Valentin Zahariev’s last company is put for sale due to unpaid debts. At present, purchaser of Fin tech mach is being looked for. It was announced for sale by a private bailiff at the end of last year to the amount of BGN 6.8 million. This is the last company in Intertrust holding’s portfolio in the country. The auction will take place on thr 15th of February. A property with an area of nearly 92 thousand square meters is offered for sale, as it comprises 26 industrial and administrative buildings, warehouses and substations and other buildings. It is mortgaged against a loan to the amount of EUR 2 million with Postbank and EUR 13.8 million from Credit Suisse. The ex- Anton Ivanov factory became part of Intertrust holding in 2003.
Source: Capital (14.01.2013)

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

CPC allows the National Bank of Greece to acquire Eurobank Ergasias The Commission for Protection of Competition (CPC) has allowed the National Bank of Greece to acquire Eurobank Ergasias and its subsidiaries in the country, the commission announced. The decision will be implemented immediately. In Bulgaria, the merging banks control banks such as UBB JSC, Eurobank EFG Bulgaria JSC (Postbank), EFG Leasing JSC, etc. According to CPC, the evaluated transaction will affect horizontally the markets for provision of banking, financial, leasing and other services. The commission analysed the situation and competition conditions on each of these markets, as well as their barriers for entering, market position of the participants in the operation before and after its implementation, and other indicators of the merger's impact on the effective competition, the regulator noted. Based on this analysis, it can be concluded that the planned merger will not lead to the creation of a dominant position which would significantly restrict or hamper the effective competition on the markets analysed, according to the conclusion of CPC. During the analysis, none of the participants interviewed expressed concerns about the competitive environment after the merger of the two banking groups. Bearing all of the above in mind, the commission reckons that the merger should be allowed unconditionally.
Source: Class (29.01.2013)

Eurobank Ergasias already belongs to the National Bank of Greece The Greek Eurobank Ergasias already officially belongs to the National Bank of Greece (NBG), Greek media reported, cited by BTA. NBG is the owner of UBB in Bulgaria and Eurobank – of Postbank. At the end of January, the Bulgarian Commission for Protection of Competition (CPC) allowed UBB to acquire Postbank. The merger in Bulgaria is a consequence of the decision made in Greece for the merger between NBG and Eurobank. The permission was issued by the owner of NBG but the merger in our country is between the two subsidiaries. The same procedure is applied in the other countries where these banks operate - Romania, Serbia and Cyprus. After the successful transaction, NBG acquires 84.35% of the share capital of its largest competitor - Eurobank. The Greek banks are under pressure to merge, having suffered heavy losses from the three-year crisis and the write-off of part of the Greek debt. The market value of NBG ˆ27.1 bn and that of Eurobank is ˆ250 mln, reported Bloomberg. After the merger, the institution will be named NBG Group and will have assets of ˆ178 bn, extended loans of ˆ110 bn and deposits of ˆ87.9 bn.
Source: Class (20.02.2013)

For a second time a private bailiff proposes at an auction Plovdiv-based machine building company Fin tech mach. After the failed first attempt in February now land and buildings are announced for sale for BGN 5.5 million, equal to 80% of the initial price. This is the last manufacturing company of the ex-owner of Kremikovtsi Valentin Zahariev, who last year parted with mining company"Gorubso - Madan" and lead-zinc complex in Kardjali, while his pipe plant "Inter pipe" went into bankruptcy. Fin tech mach serviced predominantly the other companies of Zahariev, so it is expected that the auction will take place without great interest. Till the 24th of April candidates may hand out offers for the property, which includes nearly 92 thousand square meters plot, as well as 26 industrial and administrative buildings and warehouses. Besides this a private bailiff announced the sale of nine machines, assessed to nearly BGN 110 thousand. The plot is mortaged by loans of two banks- Post bank with two loans of EUR 5 million and EUR 2 million respectively, together with a mortgage from Credit Suisse to the amount of EUR 13.8 million.
Source: Capital (26.03.2013)

A private enforcement agent put up for sale the Kalvacha airport, located in Bulgaria's south central town of Kazanlak, at a starting price of 3.97 million levs ($2.61 million/2.03 million euro), an auction notice indicated on Wednesday. The airport, which belongs to real estate investor Kalvacha Investment, a unit of liquefied petroleum gas trader Kalvacha, covers a total area of 343,489 square metres, according to a notice published on the website of the Bulgarian Chamber of Private Enforcement Agents. Bids for the airport and its adjacent hangars can be placed by May 9 and the buyer will be named on the following day.
Source: Other (04.04.2013)

Bulgarian construction company Arteks Engineering said on Friday it is seeking to extend until April 3, 2020 the redemption deadline of a 6.0 million euro ($7.8 million) bond issued in 2008. The decision will be put to a vote at a meeting of bondholders scheduled for April 22, Arteks Engineering said in a statement filed with the Bulgarian Stock Exchange. In July 2008, the company placed 6,000 bonds with a nominal value of 1,000 euro each and an annual interest rate equal to the three-month Euribor plus 3.0%, but not less than 7.5%. The issue matures on July 3, 2015. Sofia-based Arteks Engineering is engaged mainly in the construction of residential buildings, administrative and business centres and hotels.
Source: Capital (08.04.2013)

The Greek banking system, in its biggest part, is led to nationalization, as yesterday the deal National Bank of Greece-Eurobank was frozen, after dramatic consultations and under pressure from the Troika. As it became known, the two banks will now proceed to separate recapitalization, as requested by the Troika, which will be fully covered by the European Financial Stability Fund (ESFS), i.e. by the state. Something that is likely to lead to changes, directly or later, in their administration. The decision spread unrest in the banking system, as the issue of banks and deposits became extremely "sensitive", after the developments in Cyprus and the statements of European officials. Both the Bank of Greece and the Ministry of Finance gave assurances yesterday that the deposits are fully secured, as well as the stability of the Greek banking system. According to a high-ranking source of the Ministry of Finance, the nationalization was launched after letters, sent by both the National Bank and the Eurobank, which stated that they cannot cover the estimated 10% of the capital increase by individuals. This means that in the next days the EFSF will start process of recapitalization of them, and becomes, thus, their main shareholder. It was preceded by an announcement of the Bank of Greece, which stated that the recapitalization process for the four so called systematic banks will be completed before the end of April. According to the same announcement general meetings will be convened immediately and that the EFSF will fully cover the capital increases. According to the banking market's sources, the objections raised by the Troika, in order not to proceed the deal, was that they would require additional funds - about 11 billion euro for the National Bank of Greece, and 6.6 bil. euro for Eurobank. The Troika noted that they didn't want to risk any charging of the debt and deficit of Greece. The issue dominated yesterday afternoon in the three-hour meeting in the Ministry of Finance with the Troika, also attended by the Bank of Greece's governor, Iorgos Provopulos, and the CEO of EFSF, Anastasia Sakelariu. The government until yesterday appeared to support strongly the completion of the deal, while the Bank of Greece's governor in his recent public statements expressed his support for it. Finally, the government agreed to back off, obviously wanting to unblock the whole process of negotiation with the Troika, for which yesterday expressed more optimism.
Source: Standart (09.04.2013)

Court declares Kalvacha gas bankrupt The Razgrad Regional Court declared one of the nation’s relatively big fuel retailers - Kalvacha gas, insolvent. Kubrat-based Kalvacha gas is part of Stoycho Kalvachev’s group Kalvacha. According to Capital Daily’s K100 chart, Kalvacha gas has until recently controlled 12% of the autogas sales in Bulgaria and ranked 19th in the sector with sales revenues of BGN 91.3 million for 2011. A couple of months ago, however, it was announced the company was facing financial difficulties, but its officials refused any comments on the rumors. In the meantime, a private enforcement agent put up for sale assets of SK Industrialni Imoti in Stara Zagora (Kalvacha plant), following a claim from Eurobank EFG Bulgaria (Postbank), which seeks BGN 7.196 million in claims.
Source: Capital (10.04.2013)

Real Estate Deals in Bulgaria Jump by 23% The real estate deals in Bulgaria jumped by 23% in the first trimester of 2013 compared to the same period of 2012. For the period January-March 2013, the real estate deals number to 44,174 compared to the 35,821 in the same period of 2012, shows the data of the Registry Agency, cited by the Post Bank. The figures also show that 13%, or 5,811 deals signed in 2013 are realized with mortgages. The financial institution also registers a 25% growth of enquiries about mortgages. An interesting trend is that 74,5% of all mortgages negotiated from the beginning of 2013 were negotiated in Bulgarian currency compared to the 50% in 2012. The preferred size of credits continues to be up to 20,000 euro.
Source: Standart (25.04.2013)

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

A new attempt for sale of Valentin Zahariev’s last company A private bailiff will try to sell Fin Tech Mach factory in Plovdiv for a third time. The requested sum is BGN 5.22 million, against which the new owner is to acquire 26 production buildings, located at an area of 92 thousand square meters. From the start of the year, there were two attempts for sale of the property. This is the last manufacturing company of Valentin Zahariev. Intertrust Holding bought Anton Ivanov factory near Plovdiv in 2003 and renamed it to Fin Tech Mach. The company produced mainly agricultural equipment- cultivators, tillers and spare parts for tractors. The new owner had more ambitious plans and even constructed highly technological line for assembling of American buses. Fine Tech Mach turned out to be one of the collaterals against loans to ensure the continuation of Zahariev’s metallurgical activity. There are claims for repayment to the amount of EUR 7 million at Eurobank, on the name of the company.
Source: investor.bg (07.06.2013)

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

Greek Eurobank EFG, one of the four largest banks in the country, will be the crediting institution to acquire Hellenic Postbank according to a decision of the Hellenic Financial Stability Fund (HFSF), the online edition of Ekathimerini daily reported. As expected, the fund chose the weakest of the four banks and the only one that has to be recapitalised significantly by the HFSF to buy the good segments of Hellenic Postbank. Ekathimerini notes that the fund chose Eurobank as it finds it necessary “to strengthen the fourth pillar of the sector prior to its privatisation.”
Source: Dnevnik (15.07.2013)

The cabinet hides data on public deposits again Although PM Plamen Oresharski pledged that ministries should observe the rules for selection of financial institutions, which will hold state company funds, most ministries did not publish data on the concentration of their companies’ money, Capital Daily reports. The Ministry of Agriculture was the only ministry that published a report about its activities on its website. After Capital Daily questioned the ministries about their activities, the Ministries of Economy and Transport also published their reports. These two ministries hold most of their funds in the Corporate Commercial Bank, which is controlled by Tsvetan Vasilev. Data published in May confirmed unofficial information that the bulk of state company funds were concentrated in just a few banks. The first one was the Corporate Commercial Bank, where 18 public companies had deposited their money, including the Bulgarian Energy Holding (BEH). Second was the Central Cooperative Bank, which was the favourite bank of 15 public company managers. However, according to the data published now, none of the public companies related to the Ministry of Finance exceeds the 25% barrier. Three months ago, the money of the Bulgarian Stock Exchange was held mainly by Postbank and the Corporate Commercial Bank, while now it is deposited in six banks. However, companies related to the Ministry of Agriculture and the Ministry of Regional Development are still holding their money mainly in D Commerce Bank and the Central Cooperative Bank respectively.
Source: Capital (01.08.2013)

EBRD signs a credit line with three Bulgarian banks European Bank for Reconstruction and Development (EBRD) signed a credit line on promoting energy efficiency as well as trade finance facilities with the three leading Bulgarian banks – Postbank, Piraeus Bank Bulgaria A.D. and United Bulgarian Bank A.D. (UBB). The total amount of financing to be received by the three banks is EUR 64 million, of which Postbank will receive EUR 24 million, Piraeus bank Bulgaria – EUR 13 million and UBB – EUR 27 million, Capital daily reports. The three banks will join the EBRD Bulgarian Energy Efficiency for Comparative Industry Finance Facility (BEECIFF), launched in April 2012, which provides financing to SMEs for energy efficiency investment eligible for grants under the government’s Green Economy programme, which is supported by EU Structural Funds.
Source: Standart (02.08.2013)

Post bank merged its factoring company into the corporate department of its loan institution. In that way legally Eurobank EFG Factors no longer exists. The company has been crossed out by the BNB’s registry of financial institutions and its activity is cancelled by an order of the central bank on the 1st of August. This is a legal bankruptcy, which follows the actual overflow of the company within the Bank. Post bank explained that it is a restructuring procedure and factoring is part of the corporate department that offers full service of companies that are its customers. According to the bank’s own statistics it holds about 37% share of the factoring market in the country
Source: Capital (12.08.2013)

Bulgarian construction company Balkanstroy extended the term of its corporate bonds. However, it did not do so willingly because it had initially requested an extension of 4.5 years. What’s interesting is that two contradictory decisions about the bond term were taken at two shareholders’ meetings within only a few days. The decision for the latest change was taken at a meeting on Monday. However, at another meeting last Thursday, shareholders voted for different parameters. Balkanstroy requested a bond extension until September 2020 last Thursday but all shareholders unanimously rejected these demands. Then, they approved the proposal of Allianz Bulgaria pension company for a 2-year extension by September 2018, without changing the parameters of the bond issue. Two of Allianz’s pension funds – the Mandatory Universal Fund and the Voluntary one – hold a combined 25.02% of Balkanstroy’s debt. The other creditors are pension funds of ING, DSK Rodina and DSK Future, mutual funds of UBB Asset Management, UBB, Allianz Bank and Eurobank Bulgaria. The Thursday meeting was convened by the company’s trustee bank UBB.
Source: Capital (25.09.2013)

CCB bought Pliska hotel Central Cooperative Bank / CCB / part of the holding Chimimport bought iconic metropolitan hotel - Pliska. Credit institution paid BGN 27 million for the site, which in recent years didn't accept guests. Income wore only the huge ads on the facade. CCB acquired the hotel from the company Business Center Izgrev, whose ultimate ownership is registered in the Bahamas Fritz International. Business Center Izgrev is highly indebted. Its obligations are assessed at a total of BGN 32 million. Solely for 2012 the company reported an annual loss to the amount of BGN 1.5 million. The tall 16-storey hotel was opened in 1969. During socialism its main function was to take passengers on Balkan Airlines having problems with flights. After BGA Balkan’s bankruptcy in 2006 Business Center Izgrev bought it at a tender from the air company’s trustees.Business Center Izgrev bought the hotel and the ex-administrative building for a total of BGN 18 million.
Source: Capital (30.09.2013)

Greece plans capital boost of over 1 billion euros for Eurobank: source Greece's plan to return Eurobank to private ownership will see the country's fourth largest bank issue more than 1 billion euros ($1.35 billion)of new stock to private investors, boosting its capital ratio, a source familiar with the transaction said on Friday. Eurobank (EURBr.AT) was the only one of Greece's four systemically important banks to have its summer 2013 recapitalization needs met solely by the Hellenic Financial Stability Fund (HFSF). The HFSF, a bank rescue vehicle funded with 50 billion euros from the country's bailout by the European Union and International Monetary Fund, now owns 95 percent of Eurobank. The fund has retained JP Morgan and Lazard to advise on ways to re-introduce private investors into the bank's share register ahead of a March 2014 deadline laid down by the IMF/EU chiefs overseeing Greece's sovereign bailout, three sources with knowledge of the process said. The sources said HFSF has decided to issue new shares rather than selling on the shares it already owns, so the bank's capital position will be improved. The additional capital will be "north of one billion euros", one of the sources said. "It will be a capital increase," HFSF chairman Christos Sclavounis told Reuters, declining to comment on how much capital will be sought. Other sources familiar with the process said the exact amount of the increase will be determined by the outcome of stress tests consultancy BlackRock is carrying out into Greek banks' capital positions. The results are due in December, but early indications may come ahead of this. Eurobank had a capital ratio of 8.1 percent at the end of June, making it the most weakly capitalized of the four main Greek banks, which together have a market share of more than 90 percent. Two sources told Reuters that some institutional investors have expressed early interest in taking part in a Eurobank deal, including North Americans with experience of investing in financials elsewhere in the euro zone. "The Fund, with the bank and our respective advisers, will do a thorough job looking for legitimate and value adding investors" Sclavounis said.
Source: Capital (30.09.2013)

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

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

Seat on the dairy market for sale Postbank (Eurobank EFG Bulgaria) is offering dairy products manufacturer Dyado Lyuben in Koprivshtitsa on a public tender due to non-performing debts. The bank published an announcement specifying the initial bidding price - BGN 5.08 million (VAT not included) - and the deadline to submit offers - November 7, 2013. The company is heavily indebted. According to data in the Commercial Register it owes Postbank EUR 2.5 million.
Source: Capital Dàily (30.10.2013)

Prestige Business Centre with new owner Following several failed attempts, in end-August the Prestige Business Centre in Sofia finally found its new owner – the Build Invest Group – Sofia, against BGN 5.42 million. Òhe company is related to AG Capital, which is owner of Address. Before the crisis the business center offered one of the most expensive office areas at the market (offers exceeded EUR 25 per square meter). Tenants included major companies such as British Airways, McKinsey, etc. Eurobank EFG Bulgaria and EFG Private Bank Luxembourg initiated a tender for the property due to non-performing loan with the initial bidding price being BGN 6.84 million. In October 2012 a company connected to the banks - IMO Property Investment – acquired the real estate against BGN 5.87 million. Nearly a year later the building was re-sold to Prestige build invest group. Now the office building is empty and repair is under way. The total area is 1888 square meters, which include five floors of office and retail space. Its strengths are the central location.
Source: Capital (21.11.2013)