in housing and consumer loans, 14.1% in corporate crediting and 16.6% in household and corporate deposits.
Source: Capital (28.01.2013)

KCM Plovdiv initiated a successive investment under its project for reduction of energy consumption and improvement of energy efficiency in the production of lead. The order is to the amount of BGN 2.989 million and includes three separate positions, the biggest of which is for the casting line. The whole project is to the amount of BGN 2.994 million, as half of them is insured under the operative programme Competency. The aim is decrease of power consumption by over 40% which is to result in falling of production costs by 9%. The main part of the order is for delivery of automated power saving line for casting of lead and lead alloys. The offer should not go beyond BGN 2.758 million. Candiadates are required to have a total turnover of at least BGN 6.894 million for the past three years. Within the same period they are expected to have terminated minimum three similar contracts. Greatest weight in the evaluation of proposals will have additional performance (50%), while other criteria are price and warranty.
Source: Capital (01.02.2013)

Bankers forecast a surge in lending to SMEs “Loans to small- and medium-sized enterprises (SMEs) will significantly increase this year,” Kristofor Pavlov, Chief Economist of UniCredit Bulbank, commented when presenting the estimates of the financial institution. The financing of SMEs will be at a much better level in 2013, mainly due to the launch of several initiatives, financed with EU funds. The growth of corporate credits as a whole will remain at approximately the same level as in 2012 (about 5%). Moreover, according to the analysis of UniCredit Bulbank, loans for agriculture will continue to grow at a double-digit pace in 2013. The bank’s analysts expect a reduction in the interest rates on both deposits and credits as a result of the improvement of Bulgaria’s economy and that of Europe as a whole. Financial indebtedness will continue to decline in most EU countries. However, it will remain high in Bulgaria’s corporate sector due to the high concentration of debt in certain sectors of the economy at the beginning of the crisis and the fact that the reduction of financial indebtedness is principally a slow process. In 2013, bad loans will remain almost unchanged from a year earlier as a percentage of all extended credits, analysts believe. Provisions for the whole year are expected to reach BGN 1.17 bn. The net profit of the banking system is likely to drop by 17% on an annual basis to BGN 471 mln at the end of 2013, according to UniCredit Bulbank. Thus, the return on equity will remain under its price for a fifth consecutive year.
Source: Class (12.02.2013)

Banks' Profit Drops by 17% The profit of the banks in Bulgaria will continue to drop in 2013, even more significantly than in 2012. The forecast for 2013 is that the total profit of the banks will gross 471 million levs after tax, which is a drop by 17% compared to the only 3.3% decrease of the bank profit in 2012, reads the forecast of UniCredit Bulbank about the banking sector in Bulgaria, presented by the bank's chief economist Kristofor Pavlov. The good news is that the losses from allocation of provisions and writing-off of bad credits dropped to 1,212 billion levs in 2012 compared to the 1,328 billion levs in 2010. For 2013, the losses of the banks are expected to reach 1,220 billion levs. "Our forecast is that the credit interests will go down faster than the deposit interests in 2013," Mr Pavlov stated. According to Mr Pavlov the average price of credits will be 7,93%, while the profits from deposits will be about 3,25%. For 2017, the interests are expected to be respectively 7,03% and 2,89%.
Source: Standart (12.02.2013)

Bulgaria's economy grew by 0.8% in 2012, according to data released by the country's National Statistical Institute on Wednesday. The growth is far below the government forecast for a 1.4% increase last year. The Balkan country's GDP remained unchanged in the fourth quarter compared to the July-September period. The Institute's preliminary estimate was for a 0.1% quarter-on-quarter growth in the last three months of the year. On an annual basis, GDP growth stood at 0.5 percent in the fourth quarter compared to the same period in 2011, continuing a gradual downward progression since the first quarter, the Institute said. The country's GDP had expanded quarter-on-quarter by 0.1 percent in the third quarter and by 0.4 percent in the second quarter after remaining unchanged in the January-March period.
Source: Capital (07.03.2013)

The plant in Knqzhevo of one of the largest producers of bread took the way of sale. Several months after creditors filed claims for bankruptcy against Nilana and its subsidiary Bakery Products - Poduyane, now a private bailiff announced at auction the property of "Bakery Products - Sofia". The whole plot of nearly 14 acres, together with production and administrative building, store and a warehouse are offered for BGN 4.7 million. The term for handing out of papers is the 25th of April, as a day after that the eventual buyer is to be announced. The plant is mortgaged by Unicredit bulbank, which is a creditor under the current procedure. The company has not operated from the end of 2011. Till 2011 Bakery Products – Poduyane also registered positive accounts. In the middle of 2012 the company stopped paying its debenture trustees and United Bulgarian Bank announced the issue of past due.
Source: Capital (27.03.2013)

One more bank to grant business loans at twice lower interest rates One more bank joined the JEREMIE scheme (Joint European Resources for Micro to Medium Enterprises) for granting loans at twice lower interest rates. Since mid-April UniCredit Bulbank will start granting its loans at a twice lower interest rate compared to standard interest rate levels. Thus, banks participating in the JEREMIE scheme become five, including Procredit Bank, Societe Generale Expressbank, First Investment Bank, and Allianz Bank. UniCredit has agreed on having a portfolio totaling EUR 50 million, of which EUR 25 million will be provided by the fund and EUR 25 million will be provided by the bank itself.
Source: Capital (05.04.2013)

Two of D Commerce Bank’s executive directors have been dismissed in early April. These were Radka Nikodimova and Plamen Petrov, who had also served as BD chairman. Financial expert Stoyan Alexandrov has also left the lender, but later on Alexandrov denied the rumor. He confirmed the discharging of Nikodimova and Petrov. At the moment, Angel Gekov, Gergana Beremska-Karadzhova (as of April 1) and Rumen Petrov are listed as BD members. Capital Daily reads that prior to joining the team of D Commerce Bank, Angel Gekov served as head of UniCredit Bulbank’s “Lending” department. His career record also includes stints with Municipal Bank and the Bulgarian Development Bank (BDB).
Source: Capital (16.04.2013)

The end of the baking empire Nilana Bids for bakery Bakery Products - Kniajevo will be opened at the end of this week, on April 26, says the notice on the website of the Chamber of Private Enforcement Agents. The company is part of one of the largest producers of bread in Bulgaria - Nilana. The starting price for the production facilities, shop and warehouse located in an area of nearly 14 decares, is BGN 4.71 mln. The property is mortgaged in Unicredit Bulbank. The end of Nilana became emminent in the summer of 2012 when the problems started with the other plant of the company - in Poduyane. Then United Bulgarian Bank (UBB) announced that the subsidiary Bakery Products - Poduyane has failed to repay the amount owed on the bond loan drawn on 19 September 2008 in the amount of EUR 6 million. On 9 June 2012 Bakery products failed to pay the interests on the loan in the amount of EUR 210 thousand. The reason for this delay can be found in the financial statements of the company - in the first half sales dropped by 61% and there is a loss of BGN 1.3 million.
Source: investor.bg (24.04.2013)

So far, attempts to sell the bread factory of one of the largest bread producers in Bulgaria – Nilana, have proven futile. The bread factory is located in Sofia’s Knyazhevo residential district. The assets of Nilana’s subsidiary company – Hlebni Izdeliya – Knyazhevo, were offered for sale by a private enforcement agent due to liabilities to UniCredit Bulbank. There were no offers presented until Friday. The initial bidding price was BGN 4.7 million. The lack of interest comes as no surprise as in case of an eventual second tender the bidding price would be 20% lower. However, even if the second tender proves successful, the company will remain a debtor to the bank as the amount of the loan issued by UniCredit is BGN 12 million. Meanwhile, it transpired that the owners of Nilana made an unsuccessful attempt to sell 50% of the company. Their attempt failed due to the distraint levied by UniCredit on their stakes at the company.
Source: Capital (29.04.2013)

DSK is the best bank in Bulgaria for 2012, show the results of the ranking "Capital K10" of the financial-economic weekly "Capital". List is prepared for the second consecutive year, including all credit institutions on the Bulgarian market. Separately are arranged branches of foreign banks, including ING Bank leader. The big winner among banks is defined by three categories - "Stability and risk", "efficiency and profitability", "Stability and Dynamics." In the first group leader is "Unicredit Bulbank", in the second - DSK and the third - "ProCredit Bank". In the final result is shown the size of banks, although the size is not a leading indicator for the ranking states "Capital". The goal of the ranking is to help readers make informed choices about financial institution. The results confirm the trend that the overall foreign-owned banks occupy the top half, while consolidated by Bulgarian owners are at the bottom. Explanation for this is the significant weight of the indicators of stability, specify the authors of the ranking. In foreign instiutions it comes with support of more conservative business practices of parent banks, while aggressively growing local groups is in the background.
Source: Capital (29.04.2013)

The ex ITV Partners, subsequently renamed to Total TV, and now known under the name of Satellite BG has two loans for a total of EUR 23 million at UniCredit Bulbank. Both debts are taken back in the beginning of 2011, soon after that servicing problems loomed. That is the reason why abaout two years ago the bank even announced that sale of the indebted company is under way. This step was not undertaken, though. Two years ago basic shareholder in Satellite BG was Mid Europa, a fund for share participation. Other shareholders were as follows: Serbian Serbia Broadband with a share of 5.5% and Cyprus-based Maxstone Services with an 18.2%-share. Publicly stated ambitions of the Fund were initially high. Associate Director at Mid Europa Stefan Tsvetkov, who led the deal, said he was confident that the acquisition of ITV Partners provides a stable position on the Bulgarian market for paid TV. Distinct increase of customers and revenues were not registered and finally the fund took back its investment from Bulgaria. Total investment of the fund in the project is unofficially estimated at around EUR 45 million. 99% of Satellite BG’s shares are held by its manager Ivan Handjiev.
Source: Capital (13.05.2013)

UniCredit: Bulgaria's economy will grow by more than 2.1% per year Average of 2.1% will grow the economy of Bulgaria in the next few years. This stated UniCredit forecasts presented at the annual meeting of the European Bank for Reconstruction and Development, which was held in Istanbul. According to analysis of the bank in the 2013-2015 GDP of Bulgaria will achieve average annual growth of 2.1%. In the period 2016-2020, the situation will be improved and economic growth will increase, UniCredit expectations are for an average annual growth rate of 3.4%. EBRD but lowered its forecast for growth in Bulgaria by 1% this year and 2.5% in 2014, the January forecast EBRD was for 1.9% GDP growth in 2013. "Despite the crisis, the potential in Central and Eastern Europe is huge. Improving the economy will move from the need to improve regional infrastructure and institutional environment," said Gianni Papa, Head of UniCredit CEE. The bank predicts that in 2013 this country will infuse 1.6 billion foreign direct investments, an increase of 33% over 2012, when foreign direct investment reached 1.2 billion. Despite the positive forecasts, the country has one of the last places in central and Eastern Europe in the quality of infrastructure, wrote in the analysis. Effectiveness of the institutions as a whole is quite low assessed in all countries of CEE. This may be the reason the bank to revise its forecast, officials said.
Source: Other (13.05.2013)

Demand of funding is growing Demand of funding in Bulgaria is growing. Some 6% of Bulgarians said they planned to apply for a loan in 2013. Demand was at its lowest in 2011 when 4%-5% of Bulgarians were inclined to take loans, an analysis by UniCredit showed. The analysis was presented at the annual meeting of the European Bank for Reconstruction and Development (EBRD) in Istanbul. Meanwhile, an analysis by Raiffeisen Bank International revealed that banks in Central and Eastern Europe were performing better than those in the eurozone. “The total amount of loans in CEE in 2012 stood at 14.8% on an annual basis. The amount of loans reached 21.8% in the period 2010-2012. Real lending growth in the eurozone was negative for this period,” Gunter Deuber, Head of CEE Research at Raiffeisen Research, said.
Source: Monitor (14.05.2013)

Foreigners among Bulgaria’s the newly-emerged millionaires Deposit growth in Bulgaria is not only a result of an uptake in household savings, Margarita Petrova-Caridi, Executive Director of Piraeus Bank Bulgaria, told the guests at the “Money noise” forum in Sofia. In her words, the increase in deposit millionaires was courtesy to big savers from abroad, stashing their cash on accounts at local banks. In her words, the upward trend in deposits was incidental and would not stay for long. She opined Bulgarians were getting poorer nonetheless. Meanwhile, bankers said they expected a decrease in retail loan interests. “Trends from the previous year will be largely replicated, though with a much bigger drop in retail loan interests compared to interests on corporate credits,” said Kristofor Pavlov, Chief Economist of UniCredit Bulbank. In his words, loan interests will average 10.34% in 2013 and 10.10% in 2014, keeping a downward course in the years to come. Demand for retail loans will need some more time to normalize, Mr. Pavlov explained. High unemployment rates and insecurity weighed on consumer confidence and even on big spenders. Maria Ilieva, CEO of MKB Unionbank, said retail lending and mortgages in particular held great potential for development. Sega Daily reports
Source: Standart (16.05.2013)

EUR 110 million for small and medium-sized business The European Investment Bank (EIB) issues EUR 110 million meant for SMEs, the Duma daily reports. UniCredit Bulbank receives the credit line to finance investment projects. EIB will allocate EUR 60 million to UniCredit Bulbank and the remaining EUR 50 million – to UniCredit Leasing. The previous five credit lines amounted to a total of EUR 200 million provided to the bank and EUR 80 million to the leasing company, Michael O’Halloran, Head of Bulgaria, Romania, Cyprus Division at the EIB, commented. Loans within the current credit line will be issued for a term of 2-10 years, for large infrastructure projects – up to 15 years, at a 0.5% lower interest rate. The provision of additional opportunities for financing SMEs under preferential conditions is of extreme importance for the development of Bulgarian economy, Levon Hampartzoumian, CEO of UniCredit Bulbank, said.
Source: Darik Radio (17.05.2013)

The Corporate Commercial Bank, the Central Cooperative Bank, Investbank, UBB, UniCredit Bulbank, Raiffeisenbank are the financial institutions managing funds of state companies, 24 Chasa daily reveals. Standart daily specifies that the number of these banks is 11 and adds the names of Postbank, First Investment Bank, D Commercial Bank, CIBank and Bulgarian-American Credit Bank. Some 41 of state companies have deposited too much of their money into only one bank, research by Bulgarian ministries revealed. Some 59.44% of money of NEC, 96% of money of Bulgartransgaz, 88.20% of BEH and 90.85% of deposits of Bulgargaz are managed by the Corporate Commercial Bank. Five companies related to the Ministry of Economy have large deposits in the Central Cooperative Bank. 42.54% of the money of Kozloduy NPP is deposited in Investbank. Money of BDZ Passenger Services is managed by UBB and Eurobank, money of BDZ Freight Railway Services is managed by the Corporate Commercial Bank, 61% of the money of Bulgarian Posts is managed by UniCredit Bulbank, while 91.95% of the money of Bulgarian Port Infrastructure Company is managed by the Central Corporate Bank.
Source: Standart (23.05.2013)

Bulgaria’s UniCredit Bulbank lends 2.0 mln euro to Nova Zagora municipality Bulgaria’s UniCredit Bulbank said on Monday it will extend a 4.0 million lev ten-year loan to the local municipality of Nova Zagora, in southeastern Bulgaria. The municipality will use the loan to finance investments, including a project for turning a movie theater into a sports hall, UniCredit Bulbank said in a statement. Unicredit Bulbank won a public procurement tender in April and a loan contract between the bank and the municipality was signed a month later. UniCredit Bulbank, controlled by Unicredit Bank Austria, is the biggest Bulgarian bank by assets, central bank data indicates. Bulgaria has 24 domestically-registered banks and branches of seven foreign lenders.
Source: money.bg (28.05.2013)

Assets of banks in Bulgaria are nearly 82.9 billion levs At the end of May this year, total assets amounted to some 82.9 billion levs, says today's data of the Bulgarian National Bank (BNB), which published statistics on banking groups and banks. The change within a month is small. At the end of April 2013 total assets amounted to 82.5 billion levs. May 31, deposits of individuals and households in our banks were 36.79 billion levs,. According to preliminary data, the amount of deposits of households and non-profit institutions serving households (NPISHs) is 35.3 billion levs. However, the total amount of borrowed funds of credit institutions in the country was 71.1 billion levs at the end of May this year. BNB data have ranked the largest banks in terms of assets at the end of May. Grouping does not contain within itself elements of the rating and should not be interpreted as an assessment of their financial situation, explained by the central bank. Position of the banks in the group depends on the size of their assets and changes at the end of each reporting period. Assets of the 5 largest credit institutions in the country at the end of May totaled 41.2 billion lev amount is increased by about 500 million levs, at the end of April, the assets of the top 5 largest banks in the country amounted to 40.7 billion levs. Here are the 5 largest Bulgarian banks at the end of May: 1. UniCredit Bulbank; 2. DSK Bank; 3. First Investment Bank (FIB); 4. United Bulgarian Bank (UBB); 5. Corporate Commercial Bank (CCB).
Source: econ.bg (01.07.2013)

No room for further mortgage rate cuts It seems as though mortgage interest rates have bottomed out and there’s no room for further decreases, Capital Daily reads. At the moment, interest rates on housing loans average 6.2%-6.7% on annual basis. Despite the fact that banks never stopped launching new promotions, interest rates on mortgage loans have been hovering around the abovementioned percentages for over six months now. A number of local lenders offer housing loans at these levels – DSK Bank (6.7%), Fibank (6.5%), UBB (6.2%), Societe Generale Expressbank (6.5%), Cibank (5.86%-6.10%), MKB Unionbank (6.6%), Alpha Bank (6.4%), Credit Agricole (5.85%). Two banks offer cheaper mortgages – UniCredit Bulbank (4.5% for the first year and 6.5% fluctuating interest for the remainder) and Postbank (4.6% for the opening year and 6.6% for the remaining period). Despite the relatively low housing interest rates, the real estate market and mortgage lending remain sluggish.
Source: Capital (02.07.2013)

UniCredit Bulbank is "Bank of 2012" UniCredit Bulbank was "Bank of 2012" in the rankings of the Bank of the Year Association. The prize is awarded for the 16th time, and the special guest of the event was a Polish economist Prof. Leszek Balcerowicz. A new ranking for the category "Banking Brand of the Year" won DSK bank. In the other categories the most awards took First Investment Bank. Bank's "Bank of the client" where rankings make consumers of banking services over the Internet Bank is the first increase in market share and takes the "Prize of the mystery shopper". Bank noted most dynamic development for the third consecutive year, Corporate Commercial Bank, and the most effective is CIBANK. Award for a foreign bank branch goes to Citibank NA - Sofia Branch.
Source: Darik Radio (03.07.2013)

Sixth bank to issue loans at low interest rates A sixth bank will issue loans to SMEs at low interest rates. Raiffeisenbank joined the second programme of the initiative JEREMIE of the European Investment Fund (EIF). The bank signed an agreement with the fund according to which it will issue loans to SMEs for at least EUR 20 million. The bank will secure half of the financing while the fund – the other half. Raiffeisen will issue the loans at more than 50% lower interest rates compared to its standard SME loans. The bank will issue investment and circulating capital loans, revolving credits and overdrafts. According to Evelina Miltenova, Executive Director of Raiffeisenbank, the crediting institution issues between BGN 40 – 50 million monthly for the financing of SMEs. Following the signing of the agreement the budget of the second part of JEREMIE becomes a total of EUR 330 million for loans at low interest rates. EIF provides BGN 165 million, while the six banks that have joined the initiative so far (ProCredit Bank, First Investment Bank, UniCredit Bulbank, Allianz Bank, SG Expressbank and Raiffeisen) undertake a commitment to double the resource. Under the scheme interest rates stand at 3 – 7%. The first JEREMIE programme started in the fall of 2011 – a guarantee scheme under which banks – partners (United Bulgarian Bank, ProCredit Bank, Raiffeisenbank, UniCredit Bulbank and CIBank) have to issue EUR 300 million in loans to SMEs at preferential interest rates. For the past 12 months 66% of the allocated budget has been absorbed.
Source: Capital (12.07.2013)

Bulgaria’s UniCredit Bulbank lends 1.2 mln euro to Veliko Tarnovo municipality Bulgaria’s UniCredit Bulbank said on Wednesday it will extend a 2.4 million lev ($1.6 million/1.2 million euro) one-year loan to the local municipality of Veliko Tarnovo, in northern Bulgaria. Veliko Tarnovo will use the loan to finance upgrades of the town's water supply and wastewater infrastructure and the reconstruction of an oncology centre, UniCredit Bulbank said in a statement. Unicredit Bulbank won a public procurement procedure in June and the loan contract was signed on July 11. UniCredit Bulbank, controlled by Unicredit Bank Austria, is the biggest Bulgarian bank by assets, according to central bank data. Bulgaria has 24 domestically-registered banks and branches of seven foreign lenders.
Source: money.bg (18.07.2013)

Borica-bankservice launches money transfers via cash dispenser The service Cash M is developed by payments operator Borika - Bankservice and in fact it represents instantaneous transfer from ATM to ATM. This makes it possible for customers to send fastly money via ATM to any recipient. At present Cash M is offered solely by Unicredit Bulbank. Such a service is presented on the Bulgarian market for the first time. Transfer of money is possible through any cash dispenser in the Unicredit’s network as card holders should know only the receipent’s mobile number. Sums that can be sent are from BGN 10 to BGN 400, while larger transfers can be made at several transfers.
Source: Capital (29.07.2013)

Yet another drop of bank profits Bank profits in Bulgaria still dwindle due to frozen crediting, data of the Bulgarian National Bank (BNB) by end-June 2013 shows, Capital Daily reports. The bank system’s financial result amounts to a total of BGN 317.7 million for the first half of the year. The two largest financial institutions - UniCredit Bulbank and DSK Bank - are responsible for 69.2% of the banking sector’s profit. Seven from the 30 banks operating on the Bulgarian market underwent losses for the first half of 2013. The total financial result registered in the BNB statistics is 1.83% lower compared to the first half of 2012. The main reason behind shrinking profits in the sector is reduced net income from interest. Even though in the past few months there has been a relative slowdown in the deposit base growth rate it maintains its upward trend with the volume of funds attracted from households gaining 9.8% to BGN 33.8 million over the past year. While net income from interest dropped by 5.93% on an annual basis by end-June to BGN 1.2 billion, the net income from fees and commissions increased by 8.14% reaching BGN 401.8 million. Loan write-offs amounted to a total of BGN 499.4 million by the end of the first half of the year or 7.9% less compared to the same period of 2012. The share of non-performing credits reached 17.09% in June against 16.92% in end-March 2013.
Source: Capital (01.08.2013)

Behind the transparent facade The new luxurious and still empty business building with the vibrant name of Monterosa is erecting spectacularly at the central Sofia’s street of Budapeshta. From February 2014 Commission for Financial Supervision with its nearly 250 employees is planning to move to its new home, locate at a distance of just few hundred meters from the Presidency and the Council of Ministers. The building at Budapeshta 16, which covers the highest standard for office areas-class A is built by Galchev engineering group and is designed by architectural studio Panidea. Construction starts in 2009, as it is finished last year and is available on the real estate’s market from last summer. At first the initial basic rent was assessed at EUR 10 per square meters, but afterwards it dropped to EUR 8 per square meter. This means that the rent for the whole building-both office and commercial area (excluding the two underground parking spaces), which has an area of slightly less than 3470 square meters will turn to be EUR 27 800 åâðî (equal to BGN 54 370) monthly, VAT excluded. Monteroza is owned by the limited liability company under the same name. Investors in the company are several Bulgarian and Italian citizens. Alessandro Dzheretto is the company’s manager, as he is member of the board of directors and communication secretary of based in Italy Asigest Holding. The latter is a majority owner in one of the biggest insurance brokers in Bulgaria AIG insurance brokers.
Source: Capital (19.08.2013)

UniCredit selling biomass heating plant in Bansko UniCredit Bulbank is selling the biomass heating plant in Bansko, it transpired from an advertisement published by the creditor. The owner of the plant is BulEco Energy. The bank seized the plant as the company pledged it as security against a non-performing loan. The bank accepts offers from potential buyers as of August 21. BulEco Energy has not repaid its loan to the bank for two years due to its sales dropping as a result from the crisis, one of the shareholders in the company, Ivan Hinovski, explained. In his words the probable selling price of the plant is around EUR 2.4 million as this is the sum still due to the bank. The plant is still operating, he clarified. The bank did not provide any information, explaining that it has the practice and obligation not to comment on its clients. Last year BulEco Energy registered losses of BGN 1.240 million with their volume increasing by 6.2% year-over-year.
Source: Capital (20.08.2013)

Bulgarian banking network is shrinking In line with the European trend, Bulgarian banks have reduced their branches and staff since the beginning of the crisis. For the past four years the network of the biggest and most active banks in this country has shrunk 8.24% and staff has fallen 4.41%, a survey shows. The calculations are based on public data of half of the 24 registered institutions. The overall decrease in the number of branches and staff is a logical consequence of banks' shrunken business, bankers say. That is due to the slow-down in business activity and limited household consumption. Another factor in the process is the introduction of alternative banking forms, i.e. online and mobile banking. There are some exceptions to the rule, though. Four banks have expanded their branch network: Corporate Commercial Bank (43.59%), Societe Generale Expresbank (4.93%), DSK Bank (0.26%) and Central Cooperative Bank (0.38%). The number of employees has grown in First Investment Bank (6.32%), Societe Generale Expressbank (10.68%), Corporate Commercial Bank (42.09%) and Central Cooperative Bank (29.16%).
Source: Capital (20.08.2013)

Provident starts offering fast loans up to BGN 2500 Unsecured small loans to the amount of between BGN 200 to BGN 2500 will be offered by the newest player on the so called fast loans market in Bulgaria. The company in question is Provident Financial Bulgaria, which is owned by the biggest British company for non-bank consumer funding International Personal Finance (IPF). Provident started operation officially two days ago. The initial investment of the company on the local market is between GBP 2 and 3 million. In a five years’ time the company plans to reach maturity on the market and to have 100 000 customers in the country. It plans as well to have 1400 credit advisors and a national coverage of 12 branches up to March 2015. Business model, applied in Bulgaria is equivalent to that applied in Great Britain. Thus development of a branch network is the company’s priority.
Source: Capital (13.09.2013)

Bulgaria's C-Bank Oks FIB Acquisition of MKB Unionbank Bulgaria's central bank BNB said on Thursday it has approved First Investment Bank's acquisition of 100% of the shares of MKB Unionbank EAD. "The deal is yet another major consolidation on the Bulgarian banking market following the successful merger of Bulbank, HVB Bank Biochim and Hebros Bank, which was a positive contribution to the stability and confidence in the Bulgarian banking system," the central bank said in a statement. After the acquisition of MKB Unionbank EAD, the assets of FIB reach over BGN 8.5 B, according to reports of the buyer. The consultancies for the deal were international financial advisor Lazard and First Financial Brokerage House. In mid-March, FIB was the only candidate buyer who filed a binding offer for MKB Unionbank. Another candidate to buy MKB Unionbank was Hungarian OTP Bank, owner of DSK Bank in Bulgaria. After the acquisition, FIB ranks third by assets, preceded by DSK Bank with BGN 8.9 B and Unicredit Bulbank with BGN 12.7 B. The value of the deal has not been disclosed. F
Source: Sega (20.09.2013)

The Balkans is a small but an attractive market for the big Western bank groups, Trud daily reports. Bank assets in Central and Eastern Europe stood at about EUR 2 trillion in 2011. This is roughly equal to Europe’s three largest banks – Deutsche Bank, HSBC and BNP Paribas. South Eastern Europe is even smaller and its assets amounted to just EUR 230 billion in 2011. Therefore, it is not surprising that assets of Europe’s leading banks in Central and Eastern Europe are also small. For instance, assets of UniCredit, Societe Generale, Intesa, or Commerzbank in Central and Eastern Europe account for only 4%-20% of their total assets. At the same time, foreign banks show great interest in the region. Foreign ownership in banks amounts to about 70-90%. The highest share of foreign ownership (90%) can be seen in Albania, FYROM, Bulgaria, Slovakia, Montenegro, and Bosnia and Herzegovina. Foreign ownership in Romania, Croatia and Serbia is about 70-80%. Interest in the Balkan region before the crisis was caused by the great potential for economic growth in the region.
Source: Darik Radio (17.10.2013)

UniCredit Bulbank enters the Deloitte ÑÅ Òîð 500 Ranking UniCredit Bulbank is the only Bulgarian bank in the Top 50 of banks in Central Europe in the annual ranking of the largest companies in the region - Deloitte ÑÅ Òîð 500 - the bank announced. The ranking is based on the consolidated income of the companies for the respective year. The ranking groups the companies based on industries and countries, while for the banking sector in particular - depending on their total assets for the year. UniCredit ranks 44th with assets of EUR 6.472 billion, following Romanian Unicredit Tiriakbank and Czech CSMM. Polish banks occupy the most positions in the ranking, followed by Czech and Hungarian banks. Slovenia and Estonia also entered the ranking with one bank each.
Source: money.bg (22.10.2013)

A complex in Varna gone bankrupt Two big residential and touristic complexes in Varna went bankrupt almost at the same time. One of them is entirely completed, while the other is on rough construction. The Luxurious Orchid gardens is put for sale by a private bailiff for BGN 40.2 million. The complex consists of 106 apartments, 87 offices, 35 stores, 233 garages and parking lots, SPA center. Total area of the site is 42,443 square meters, of which 12,000 are residential, offices are 9600, and the shops - 7,800 square meters. The announced tender is at the request of UniCredit Bulbank.
Source: Presa (28.10.2013)

Bulgaria’s Central Cooperative Bank launches convertible bond issue Bulgaria’s Central Cooperative Bank (CCB) has offered for subscription 36,000 convertible bonds for a total of 36 million euros, the bank said on Tuesday. The bonds, which will mature in 2020, have a par value and an issue price of 1,000 euro apiece and an interest rate of 4.5%, the bank said in a filing with the Sofia stock exchange. Holders of 3,143.17 shares are entitled to subscribe to one new bond. New investors can buy subscription rights on Sofia stock exchange. The company will consider the bond issue successful if it sells at least 23,000 bonds for 23 million euro in total.
Source: Capital (06.11.2013)

BG banks with more money Bulgarian banks will now have more free money after the requirement of a minimum 12% capital adequacy was removed by an amendment of the Credit Institutions Act by the Ministry of Finance, Standart daily reports. The new rules will give banks an opportunity to lend more money. In the EU, the capital adequacy requirement is 8%. In order to somewhat compensate the more liberal regime, a multiple buffer will be introduced. "I do not expect a direct and immediate effect via the changes in the law. Banks which are doing well will simply have more money" Association of Banks in Bulgaria head Levon Hampartsumian commented. The amendments will also require all fast loan companies to re-register at the Bulgarian National Bank within 6 months.
Source: Standart (06.11.2013)

No Credit Card Needed for PayPal Customers in Bulgaria A new feature allows Bulgarian customers to transfer money directly from their bank account to a PayPal account. To put it simply, it gives them the option to pay online without using a credit card. This top-up service is intended for users who prefer to use their bank accounts to pay online and do not want to use their credit cards for security reasons. The feature is a result of a partnership between PayPal Central and Eastern Europe has TrustPay in order to provide a new credit top-up service to its European customers. TrustPay is a company which specializes in payment solutions. Its services include the provision of a platform for payment transactions in Central and Eastern Europe and the provision of payment cards and bank transfers.
Source: Capital (07.11.2013)

An exception from traditional banking in Bulgaria In March 2013 UniCredit Bulbank opened its first “branch of the future” in Sofia. The new type of office aims at achieving higher client satisfaction. The bank explained that it created the office in response to changes in client behavior. The office offers completely open spaces, while its furniture combines modern materials and timber. The branch can easily be distinguished from other structures of the type as it has a large front window display with a clear view of its interior. Instead of the traditional advertisement posters covering the windows, there are external screens for communication, as well as attractive lighting and a recognisable logo, making the branch attractive at night as well. The Capital Daily quotes an article by Reuters published on Nov. 3 entitled “Banks hope futuristic flagships can tempt new customers.” Installation art, interactive walls and a robot doorman - to compete against online-only rivals and to attract a new generation of customers to branches, banks are installing sleek interiors and hi-tech gadgetry, the article reads. Reuters quotes an UniCredit spokesperson as saying that visits are up by an average of 60% while loans and deposits have doubled following the opening of its new alternative office in Sofia offering “"welcoming scents and a touch-screen wall.”
Source: Capital Dàily (14.11.2013)

Arco Vara will start second stage of its complex named Manastrirski livadi Estonian company Arco Vara will start the second stage of its complex, located in Manastirski livadi neighborhood in Sofia. Bulgarian subsidiary Arco Manastirski signed a contract with Comfort for construction of 132 more apartments and 86 underground parking lots in blocks A and B of the complex. The project for the second stage is assessed at EUR 3.9 million VAT included. The 15th of November was the official start of construction works. After the second stage is completes residential part will have a total area of 12 500square meters, while underground parking lots will have an area of 3300 square meters. The lot, as well as the whole complex in Manstirski livadi, is owned by the company of the same name. It acquired the complex from Arco invest. Whole funding of Arco Manastirski was secured by a loan from Unicredit Bank to the amount of EUR 4.4 million. Until now funds, invested in Arco Manastriski are assessed EUR 14 million. Separately EUR 25 million was the investment in Madrid project of the company.
Source: Capital (14.11.2013)

Levon Hampartzoumian, CEO of UniCredit Bulbank: Crediting will depend on economic development In an interview with the Capital Daily Levon Hampartzoumian, CEO of UniCredit Bulbank and Chairperson of the Executive Board of the Association of Banks in Bulgaria (ABB), makes an assessment of the passing year saying that it resembles 2012 in terms of low economic growth. He notes the slight slowdown in the rate of bad loans growth. In his opinion crediting in 2014 will be, as it always has been, a function of the condition and development of economy. Mr Hampartzoumian explains that even though subsidised and guaranteed schemes such as JEREMIE are quite successful, they are not the base of crediting. What business needs the most is a calm and predictable working environment, he emphasises. The main challenges that the banking sector will face in 2014 are the condition of the EU and Bulgarian economy, political instability and the introduction of rash regulations that would hamper the banks’ work with their clients, Mr Hampartzoumian concludes. *** Representatives of companies of all sizes and entrepreneurs will meet high-ranking managers and experts from leading banks in Bulgaria – UniCredit Bulbank, SG Expressbank, United Bulgarian Bank, CIBank, Raiffeisenbank, Postbank, ProCredit Bank and the European Investment Fund during the First Annual Conference Banks and Business, organised by the Capital on November 27, 2013.
Source: Capital (21.11.2013)

Holding Roads opted for insolvency After several years of worsening financial results, failed attempt for insolvency, distraint on accounts and concerns that the company will not fulfill won orders Holding Roads officially acknowledged that it is likely to fail to meet its obligations. The company announced that it has filed a claim for bankruptcy because of poor financial performance. The claim is not a big surprise as financial reports of the company showed big debts, decreasing revenues and accumulation of losses. If the court accepts the claim this will be the consecutive infrastructure company, owned by Vasil Bozhkov that goes into bankruptcy. Before this such procedure was by entered Moststroy and its subsidiaries, as well as subsidiaries of Infra Holding. As to the end of September Holding Roads’ accounts in First investment bank and Unicredit bank are still impounded at the request of UBB to the amount of BGN 7.6 million. Due to unpaid installments on loans to Unicredit Bulbank property of Bourgas Shipyards was sold at a tender. It was mortgaged under the debt of the holding. Over BGN 1 million was received from the sale which resulted in reduction of part of the company’s debts.
Source: Capital (28.11.2013)

Numerous deposits cause credit interest rates to drop Bankers forecast a decline of credit interest rates in 2014 at a conference on Wednesday, 24 Chasa daily reports. However, they do not expect higher demand for crediting as it depends on economic stability as well. Petar Andronov, CEO of CIBank, announced that there are several factors influencing the banking sector. The growth of deposits is among the positive ones, as it cuts the cost of the resource and leads to a decrease of interest rates on both deposits and credits. Negative factors are bad and restructured credits and the provisions set aside as they cause the banks’ efficiency to deteriorate. The problem could find its solution in bank consolidation, but there is a lack of investor interest, he explained. Levon Hampartzoumian, CEO of UniCredit Bulbank, commented that so far there has not been a formalised institutional proposal for amendments to existing regulations, but the ideas under consideration could lead to some serious misbalances and difficulties in the banks’ operation, if adopted. He expects that “collective common sense” would prevail.
Source: 24 chasa (28.11.2013)

Banks with Bulgarian capital getting bigger and more powerful Banks with Bulgarian owners have been growing bigger, moving up the scale in terms of assets, it transpires from BNB data for October 2013. Three lenders with Bulgarian ownership saw their assets rise in October - Corporate Commercial Bank jumped to the 4th place in the chart, Central Cooperative Bank ranks eighth and Investbank is thirteenth. They overtook UBB, Societe Generale Expressbank and Bulgarian Development Bank (BDB) respectively. Thus, two of Bulgaria’s largest banks in terms of assets are controlled by Bulgarians – Fibank (4th) and Corporate Commercial Bank (5th). UniCredit Bulbank leads the chart, followed by DSK Bank. According to BNB stats, the downturn in banking sector profits continued in October. The sector’s profit in late October totaled BGN 511.4 million, down 8.8% y/y. On monthly basis, however, its positive financial result increased by BGN 45 million
Source: Capital (02.12.2013)

Modernization of Dundee precious Metals Chelopech assessed to USD 126 million Terminated in the end of last year project for expansion and modernization of production of gold extraction company Dundee precious Metals Chelopech got excellent mark from European Bank for Reconstruction and Development, which ensured the biggest part of funding under it. The inspection concluded that results are impressing and in many ways went beyond EBRD’s requirements. Moreover the project cost less than initially anticipated. The project’s execution started in 2009. Its aim was yield of ore to increase from 900 thousand tones to 2 million annually. This involved construction of new underground facilities, modernization of enrichment plant in the depository, installation of new equipment. The project’s budget was UsD131.5 million dollars, but the company was able to complete it for USD126 million. Of this amount, the largest portion – USD 49 million was provided by the EBRD. Credits were also taken by Unicredit Bulbank USD 18 million and Raiffeisenbank (USD 15 million).
Source: Capital (05.12.2013)

UniCredit Bulbank forecasts slow economic recovery next year The slow recovery of Bulgaria’s economy will continue in 2014. UniCredit Bulbank forecasts a GDP growth rate of 0.5% in 2013 and 1.5% in 2014. In the short run economic growth rate is unlikely to gain pace. Recovery will rely almost completely on the demand for Bulgarian goods by the country’s main trade partners. The recovery of export observed in 2013 will continue in 2014, while the economic growth in 18 from the 20 most important export destinations for Bulgarian economy will accelerate. The cost of and access to crediting will continue to depend more on specific local factors rather than foreign markets. As far as interest rates are concerned, expectations are they will continue their slow decline in 2014. The ongoing political tension is one of the obstacles towards a recovery of the labour makert in the short run. These are some of the conclusions in UniCredit Bulbank’s annual economic analysis by Chief Economist Christofor Pavlov.
Source: Capital (17.12.2013)

Heating plant in Bansko has a new owner Power plant for wood residues, which provides heating in Bansko, has a new owner. A company, named Tevno has bought the facility from Unicredit Bulbank, which took it from Bul eco energy as collateral to a loan. The bank announced for sale the power plant as well as land to it. The price is probably about EUR 2.4 million, which is the approximate value of Bul eco energy’s obligation. The project for Bansko’s heating system on biomass was initiated in 2006, when Bul eco energy got a 15-year license for generation and transfer of heat in the town. Recently the company’ revenues have sharply dropped. The new owner Tevno has concluded a deal for technical support of the 10-megawatt power plant with Dalkia Bulgaria and Dalkiya Varna. Information on the production of the plant showed that during the last heating season it operated with no more than 4 MW load. Therefore, it can only use one of its two water power boilers, each of which is 5 megawatts.
Source: Capital (17.12.2013)