Lukoil's Bulgarian refinery gets EUR 420 mln loan for upgrades Bulgarian oil refinery Lukoil Neftochim Burgas, a subsidiary of Russian oil company Lukoil, has received an EUR 420 million credit line from several European banks to finance upgrades, Italy's export credit agency said on Thursday. The ten-year loan, which will be 95% covered by the Italian agency, SACE, was provided by Societe Generale, acting as global coordinator, mandated lead arranger (MLA) and lender, BNP Paribas, acting as facility agent, MLA and lender, ING Bank, acting as environmental agent, MLA and lender, UniCredit Group acting through UniCredit Bank Austria acting as MLA and lender and UniCredit SpA acting as MLA and SACE agent, the agency said in a statement. The Bulgarian refinery is being upgraded under a lump sum turnkey contract that it has concluded with Paris-based oil and gas engineering services supplier Technip, it added
Source: Capital (06.01.2014)

Bulgaria’s FiBank signs deal with EIF to back SMEs under RSI Bulgaria’s First Investment Bank [BUL:5F4] (FiBank) said it has signed a guarantee agreement with the European Investment Fund (EIF) under the risk sharing instrument (RSI) to support small and medium sized enterprises (SMEs). The funding is the first one for Bulgaria under the seventh framework programme for research and development FP7, FiBank said in a press release on Thursday. The agreement will allow FiBank to on-lend funds within the next two years of up to 15 million euro ($20.4 million), half of which will be covered under the guarantee, to companies across the country undertaking research, development or innovation projects, the bank said. The RSI aims to encourage banks to provide loans to SMEs and small mid-caps of up to 7.5 million euro. It is the result of cooperation between EIF, the European Investment Bank (EIB) and the European Commission. The guarantee covers up to 50% of the outstanding amount of each loan. EIF is European Investment Bank Group's specialist provider of small and medium-sized enterprises risk finance across Europe.
Source: Capital (10.01.2014)

Bulgarian Energy Holding To Select 5 Banks to Service its Activity The Bulgarian Energy Holding (BEH) has announced a competition for the selection of five banks to service its activities. Bids will be accepted by January 24, according to a statement published on the website of the company. BEH informs that it is launching the procedure in order to comply with competition rules under which the net exposition of a contracting authority to a credit or financial institution cannot exceed 25% of the total cash of the contracting authority. In May 2013, the caretaker government of Prime Minister Marin Raykov adopted a decree stating that state-owned companies must not deposit more than 25% of their free capital with one single bank. A total of 234 companies were to ensure compliance with the decree by December 4. However, most of the state-owned energy companies failed to fulfill the requirement within the 6-month deadline, according to dnevnik.bg. Over the past ten years, a large portion of the capital of Bulgarian state-owned companies was deposited with the Corporate Commercial Bank of Tsvetan Vasilev. In mid-December 2013, Deputy Prime Minister Daniela Bobeva reported that the rate of concentration of capital of state-owned companies was dropping and one bank contained 22.67% of the deposits by November 30, 2013, down by half compared to the rate in March 2013, at 47.05%
Source: Capital (14.01.2014)

Properties from Golf club Ibar will be sold due to a debt Villas and plots of mega complex Golf club Ibar, located near Dolna Banya will be sold due to debts to Unicredit Bulbank. The complex was among property projects awarded with certificates for investor Class A in 2006. Villas and plots that are put at a tender are sold separately, as their total minimum price is BGN 3.24 million. All of them are owned by Golf club Ibar and by a company named Yaykana, where the club is a shareholder. Area of each plot is about 1 acre, while villas’ gross floor area is from 153 to 242 square meters. The present tender is the second one, the last tool place in October. By now more than BGN 60 million has been invested in the complex. About 160 of all villas are sold. The loan to Unicredit is to the amount of EUR 2 million and till 2009 it was repaid regularly. The project started in 2005. Gorna Banya municipality holds 8.6% of shares and capital of the complex; 34% are owned by Lazarov Nedev, while the rest majority share is ownership of Golf Panorama.
Source: Capital (16.01.2014)

New cheese factory in Vratsa The Lilia-milk company is planning to repair a meat factory in the city of Vratsa and install new equipment for yellow cheese-making. Sole trader Valentin Velikov – Valta presented an investment proposal to Sliven Municipality in end-2013. He intends to turn a former slaughterhouse in the village of Krushare into a cheese factory. The factory will be located near his own dairy farm. The sole trader achieved an income of BGN 327,000 for 2012, marking a YoY growth of nearly 50%. His profit during the period tripled to BGN 64,000, according to data in the Commercial Register. The website of the Bulgaria Chamber of Private Enforcement Agents shows the slaughterhouse changed owners at a public tender in June 2013 at the initial bidding price of BGN 11,250. The sale took place by request of UniCredit Bulbank. The former owner and debtor was Filipov-Rusev.
Source: Capital (20.01.2014)

Bad loan buyback in Bulgaria leads to crediting growth in December The banking sector registers a growth of both corporate and individual credits in December 2013. However, it is to a great extent due to the buyback of bad loans, the monetary statistics of the Bulgarian National Bank (BNB) shows. Thus, in view of the shrinkage of crediting, the December increase had a favourable effect on the annual balances and reports of banks. The system’s crediting portfolio gained BGN 288.9 million to BGN 53.8 billion. At the same time, the system bought back credits for BGN 264.7 million in December 2013. In the current situation of crediting growth gravitating around zero and nearly BGN 10 billion of non-performing loans the buyback of a package of credits has a refreshing effect upon the banks’ portfolios. Consumer credits marked the highest increase – BGN 150.7 million (2.07% MoM) to BGN 7.428 billion. In December bad and restructured loans marked a slight growth of 0.03% MoM and 0.19% YoY. Their volume in end-2013 was BGN 9.715 billion with a share of 22.6% in bank portfolios. According to the latest forecasts that UniCredit Bulbank presented in the beginning of the year banks will continue to endure losses from credits in their portfolios in 2014. This will maintain write-off expenses at high levels at least for a few more years, which combined with forecasts for weak crediting demand in the short and long run infers that income from the banks’ main activity will remain under pressure, as well as the sector’s effectiveness, the bank’s analysis notes.
Source: Capital (27.01.2014)

SOL to open EUR 13 mln air separation unit in Bulgaria's Devnya by end-2014 Italian industrial gases producer SOL Group will open by the end of the year a EUR 13 million air separation facility in Devnya, in northeast Bulgaria, UniCredit Bulbank, which is backing the project, said on Thursday. The facility is part of a larger project estimated at 16 million euro which also includes a carbon dioxide (CO2) sequestration unit, which opened in March last year, and a production unit for industrial and medical gases, UniCredit Bulbank said in a press release. The new facility will allow the company not only to serve its numerous customers in eastern Bulgaria, but also to export products to neighboring Romania and Turkey, Aldo Fumagalli Romario, CEO of SOL Group, was quoted as saying in the press release. The project will create 10 new jobs for trained specialists which will increase the company’s employment rate by 34%, the Bulgarian economy ministry said in a separate press release on Thursday. SOL Group is partners with local fertilizer maker Agropolychim on the production of CO2 and the utilization of the nitrogen generated by the air separation installation. UniCredit Bulbank has extended EUR 8.0 million in financing to SOL Bulgaria for the implementation of the project. SOL Group entered the Bulgarian market in 1999. It operates three other facilities for industrial gas production, located in Sofia, Plovdiv and Burgas.
Source: Capital (07.02.2014)

Moody's upgraded UniCredit’s outlook Moody’s rating agency affirmed UniCredit’s long-term debt and deposit ratings at Âàà2 and upgraded its outlook to “stable” from “negative.” The news transpires after on February 14, 2014, Moody’s raised the outlook of Italian government bonds to “stable” with a Baa2 rating and the stabilisation of the Italian government’s creditworthiness. Moody's upgraded the rating of another five Italian banks, apart from UniCredit, as well as UniCredit Leasing’s to Baa3. Bulgaria is one of the group’s key markets in Central and Eastern Europe thanks to the presence of the most powerful bank in the country. Standard and Poor's has assigned UniCredit the highest possible rating in Bulgaria - BBB - equal to that of the state.
Source: money.bg (21.02.2014)

Bulgaria's UniCredit Leasing taps new CEO The Bulgarian leasing arm of Italian banking group UniCredit said on Tuesday Alexander Krastev has been appointed as its new chief executive officer (CEO). Prior to stepping in as CEO, Krastev held the position of chief risk officer at UniCredit Bulbank, the local unit of UniCredit Group, UniCredit Leasing said in a press release. Alexander Krastev takes over from Rumen Ivanchev.
Source: money.bg (12.03.2014)

Bank to manage Stara Zagora’s Park Mall due to a bad loan Change in mall ownership due to financial problems has become a rather common phenomenon, Capital Daily reports. The first mall in Stara Zagora did not make an exception. Due to a non-performing loan of EUR 24.4 million, UniCredit Bulbank obtained ownership over Park Mall. The bank issued the loan in June 2009 to the Kino Arena 2005 company, later renamed Park Mall Stara Zagora. The company pledged the mall as security to UniCredit and another creditor that joined the deal – the Erste Bank Group. Francis Whiting received an appointment as mall manager and private enforcement agent Krastyo Angelov - as bailee. Park Mall opened on the eve of the crisis - in October 2008 - as an investment of the owners of Alexandra Group Holding. There was high interest by the residents of the city at first as this was the first shopping centre of the type in the city and the region. Falling purchasability, a withdrawal of renters and the emergence of competitors - Galleria Stara Zagora and City Mall, - caused a deterioration of the mall’s financial results. Thus it suffered problems with repaying its debt to UniCredit about two years ago. UniCredit is facing a difficult task with undertaking the mall’s management. The recovery of the shopping centre following several years of inefficient management will be a real challenge requiring serious refinancing. The bank declined to comment on the mall’s future and whether it is looking for a buyer.
Source: Capital (12.03.2014)

Contactless Payments On The Rise in Europe The European consumers made more than 340 million contacltess payments in 2013, shows the data of Visa Europe. The sum spent via contactless payments increased threefold and reached EUR 453 M. The growth is explained with the increasing popularity of such type of payments. The service is gaining popularity in Bulgaria as well. By January this year the banks have issued more than 50 000 contactless cards, which can be used at more than 5200 POS terminals. The total number of such cards in Europe is 80 million and the terminals are more than 1.3 million
Source: Capital (21.03.2014)

INTERVIEW – EBRD plans to invest 200 mln euro in Bulgaria in 2014 The European Bank for Reconstruction and Development (EBRD) plans to extend around EUR 200 million in financing for projects in Bulgaria this year, on par with the resource disbursed in 2013, the lender’s country director for Bulgaria said. The funds the bank will provide to Bulgaria this year will be mainly allocated to small- and medium-sized enterprises (SMEs), start-ups, local manufacturers, agribusiness companies and energy efficiency projects, Daniel Berg told SeeNews in an emailed interview. EBRD’s operations in Bulgaria in 2013 focused mainly on support for local manufacturers and agribusiness companies and on backing energy efficiency projects through tailor-made facilities while also working with equity funds to reach out to smaller companies and start-ups. The country strategy under which Bulgaria currently receives financing from the bank was adopted in 2011. A new four-year country strategy will be prepared this year and will be put into effect as of 2015. Under the new programme, EBRD may increase its funding for the Bulgarian Fund for Local Authorities and Governments (FLAG) under which Bulgarian municipalities receive financing for projects of regional importance. However, whether and how much FLAG’s funds would be increased depends on many factors, including whether the project meets the EBRD’s traditional conditions of transition, additionality and sound banking. Berg expects that two related issues – financial engineering structures and supporting Bulgaria’s absorption of EU funds – are likely to be discussed during the Country Strategy consultation process which is just now getting underway. While Bulgaria may boast a vibrant community of entrepreneurs which is often rich in projects, it is poor in capital and needs additional funding, which EBRD is willing to provide, Berg said. “While we do not have currently obvious instruments for directly funding start-ups, we are constantly discussing ways to reach smaller companies together with our financial partners,” he added.
Source: Capital (21.03.2014)

European Investment Bank Gives EUR 50 M for Bulgaria's SMEs The European Investment Bank (EIB) provides UniCredit Bulbank with EUR 50 M for financing Bulgarian SMEs in agriculture, industry and services. The first half of the credit line was presented by Mihai Tnasesku, EIB vice president and UniCredit Bulbank's CEO Levon Hampartzumian. The EIB funds will improve the access of SMEs to financial resources for their projects. The total sum of the EIB loan is EUR 100 M and the maximum sum for one company is EUR 12.5 M. According to EIB, in 2013 in Bulgaria it gave out loans totalling EUR 270 M, which is a 48% increase, compared to 2012. The bank financed major infrastructural projects such as the Sofia transport program, which got EUR 50 M.
Source: Capital (24.03.2014)

2014: Deflation of 0.8%, GDP grows by 1.5% Average annual deflation in 2014 will reach 0.8%, UniCredit Bulbank projects in its quarterly economic analysis about Bulgaria. However, the bank expects an average inflation of 1.2% in 2015. Consumer Price Index (CPI) dropped to its lowest historical level of -2.6% on an annual basis in February 2014, compared to -1.6% in December 2013. This is the result of new price decrease for electricity, fuels and clothes. “The increase in exports for euro area countries and the moderate increase in expenses related to EU funds absorption will help to slightly boost GDP growth in 2014”, Kristofor Pavlov, Chief Economist at UniCredit Bulbank, expects. According to projections, economy will grow by 1.5% in 2014 and 2.1% in 2015. GDP went up by 0.9% in 2013.
Source: investor.bg (25.03.2014)

Energy holding keeps its interest for Chimko Bulgarian energy holding wasn’t present on the auction for assets of the fertilizers’ plant Chimko based in Vratsa that took place on the 19th of March. The reason is that the announced price of BGN 28.5 million didn’t correspond to their expectations. Yet the state holding plans acquiring assets of the ex-plant. The idea for Chimko is a synergy between production of urea and the fundamental need for electricity and gas, which make 80% of the value of this product. The company’s economic and technical analyses have not been yet prepared, as well as the prospects for sale of these products. BEH intends to acquire assets or at least shares of Remotex, which is a strategic company for the East Maritsa power pool. Via the newly-founded company under the name of Energy Investment Company BEH is to complete its investment purposes. The aim is BEH to turn into a regional leader in the energy field.
Source: Dnevnik (25.03.2014)

National Guarantee Fund to partner with 10 banks on a business loans scheme National Guarantee Fund (NGF), a subsidiary of Bulgarian Development Bank (BDB), has signed a partnership agreement with ten commercial banks, under which the lenders will be granting business loans secured by the Fund. The maximum amount of loans up for grabs under the scheme is BGN 360 million. The ten banks are BACB, Investbank, UBB, Fibank, Piraeus Bank, Cibank, TBI Bank, Tokuda Bank, UniCredit Bulbank and Eurobank. Guarantees issued by NGF are free of charge for companies and will help them negotiate better borrowing terms. NGF will take the risk on its guarantees and will accept as collateral assets that its partnering banks would accept, NGF’s executive director Samuil Shiderov explained.
Source: Standart (26.03.2014)

Two major construction companies in Bulgaria with new owners Two major Bulgarian construction contractors – PST Holding and Patishta Plovdiv have new owners, Capital Daily reports, quoting information from the Commercial Register. PST Holding is now property of a Cyprus-registered offshore company, but some sources say that its current owner, known for his ties with Fibank, is just partnering with Vodostroy 98 (close to Corporate Commercial Bank and Delyan Peevski). In the case of Patishta Plovdiv, businessman Georgi Gergov is selling its stake to Blagoevgrad-based firm Agromah. Assets of Agromah have been pledged as collateral on a EUR 29 million loan Patishta Plovdiv took from UniCredit Bulbank. The newspaper reminds that Vodostroy 98 and PST Holding are part of the consortium rumoured as the possible building contractor for the Bulgarian section of South Stream.
Source: Capital (07.04.2014)

Bulgaria’s Speedy plans to pay 0.51 euro/share in 2013 dividend Bulgarian provider of express delivery services Speedy said on Monday it plans to pay a gross dividend of BGN 1.0 per share for 2013. The company plans to distribute as dividend a total of BGN 4.45 million from its 2013 profit of BGN 8.83 million. The proposals will be put to the vote at a general shareholders’ meeting scheduled for May 14.
Source: Capital (08.04.2014)

Deflation in Bulgaria continues for the eight month running Deflation processes in Bulgaria continued for the eight month in a row in March, driven by the administrative crack down on electricity prices and external factors. Sliding consumer prices mean smaller revenues for the state from indirect taxes like VAT. According to data published by the National Statistical Institute (NSI), consumer prices dropped by 2.3% in March y/y and by 0.2% m/m. Analysts believe that deflation pressure will be short-lived. In its latest quarterly report, released in March, UniCredit Bulbank points to one-time components behind the price decreases – such components have been the strong wheat harvest in 2013, which pushed down food prices, and the series of administrative decisions cutting electricity and heating prices for household consumers. UniCredit Bulbank also believes deflation will not be around for too long. This year it will be fuelled by untapped economic potential due to limited recovery and subdued lending.
Source: Capital (15.04.2014)

UniCredit Bulbank is Best Bank in Bulgaria according to the Europe Banking Awards annual ranking of financial institutions worked out by the international finance magazine ÅÌÅÀ Finance. This is the sixth consecutive year that UniCredit has received the recognition. EMEA Finance’s editor–in-chief Chris Moore will bestow the award to UniCredit CEO Levon Hampartzoumian on May 13, 2014, in Warsaw.
Source: Standart (16.04.2014)

Six banks provide services to the judiciary in Bulgaria Two-thirds of the judiciary in Bulgaria has picked six banks to run their financial affairs, Sega daily reads, quoting data provided by the Supreme Judicial Council. UniCredit Bulbank leads the chart with 83 courts and prosecutor’s offices, followed by UBB with 58, DSK Bank, Central Cooperative Bank, SG Expressbank and Cibank, servicing between 37 and 20 judicial bodies each. All in all, the judiciary in Bulgaria uses the services of 15 banks, including BNB. The topic was brought to the public attention in early 2014, after some revelations about the newly appointed chair of the Varna Court of Appeal Vanuhi Arakelyan. According to reports, while she was on her previous job as head of the Regional Court, Arakelyan picked Corporate Commercial Bank for service provider, had her mortgage refunded by the same bank. She also took a EUR50,000 consumer loan from it with a preferential interest.
Source: Sega (28.04.2014)

Corporate Commercial Bank Acquires Credit Agricole Bulgaria Bulgaria's Corporate Commercial Bank (KTB) has acquired all assets of Credit Agricole Bulgaria, the Bulgarian National Bank (BNB) announced Wednesday. A deal worth BGN 92 M, which enables KTB to purchase Credit Agricole's Bulgarian unit, has been approved by the Bank Oversight department at the BNB, Bulgaria's bTV channel reported. News of the forthcoming acquisition spread on January 22, with the French bank estimating a EUR 160 M reduction in its risk-weighted assets after the deal is finalized. Credit Agricole, one of Europe's biggest banks, had its presence in the country only for two years after in 2012 it acquired 100% of Emporiky Bank Bulgaria's assets and was registered as Credit Agricole Bulgaria. Its market share (based on the BGN 484.9 B assets) was 0.6% in September 2013. KTB representatives announced they would develop the branch as a separate venture. Its deal with Credit Agricole is this year's second example of a foreign financial organization to have left Bulgaria after MKB Unionbank merged with First Investment Bank in February. The new acquisition will not lead to changes in Bulgarian bank rankings, with KTB remaining fourth in assets (BGN 7.705 B as of March 31 2014) after Unicredit Bulbank (BGN 12.693 B), DSK (BGN 8.949 B) and First Investment Bank (BGN 8.708 B).
Source: money.bg (08.05.2014)

Bulgarians’ financial wealth has reached EUR 25 billion The net financial wealth of Bulgarian households has risen over three times in the past nine years and has reached nearly EUR 25 billion. The growth rates exceed the average for the region of Central and Eastern Europe (CEE), where the net financial wealth of households has increased over two times to nearly EUR 780 billion. In spite of the considerable growth the wealth of CEE households compared to GDP represents 1/4th from that of households in Western Europe. This means that the region still holds great growth potential. These are some of the conclusions of economists from Italian Unicredit Group in their analysis of the region presented at the annual meeting of the European Bank for Reconstruction and Development (EBRD) in Warsaw. From not on the net financial wealth of CEE households will continue to equalise to the standards in Western European countries mainly as a result from the growth of savings and investments, Gianni Franco Papa, Head of CEE Division of UniCredit said. In Bulgaria the total financial debt and total financial assets of households represent 62.4% and 26% of GDP respectively by 2013, while Unicredit’s forecast is they will reach 69.3% and 25.2% respectively in 2015.
Source: Capital (15.05.2014)

Bulgaria's UniCredit Bulbank selling Zhrebchevo HPP for BGN 13 million After the loss of its fuel distribution company, Petrol Holding is on its way of letting another precious asset slip through its fingers – Zhrebchevo Hydropower Plant (HPP). The Sliven-based 14.4-MW HPP has been put up for sale by UniCredit Bulbank, probably over unpaid debts, Capital Daily reads. Petrol Holding bought Zhrebchevo HPP from the National Electric Company (NEK) back in 2002. According to its latest financial report, the HPP generated BGN 1.5 million in revenues in 2012. Its profit was BGN 346,000. UniCredit Bulbank is selling the HPP for BGN 13 million. The HPP’s current owner has been pledged as security on loans it took from UniCredit Bulbank in 2007.
Source: Capital (16.05.2014)

Andrea Casini: Italian investments in Bulgaria close to BGN 2 billion Italy is among the biggest investors in Bulgaria, accounting for nearly BGN 2 billion in Foreign direct investment (FDI), according to Andrea Casini, COO of UniCredit Bulbank. He spoke at a conference in Sofia. Italian investments in the financial and insurance sectors account for EUR 600 million and these in energy and textile industry stand at EUR 300 million each, it transpires from a survey of Confindustria Bulgaria. Thus, Italian exports to Bulgaria is three times higher than Chinese imports in the country. Italy is Bulgaria’s third largest trade partner after Germany and Russia.
Source: Standart (10.06.2014)

Roads Holding officially went bankrupt On June 11, 2014, the Sofia City Court declared the Roads Holding bankrupt. The holding’s activity was terminated following a prolonged financial agony, while a distraint was levied upon its property, it transpires from an announcement of the BSE-Sofia. The first meeting of the holding’s creditors will take place on July 16, 2014. The insolvency was declared antedate – as of September 30, 2014. The holding, connected to businessman Vasil Bozhkov, announced it had filed for insolvency in end-2013. According to its management this will best protect the interests of its shareholders and creditors. This is yet another company to launch such a procedure following Moststroy and its subsidiaries. Roads Holding has had financial difficulties for years. A report on its activity by end-September 2013 shows its accounts at First Investment Bank (Fibank) and UniCredit Bulbank were distrained by request of United Bulgarian Bank (UBB) up to BGN 7.6 million. Roads Holding also has a debt to Swiss bank UBS.
Source: Sega (18.06.2014)

UniCredit Bulbank and EIF sign an agreement for financing micro-enterprises The European Investment Fund (EIF) and UniCredit Bulbank have signed a guarantee agreement aimed at supporting around 270 micro-enterprises in Bulgaria. This agreement will allow UniCredit Bulbank to provide enhanced access to finance to entrepreneurs in Bulgaria, especially those who face difficulties in accessing credit from traditional banking sources. Micro-credit Guarantees under Progress Microfinance are funded by the European Commission and managed by the European Investment Fund. Commenting on the agreement, Head of Microfinance in the European Investment Fund Per-Erik Eriksson said: “ We are happy to co-operate with a long term partner bank in this field and are thus convinced that this finance will help to benefit micro-enterprises, and in particular at-risk groups, and thereby will contribute to social inclusion in Bulgaria”. Levon Hampartzoumian, CEO of UniCredit Bulbank, commented on the signing of the guarantee agreement that providing better access to finance for small businesses will encourage entrepreneurs to develop new projects and to think for growth, and this fact is very important to improve the overall economic environment. The transaction will allow UniCredit Bulbank to continue further developing its current lending activity to start-ups, small and micro-enterprises, handicraft businesses and self-employed in Bulgaria. Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact UniCredit Bulbank’s branches.
Source: Standart (11.07.2014)

Bank Austria earned hundreds of millions due to the bank crisis in Bulgaria, Willibald Cernko, Chief Executive Officer of UniCredit Bank Austria AG, admitted. In his words the flow of millions of euros to the bank is proof that it is more secure at present. It is unclear who this money belongs to and how many days it took to transfer them to Austria. Banks Austria is responsible for the deeds of the UniCredit Group in Eastern Europe. Last week the Vienna head office of Raiffeisenbank announced about an outflow of funds from Bulgaria to Austrian banks. It is logical for foreign banks to gain from the crisis as people are looking for a place to securely deposit their funds, experts commented, speaking to The Handelsblatt.
Source: 24 chasa (11.07.2014)

The manufacturer of caps Herti will increase its production capacity and its range with the launch of three new machines. Auctions are already underway and their scheduled installation should be completed in the spring of next year. The new equipment will allow to produce aluminum caps with protective plastic ring for the first time in Bulgaria. Such products are used primarily in glass bottles for mineral water and were previously imported from abroad. Modernization project in the Shumen-based plant totals BGN 3.75 million, half of which are grants under the program "Development of the Competitiveness of the Bulgarian Economy" 2007-2013 and the rest is secured by a loan from UniCredit Bulbank. According to the Director of Investor Relations Elena Zaharieva, the company is at the finish line choosing the manufacturer and supplier of equipment.
Source: Capital (14.07.2014)

New rules on consumer loans in Bulgaria come into force Various fees and commissions on loans will be revoked and there will be a cap on the final price of consumer loans from now on, as the Consumer Loan Act come into force on 23 July. Their aim is stricter requirements for transparency when granting loans. Banks and non-banking financial institutions granting loans will observe the new rules. The price of the loan cannot exceed the legal interest rate, i.e. 50%. The amendment is mainly related to fast loans. However, clients will have to pay for services that were not included in the loan price so far. For instance, fast loans will require guarantors and payment of insurance. Bulgarian National Bank’s data show that the price of mortgage loans slightly increased in end-May. The amendments may make bank offers for loans worse than before.
Source: Standart (23.07.2014)

Unicredit, Eurobank and Societe Generale are the banks that have achieved the highest nominal increase in borrowings in the second quarter. These three vaults attracted over BGN 1 billion of citizens and non-credit institutions for the period. In all probability, the greatest was the dynamics of the end of June, when the CCB and First Investment Bank experienced significant difficulties. Total of companies, government agencies and citizens, during the quarter banks have attracted BGN 1.2 billion, up 2.1% to BGN 58.65 billion. Between April and June UniCredit Bulbank has attracted most deposits of individuals and households – BGN 261.3 million. Second with an increase of BGN 133 million to BGN 1.8 billion is Societe Generale Express, and third is DSK with BGN 79 million to BGN 5.8 billion, shows BNB data.
Source: investor.bg (01.08.2014)

In the first half of 2014 the sales and profits of "Kintex" AD has increased significantly. For the six months of 2014, the company has exported products to USD 49.2 million. Besides India and Algeria, where "Kintex" has offices, export is also performed for Bangladesh, Ethiopia and Thailand. "We are preparing new contracts with the Ministry of Defence of Algeria and by the end of the third quarter of 2014 is expected to be made ??exports of aviation ammunition to BGN 4.8 million for African countries", commented Anton Saldziiski. The company's profit increased nearly four times. The entire military-industrial complex is a kind of trap for the closure of the CCB. There is also the service credentials for contracts of "Kintex". The Company has increased exposure, because it is given to advance implementation of major contracts of the arms companies. Such is the case with "Arcus Lyaskovetz" which is credited by "Kintex" and KTB and closed her money in the bank. From the report it is understood that the company has BGN 8.9 million. blocked funds as collateral for bank guarantees total UniCredit Bulbank and KTB.
Source: Capital (06.08.2014)

The Park Mall shopping center in the Bulgarian city of Stara Zagora has been put up for sale again at a starting price of 24.5 million levs ($16.8 million/12.5 million euro), net of value added tax. Bids for the mall with a total area of 38,447 square metres can be placed until August 18, a notice published on the website of the Bulgarian Chamber of Private Enforcement Agents indicated. The shopping center was put up for sale in July at a starting price of 32.7 million levs. Stara Zagora is located in southern Bulgaria.
Source: Capital Dàily (12.08.2014)

Loans under JEREMIE in Bulgaria total EUR 570 million The overall volume of loans granted under the two financial schemes of EU initiative JEREMIE (guaranty and low-interest) stood at EUR 568 million in late July 2014, according to data published by the local office of the European Investment Fund (EIF). The money was used to fund the projects of 6,800 companies. The guaranty scheme under JEREMIE, launched October 2012, has been fully tapped. It offered a guaranty pool of EUR 60.2 million to partnering banks in Bulgaria (UniCredit Bulbank, Raiffeisenbank, UBB, Cibank and ProCredit Bank), which allowed the lenders to grant loans at considerably lower warranty requirements. Over 2/3rd of the JEREMIE’s low-interest rate scheme, started in the first quarter of 2013, have been absorbed so far. The average interest of these loans was 3.9% in late July 2014 against a market average of 8.1%. Both schemes extend investment and turnover capital loans to SMEs operating in all business sectors. They cannot use the money for refinancing of existing loans or repayment of debts to suppliers.
Source: Capital (25.08.2014)

Foreign investments in Bulgaria focused in industry and electric power In the second quarter of 2014 the export of Bulgarian goods and services already exceeded its peak 6 years ago. The export of raw materials, however, comprises 40% of the total export of goods and in 2014 this share barely changed compared with the beginning of the 21st century. Foreign investment in Bulgaria are on the decline - from 22.7 percent of the GDP in the period 2005-2008 to 3.3% or EUR 1.2 billion in 2010-2013, said UniCredit Bulbank CEO Levon Hampartsumian at a conference of Forbes magazine in Bucharest. "But there may be a positive aspect. The quantity is less important than the opportunities for know-how, modern technology and modern management practices," added Hampartsumian. Since 2010 foreign investments are being distributed more evenly. 33-34% of them were in industry and energy. Investments in the construction sector decreased by 4% in this period. Real income from interest again grew compared to 2008 - in 2013-2014 around 2.5% and continuing to rise. The average interest rates on mortgage loans with maturity over 5 years in Bulgaria were 7.8% for loans in BGN and 10, 5% on consumer loans, according to the analysis of UniCredit. Average deposit rates were 3.3 and 3.4% in EUR and BGN. Interest on corporate government loans were 7.8% per year on BGN loans and 7.1% on EUR loans.
Source: Standart (24.09.2014)

Bulgarian business loans are most expensive: Standart Bulgaria tops the ranking of most expensive loans among EU 28, according to a survey by analysts of UniCredit Bulbank. The average interest rate on 5-year corporate loans is 7.1% annually for euro-denominated loans and 7.8% for BGN-denominated loans. Interest rates on Business loans, maturing in 1-5 years, is 7.2% for loans denominated in euro and 7.3% for loans denominated in BGN. Regarding 5-year-term consumer loans, Bulgaria ranks second for euro-denominated consumer loans (9.4%) and third for loans denominated in local currency (10.5%). Bulgarian banks are record holders in yields on deposits maturing in 2 years: 3.3% interest rate on euro-denominated deposits and 3.4% on BGN-denominated deposits.
Source: Standart (29.09.2014)

Fibank 17th on SeeNews Top 100 list for banks in Southeast Europe Fibank (First Investment Bank) ñlimbed two positions, reaching 17 on the list of SeeNews of the top 100 banks in Southeast Europe. This is owed to the dynamics in the bank’s development in 2013. Fibank CEO Vassil Hristov received the prestigious award. The ranking features some of the largest banks and companies in Southeast Europe. It includes banks in Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Moldova, Romania, Slovenia, Serbia, Croatia and Montenegro. The team of analysts, qualified journalists and editors of SeeNews ranked the banks based on their performance during the previous year – 2013. In 2013 Fibank continued to be a trusted partner of Bulgarian business. The bank’s deposits are in very high demand. Fibank was also among the most active lenders, both to businesses and households. Last year the total amount of consumer loans given by FIB increased by 7.7%, while the average increase for the entire banking system was only 1.6%. Corporate loans granted by the bank increased by 11.5% compared to an average of 0.4% for the entire system. At the end of last year Fibank successfully acquired 100% of the capital of "Unionbank" EAD.
Source: Standart (30.09.2014)

Role of FDI in Bulgaria is changing: UniCredit Bulbank CEO Foreign direct investments (FDI) in Bulgaria have been hovering at around 3% of GDP, reaching EUR 1.1 – 1.2 billion. FDI remain very important to the modernization of the Bulgarian economy but their role is changing. This is a conclusion made by Levon Hampartzoumian, CEO of UniCredit Bulbank and Chairman of the Association of Banks in Bulgaria (ABB) during his participation at the Forbes CEE Forum in Bucharest, Zhivotat dnes weekly reads. In his words, FDI used to be a source of funding for states where domestic savings were limited, Bulgaria included. Today, however, there is already a clear trend of change in the role of FDI as a source of know-how, new technologies and new management practices. "Already one third of foreign direct investments is channeled to manufacturing, another third to the energy sector, and the rest is shared between commerce, transport, construction and agricultural sectors", Levon Hampartzoumian said. "Only a few years ago Bulgaria had a period of rapid growth in the volume of foreign direct investments, which was much higher than in some CEE countries", Levon Hampartzoumian explained. In Bulgaria, however, most investments were concentrated in the non-manufacturing sectors of the economy, especially in the real estate and construction sectors, which in their turn led to an unhealthy growth in the field. For comparison other countries such as the central European economies - the Czech Republic, Slovakia, Poland and to a lesser extent Hungary - attracted smaller volumes of foreign direct investments which were however concentrated into the export-oriented part of manufacturing. In this way the manufacturing capacity of these countries increased. An essential factor for the recovery of the Bulgarian economy is undoubtedly export. In the second quarter of 2014 in real terms the export of goods and services is already above its peak of six years ago. The export of raw materials, however, reaches 40% of the total export of goods and in 2014 it is almost unchanged from its levels at the beginning of the 21st century. Further to being a sign of lagging behind of the economy, the big share of raw materials in the export structure is a problem because there are no conditions for creation of new jobs", further says the analysis presented at the Forbes CEE Forum in Bucharest. Another weakness of the Bulgarian economy was said to be the high indebtedness in the real estate and construction sectors, which will continue to burden the pace of economic recovery in the short- and mid-term plan. According to the latest analysis by the economic team of UniCredit Bulbank, there is a significant improvement of demand in the agricultural sector, the export-oriented part of some sectors, the business services and the industry. However, these are more willing to rely on inter-company indebtedness rather than increasing their exposures to banks. "The post-crisis economic environment is characterized by a greater complexity and a more limited supply of capital", commented the CEO of UniCredit Bulbank. According to him, the banking sector needs to focus on the development of SMEs and on the agricultural sector, which have the potential to be the trigger of economic growth. Levon Hampartzoumian drew a comparison between the Romanian and the Bulgarian banking sectors, pointing out that they had similar problems but in either country banks could not be the driver of growth, they could only follow it.
Source: Capital (30.09.2014)

French GeoPost acquired its first large package of Speedy shares French company GeoPost made the first step towards the acquisition of a considerable minority share in the Spedy delivery company with buying 11% of its shares against BGN 12 million in a deal on the BSE – Sofia. The strategic intention of the foreign investor is to increase its stake to 25% from Speedy’s capital. The move is part of a larger deal for the acquisition of the French company’s Bulgarian and Romanian subsidiaries by Speedy. Danail Danailov, member of the Board of Directors of Speedy, explained that GeoPost’s subsidiaries in Bulgaria and Romania will remain separate companies. A total of BGN 32.4 million is necessary for their acquisition and further investments in the two companies, which will be provided via Speedy’s capital raise and a loan from UniCredit Bulbank.
Source: Standart (01.10.2014)

Shares of Bulgaria's Corporate Commercial Bank traded for EUR 4 million Shares of Corporate Commercial Bank, amounting to EUR 4 million, were traded last Wednesday, according to data by investment intermediaries. The deal was completed although the Financial Supervision Commission (FSC) has forbidden trading in Corporate Commercial Bank’s shares after the bank was put under special supervision. 106,700 shares were sold. The share price was EUR 37.49.
Source: Class (08.10.2014)

UniCredit Bulbank sees the country’s GDP growing by 1.3% in 2014 UniCredit Bulbank slashed its economic forecast for Bulgaria, saying the nation’s GDP growth will slow down to 1.2% in the final quarter of the year due to insecurity staging a comeback on foreign and local markets. The lender also cut its predictions for the average GDP growth in the country to 1.3% from 1.5% it had predicted in the previous quarter. Despite the correction in forecasts, however, the new figures suggest an economic recovery is underway as they country is pulling off from the fable growth of 0.7% registered in 2013.
Source: Class (15.10.2014)

First payments from Bulgaria's troubled Corporate Commercial Bank for St Nicholas’ Day Declaring Corporate Commercial Bank bankrupt and paying guaranteed deposits at the bank will cost each Bulgarian BGN 230. Bankers and experts recommend for the Bulgarian National Bank (BNB) to revoke its license following the announcement of data on the closed bank’s audit, according to which the capital gap at the bank is BGN 4.222 billion. “It would be madness for someone to attempt to revive Corporate Commercial Bank as they would have to secure BGN 4 – 5 billion of liquidity. This would mean taking BGN 2,000 from each working Bulgarian. This is like filling a bottomless pit,” commented Levon Hampartzoumian, Chairperson of the Association of Banks in Bulgaria (ABB) and CEO of UniCredit Bulbank. He said that the most reasonable outcome is for the bank to be declared insolvent. He believes that the government should not interfere with the case, which is of the competence of the BNB.
Source: Standart (24.10.2014)

Bulgaria's FLAG rehires UniCredit Bulbank to manage funds State-owned Bulgarian Fund for Local Authorities and Governments (FLAG) has re-hired UniCredit Bulbank as a managing bank for the distribution of 40 million lev ($25.6 million/20.5 million euro) in credits to local municipalities for another three years, the regional development ministry said on Thursday. Under the contract, which will expire in November 2017, the bank will assist the fund in distributing credits for projects under EU-funded operational programmes, the ministry said. UniCredit Bulbank was selected to manage the fund’s activities in 2008. In September, the Bulgarian government increased FLAG's capital by 30 million levs to 248 million levs, allowing it to attract an additional capital of 70 million levs from commercial banks, according to the press release. In the January-September period, FLAG has supported projects through credits with a combined value of 750 million levs. FLAG is a funding vehicle set up in 2007 and fully-owned by the government in Sofia.
Source: Standart (07.11.2014)

Bulgaria's C-Travel raises stake in Zlatni Pyasatsi to 28.7%-media Bulgarian company C-Travel has increased its stake in Golden Sands to 28.7%, local media reported on Tuesday, quoting trade registry data. C-Travel has bought all shares, equal to 9.2%, which Golden Turs owned in Golden Sands, business online media Dnevnik said, quoting data from the commercial register. The value of the transaction was not disclosed. Last week, UniCredit Bulbank, acting as registration agent, said 9.2% in Golden Sands, or 600,000 shares, changed hands at a price of 1.49 levs ($0.95/0.76 euro) apiece. C-Travel held 19.51% in Golden Sands at the end of September, while Golden Tours held 9.24%, according to Golden Sands's latest financial report. Meanwhile, the company was majority-owned by Golden Sands, with a stake of 63.84% at the end of September. Golden Sands provides infrastructure maintenance, hotel, construction, real estate services.
Source: investor.bg (12.11.2014)

Bulgaria co gets regulatory nod to acquire, operate Zhrebchevo HPP Bulgarian company Kid 2228 has received regulatory approval to acquire, by the end of the year, the assets of hydropower plant (HPP) Zhrebchevo for EUR 7.5 million with a mortgage on the assets, the energy regulator said. The energy regulator has allowed the sale of the pledged property of the HPP only in its entirety and only after the vendor has received regulatory permission, the State Energy and Water Regulatory Commission (SEWRC) said in a statement published on its website. The regulator has also granted Kid 2228 a 15-year permit for electricity production at the 15.43 megawatt (MW) HPP. The licence will take effect after Kid 2228 takes control of HPP Zhrebchevo. The amount of the deal was given net of value-added tax (VAT). According to SEWRC, Kid 2228 will finance the acquisition deal with a EUR 8.8 million credit drawn from UniCredit Bulbank, with also acts as a pledgee on the assets of the HPP. In its business plan for the 2014-2019 period, which Kid 2228 has submitted with the regulator, it projects that the amount of electricity the HPP will produce will be 15,812 megawatt-hours (MWh) annually, which is a decrease of 30% from the HPP's average output in the past 10 years. The company has also stated it intends to invest more than BGN 3.6 million in the Zhrebchevo plant with proceeds from the sale of electricity generated by the HPP. Zhrebchevo, which started operations in 1967, is operated by New-Co Zagora, a unit of Bulgaria's biggest fuel retailer Petrol Holding.
Source: Capital (19.11.2014)

New loans of EUR 100 million from IIB Projects worth nearly EUR 100 million in preparation by the International Investment Bank. Funding is for Sparky Eltos with UniCredit Bulbank, for Eurohold, Vivacom, Tehnokoroza, Port Bourgas-West, as well as credit lines for Bulgarian-American Credit Bank and Investbank. Sofia hosted the 102nd meeting of the International Investment Bank (IIB). This forum can be considered as a key in the recent history of the institution. It had been decided to expand, while in recent years the bank has been losing members. In Sofia, however, an agreement was signed for the return of Hungary as a member of the international institution and the loan with the Hungarian Export-Import Bank for EUR 15 mln. So members of the MIB are nine - Russia, Czech Republic, Slovakia, Romania, Bulgaria, Hungary, Cuba, Vietnam and Mongolia. It was also decided to open a regional office of the institution in Bratislava. Bulgaria has several projects that are funded by the IIB, totaling EUR 43.5 mln. Together with the Russian VTB is concluded bridge loan of EUR 150 mln for Vivakom, in which IIB contributes 10 million. Investments are in Eurolease Auto and Marina Bay in Kranevo.
Source: Standart (24.11.2014)

Two Bulgarian and two local banks have been chosen to provide a bridge loan worth EUR 1.3 bln. The country has picked Citi, HSBC and local units of Societe Generale and Unicredit. According to their estimates the four banks have been chosen to provide EUR 1.3 bln. This is exactly the sum (equal to BGN 2.54 bln) that the Finance Ministry reported last week to be the total sum of offers received on a bridge loan that Bulgaria needs to amend the budget, without elaborating. This time the Finance Ministry has declined to comment on the banks' names, the information continues. Sofia needs a total of BGN 4.5 bln to deal with a billion-worth budget cap for this year and also with the aftermath of a decision to declare Corporate Commercial Bank (CCB) insolvent. The fresh borrowing will boost Bulgaria's public debt to 28.4 percent of GDP compared to 18 percent in 2013.
Source: 24 chasa (26.11.2014)

Reuters: Bulgaria picks Citi, HSBC, Societe generale and Unicredit for EUR 1.3 BN bridge loan Bulgaria has picked Citi, HSBC and local units of Societe Generale and Unicredit to arrange bridge financing for this year, two sources familiar with the process told Reuters on Tuesday. Bulgaria's parliament has given initial consent to plans to raise an extra 4.5 billion levs ($2.9 billion) to plug this year's budget gap and prop up the banking system after the collapse of Corporate Commercial Bank. "Two international and two local banks have been chosen to provide the bridge financing ... 1.3 billion euros ($1.6 billion)," an industry source, who asked for anonymity, told Reuters. The Balkan country needs to lend its Deposit Insurance Fund some 2 billion levs to cover guaranteed deposits at Corpbank. Another 1 billion levs will be used to refinance state support to First Investment Bank (Fibank), the third biggest lender, which was caught up in the panic in June. Earlier on Tuesday the European Commission approved the extension of state aid to Fibank and agreed it can be extended for up to 18 months. The finance ministry's spokeswoman declined to comment and said the lenders' names will be made public only after government approval. Some 19 banks have expressed interest in providing the funds, which Bulgaria will refinance by issuing global bonds next year.
Source: Reuters (27.11.2014)

UniCredit Bulbank received the award Bank of the Year 2014 in Bulgaria from The Banker international magazine, member of the Financial Times Group. The ceremony took place in London. The prestigious award was handed to CEO of UniCredit Bulbank Levon Hampartzoumian and COO Andrea Casini. UniCredit Bulbank received the award for the third time.
Source: Standart (02.12.2014)

Bulgarian machine builder Holding Zagora has signed with Societe Generale Express Bank and the Regional Urban Development Fund a credit agreement for BGN 3.9 million under the JESSICA initiative. Holding Zagora will use the proceeds to finance the reconstruction and modernisation of industrial plants and buildings of five of the units in the holding company. The implementation of the project is expected to improve the economic development and competitiveness of the Stara Zagora region in the long term. The credit provided by SGE amounts to more thanEUR 1.3 million. Holding Zagora's project is the fourth one funded under the JESSICA initiative in Stara Zagora. JESSICA is an initiative of the European Commission developed in co-operation with the European Investment Bank and the Council of Europe Development Bank. It supports sustainable urban development and regeneration through financial engineering mechanisms.
Source: mediapool.bg (11.12.2014)