Razlog-based construction company Balkanstroy will file for a maturity date extension on its bond issue by 5 years at the most. Decision time is scheduled for 7 February. Company officials said the bulk of the debt instruments were in the hands of the pension funds of Allianz Bulgaria, ING and United Bulgarian Bank (UBB).
Source: Dnevnik (26.01.2011)

Banking system profits decrease by over 20% to BGN 617 mln The profits of the domestic banking system decreased by over 20% last year, according to the Bulgarian National Bank (BNB). Financial institutions in the country ended 2010 with an unaudited profit of BGN 617 mln, or BGN 163 mln down from 2009. According to BNB experts, although lower than the previous year, this is a sort of additional capital protection. Data showed that in a year, depreciation expenditures rose by 26% to BGN 1.31 bn but, nevertheless, revenues from main activities covered the increased risk and costs. At the end of December, non-performing loans overdue for more than 90 days reached 11.9% of the total volume of credits, almost double the level from a year earlier when their share was 6.42%, according to BNB statistics. According to financial institutions’ reports presented by BNB, only two banks in our country ended 2010 with profits exceeding BGN 100 mln – UniCredit Bulbank and DSK Bank, with BGN 158.7 mln and BGN 130.58 mln, respectively. In 2008, three banks reported profits of more than BGN 200 mln, and in 2009, three financial institutions had profits exceeding BGN 100 mln. An interesting shift was observed in the following positions, Corporate Commercial Bank displacing United Bulgarian Bank (UBB) from the third place and achieving a 23% profit growth to BGN 74.4 mln. Let us remind our readers that this financial institution ranked 8th in terms of profits in 2008 and climbed to the 4th position in 2009. Meanwhile, the profit of UBB shrank by 26.5% to BGN 73.6 mln.
Source: Class (01.02.2011)

International agency Moody's has lowered the credit ratings of six Greek banks, four of which have operations in Bulgaria. The move comes just days after the agency slashed the country's sovereign rating by three-notches and affects the deposit and debt ratings of National Bank (NBG), which owns the United Bulgarian Bank (UBB), EFG Eurobank, which runs the Bulgarian PostBank, Alpha Bank and Piraeus Bank, which also operate in Bulgaria, ATEbank and Attica Bank. The outlook on all these ratings is negative. Explaining its action, Moody's said a government's credit strength serves as a key input in assessing the capacity of a country to support its banking system. Banks' intrinsic financial strength was reviewed because of persistent pressure on liquidity, asset quality and their exposure to Greek government debt. "Although Moody's central scenario is that holders of Greek government debt will not bear losses, the rating agency believes the likelihood of a sovereign default or distressed exchange has risen, as denoted by the new B1 government rating," Moody's said. Moody's said the downgrade also reflected Greek banks' limited funding options and their dependence on ECB funding, which accounts for at least 20 percent of their balance sheet.
Source: profit.bg (10.03.2011)

By decision of Plovdiv Appellate Court cosmetics company Alen Mak JSC - Plovdiv (9E7B) was declared insolvent and its activity is terminated. Information is from United Bulgarian Bank JSC, as trustee for holders of corporate bonds issued by the company. On 21 March, the first general meeting of creditors "Alen Mak" AD (bankrupt) took place at the Plovdiv Regional Court, which elected permanent trustee Stefan Georgiev.
Source: Banker (05.04.2011)

Bulgarian billionaire Vassil Bozhkov has reduced his stake in Holding Roads from 10.57% to 0.79%, the company announced. Last Thursday Bozhkov transferred 3 million shares in Holding Roads (9.78%) to Mak Cap EAD at BGN 1 apiece, the statement said. The holding shed 4.2% of its market value on Tuesday, down to BGN 0.62 per piece. The bank accounts of Holding Roads, controlled by Bulgarian billionaire Vassil Bozhkov, have not been frozen, representatives of the United Bulgarian Bank announced in the middle of October last year, denying earlier reports. The holding shed 70.92% of its market value over one week that month. Meanwhile an Elana trading analysts' review of indebted companies according to the main indices of the stock market SOFIX and BG40 showed that Evrohold Bulgaria, Petrol, Holding Roads and Kaolin are the companies with higher levels of debt as compared to the resources available. According to the analysis the holding companies with bigger and more complicated structure will be closely monitored by investors and their shares will most probably lag behind the developments of the market in the mid-term. Reports of Holding Roads frozen bank accounts surfaced days after Moststroy AD, a construction company believed to be controlled by Vassil Bozhkov, filed for bankruptcy after all its bank accounts were frozen because of unpaid debts. A loan borrowed from the United Bulgarian Bank, a unit of the National Bank of Greece SA, was due on May 31, but the company said it had no money. Its construction machines and other equipment have been seized by Interlease, the company that leased them. Analysts commented that the file for insolvency of Moststroy AD was very bad news for the Bulgarian capital market, but comes as no surprise. The precedent was feared to further dent the trust of the investors, particularly those from abroad, and make it more difficult to get credits from banks. Sofia City Court however rejected the application for insolvency by Moststroy AD, saying it has decided not to presume insolvency as the company has sufficient assets. Under local legislation a company, which has declared insolvency, can restructure and draw up a rehabilitation plan.
Source: Standart (21.04.2011)

The Ministry of Finance will buy 2, 000 Central Depository AD (CDAD) shares from BNB, it transpires from a central bank statement. The said shares comprise 20% of the Depository’s capital and the Ministry will pay BGN 200, 000 for the acquisition. Once the transfer is complete, Dyankov’s administration will control 41.9% of CDAD (or 44.9% via BSE-Sofia). If we add the Privatization Agency’s 1.8% stake in CDAD, it turns out the state will control a good 46.7% in the Depository. According to late 2009 stats, there is a list of commercial banks with shares in CDAD – Raiffeisenbank, Societe Generale Expressbank, DSK Bank and UniCredit Bulbank (5% each), CCB (5.1%), Eurobank (4.5%), ING Bank (3%), Cibank (1.8%), UBB (1.5%), Investbank (1.4%) and IABank (1.2%), etc.
Source: Standart (13.05.2011)

UniCredit SpA (UCG), Italy's biggest bank and Vienna-based Raiffeisen Bank International AG (RBI) have bought tender documents to broker Bulgaria's 33% stake sale in an E.ON AG unit, Bloomberg agency reported. A total of 14 financial companies have purchased tender documents. Other competitors that will probably submit bids by a May 27 deadline include Greece's second biggest lender EFG Eurobank Ergasias SA (EUROB) and United Bulgarian Bank, a unit of the National Bank of Greece SA, Bulgaria's Privatization Agency told the agency. At the end of last year Bulgaria's government announced it will list in two or three months its 33% minority stake in E.ON, one of the three power distributors in the country, to enliven the local stock exchange and boost revenues. Bulgaria, struggling to cover its widest budget deficit in a decade, plans to sell minority stakes in other energy utilities as well. In 2004, the Balkan country sold 67% in its three power distributors to Germany's E.ON, Austria's EVN and Czech CEZ. E.ON serves households in North-Eastern Bulgaria Heavily criticized for its failure to rake in revenues into the budget by privatization, Bulgaria's government is expected this year to finally go ahead with the planned sale of minority stakes in E.ON-operated electricity distributor. In 2011 Bulgaria's government should finally make its mind about how to restructure the energy holding, which groups the country's top energy assets, analysts have said. Reports say the holding will come to include only the thermal and nuclear power plants, together with the National Electricity Company NEK, after which a minority stake will be listed on the stock exchange.
Source: Dnevnik (13.05.2011)

EBRD Injects E250 M in Bulgaria The European Bank for Reconstruction and Development (EBRD) will inject nearly 250 million euro in Bulgaria in 2011. This sum is mainly meant for the Greek banks in Bulgaria. The total sum with which the EBRD will help in the bank sector of its member countries for 2011 will be 980 million euro. The aid was approved by the EBRD board of directors several weeks ago and it now has to be finally voted, Stefka Slavova, director of EBRD Bulgaria told the Standart. In 2010, the total sum of investment of the EBRD in Bulgaria was 540 million euro as half of the funds were mainly released to support three of the Greek banks in Bulgaria - United Bulgarian Bank (UBB), EFG Eurobank (Post Bank) and Piraaus bank. Only for 2010, the three banks received nearly 240 million euro.
Source: Standart (31.05.2011)

Moststroy Plovdiv, which is part of Moststroy AD, a construction company believed to be controlled by billionaire Vassil Bozhkov, has filed an application for insolvency, the company announced on Wednesday. Moststroy AD and three of its subsidiaries announced at the beginning of October last year that they have filed for bankruptcy after all their bank accounts were frozen because of unpaid debts. A loan borrowed from the United Bulgarian Bank, a unit of the National Bank of Greece SA, was due on May 31, but the company said it has no money. Its construction machines and other equipment have been seized by Interlease, the company that leased them. Sofia City Court however decided not to presume insolvency as the company has sufficient assets, experts commented. Analysts have commented that the file for insolvency of Moststroy AD subsidiaries is very bad news for the Bulgarian capital market, but comes as no surprise. The precedent is feared to further dent the trust of the investors, particularly those from abroad, and make it more difficult to get credits from banks. Under local legislation a company, which has declared insolvency, can restructure and draw up a rehabilitation plan.
Source: Dnevnik (09.06.2011)

As many as 12 financial intermediaries have submitted binding offers to manage the sale of the state stakes in the units of power suppliers EVN Bulgaria and CEZ Bulgaria, the Privatisation Agency said on June 16 2011. Of the total, five brokers have applied to run the privatisation of the state's 33 per cent stakes in CEZ Razpredelenie and CEZ Electro, namely First Financial Brokerage House, United Bulgarian Bank, Bulbrokers, Central Cooperative Bank and Capman. The sale of EVN Bulgaria Elektrorazpredelenie and EVN Bulgaria Elektrosnabdyavane has attracted the same firms plus Yug Market and Elana Trading. Potential candidates were required to file their bids by June 16.
Source: Dnevnik (17.06.2011)

Cheaper loans for small and medium-sized businesses to be guaranteed with money from EU funds “EU funds will be used for the granting of cheaper loans to businesses,” summarised Minister of Economy, Energy and Tourism, Traicho Traikov, the benefits of a loan agreement, signed yesterday between the European Investment Fund (EIF) and five Bulgarian banks, selected under the JEREMIE (Joint European Resources for Micro to Medium Enterprises) initiative. The financial institutions (CiBank, ProCredit Bank, Raiffeisen Bank, United Bulgarian Bank (UBB) and Unicredit Bulbank) will extend to SMEs credits amounting to ˆ400 mln in the next 30 months, under guarantees of ˆ78 mln, provided by the EIF under the agreement. Four types of funds were agreed under the JEREMIE initiative, one of which is the Guarantee Fund, with a total resource of over BGN 1 bn. "Around BGN 340 mln of this money is allocated under OP Competitiveness, some BGN 60 mln is earmarked from the State budget and the rest of the funds will come from the private sector," explained Traicho Traikov. “The credit conditions for businesses will ease due to the lower interest rates and fees, there will be discounts in the collateral requirements,” pointed out the heads of the selected banks. "Banks will provide the money, the Fund will cover eventual losses," explained Stilian Vatev, Executive Director of UBB. Peter Slavov from ProCredit Bank added that the most important thing was that in this way entrepreneurs would be motivated to be more risk-prone in their investment decisions and seek more risky but profitable ventures. The maximum loan amount is ˆ1.875 mln, while the limit for projects in the transport sector is set at ˆ937, 000. There are also sectors banned from financing, such as hotel and restaurant keeping, and some farming activities. “Investment loans in BGN and Euro, and working capital loans associated with investment projects are eligible under the financing scheme,” explained experts from CiBank. Despite the fact that the heads of the five selected banks shared the opinion that, because of the guarantee provided by the EIF, the risk and interest rate for the beneficiary will be reduced, they were not willing to state in public specific figures.
Source: Class (15.07.2011)

Bulgaria's financial market has started to see an increase in demand for consumer and housing loans, according to a survey among local banks. However, the slight revival is still early to be considered a positive sign for the sector's recovery, said representatives of DSK Bank, Postbank, UniCredit Bulbank, Societe Generale Expressbank, United Bulgarian Bank (UBB), CIBank and Piraeus Bank. Despite the rise in applications for consumer loans, there has not been a significant increase in the number of loans given, according to the survey. Emil Angelov, deputy executive head of Piraeus Bank Bulgaria, said that the number of requests for housing loans in the past two quarters was higher than in the corresponding quarters of 2010 and 2009. The same trend has been observed in the consumer loans. Postbank and CIBank also have recorded increases both in consumer and housing loan applications since the start of 2011, while DSK Bank registered a spike in consumer lending in particular, which, however, is still not indicative of a steady trend. In turn, Societe Generale Expressbank reported a 50 per cent increase in consumer lending and a 40 per cent growth in housing loans. Bulgarian National Bank (BNB) data for May 2011 shows that consumer lending increased for a third month in a row, but at an insignificant level - by 11 million leva in March, three million leva in April ans 15.5 million leva in May. As to housing lending, there was a 2.6 per cent on an annual basis.
Source: Dnevnik (18.07.2011)

United Bulgarian Bank, a unit of the National Bank of Greece SA, has frozen the bank accounts of a construction company believed to be controlled by billionaire Vassil Bozhkov. Holding Roads is the leading company in the tie-in, which won the tender for the construction of the longest section in Trakiya highway, linking the city of Yambol and the town of Karnobat. "Accounts, receivables and bank tapes of Holding Roads at First Investment Bank and Bulbank, worth BGN 7.5 M have been distrained for the benefit of United Bulgarian Bank," reads a statement of the company, circulated to the media. A loan borrowed from the United Bulgarian Bank was due, but not paid, according to the bank, a claim that the company vehemently denies. The company argues that on 24 February it signed an agreement with the bank, in which the obligation to repay the loan was deferred and new terms of payment were negotiated. Holding Roads has not received official notification that the agreement has been terminated. "We are at a loss as to why the United Bulgarian Bank took these steps," the statement adds. Earlier this year an Elana trading analysts' review of indebted companies according to the main indices of the stock market SOFIX and BG40 showed that Evrohold Bulgaria, Petrol, Holding Roads and Kaolin are the companies with higher levels of debt as compared to the resources available. According to the analysis the holding companies with bigger and more complicated structure will be closely monitored by investors and their shares will most probably lag behind the developments of the market in the mid-term. Reports of Holding Roads frozen bank accounts surface half a year after Moststroy AD, another construction company believed to be controlled by Vassil Bozhkov, filed for bankruptcy after all its bank accounts were frozen because of unpaid debts. A loan borrowed from the United Bulgarian Bank, a unit of the National Bank of Greece SA, was due on May 31, but the company said it had no money. Its construction machines and other equipment have been seized by Interlease, the company that leased them. Analysts commented that the file for insolvency of Moststroy AD was very bad news for the Bulgarian capital market, but comes as no surprise. The precedent was feared to further dent the trust of the investors, particularly those from abroad, and make it more difficult to get credits from banks. Sofia City Court however rejected the application for insolvency by Moststroy AD, saying it has decided not to presume insolvency as the company has sufficient assets. Under local legislation a company, which has declared insolvency, can restructure and draw up a rehabilitation plan. Bulgarian billionaire Vassil Bozhkov has repeatedly said that the collapse of Moststroy AD will in no way impact the performance of Holding Roads.
Source: mediapool.bg (16.09.2011)

The formation of interest rates is unclear to about two-thirds of borrowers Nearly two-thirds of the consumers of banking services describe the formation of interest rates on loans as unclear, showed a study of Synovate, conducted in May 2011 and cited by Investor.bg, which involved 951 people between 18 and 69 years of age. About 59% of the respondents described the methodology for the formation of interest rates by banks as unclear, but every third respondent defined it as "totally unclear." Merely one-fifth of the respondents are aware of how interest rates are being set and merely 2% indicated that this process is "very clear". Perhaps, this is why most of the respondents specified that they wished their interest rates to be fixed - 52% opted for this option, while another 6% declared that they preferred floating rates. About 5% of the polled believed that it is correct for the rate to be formed on the basis of a fixed and a variable component. The Synovate survey showed that, in general, pessimism about the banking sector is on the rise again. Against this background, there is an increase in the proportion of people who expect a worsening of the economic conditions. DSK Bank is leader in terms of market positions in the country and every third person cites it as the first bank that comes to his mind. According to most of the respondents, the financial institution is the most popular bank on the market both in terms of its brand and advertising campaigns. Over 60% of the respondents said they had seen an advertisement of DSK recently. United Bulgarian Bank ranks second in the survey of Synovate (15%), followed by UniCredit Bulbank (9%), Postbank (8%), Raiffeisen Bank (9%) and First Investment Bank (6%). Finally, when asked about the first three financial institutions which they have in mind, the respondents pointed out DSK Bank, United Bulgarian Bank and UniCredit Bulbank.
Source: Class (27.09.2011)

On 16 September United Bulgarian Bank (UBB) levied distraint upon the accounts of the four main subsidiaries of Railway Infrastructure Holding that have drawn loans amounting to a total of EUR 33 million from the bank. This is the third company related to businessman Vasil Bozhkov that faces financial difficulties. In the beginning of October 2010 Moststroy declared insolvency due to its debts. On 15 September UBB levied distraint upon the accounts of Holding Roads at First Investment Bank (Fibank) and UniCredit Bulbank. Holding Roads is one of the leading partners in the consortium building Lot 4 of the Trakiya motorway. Assets of the Locomotive and Carriage Works company are already offered for public sale, its parent company announced. Railway Infrastructure Holding suffered losses of BGN 27 million in 2010.
Source: Dnevnik (14.10.2011)

Demand for SME loans in Bulgaria has doubled over the past 12 months, experts say. Couple that with the available options for creditors to secure the money they lend via different guarantee schemes and you get the perfect setting for breakthrough offers in the segment. Thus, in four days’ time, three leading banks have launched SME loan offers. Societe Generale Expressbank offers funding at 6.95% interest in euro, secured by the National Guarantee Fund. Approval takes less than 48 hours. Raiffeisenbank’s proposition comes with a fixed interest rate for the first year – 6.8% for loans in euro and 7% for local currency debts. UniCredit Bulbank introduced its bundle Business Leader Import/Export, which provides financial intelligence and tips to exporters, willing to set foot on foreign markets and make investments there. The list of banks with active SME loan offers is long – Fibank, DSK Bank, United Bulgarian Bank (UBB), Cibank, ProCredit Bank, etc.
Source: Dnevnik (21.10.2011)

Assets Tchugunoleene - Ihtiman bought by a company associated with Ludmil Stoykov Tchugunoleene JSC - Ihtiman, was declared bankrupt and its production assets were acquired by the company Eurometal - Pernik controlled by Ludmil Stoykov, it becomes clear from reports in the Commercial Register. On October 7, Eurometal bought EUR 11.25 million obligations to UBB, which were pledged the entire enterprise and its main assets, including land, buildings, machinery and pumping stations. Currently The register indicated no change in ownership of Tchugunoleene, but after its assets were transferred to another owner, the company is left with practically nothing. Currently the main shareholder is still Tchugunoleene 97. The mayor of Ihtiman Margarita Petkova explained that the new investor has already come, has met with representatives of the municipality and presented his plan for the enterprise. But she said she could not tell more about his plans, and this can be done only by himself. The decision for the bankruptcy was taken by the Sofia Regional Court on October 21 after a request of NEC, to which Eurometal also joined. The initial date of insolvency is July 15, 2010, and the provisional liquidator is Alexander Tsvetkov Georgiev.
Source: Dnevnik (26.10.2011)

Bailiff declared the public sale of sewing machines of Textilko - Cherven Bryag, which years ago was known for regular delays of wages to its employees. Auction offered machinery, office equipment and property of the company. The starting price for the property is BGN 740,250, the remaining assets - BGN 409 thousand. The sale is at the request of the creditor UBB in which assets are mortgaged. This is a plot of several industrial buildings on it plot area 6720 sq m and a total of 2233 sq m gross floor area of buildings. Big is just one of them, 2 thousand square meters, the other three are small, and both are built solid, but with wooden beams. The deadline for submission of bids for the properties is 10 November. Examination of machinery and other property can be made every Tuesday and Thursday from 15 to 17. Textilko came into news several times with reports of strikes of employees who did not receive for months their salaries, vouchers for food and their insurance were not transferred regularly.
Source: Dnevnik (31.10.2011)

Shogun of pig-iron October should have been a happy month for United Bulgarian Bank (UBB). The lender managed to get rid of problem debts of relatively large metallurgical companies worth over BGN 35 million. It happened through cession contracts by which a company for scrap managed by Ludmil Stoykov, in early October has acquired receivables of UBB for the two public companies: Chugunoleene - Ihtiman and Besttechnica TM - Radomir and of another company from the group Besttechnica. So Stoykov became the largest creditor of the three companies, one of which was shortly thereafter declared bankrupt. Whether he finds his way back to the metal and engineering industry after he left Stomana, or he simply bought profitable obligations of companies, it is yet to be revealed. Finance Director of Eurometal, which is the buyer of the receivables, Emil Bojinov said the company will wait for court proceedings on Chugunoleene and will talk to Besttechnica and then will announce its decision. For the time being they are simply creditors, even among the largest. "For the crisis-hit engineering industry it is vital to possibly save two of the biggest companies," said Ilia Keleshev, chairman of the Bulgarian Branch Chamber - Machine Building. Until last year, Chugunoleene was the largest manufacturer of large castings, used by machine building companies throughout Europe and Bulgaria. These are weights and cranes that balance the construction equipment. Last year, however, the company hit rock bottom – it produces less than 8 thousand from its capacity of 30 thousand tons. Revenues fell from BGN 15 million in 2009 to BGN 13.5 million and its credit indebtedness grows. Chugunoleene is due over BGN 9 million to UBB in two loans from 2008. At the end of 2010, however, it stopped serving them and they become early claim. As they are backed by the company itself and its assets, at the beginning of 2011 the bank began implementing the bets on the loans. In the summer UBB appointed its manager in Chugunoleene but NEK shut down the electricity supply because of unpaid bills. UBB began negotiations with Eurometal and on 7 October transferred through a cession contract the claims that with the accumulated interest have reached BGN 20.6 million. At what price (and what loss for the bank) the receivables were transferred is not clear because the contract published in the Commercial Register is not complete, and Bojinov declined to say how much they paid. Chugunoleene failed to disclose their financial problems in the reports, which is mandatory for a public company due to the importance of the information. Indeed, in the statement at the end of June 2011 the company did not even indicate that there are ongoing obligations and that they are early claim. According to the document Chugunoleene has debts to banks worth BGN 17 million that is due after at least one year, while under the cession contract BGN 11 million of debt is collectable as early as July 2010. There is an unpaid debt of about BGN 7 million maturing in the summer of 2010. The company also has not shared with the investment community the change of its principal creditor. Immediately after the cession contract, Ludmil Stoykov appointed a depository to prepare a list of the entities with rights on the pledged property. However, the court joined UBB, then in its place Eurometal, to the request of NEK for the bankruptcy of Chugunoleene. On October 21 the court started the procedure and decided that the Ihtiman-based company is insolvent from July 15, 2010. "I'll wait for the general meeting of creditors and we will decide how to proceed," said Emil Bojinov. The options in this case are two - Eurometal receives money as secured creditor or a close company buys the assets from the trustee. Neither, however, implies that Chugunoleene will be operational again any time soon. Group Besttechnica is one of the experienced manufacturers of equipment for metallurgy, energy, mining, cement industry and ports. Crisis shrank the company’s operations and complicated the ability to serve its duties after nearly three years of agony and UBB here apparently has decided that it is better to transfer the receivables to a third party. Unlike Chugunoleene, the full cession agreements between the bank and Eurometal for the claims of the group Besttechnica are available in the Commercial Register. They were signed on the same date as the one for Chugunoleene. The first involves the transfer of receivables of UBB to Besttechnica TM - Radomir for about EUR 4.6 million, Eurometal buying them without discount, ie it pays the full amount to the bank. It also bought 100% of the claims worth EUR 3 million of UBB to Besttechnica LTD. Transfer of Besttechnica’s debt comes when the management of the company has called for changing the servicing bank, ie UBB, and finding a financial investor to help the company to implement the new contracts signed. This is clear from the records of the last general meeting of Besttechnica TM – Radomir, held in late June. Then management criticized the lack of willingness on part of UBB to issue them new loan guarantees. Part of the bank guarantees that the company uses and does not serve, date from 2000 and by 2010 almost every year have been restructured in one form or another. "Working capital for maintenance of furnaces, engines, investments in environmental engineering and metal casting are vast. These are facilities that must operate and be operated continuously. At the same time value added is not as great as in metallurgy, and crisis had a strong impact on companies," said Politimi Paunova, director of the Bulgarian Association of Metallurgical Industry. In the steel sector are running rumors in the last two weeks that Eurometal did not confirm - that it would be produced again in Chugunoleene covers for shafts, gratings and infrastructure for streets and highways; that Ludmil Stoykov will repay the investment, if he cuts into piece the equipment of one of the two companies for scrap; that it is just a purchase of obligations and liquidation. "Years ago there were rumors that we will cut Stomana for scrap and this did not happen. Normally we do not buy to cut," said Emil Bojinov. What happens in these companies, however, is yet to be revealed. Meanwhile, it seems UBB faces heavier tasks than dealing with bad credit. At the request of the bank, private executive magistrates already sell the assets of Vasil Bozhkov-controlled Railway Infrastructure Holding Company’s subsidiaries for a total of over BGN 75 million. Apparently no one has shown interest in cession contracts for them.
Source: Capital (31.10.2011)

Three companies of Railway Infrastructure – Holding Company JSC, owned by businessman Vassil Bozhkov, are seeking protection from creditors. In a message the holding informs that Repair Reconstruction Enterprise Koehne JSC, Factory for Steel Constructions – Hayredin and National Research Institute of Transport Ltd. - Sofia asked the court to declare them bankrupt. The three companies have a debt of EUR 33 million to the holding and United Bulgarian Bank. In addition it has obligations to the National Revenue Agency, the Agency for Privatization and Post Privatization Control, as well as numerous suppliers. One of the creditors - UBB is trying to collect part of the debt by a bailiff. For public sale are declared assets of the three indebted subsidiaries, as candidates willing to participate in the auction may perform inspections to 3 November. Since September, the bank has blocked the accounts of four companies of the railway holding.
Source: mediapool.bg (01.11.2011)

As many as five Bulgarian banks accounted for two thirds of the overall profit of the country's banking system in the first nine months of 2011, Bulgarian National Bank (BNB) data showed. Bulgarian banks' combined profit stood at 484.5 million leva in January-September, with UniCredit Bulbank, DSK Bank, Raiffeisenbank, Piraeus Bank and Corporate Commercial Bank accounting for 371.6 million leva of the total. A total of nine banks suffered losses in the period. The eight banks that recorded negative results in the second quarter were joined by the domestic branch of Turkey's Isbank, which started operations in the country in the summer. The remaining financial institutions to register losses in the period were Investbank (6.8 million leva), Bulgarian American Credit Bank (16.5 million leva), Regional Investment Bank (349 000 leva), NLB Banka Sofia (3.7 million leva), Ziraat Bank (227 000 leva), Emporiki Bank (5.976 million leva), Teximbank (1.4 million leva) and Alfa Bank, Sofia branch (30.4 million leva). The branch of Greece's Alpha Bank has been reporting losses for several consecutive years. Originally, the negative result was attributed to the bank's robust network expansion and consequently to its foray in the retail banking business and the effects of the financial crisis. Emporiki Bank, part of French banking group Credit Agricole, as well as NLB Banka Sofia and Regional Investment Bank, have also been reporting negative figures since their entry on the Bulgarian market. Investbank, which registered a loss for a third quarter in a row, has managed to keep the result almost unchanged compared to the previous three-month period. BACB, however, saw its net loss widen by about two million leva on 2010. Twelve banks reported a rise in earnings with some of the entities enjoying significant annual growth. MKB Unionbank and ProCredit Bank, for example, boosted their bottom lines by nearly three times to 4.9 million leva and seven million leva, respectively. The profit of Allianz Bank surged more than 10 times in January-September to 9.8 million leva compared to the year-earlier period. Societe Generale Expressbank reported an increase in net profit of almost 90 per cent to 38.6 million leva. The lower income of domestic banks, stemming from tight lending and rising costs for bad loan provisions, are the main reasons behind the low profits or losses of domestic banks. However, the number of banks to record losses has remained relatively stable in the past three years and the banking system as a whole has been profitable.
Source: Darik Radio (03.11.2011)

Bailiff auctioned properties of Metacom SLZ JSC - Pleven Properties of metallurgical company Metacom SLZ JSC in Pleven are advertised for public sale by a bailiff at the request of UBB. Several buildings of the foundry for iron and steel, and also land in Pleven are listed for the auction. The starting price of all properties is BGN 4.44 million, excluding VAT, as it includes the buildings and infrastructure. At the request of UBB all properties are for sale with a total price as together they represent the metallurgical enterprise. The property is mortgaged to the bank, and this is the first tender for it. The plot is approximately 109 thousand square meters, and buildings have built-up area of over 15 thousand square meters in total. From the office of the bailiff did not want to say whether the company is operational at the moment and if there is interest in it. The company itself refused to comment as well. The company site has no information about its suspension, which is the successor of the former Stomanoleyaren Zavod - Pleven. Overdue principal on the bank loan of Metakom- SLZ is BGN 2.5 million at the end of last year, says the audit report. This is one reason for the negative opinion of the auditor's report, although the company has begun negotiations with the bank for rescheduling. It is unclear how they ended.
Source: Dnevnik (09.11.2011)

Chugunoleene - Ihtiman and Besttechnica - Radomir may soon be put up for sale Metallurgical assets of Chugunoleene - Ihtiman and engineering company Besttechnica TM-Radomir may soon be put up for sale because of debts, became clear from the documents in the Commercial Register. Both companies had loans to UBB, which were bought by the Ludmil Stoykov-controlled Eurometal, known as the sponsor of President Georgi Parvanov and scandals associated with SAPARD. So the company became the largest creditor with collateral commercial enterprises and their assets. The Commercial Register already contains contracts of Eurometal with custodians of the assets of both companies. Commercial enterprises have bet on loans and depositories Gergana Vassileva Borisova (of Chugunoleene) and Rumyana Vassileva Vladimirova (Besttechnica) have a mandate from Stoykov to describe the underlying asset, make a list of creditors and the method of allocating the money.
Source: Dnevnik (17.11.2011)

Eurometal LTD appointed governor of Chugunoleene JSC On October 7 Eurometal Pernik LTD acquired the right to own and manage the company went bankrupt Chugunoleene JSC. Eurometal did it by contract assignment (cession) of United Bulgarian Bank JSC for Chugunoleene arising from a contract for a bank loan from January 25, 2008. Which are secured by pledge of the whole commercial enterprise Chugunoleene JSC as a set of rights, obligations and factual relations, as well as on the individual assets included in the composition of the commercial enterprise. On January 12, 2011 Eurometal LTD contracted Dragomir Ivanov Grigorov, appointing him governor of Chugunoleene JSC, specifying in the contract his rights and obligations.
Source: money.bg (15.12.2011)