The broker of Bulgarian Stock Exchange Mr. Ventzislav Dankov left the market, because his labour relations with the intermediary Proinvest were terminated. At the moment Mr. Dankov is an employee of United Bulgarian Bank.
Source: Dnevnik (14.01.2004)

PA’s Supervisory Board approved the contract for investment mediation for the sale of 192 077 shares, representing 13.62 per cent from the capital of Bultsrad. The intermediary will be UBB, PA announced. The shares will be sold only against cash. PA said the price of the deal was confidential.
Source: Sega (21.01.2004)

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

UBB’s private card system Globus will soon be available to all cardholders in Bulgaria. The bank started disconnecting its ATMs from BORIKA and to connect them to the new system. It has been operating since last year, but for a limited number of ATMs and for the bank’s employees exclusively. UBB’s private card system is a separate module from its retail banking system Globus. The investments made so far in the card system amount to over USD 1.5 million.
Source: Pari (12.02.2004)

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

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

Credit cards are already issued in Bulgaria. According to forecasts, by the year 2007, when Bulgaria is expected to become a full-right EU member, each second Bulgaria will have a credit card. The situation is changing very rapidly, bankers assure. There is already strong competition in this field – a number of financial institutions offering credit cards. Their terms are almost the same as in the developed countries. Until recently, the only available credit cards were such, from which the client could not draw more money than he/she had paid in the bank in advance. Besides, there should always be a certain amount of money left in the card, usually around BGN 500. The other type of credit cards, which are still very popular, are the debit cards with overdraft. They allow the client to draw money in advance. The credit, however, is deducted by the bank with the interest due on it when the person’s salary is transferred. Therefore if a person wants to use this service, his/her salary should be all means be transferred in the bank, which sold the card. Real credit cards appeared on the marked recently. Eurobank issues Transcard credit cards, which are available in two variations – classic and gold. The limit in the classic version of the card is BGN 500, and in the gold – BGN 5000. In order to buy a classiccard, one’s monthly remuneration should be in the amount of at least BGN 250; the floor monthly wage for gold card candidates is BGN 1000. Bulgarian Retail Services offers cards with limits from BGN 500 to BGN 10 000. The company works in cooperation with Post bank. For a limit of up to BGN 2000, the client should present ID card and notes for paid overheads. For a limit of up to BGN 4000, the client should also provide a copy of his/her labour contract, as well as to prove his solvency, and for a limit of up to BGN 4000 a guarantee is needed as well. UBB issues EUROCARD/MASTERCARD and VISA. It calculates the limit under a complicated point system. In the developed countries, the interest on credit cards are a lot higher than the remaining types of credits. In Bulgaria this difference is not significant. For the Euroline credit cards, sold by Bulgarian Retail Services, the interests are higher – 18.4 per cetn annually, or 1.54 per cent monthly. Transcard – 17.5 per cent for gold cards and 18.2 per cent for classic cards. The annual interest for the cards, issued by UBB is 17.5 per cent. Credit cards are usually valid for a period of 1 or 2 years. Their price varies between BGN 25 and BGN 50. There also additional expenses of BGN 20-40 a month.
Source: 168 hours (20.02.2004)

UBB reported a BGN 63.13 million gross profit on its annual general meeting, held on Tuesday. This represents a 43.7 per cent growth compared with 2002. The net profit is in the amount of BGN 48.8 million from BGN 35.8 million in 2002. The bank will distribute as dividends almost half of its net profit, which makes a BGN 0.322 dividend. BGN 24.4 million will be allocated to the Reserve fund. The bank’s assets were up 9.3 per cent, reaching BGN 1.8 billion in the end of 2003. The amount of deposits has increased with 8.8 per cent to BGN 1.49 billion. 2003 credit portfolio posted a 54 per cent growth to BGN 1.078 billion.
Source: Dnevnik (04.03.2004)

UBB’s independent card system will start operating, after an agreement is reached with all banks about the cost of inter-bank transactions. The major institution have already agreed to a fee of BGN 0.40, UBB’s CEO Mr. Stiliyan Vutev stated, adding the complete migration from the BORIKA ATMs to the new card system would take around two months.
Source: Dnevnik (04.03.2004)

Mr. Teodoros Karadzas was a Chairman of the Board of Directors of United Bulgarian Bank and Manager of the National Bank of Greece. He was born in Athens in 1930. He started his career as a lawyer.
Source: Standart (05.03.2004)

UBB Asset Management is the new managing company, which was license on Thursday by the Financial Supervision Commission. The company will manage the assets of the open-type investment funds. It is expected that by the end of the year three of the companies will start working, announced the Investment banking department on United Bulgarian bank Mr. Dimitar Alexandrov. Within the next 2-3 months is expected to be registered the first of the new companies, which will invest the accumulated finances.
Source: Dnevnik (08.03.2004)

EBRD sold its 20-per cent share from the capital of CB BNP Paribas – Bulgaria. After the deal, sole proprietor of all shares in the bank became BNP PARIBAS SA – France, and the company continues operating as a sole-proprietorship joint-stock company. Mr. John Shomel-Dow – EBRD director for the region Bulgaria, was dismissed from the bank’s Supervisory Board. Mr. Shomel-Dow explained the only reason for EBRD’s withdrawal from BNP Paribas’s was the fact that the their investment period had already expired.
Source: Dnevnik (08.03.2004)

EBRD has granted EUR 50 million for the financing of projects in the field of energy efficiency. The contract was signed between the bank and UBB, Post Bank and Unionbank. The credit line is for a period of 5 years and with an option to be extended for another 2 years.
Source: Sega (22.03.2004)

Greek banks are controlling 20 per cent of the Bulgarian market. The total assets of the Greek banks in the State amount to EUR 1,71 billion as of the end 2003, according to data of BNB. They present 19,28 per cent of the total bank assets in Bulgaria. Top five Greek banks are operating in Bulgaria – National bank of Greece, which is owner of UBB, Eurobank, Ergasias (owner of Post bank), Pyreus bank, Alfa bank and Trade bank.
Source: Standart (24.03.2004)

The telecommunication operator Netera ended the project for construction of an optical network between Sofia and Rousse. The high-speed optical trunkline connects Bulgarian and the telecommunication networks of Romania with a capacity of 622 Mbps. The project is to the value of USD 1 million and is co-financed by Netera and the group of United Bulgarian Bank and Interlease. The financial consultant in the deal is the Austrian investment bank EPIC, and the financing of the consulting services is under the program Business Advisory Services (BAS) of EBRD.
Source: Pari (31.03.2004)

Changes in the Board of Directors of UBB will be made at the forthcoming extraordinary meeting on April 30. The operative management of the bank will have a new Chairman at the place of Mr. Teodoros Karadzas, who died on March 3. He was Manager of the National Bank of Greece (NBG), which is major owner of UBB. One more member of the bank’s Board of Directors will be dismissed. These changes will depend on the general meeting of the parent company in Greece, which will take place in April.
Source: Pari (01.04.2004)

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

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

UBB won the prize of EBRD’s magazine Emerging Markets for bank with best investments in Southeastern Europe in 2003. The award was granted to Mr. Stilian Vatev, UBB’s CEO, during EBRD’s annual meeting in London. OTP won prizes for best financial institutions, best operating bank and bank with best financial projects. The other two awards – for best investments and best correspondent bank, were won by Hansabank-Estonia.
Source: Pari (20.04.2004)

Millennium centre company was established by Sofia Municipality and United Bulgarian Bank in 2000 for the construction of a trade centre opposite the national Palace of Culture. Two years later the shares of the company were sold to NIKMI and the off-shore company Norton Import Export. There is no information about the price of the deal. According to the evaluation of KPMG the municipal share in the capital of Millennium centre is at a value of a minimum of BGN 900 000.
Source: Novinar (20.04.2004)

Mr. Efstatios-Georgius Arapoglu, who was appointed as CEO of National Bank of Greece in April, was selected as Chairman of the Board of Directoros of UBB on April 30 at the General Meeting of Shareholders of the Bulgarian bank. National Bank of Greece holds 89 per cent of UBB’s capital. Mr. Apostolos Tamvakakis was dismissed from the Board of Directors and was replaced by Mr. Ioanis Pehlivanidis. The third new member of UBB’s Board of Directors is Mr. Antimos Tomopulos – Chief Financial Director of NBG.
Source: Banker (03.05.2004)

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

Banks are among the biggest advertisers in Bulgarian press, according to Marketing Media Analysis April data. Six of all ten positions in the top 10 list, published by the agency, are occupied by financial and credit institutions. Banks account for some 11 per cent of advertisement incomes registered by newspapers in April, or some BGN 786 000. The total revenues posted by the press over the review month are in the amount of BGN 7.25 mln. The main reason for the strong presence of bank advertising in the press, according to marketing specialists, is the fact, that banks are directing their attention to the average person and are offering the full range of public services.
Source: Dnevnik (01.06.2004)

Netera announced the company was launching ground communication channel, connecting Sofia with Rousse and the world telecom networks, covering 1/3 of the international Internet traffic coming to Bulgaria. The transfer will be made through a high-speed highway, built under a project co-financed by UBB and Interlease. Netera’s connection with Romania has a 622Mbps capacity and is currently the only ground alternative to BTC’s network international connection.
Source: ComputerWorld e-Daily (03.06.2004)

Rousse-based food retailer Mirinex is set to open in mid-June a BGN 2 mln outlet co-financed by United Bulgarian Bank. The 4,700 sq m facility is located in Rousse's Drujba borough and will have 90 staff and commercial space of 1,000 sq m.
Source: Dnevnik (07.06.2004)

United Bulgarian Bank (UBB) is preparing an issue of mortgage bonds, the bank said. The five-year securities will be denominated in BGN and will yield a fixed-rate return. A decision on the issue of the bonds is expected to be taken by an extraordinary shareholders' meeting July 9. The meeting will also approve the parameters and will authorise the board of directors to determine the terms of the issue, which is expected to be the biggest ever floated on the Bulgarian market. UBB offered its first bond issue in 2002. The total value of the three-year corporate bonds amounted to BGN 15 million.
Source: Pari (09.06.2004)

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

Sofia Prosecutor’s Office initiated a probe into the affairs of the company Millennium Center, which until two years ago used to be ownership of the municipality and of United Bulgarian Bank, the office’s press service announced. The case is against “guilty officials”, who have been accused of office crimes. The penalty for this type of crime is 1-8 years of imprisonment. The deals between Millennium have been signed by Mr. Stefan Sofianski following decisions by the municipal council. According to prosecutors, the municipality has suffered losses of over USD 5 mln as a result of the deal. The new probe started nearly a month after Mr. Sofianski was laid charges in relation to the deal for Sofia’s central halls with the Israeli offshore company Astrom. Back then, the court decided to remove Mr. Sofianski from office in order to avoid possible obstructions to the investigation. I am not worried, Mr. Sofianski said yesterday. Prosecutors claim the law has been violated on two occasions in the deal for Millennium center. In October-November 1998, without any tender or competition, through a composition out of court, UBB and Investment fund Razvitie were given a 7000 sq.m. piece of land in the Ivan Vazov residential estate, as a result of which the municipality suffered losses of USD 5 mln. On September 17 2002, an illegal contract was signed between UBB and the municipality for the sale of the municipality’s shares in Millennium center, build on this piece of land, which caused to the municipality further losses of USD 32 000. UBB stated they would not comment the case.
Source: Sega (16.06.2004)

The new card system of United Bulgarian Bank (UBB) is already operating, CEO Stilian Vatev said. The migration of UBB's POS terminals from BORICA's system to that of the bank has been completed. The ATM migration is expected to finish by the end of August. Transactions through UBB's systems are three times faster than through the national operator and take ten seconds. The limit on cash drawn from UBB's ATMs is BGN 400 a day.
Source: Pari (18.06.2004)

The United Bulgarian Bank (UBB), 89.9 per cent-owned by the National Bank of Greece, set up on Tuesday an open-end investment company, the UBB Balanced Fund, which will invest in bonds and equities. UBB Balanced Fund, UBB's first investment vehicle, was incorporated with a capital of BGN 1.080 mln. Apart from the UBB, which holds a majority stake of 45 per cent, the investment company has 15 individual and corporate shareholders. The bulk of its assets, 80 per cent at the most, will be invested in bonds. The UBB expects that the company will be listed on the stock exchange in September 2004. Postbank will act as the depository bank of the UBB Balanced Fund, while Bulbrokers, TBI Invest, Capman and Karoll have been hired as investment intermediaries. The fund will be managed by UBB Asset Management. The UBB has plans to set up two more investment companies before the year's end, one will invest in equities only and the other in bonds. UBB Balanced Fund is the fifth open-end investment company on the local financial scene. UBB is the third biggest Bulgarian bank in terms of assets. Local financial company Capman, Slovenia investment group KD, DSK Bank and First Financial Brokerage House are also prepping investment funds
Source: Dnevnik (23.06.2004)

Trakia Gas of Stara Zagora is the first receiver of a credit line provided by the European Bank for Reconstruction and Development (EBRD) for implementation of energy efficiency projects and building power generating plants from renewable energy sources. The credit line amounts to EUR 50 million and is serviced by United Bulgarian Bank (UBB), Unionbank and Post Bank. The first project, with a value of EUR 1.33 million, is financed by UBB and envisages the construction of a small hydro power plant (HPP) with a capacity of 13 mW a year. Grants will also be provided after the projects are completed. Subsidies for energy efficiency projects make up 7.5 per cent of the total value, for HPPs, 20 per cent. Trakia Gas will receive EUR 266,000 after the plant is built.
Source: Pari (25.06.2004)

United Bulgarian Bank (UBB) is to issue mortgage bonds worth BGN 40 mln. This would be the biggest issue of mortgage bonds ever on the Bulgarian market. The five-year 7%-coupon private placement will be managed by Bank Austria Creditanshtalt, and the placement will be implemented its local subsidiary HVB Bank Biochim.
Source: Pari (25.06.2004)

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

Financial Supervision Commission (FSC) decided not to confirm the prospect for secondary public offering of issues of shares in the amount of BGN 14.1 mln (1 410 shares of BGN 10 each), filed by UBB. The reason for the refusal is a series of discrepancies and deviations from the legal regulations, Prof. Milcho Stoimenov – member of FSC, said. However, he added that the mistakes can easily be removed. The legal term to do this is 1 month.
Source: Pari (01.07.2004)

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

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

The deputy chairman of the Managing Board of National Bank of Greece - Sofia branch JSC - Sofia Mr. Joanis Pehlivanidis received a permission from Bulgarian National Bank to become a member of the Board of Directors of United Bulgarian Bank JSC – Sofia. The bank owns 88.9 per cent of the Bulgarian Credit Institution’s shares.
Source: Banker (12.07.2004)

Local Roseximbank, recently renamed to DZI Bank, will commence on July 12 to gradually delink from national operator Bulgarian Organisation for Payments Initiated with Cards (BORICA). Roseximbank takes its cue from the United Bulgarian Bank which has also decided to unplug its 330 ATMs from the BORICA system by the end of August. Even after the 54 Roseximbank ATMs are unhitched from the BORICA network they will still be compatible with BORICA cards and vice versa. Roseximbank has issued 350,000 international and local debit and credit cards since 2002. The number of ATMs in Bulgaria was 1,471 in early July 2004, including 464 cash-points in the capital Sofia. POS terminals numbered 5,031, including 1,736 in Sofia. Cards in domestic circulation total 3.1 mln, including 2.9 mln BORICA cards. International VISA credit cards number 21,738 while MasterCards amount to 32,502.
Source: Dnevnik (12.07.2004)

Etropal, Bulgaria's only manufacturer of hemodialysis equipment and blood lines, has successfully floated a EUR 750,000 corporate bond, said investment intermediary EuroFinance which doubled as issue manager and underwriter. The three-year 10 per cent-coupon paper was subscribed by a bank, an insurance company, an investment firm and other individual and corporate buyers, EuroFinance said.. The money raised by the bond loan will be used to refinance operating credits and complete the investment program of the company. The production of dialysers is expected to double and boost Etropal's domestic market share from 35 per cent to 50 per cent. In addition to hemodialysis equipment, Etropal manufactures disposable syringes, drips and other medical consumables. The Etropole-based company, co-owned by Spanish hemodialysis equipment maker IDEMSA, controls 100 per cent of local blood line sales.
Source: Dnevnik (13.07.2004)

UBB is to sell an issue of mortgage bonds. Even before they are released on the market, the bank accepted the BGN 40 mln offer made by Bank Austria to purchase all 40 000 bonds. Investors are offered an annual interest of 6.625 per cent, due payable each six months. The term for repayment of the issue is 5 years. The whole principal will be repaid by UBB on the expiry date July 12 2009.
Source: Banker (19.07.2004)

Sviloza will launch production of paper and will thus close its production cycle", Krassimir Dachev, Director of the company's BoD announced. Currently, the Svishtov-based enterprise produces only pulp and sulphate rayon. It was exporting almost 100% of its output so far. At the same time, Bulgaria imports all the newsprint and coated paper it needs. After the introduction of the necessary equipment Sviloza will become the first domestic producer of that product. The company will invest EUR6MN by the year-end in one more new production line, to be commissioned in October. It will be a part of the overall reconstruction of the pulp and paper mill, pre-estimated at EUR40MN, of which EUR17MN will be provided by the company itself and the balance will come from the European Bank for Reconstruction and Development (EBRD), United Bulgarian Bank (UBB), and Piraeus Bank. As a result of the enterprise's modernization its production capacity will go up from 50,000 tons to 110,000 tons. The company ended the first three months of 2004 almost BGN1.9MN in the red and proceeds from its operation amounted to BGN18.3MN. The worsening of the enterprise's financial performance began last year when its profit was only BGN99,000, down from BGN7MN in 2002. According to Mr. Dachev, that is due to the upset balance as a result of a collapse in the technology last August. In addition, forex fluctuations also has a negative effect on the company's financial performance. Sviloza is owned by the American offshore company À. R. U. S. LTD, which holds 87% of its capital. The deal on the chemical works was signed by the Privatisation Agency (PA) and À. R. U. S. LTD on February 12, 1999. The purchase price was USD7MN and outstanding arrears of USD11MN were undertaken and repaid by the buyer. The company's subsidiaries are: Ecosvil EOOD of Svishtov, Hotel Complex - Sviloza EOOD, and Canteen Complex - Sviloza EOOD.
Source: Banker (19.07.2004)

The European Bank for Reconstruction and Development (EBRD) will transfer on Tuesday its 10 per cent stake, the equivalent of 7.6 mln shares, in the United Bulgarian Bank (UBB), Bulgaria's third biggest bank in terms of assets, to its majority shareholder, the National Bank of Greece (NBG). The parameters of the deal have still not been unveiled, but according to unofficial information it totals some USD 23 mln, or USD 3.031 per share. The Greek bank paid the same price per share in 2000 when it acquired 89.9 per cent of UBB for USD 207 mln. Tuesday's sell-off was agreed four years ago. The EBRD first considered divesting its UBB shares in 2002 but decided against it, largely because of UBB's excellent performance. The UBB reported a net profit of BGN 48.8 mln in 2003 and BGN 35.8 mln in 2002. Standard&Poor's recently upgraded its credit rating to ÂÂ+ with a positive outlook. This is the second time since January that the EBRD disposes of its stake in a Bulgarian bank. In late-February it sold its 20 per cent in BNP Paribas (Bulgaria) to French-registered BNP PARIBAS SA which became the bank's sole owner. EBRD continues to hold 20 per cent each in First Investment Bank and ProCredit Bank, and 15 per cent in Unionbank. EBRD participates indirectly in insurer Bulstrad and pension fund Doverie. Financiers expect that EBRD will next part with its stake in First Investment Bank.
Source: Dnevnik (20.07.2004)

The European Bank for Reconstruction and Development (EBRD) sold its 10-percent stake in United Bulgarian Bank (UBB) to the majority owner, National Bank of Greece (NBG). The EUR 27 million deal was finalised Tuesday. Now NBG holds 99.99% of UBB. EBRD has been shareholder in the Bulgarian bank for seven years. In Bulgaria, NBG is also owner of Interlease, a leasing company. Two insurance companies, for general and for life insurance, are in a process of incorporation. Earlier this year UBB set up an asset management company, Asset Management. An open-ended company is also to be established soon. EBRD is shareholder in several other Bulgarian banks as well. Since June 1997 it has been owner of 20% of First Investment Bank. In September 2002 the European bank acquired 15% of Unionbank. Three years ago, in 2001, it became one of the founders of ProCredit Bank, where it currently holds some 20%.
Source: Pari (21.07.2004)

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

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

United Bulgarian Bank JSC – Sofia (UBB) is granting up to BGN 5000 without guarantee, with a reduced to 17.25 per cent interest rate. As usual, the credits may be asked by a phone call on 0800 15015. A credit granting by the UBB’s branch is already possible. The bank is introducing shorter approval terms as well – a preliminary approval for 15 minutes, up to an hour approval for credits in the Metro and Technopolis chains, and up to 5 days - for residential credits.
Source: Standart (06.08.2004)

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

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

The CEO of the United Bulgarian Bank JSC – Sofia (UBB) Ms. Radka Toncheva announced that the company’s profit for the first half of 2004 is amounted to over BGN 35.6 million. It is 42 per cent higher compared to the middle 2003 when the profit was BGN 25 million.
Source: Banker (16.08.2004)

Unionbank JSC issued naked corporate debentures with a total par value of EUR 10 mln, the bank announced. Leading managers in the deal were Raiffeisenbank (Bulgaria) and CB Allianz Bulgaria, and co-manager was United Bulgarian Bank. The issue is for a period of 5 years and with an annual fixed coupon of 7.20 per cent, due payable every 6 months. The par value of one share is EUR 1000.
Source: Monitor (18.08.2004)

The Financial Supervision Commission (FSC) did not confirm the prospects for secondary public bonds offering of Black Sea Gold JSC – Pomorie and United Bulgarian Bank JSC – Sofia, due to law discrepancy.
Source: Pari (26.08.2004)

A client of investment intermediary TBI Invest won on Tuesday a lump package of 140,877 shares in insurer Bulstrad, representing a 9,99-percent stake in the company. The buyer agreed to pay BGN 3.8 mln, or BGN 27 per share, at a public auction that was held on Tuesday where bidding started from BGN 19 per share. The buyer is an entity related to BZP Group which already holds 84 percent in the insurer. Another package of Bulstrad comprising of 51,200 shares (3.63 percent) will be on the market September 23-October 7. The guide price is again set at BGN 19.
Source: BTA (15.09.2004)

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

United Bulgarian Bank (UBB) and the mobile operator GloBul are to offer a joint product – international credit cards MastrerCard. UBB’s CEO Mr. Stilian Vatev and GloBul’s CEO Mr. Nikolas Tzopas will promote it on September 28.
Source: Banker (27.09.2004)

United Bulgarian Bank and wireless operator GloBul have teamed up to offer a co-branded credit card with a BGN 10,000-limit. The reward program for users includes a discount on their GloBul bills. The card is accepted at over 5,000 retail outlets in Bulgaria and by over 32 mln merchants around the world. This is the third product developed by UBB after the bank launched a stand-alone ATM system, parting ways with Bulgaria's national card operator BORICA.
Source: Dnevnik (29.09.2004)

13 banks that have “deposited” a total amount of BGN 4 463 300 in papers and magazines’ advertising are found in the top 50 chart of the biggest advertisers for the period January – June. United Bulgarian Bank (UBB) reports the biggest budget (BGN 826 000), and is followed by the DZI Banê – Rosexim financial group. DSK Bank holds the fifth position. The top of the chart is reserved for the mobile operators for another year in a row, but the traditional leader Mobiltel has decreased its budget by almost 30 percent y/y, while its rival GloBul has increased the investments by some 30 percent.
Source: Capital (04.10.2004)

Bulgaria’s UBB offers a 7.9-per cent interest on housing credits in BGN. The promotion is valid until December 31. Preliminary approval is given within 24 hours against income document and a copy of the candidate’s ID card. The bank is to going to finance in trenches and up to 80 per cent of the “greenfield” house building. The maximum term for sinking of the credit is 20 years.
Source: Standart (06.10.2004)

United Bulgarian Bank (UBB) decreased the interest rates on loans for buying housing units to 7.9 per cent. The offer will be in force for loan applications lodged by December 31, 2004. The rate is for the credits extended in local currency and only for the first year. UBB made certain changes so that the preliminary approval of the bank credits will be received for one working day. UBB has also established a Mortgage Loan Department which will issue final approvals for extension of mortgage day in two workdays after all the required documents reach the bank.
Source: Pari (06.10.2004)

Antimos Konstantinos Tomopolos chief financial director of National Bank of Greece - Sofia branch JSC - Sofia obtained a certificate from Bank supervision bureau of the Bulgarian national bank, that he can become a member of the board of direstors of the United Bulgarian Bank JSC – Sofia. Mr. Tomopolos was chosen for this post with a decision made on the General Meeting of the shareholders of the credit institution, leaded on April 30.
Source: Banker (18.10.2004)

On October 13 Bulgaria’s Financial Supervision Commission issued a permit for operation to the open-type investment company UBB Balanced Fund JSC. The capital of the fund is in the amount of BGN 1.080 mln. The company has 16 shareholders – corporations and individuals, where the biggest stake is held by UBB – 45 per cent.
Source: Banker (18.10.2004)

United Bulgarian Bank (UBB) reported net profit of BGN 47.022 mln for the first nine months of the year. The increase is by 22.4 percent as compared to the same period of 2003. The assets managed by the bank reached BGN 1.996 bln, up by 16.4 percent. The total amount of the credits extended by UBB (before provisions for loan losses) as of the end of September reached BGN 1.326 bln, up by 39.2 percent year-on-year. Mortgage-backed credits for housing needs of individuals saw the highest increase – more than twice, reaching BGN 143.044 mln. Consumer loans portfolio rose by 72 percent and on September 30, 2004 was worth BGN 325.2 mln. Corporate credits surged by 18.5 percent up to BGN 760.3 mln. Deposits with UBB amount to BGN 1.589 bln, BGN 1.547 bln being deposits of non-financial institutions and other clients.
Source: Pari (27.10.2004)

The Bulgarian state may list 20 per cent of private telecom BTC in February 2005, United Bulgarian Bank (UBB) executive director Mr. Christos Katsanis said on Wednesday. UBB is part of the consortium hired to agent the bourse privatisation of an equity pool that includes the BTC stake. The BTC equity will be listed on the non-cash segment of the Bulgarian stock exchange. Viva Ventures, the Vienna-based owner of BTC, are loath to see the BTC go public before a consensual listing clause in the privatisation contract expires, telecom minister Nikolai Vasilev said last month. The buyer agreed to a clause that barred the listing of the minority stake without its prior consent for six months after the privatisation deal is signed. After the six-month period elapses, the float can happen without the consent of the owner. After Mr. Vasilev's statement, the BTC management said the procedure for entering the telecom in the public register of the Financial Supervision Commission, a prerequisite for the listing of the equity on the bourse, was already underway.
Source: Dnevnik (04.11.2004)

DSK Bank, owned by Hungarian peer OTP Bank, and insurance company OTP Garancia incorporated a general insurance company with a capital of 3 mln levs in early November. DSK Bank will control 26% of the insurer while the rest of the equity will be owned by the Hungarian partner. The licensing of the new insurer will be delayed because the position of insurance supervision chief is still vacant. DSK Bank launched a life insurance division earlier this year. Slovenia's Slovenica and the United Bulgarian Bank are also prepping insurance companies.
Source: Dnevnik (19.11.2004)

The National Bank of Greece (NBG), Sofia branch, is transferring part of its business to Bulgaria's United Bulgarian Bank (UBB), the PARI daily learned. NBG is owner of the Bulgarian bank. UBB will take over retail banking and smaller credits. This is aimed at enhancing synergy and business efficiency, an insider said. UBB can offer customers a bigger diversity of products and services and more distribution channels. Only large corporate credits will continue to be handled by NBG's branch. At the end of September 2004 UBB managed assets amounting to BGN 1.996 billion, the bank's financial statement shows. The net profit for the first nine months of the year totals BGN 47.022 million, increasing 22.4% on the year-ago period. The credits extended by UBB stand at BGN 1.326 billion, up 39.2% year on year. The deposit base totals BGN 1.589 billion.
Source: Pari (22.11.2004)

Commission on Protection of Competition (CPC) has imposed a pecuniary penalty of BGN 100 000 to United Bulgarian Bank JSC – Sofia, the CPC announced. The commission has appraised itself because of the advertisement campaign held from May 20 to June 25, 2004 under the logo Visit the Athens with UBB VISA Credit Card. The bank’s website said that for one purchase only clients could participate in a lottery for 5 excursions to the Athens. The Protection of Competition Act bans the sales when they promise something which price exceeds the one of the product sold. The Commission on Protection of Competition has founded that the promotion’s participation was possible only if the client had UBB VISA or/and UBB VISA Electron credit card.
Source: Sega (23.11.2004)

United Bulgarian Bank (UBB) will float a second bond issue, the stock exchange said. The issue will amount to BGN 40 million and will consist of 40,000 ordinary, book-entry, registered, interest-bearing, transferable, secured mortgage bonds with a par value of BGN 1,000 each. The annual return on the bonds will be 6.625%, coupon payments will be made semi-annually. The issue will mature on July 12, 2009, when principal will be repaid. According to data as of end-September, UBB manages BGN 1.996 billion assets. Its net profit stands at BGN 47.022 million, up 22.4% year on year. The credits extended by the bank amount to BGN 1.326 billion, its deposit base stands at BGN 1.589 billion.
Source: Pari (25.11.2004)

The Atanas Burov Foundation bestowed its Burov Prizes for bank and industrial management for 2004. Ms. Radka Toncheva, executive director of United Bulgarian Bank (UBB) is the new winner of the Burov bank management prize for 2004. She received it from the governor of the BNB, Mr. Ivan Iskrov. Ms. Toncheva has significantly contributed to the consolidation and the restructuring of UBB and the preparation for its successful privatization in 1997. Last year the prestigious prize was given to another manager of UBB – Mr. Stiliyan Vatev, CEO of the bank.
Source: Pari (26.11.2004)

Another 14.99 per cent from the capital of the Bulgarian Telecommunications Company (BTC) will be sold through the Bulgarian Stock Exchange (BSE) against compensatory notes, ministers decided at a session held yesterday. The state will keep the company’s “golden share”. According to the previous privatization strategy, 20 per cent of the telco’s capital were supposed to be floated on the stock exchange against non-monetary payment instruments.
Source: Sega (26.11.2004)

United Bulgarian Bank (UBB) signed an agreement for a EUR 10 million loan from the European Bank for Reconstruction and Development to finance agricultural goods producers, CEO Hristos Katsianis said. The five-year loan will be absorbed in two installments of EUR 5.0 million each. UBB is the first bank to receive such a specialised loan, since EBRD extends loan for support of agriculture producers for the first time, EBRD Director for Bulgaria, John Chomel-Doe said. Our goal is to help the development of the farm regions here as well as the activities in the agricultural sector, Chomel-Doe added. UBB has extended between 750 and 800 credits to enterprises operating in the agriculture. This is the first credit line it receives from EBRD.
Source: Pari (01.12.2004)

National Bank of Greece (NBG) – branch Sofia will be closed down and transfer its business into United Bulgarian Bank (UBB), the branch announced. The transfer is expected to take place before Christmas, according to representatives of the Greek bank. Currently, NBG holds 89.9 per cent of UBB shares, while the European Bank for Reconstruction and Development (EBRD) holds 10 per cent. The bank has 59 branches and 89 representations and offices on the territory of Bulgaria.
Source: Monitor (06.12.2004)

The management of the Bulgarian Stock Exchange has imposed a temporary ban on trade against compensatory instruments today. The reason for this action is the forthcoming revealing of information, which may affect the price of compensatory instruments. Bulgaria’s Privatization Agency (PA) and the consortium UBB-Bulbrokers are presenting the strategy for the sell-off of a minority stake of 34.9 per cent of the Bulgarian Telecommunications Company (BTC). In the end of November, the Council of Ministers decided to increase the planned 20 per cent of BTC for privatization with another 14.9 per cent. The stock will be sold against compensatory instruments.
Source: Sega (10.12.2004)

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

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

Bulgaria will list its residual 35% stake in telecom BTC on the local bourse in late January or early February 2005, Dnevnik learned from sources close to the deal. The Privatisation Agency and the tie-in of UBB, the National Bank of Greece and Bulbrokers which has been hired to handle the bourse privatisation of the BTC equity have agreed to float the entire 35% stake in a single auction to prevent huge fluctuations in the price of shares and of the compensation instruments that will be eligible means of payment, the same sources said. The minimum lot that will be offered on the bourse will contain one share in a bid to attract as many investors as possible. The anticipation of the BTC listing has already lifted the compensation instruments to 70% of nominal value. The sale of the minority BTC stake is expected to absorb compensation instruments with a nominal value of between 300 mln and 600 mln levs. The compensation instruments were issued to owners of property nationalised during the communist era that cannot be restored to them in its physical boundaries.
Source: Dnevnik (11.12.2004)

I suppose that foreign institutional investors will buy at least one third of the shares of Bulgarian Telecommunication Company (BTC) we are selling, Christos Katzanis, executive director of United Bulgarian Bank, said. We have not received such orders yet, but I know for sure from brokers about considerable interest, which is naturally connected with the purchase of compensatory instruments. The Privatization Agency (PA) began on Friday the official campaign for the sale of the whole state-owned stake in the telecom without the so-called golden share, which will remain property of the state. The auctions for the sale of 35 percent of BTC will start at the end of January or at the beginning of February, Katzanis said. The bank is in the intermediary consortium UBB-NBGI-Bulbrokers. A total of 2,887,648 shares of BTC will be offered on the privatization segment of the Bulgarian Stock Exchange. One lot will equal one share. The first 20 percent were included in the dream pool, where the consortium is the sale intermediary. PA decided the remaining 15 percent also to be offered through its mediation. Within the next month the consortium together with the PA will meet institutional investors and holders of compensatory instruments and will present BTC.
Source: Pari (13.12.2004)

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

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

Standard&Poor's Rating Services said on December 16 it raised its long-term counterparty credit and certificate of deposit ratings on Bulgarian American Credit Bank (BACB) to 'BB-' from 'B+'. At the same time, the short-term counterparty credit and certificate of deposit ratings were affirmed at 'B'. The outlook is stable. 'The rating action reflects the maintenance of a robust financial profile, in particular, consistently high profitability, good capitalisation, and the benefit of cheap and stable term funding,' said Standard&Poor's credit analyst John Gibling. 'In addition, the bank benefits from a consistent and focused strategy, and a steadily improving Bulgarian economy,' he added. The ratings on the bank are constrained, however, by its small niche business activity in the risky small and midsize Bulgarian corporate segment, small absolute levels of capital, and high loan growth in an environment where economic and industry risks are above average. 'The stable outlook reflects Standard&Poor's expectation that capital will continue to support BACB's credit growth and development and be maintained at a good level to absorb potential losses,' said Gibling. In addition, Standard&Poor's expects BACB's profitability to remain at a strong level commensurate with its risk profile. Future improvements in BACB's creditworthiness will depend on positive developments in Bulgaria's economic and industry risks. 'Conversely, a deterioration in the bank's financial profile - in particular capital adequacy,to support the risk profile of BACB would be viewed negatively,' Gibling added.
Source: Dnevnik (17.12.2004)

A new ordinance of the Bulgarian National Bank (BNB) that will take effect on July 1, 2005 requires that the banks loan-finance no more than 70% of the fair value of home buys if they want to credit to continue to be assigned the current 50% risk weight. Mortgage loans where the bank co-pays more than 70% of the property's fair value will be assigned a 100% risk weight. That means banks that want to loan-finance more than 70% of the home purchase will have to hold double the current capital. The measure was construed as yet another attempt by the central bank to temper the domestic credit growth where mortgage lending has seen the most dynamic expansion. The mortgage loan portfolio of Bulgaria's 35 banks zoomed up by 105% on end-2003 to 836.5 mln levs at end-October. But the tougher rules for mortgage lenders are not expected to require much adjustment on the part of the banks or the borrowers because the financial institutions already co-finance no more than 75-80% of the average home purchase.
Source: Dnevnik (20.12.2004)

United Bulgarian Bank (UBB) extends the term of its housing credit promotion until January 31, 2005, the bank said. UBB offers a promotional interest of 7.9% on lev loans for the first year of the credit. The maximum amount of credits is BGN 200,000, the repayment term cannot exceed 20 years. The loans are approved within 24 hours. As part of the housing loans, UBB offers free life and property insurance, as well as a Visa or MasterCard with no fee in the first year.
Source: Pari (22.12.2004)