United Bulgarian Bank (UBB) has appointed Stilian Vatev as its new chief executive officer, it said on Wednesday. Vatev will replace Dimitrios Anagnostopoulos, who will join Greece’s NBG Group project team for the forthcoming merger between National Bank of Greece and Eurobank Greece, UBB said in a press release. Stilian Vatev has been a part of UBB’s management team since the bank was set up in 1993. He was the CEO of UBB before the election of Anagnostopoulos, holding the position for 15 years since 1997.
Source: Company information (03.01.2013)

Bulgaria’s United Bulgarian Bank said it has put up for sale assets of insolvent dairy company Lacrima, setting a price of BGN 4.7 million. Bids can be placed until January 21 with the winner set to be announced later that day, the bank said in a notice in the local press. The assets include administrative and production buildings as well as machinery and equipment. Dairy producer Lakrima has declared bankruptcy with the decision of the District Court in Pazardzhnik at the end of October 2011. Lacrima has numerous debts, as it owes to state-owned El B Bulgaricum solely BGN 548 thousand.
Source: Capital (04.01.2013)

Hotel complex Cosmopolitan in Rousse announced for sale Great part of the iconic hotel complex in Rousse "Cosmopolitan" is announced for sale. Public tender is executed by a private bailiff and comprises part of yard, shops, bars, snack bar, kitchen, and four floors of the complex. The initial price is BGN 2,419,133 VAT. The property has established 10 mortgages in favor of UBB for EUR 8,500,000 and BGN 2,845,206. Tender procedure starts on Monday and runs through Feb. 14 in the Rousse District Court.
Source: Darik Radio (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)

Selling price of the halls of the bankrupt Greek enterprise Dupnitza textiles that are sold off at auction because of debts fell double. At their announcement at a public auction premises was estimated at BGN 432,000, and the price at which it is now sold is BGN 200,000. While the price fell steadily over the last 2 years, in only 2 months it fell by BGN 50,000. At the last auction, which was scheduled for December, the bailiff Elitsa Hristova offered the halls for BGN 250,000. Building and plant of the bankrupt apparel company were assessed at BGN 432 470, 42 for debt to United Bulgarian Bank to the amount of BGN 130,000. It forced foreclosure, and there are also two separate mortgages that are in the Registry Office. Greek owner Teoharis Kanelis owes BGN 100,000 to the released seamstresses alone, to Dupnitza Municipality - BGN 30,000 for garbage and buildings taxes. Greek owner Teoharis Canelli went home to Greece after the collapse, and the 15 seamstresses who won cases against him for unpaid wages from December 2009 to March 2010 are still waiting for their money because of failed auctions.
Source: Other (13.02.2013)

Sofia City Court decided to postpone the “National Hippodrome against UBB” lawsuit until the end of April. UBB’s lawyers reportedly objected to the summoning of certain representatives of its debtors. The lawsuit concerns some EUR 25 million in credits nine companies got from UBB against a guarantee from the National Hippodrome. All of the companies, including the one providing the guarantee, have ties with businessman Vasil Bozhkov. National Hippodrome subsequently went bankrupt in 2011 and now UBB is trying to recover its money via the court.
Source: Capital (14.02.2013)

Bulgarian agribusiness company Farin said on Friday it turned to a consolidated net loss of 1.25 million levs through September from a net profit of 2.2 million levs a year earlier. Consolidated sales revenue shrank to 4.26 million levs in the first nine months of 2012 from 12.6 million levs a year earlier, the company said in a statement to the Bulgarian Stock Exchange. Farin turned to a consolidated operating loss of 5.37 million levs in the January-September period from a profit of 4.33 million levs a year earlier. The company turned to a consolidated net profit from financial operations of 4.1 million levs in the period under review from a net loss of 2.1 million levs.
Source: Capital (19.02.2013)

UBB has new members of its Board of Directors. UBB’s shareholders decided at an extraordinary general meeting to appoint Pavlos Mylonas and Panagiotis Karandreas to the bank’s Board of Directors. Stilian Vatev remains the Board’s Chairman and CEO of the financial institution. Pavlos Mylonas is General Manager of Strategy and International Activities, Chief Economist of NBG Group and member of the Executive Committee. Panagiotis Karandreas is General Manager of NBG International Activities for Romania, Macedonia and Cyprus.
Source: Standart (19.02.2013)

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)

Expectedly, Repair Reconstruction Enterprise Koehne one more infrastuctural company, controlled by Vasil Bozhkov, entered procedure for insolvency. In accordance with a decision by the Sofia city court from the 5th of March the procedure was opened. For an initial date of insolvency the 2nd of September 2010 is adopted. Elin Topalov is appointed as a temporary syndic. Repair Reconstruction Enterprise Koehne is part of public Railway infrastucture-holding company, which was lately remaned to Infra holding. The company changed its name on the 11th of Febraury with a decision of the general meeting of shareholders. Infra holding is successor of Nove Industry.
Source: Capital (14.03.2013)

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

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

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)

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

Four-star hotel in Varna for sale The luxurious 4-star hotel Golden Tulip in Varna is offered for sale on a public tender with the initial bidding price being BGN 9.8 million. The hotel owner - Louvre Hotels Group, pledged it as security against three loans, one of which from United Bulgarian Bank (UBB), amounting to EUR 2.45 million. It is not the hotel's bad results that led to the sale, but another loan drawn from Hypo Alpe Adria Leasing, amounting to EUR 6.7 million. The latter loan served to finance the building of a tile factory in the city of Novi Pazar that began in 2007 but has yet not been completed, Presa daily reports.
Source: Darik Radio (20.05.2013)

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

European Bank for Reconstruction and Development (EBRD) has sold its remaining 3% of the capital of MKB Unionbank to its majority owner – Hungaria-based MKB Bank. Transaction occurred on May 23, 2013, thereby Hungarians already own 100% of the Bulgarian bank. EBRD was a shareholder in Unionbank for nearly eleven years. It entered it in the fall of 2002, purchasing 15% of the capital. Back then MKB Unionbank was entirely Bulgarian property. In 2006 the EBRD remained with 6% share in the capital of the bank, after selling the rest to the Hungarian MKB Bank, which acquired 60% of Unionbank (the name then). Hungarian bank in turn is owned by the German BayernLB. Last year, when the sale of MKB Unionbank which is still underway started, the EBRD sold another 3% to the Hungarians. EBRD's strategy is to enter as owner of a share of a company’s capital (including banks) for a period of time to support its development. After the end of the investment period it backs down. EBRD was a shareholder in UBB, BNP Paribas Sofia Branch, FIB, ProCredit Bank.
Source: Capital (27.05.2013)

Fitch affirms United Bulgarian Bank at 'B', outlook negative Fitch Ratings has affirmed United Bulgarian Bank A.D.'s (UBB) Long-term foreign currency Issuer Default Rating (IDR) at 'B' with a Negative Outlook. A full list of rating actions is at the end of this comment. Key rating drivers: IDRS and VR UBB's IDRs are driven by its Viability Rating (VR), which reflects the bank's high level of non-performing loans (NPLs, loans overdue by more than 90 days) and the fact that they have apparently yet to peak given the relatively unseasoned portfolio. However, the ratings also take into account UBB's significant loss absorption capacity, positive pre-impairment profit, improved funding profile and currently satisfactory liquidity. UBB's asset quality metrics continued to worsen in 2012 and Q113, and compare unfavourably with those of the Bulgarian banking system as a whole. NPLs were a high 33.1% of gross loans at end-Q113 (32.4% at end-2012, 28.3% at end-2011), with restructured loans equating to another 8.4%. Fitch does not expect UBB to materially reduce its stock of problem loans through recoveries because of the difficult operating environment, although recent inflows of new problem loans have slowed compared with previous periods. UBB's Fitch core capital (FCC) ratio of 24.3% at end-2012 was driven by low (42%) reserve coverage of NPLs, with unreserved NPLs equal to a high 93% of FCC. The bank's Tier 1 ratio was a lower 13.9% due to higher local regulatory reserves which in total equalled a more adequate 80% of NPLs. In Fitch's view, the substantial unreserved NPLs and the continued negative trends in asset quality point to weaknesses in UBB's capital position. However, the still reasonable Tier 1 ratio based on the higher NPL coverage, coupled with positive pre-impairment profit (in 2012, equal to 2.5% of average total assets) suggest that the bank may yet be able to maintain its solvency without external support. UBB's performance has been hit by a prolonged period of loan book contraction (since 2009), continuously tightening interest spreads and high loan impairment charges, as a result of which the bank reported a BGN42m loss in 2012. Fitch believes that the loan book expansion may prove challenging because of very weak domestic loan demand, tougher competition in the market for good-quality customers and the need for prudent liquidity management. Profitability trends in the near term will be highly dependent on NPL recognition and the bank's provisioning policy. UBB's funding profile has improved. Facilities from National Bank of Greece (NBG; B-/Stable) dropped to a low 5% of liabilities at end-2012 from 26% at end-2010, and mostly comprised subordinated debt maturing in 2017. Customer deposits are increasing and accounted for 90% of total non-equity funding at end-2012 (end-2010: 69%). Deposit stability is important for UBB given the weak quality and cash generating capacity of its loan book. However, at end-2012 liquid assets (defined as cash and balances with banks, central bank reserves and unencumbered repo-able securities) covered a reasonable 26% of customer funding. Rating sensitivities - IDRS and VR UBB's ratings could be downgraded if the bank's asset quality and capital positions continue to weaken. The ratings could stabilise at their current levels if NPLs stop rising and the bank continues to generate positive pre-impairment profit, strengthening its loss absorption capacity. Key rating drivers - Support Rating UBB's '5' Support Rating reflects Fitch's view that support cannot be relied upon from the bank's owner, NBG, or the Bulgarian authorities. Fitch does not factor in potential support from NBG because of weaknesses in the latter's credit profile. In respect to potential sovereign support, Fitch acknowledges that the authorities would be likely to provide at least local currency liquidity in case of need to UBB, given the bank's sizable market shares in Bulgaria. However, in Fitch's view, there is uncertainty as to whether the authorities would inject capital into UBB, in case of need, or in all cases provide foreign currency liquidity in sufficient volumes.
Source: Darik Radio (07.06.2013)

Gorna Malina-based bio ethanol plant “Profex Bioproducts” has been put up for sale by a private enforcement agent. The asking price for the foreclosed enterprise is nearly BGN 11.1 million and the bidding will take place July 9. The tender will be held at the request of Profex Bioproducts’ creditor United Bulgarian Bank (UBB).
Source: Standart (12.06.2013)

Bio ethanol plant in Gorna Malina put up for sale Gorna Malina-based bio ethanol plant Profex Bioproducts has been put up for sale by a private enforcement agent. The asking price for the foreclosed enterprise is nearly BGN 11.1 million and the bidding will take place July 9. The tender will be held at the request of Profex Bioproducts’ creditor United Bulgarian Bank (UBB). In return the future buyer will acquire boiler and steam plant, plant for grain processing, a warehouse for alcohol as well as other industrial buildings. The owner is forced to sell its business with bread products, too. Construction of the plant for bio ethanol near Sofia started in 2007. Basic shareholder is Profex OOD, a company that has a main activity in trade with cereals. The plant for production of bioethanol was completed in 2009. The investment for constuction of the plant was to the amount of BGN 10.8 million, while 40 new jobs were opened.
Source: investor.bg (12.06.2013)

A chocolate plant in Botevgrad for sale Chocolate plant Sigma Bio in Botevgrad, which has not been working for nearly two years, is announced for sale by the company’s trustee. Buildings, machinery and brands of the company will be proposed for a total of BGN 1.8 million at a tender. Sigma bio entered procedure of bankruptcy in March 2012 at request of the very company. October 21, 2011 was announced as initial date of insolvency. In the summer of last year production was stopped temporarily. A month later it was renewed as the biggest creditor of the company United Bulgarian bank handed out the necessary money. The company owes the bank nearly BGN 950 thousand. The loan is is secured by a mortgage. The present tender is an attempt for redemption of property. The company’s assets are united into two groups. The first one includes industrial buildings with an area of 920 square meters and initial price of BGN 614.8 thousand. The second group is consisted of seven industrial buildings, two aces of land, machinery equipment, as well as 16 industrial brands. It is assessed at BGN 1.144 million. Sigma bio’s most popular brands are Morska pqna, Damski kapriz, Karameleni mechti, etc
Source: Capital (25.06.2013)

More than three years after Alen mak stopped survicing its debts and consequently was declared bankrupt, the creditors of the two issues will get about three quarters of their claims. This became possible after the most rewarding but also the most controversial asset of the company - its commercial brands were sold for a little over BGN 1 million. With the sum claims of investors in the second emission of debt securities of the bankrupt company - mainly pension funds and insurance companies will be satisfied. They changed their owner in the beginning of the year after an organized procedure by Alen mak’s trustee. There are a total of 15 creditors on the obligation loan. Their claims, assessed to nearly BGN 1.4 million are secured with the first in row pledge on intellectual and industrial property of the former cosmetic company. The biggest investment is made by pension-insurance company Doverie and its funds which hold almost 65% of total sum and are to get proportional part of revenues in the sale of assets.TBI, Alianz Bulgaria, Syglasie, CCB-sila, insurance companies Bulstrad and Bulgarski moti, as well as United Bulgarian bank have smaller claims.
Source: Capital (01.07.2013)

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

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

United Bulgarian Bank turns to net loss in 2012 United Bulgarian Bank (UBB) said on Monday it posted a net loss of 40.7 million levs ($27.1 million/20.8 million euro) in 2012 due to a drop in its credit portfolio and interest income. In 2011 UBB posted a net profit of 11.6 million levs. A general meeting of UBB shareholders decided to cover the 2012 loss by reserves, the bank said in a press release on Monday. Retained profit from previous years, totalling 900,667 levs, will be allocated to reserves, it added. UBB is 99.9% owned by the National Bank of Greece.
Source: mediapool.bg (16.07.2013)

Sale of Gorna Malina-based bioethanol plant cancelled The new attempt at selling the bioethanol plant in the village of Gorna Malina near Sofia failed, Capital Daily writes. Assets of Grasim Kapital had been offered for auction by a private enforcement agent for the second time due to a loan with the United Bulgarian Bank (UBB). However, a day before announcing the buyer, the bank cancelled the sale procedure. UBB said that it had cancelled the sale because the bank wanted to preserve the plant’s value and avoid selling it at a knock out price. UBB joined the plant construction project from the very beginning in 2006, when it funded it. However, according to UBB, the bank stopped servicing its debts in 2010.
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)

Hotel Rodina put for sale due to debts Sofia-based hotel Rodina, which is looking for a new owner for years now, is again put for sale. This time the sale is initiated by a private bailiff because of unserviced debts towards United Bulgarian bank. Public sale starts on the 9th of August at an initial price of BGN 44.4 million, which is equal to EuR 22.8 million. Offers will be accepted by the 9th of September. Main shareholder in Rodina tourist, Mother Company of the Sofia-based hotel, is a company under the name of L-me, with a 96% stake. The hotel as well as the land below it has a total of six mortgaged, constituted in favor of the bank. They are assessed to a total of between EUR 8 and 10 million. Hotel Rodina is one of the biggest hotels in the capital city. It disposes with 500 rooms and has a ground floor area of approximately 50 000 square meters. It comprises of an underground parking of three levels, a sports center with a swimming pool, a congress center, reception, restaurant and a lobby bar, as well as 18 floors of hotel body. The complex has adjoining site of 6000 square meters, which practically covers the whole box of three streets and Totleben Boulevard. In case of repeated procedure for public sale, the price will fall by another 20%. The company ended 2012 with a profit of BGN 33 thousand- nearly twice the level a year earlier. Accumulated profit of the company at the end of the year is to reach BGN 1.48 million.
Source: Capital (07.08.2013)

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)

Arteks Engineering AD-Sofia (A84A) BSE-Sofia has received a Report under Art. 100g (1), item 3 of the POSA as at 30 June 2013 submitted by United Bulgarian Bank AD in the latter's capacity of a trustee of the bondholders under the issue of bonds of Arteks Engineering AD-Sofia (A84A), ISIN Code: BG2100016083.
Source: Banker (30.08.2013)

Prokopiev's Sofstroy in trouble Sofstroy- an Ivo Prokopiev’s Construction Company is experiencing serious problems. Due to unserviced obligations a private bailiff is selling a concrete plant of the company in Sofia. The site is located next to Gara Iskar and represents a plot with an area of 32.8 acres, together with facilities on it. The property is mortgaged in United Bulgarian bank in 2009 in return of a loan to the amount of EUR 2.1 million. Initial price on the auction now is BGN 2.23 million VAT excluded. Major shareholders in Sofstroy are Alfa finance holding and Maltese company Balto-Slavic ventures. They acquired the company in 2007 through capital increase. In last years, though the company has sharply lost its positions. In the end of 2010 the company employed 369 people. Now it has just 20 employees. According to the latest available data as to 31st of December 2010 the company has BGN 28.7 million debts, BGN 1 million if which are towards personnel.
Source: Presa (19.09.2013)

Active properties REIT bought a site of six acres in Plovdiv Àêòèâ Ïðîïúðòèñ ÀÄÑÈÖ Active Properties REIT has purchased a plot with an area of 6 000 square meters, shares of a plot of 7936 square meters in Park Otdih i cultura in Plovdiv. The company has already had 79 acres (79 000 square meters) in the same park. It is divided into 12 plots with a total book value of BGN 4.9 million as to 30 June 2013.
Source: investor.bg (24.09.2013)

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)

NBG is withdrawing from most of South-eastern Europe, citing Greek Ekathimerini daily. According to the Greek newspaper the financial institution achieved an agreement with the European Commission to keep its majority stake in Turkish Finansbank, but bid most of its activities in the region farewell. Representatives of the Bulgarian subsidiary of NBG – United Bulgarian Bank – told Telegraf daily that Greek media do not quote a representative of the bank nor the EC, thus the information spread is unofficial, and declined to comment further.
Source: Standart (04.10.2013)

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)

Bulgarian private equity fund AD-Sofia (BPT) With reference to a decision of the Board of Directors dated 23 April 2013, publications in both the Capital Daily and the Telegraph Daily of 18 October 2013, as well as notices at the Issuer's batch in the Commercial Register on 23 October 2013 and at the web-sites of the Issuer and of the authorised investment intermediary Capman AD of 17 October 2013, with regards to the capital increase of Bulgarian private equity fund AD-Sofia (BPT), please be hereby informed: - Number of shares prior to the increase: 50,000 - Number of rights issued: 50,000 - Number of shares, offered for subscription: 2,000,000 - Ratio between the rights issued and new shares: 1/40 - Each person may subscribe to at least one (1) new share and to utmost such number of shares that is equal to the number of the rights acquired and/or held by the person in question, multiplied by 40; - The capital shall be only increased where at least 500,000 new shares have been subscribed to and paid - BSE code assigned to the rights issued: BPT1 - Rights' ISIN code: BG4000012139 - Nominal value: BGN 1.00 per share - Issuing value: BGN 1.00 per share - Starting date of trading in rights on the Exchange: 31 October 2013; - Final date of trading in rights on the Exchange: 13 November 2013; - Starting date of transferring the rights: 31 October 2013; - Final date of transferring the rights: 15 November 2013; - Auction date as per Art. 112b (7) of the POSA: 22 November 2013; - Starting date of subscription to shares: 31 October 2013; - Final date of subscription to shares under the increase: 09 December 2013; - Exchange Member authorised to administer the capital increase: Capman AD Investment Intermediary - Bank with which the fund-raising account is to be opened: United Bulgarian Bank AD - The right to participate in the capital increase shall be entitled to those persons who have acquired shares not later than 7 days following the date of publication of the notice under Art. 92a (1) of the POSA or as at 30 October 2013 (i.e.: Record Date); - The final date for transacting shares of the Company in question on the Exchange floor, as a result of which transactions the person acquiring these shall be entitled to participate in the capital increase shall be 28 October 2013 (i.e.: Ex Date: 29 October 2013)
Source: Company information (24.10.2013)

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

Bulgaria’s first bioethanol plant put up for sale over debts The first plant for ethanol and bioethanol in Bulgaria – Silistra-based Evroetil JSC has been put up for sale over debts to United Bulgarian Bank (UBB), but the foreclosure is temporarily halted at the request of the company’s creditor UBB. Evroetil JSC has been pledged as collateral on a EUR 2.6 million loan from UBB, negotiated back in 2007. After the bioethanol plant paid off some of its debts, it now owes the bank BGN 2.03 million, including overdue principal, interests, damages and court costs.
Source: Capital (13.11.2013)

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

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

Bulgarian hotel Rodina put up for sale at EUR14.5 mln Indebted four-star hotel Rodina in the Bulgarian capital Sofia was put up for sale again, for the third time this year, at a starting price of BGN 28.4 million. Bids should be filed by January 9. The previous two attempts to sell the hotel to cover debts accumulated by its owner, local company Rodina Tourist, to United Bulgarian Bank, attracted no bidders. In the first tender for the hotel, held in September, the starting price was set at BGN 44.4 million. It was then cut to BGN 35.5 million in the second tender. Rodina hotel covers an area of some 50,000 square metres and has more than 500 rooms.
Source: Capital (09.12.2013)

Case Veterinarian against UBB started again Emblematic case "vet against UBB" finally got moving after multiple delays. Plaintiff Valeri Krastev who works as a vet in National Hippodrome JSC claims that he has had its land and buildings since 1995. This is the reason why he insists on being recognized as an owner of an area of over 500 acres, as well as of lots of buildings. The property is mortgaged in favor of UBB as collateral to a loan of EUR 30 million (that is long overdue). If it really turns out that Krastev is actual owner of the property by prescription, mortgages created in favor of UBB will be nugatory as they were not established by the owner. If the vet is recognized by the court as an owner, all managers and CEOs of companies, banks and corporations that have managed them for 10 years will be able to claim that they are already owners.
Source: Standart (10.12.2013)