Bulgaria Gov't Scraps Concession Agreement for Bansko Ski Zone A concession agreement to build a ski zone in Bansko passed by the previous elected government in 2013 has been revised by the cabinet, officials say. The text which had been adopted by the administration of Plamen Oresharski in August 2014, days before the government resigned, allowed Yulen to expand the already existing ski zone. Part of the new territory belongs to the Pirin National Park and is within a protected area. After the first cabinet meeting for 2015, Environment Minister Ivelina Vasileva described the agreement as "unlawful". She explained the "eleventh-hour" decision to sign it had not been coordinated with experts from the ministry's legal team. In Vasileva's words, parts of the agreement's text were vague and needed a detailed analysis. Vasileva said the ministry would work with experts on a viable solution by mid-February. The agreement will thus be amended in due course. She added the concession agreement had not yet been enforced as of Wednesday, January 07. Yulen, the main ski and tourist operator in Bansko, is known to be held by Tseko Minev, who also owns Vitosha Ski and First Investment Bank. - See more at: http://www.novinite.com/articles/165815/Bulgaria+Gov%27t+Scraps+Concession+Agreement+for+Bansko+Ski+Zone#sthash.a7hePEaB.dpuf
Source: Other (08.01.2015)

Bulgaria’s capital to build new park with the help of JESSICA initiative “Financing for the construction of the Vazrazhdane Park under the JESSICA initiative will be of more than BGN 1.7 million. The rest of the money needed for the BGN 4.2 million worth project will be provided by the Sofiyski Imoti company,” Mayor of Sofia Yordanka Fandakova said speaking with journalists at the signing of the contract for new park’s construction. “After signing a contract on the construction of a multi-functional sports complex in the Zone B-5 residential quarter in September 2014 – between Sports Sofia and the Fund for Sustainable Urban Development, now we will sign a similar contract on financing with money from the Fund, under the JESSICA instrument, between the Fund and Sofiyski Imoti company for the construction of the long-awaited Vazrzhdane Park,” the mayor said further. “Sofia is about to build the first completely new park for many years,” Ms Fandakova remarked. “39 decares of the terrain will be park spaces. There will also be a parking lot, a circus area, an amphitheatre for cultural events. Right next we will have the Sports Sofia and thus we will enjoy an overall complex with zones for sports, recreation and entertainment, situated over some huge terrain,” the mayor of the capital explained.
Source: Agency Focus (27.01.2015)

Bulgaria’s finance ministry has abandoned its plans to issue BGN 400 million worth of short-term government bonds, which was initially planned for February, over reports of a BGN 85-million surplus in state coffers in January 2015. This is the first time the state budget registers a surplus since 2009. Short-term tapping of the bond markets has been a commonplace for the country throughout 2014. Last year the amount of those government debts reached the staggering BGN 2.4 billion. Much of the money was used to cover the liquidity gap in First Investment Bank (Fibank) – BGN 1.2 billion.
Source: Sega (04.02.2015)

Court finds Bourgas Shipyards JSC insolvent A court decision released January 22 this year declared Bourgas Shipyards JSC insolvent, specifying that the company had not been able to cover its debt obligations since December 31, 2013. Although the backdated insolvency preceded the tender whereby creditor Fibank acquiring the foreclosed assets of Bourgas Shipyards JSC, the deal cannot be declared void and the company remains property of the lender, according to attorneys knowledgeable of the matter. The sole option, in their words, is to challenge the sale of the land under the shipyard.
Source: Capital (05.02.2015)

Bank profits in Bulgaria reached BGN 746 million in 2014 Although 2014 was challenging for Bulgaria and one of its biggest banks went bankrupt, Bulgaria’s banking system reported a profit of as much as BGN 746 million, or up 27.6% from 2013, BNB data show. At the same time, household income is decreasing. Depositors received less than BGN 1 billion from interest on their deposits for the first time in 6 years. BNB data as of end-2014 showed that deposits reached record-high BGN 41 billion. However, interest income amounts to only BGN 952 million compared to BGN 1.369 billion in 2013. Deposits in 2013 amounted to BGN 39.248 billion. BNB data show that deposits of physical persons in Corporate Commercial Bank (Corpbank) were redirected mainly to UniCredit Bulbank and First Investment Bank (Fibank). Central Cooperative Bank and Societe Generale Expressbank also attracted a lot of funds from Corpbank.
Source: Sega (09.02.2015)

Bulgaria's Blagoevgrad-BT and Sofia-BT, units of cigarette maker Bulgartabac Holding, are seeking approval to take control of Sofia-based Baranco. The latter is the biggest shareholder with 49% stake in another company under the name of Yuri Gagarin. In the end of January 2015 Blagoevgrad-BT’s Board of Directors decides to move production of filters for cigarettes in Plovdiv. The holding did not formally announce the exact company in Plovdiv will assist that production process. That’s way it is highly probable that Yuri Gagarin is the company in question. Thus the Plovdiv-based company is ready to return officially to Bulgartabac Holding’s structure. The deal is not expected to affect any markets in the country because the concerned companies lack any vertical or horizontal relations. Baranco does not perform any trade operations. Blagoevgrad-BT and Sofia-BT produce and trade tobacco goods.
Source: Capital (16.03.2015)

European commission engaged with direct supervision of Fibank Officially the European Commission exercises direct supervision over First investment bank. Special supervision authority has been appointed. Its name is Bane and Co, with which the bank fully cooperates and provides with the necessary information, including access to all records. The company Bane and Co publishes reports every three months. It looks for financial indices, as well as for good corporate management and risk management of the Bulgarian bank. In its role of a supervisor Bane and Co has the right to be present on meetings of Fibank’s meeting of board of directors, as well as these of credit and auditing committees.
Source: money.bg (25.03.2015)

Varna-based mall Galleria might turn into a hospital Polish company Globe Trade Center (GTC) that has two operating malls in Bulgaria, announced that it is leading negotiations for sale of one of its unfinished premises in the country. The prepared deal is for the shopping center, located in Varna, which is built but is not functioning. If the sale is completed instead of a mall a hospital will be opened there. City clinic is appointed as a future owner in case of a successful deal. Basic owner in the Varna-based mall is the Polish company. Bulgarian partners of the investor in the project are Tony Ikonomov and Krasimir Ikonomov, who are owners of the cosmetics company Fresh Up. The Bulgarian company, owner of the property is called Galleria Varna. The premise is pledged is First investment Bank and the Hungarian banks MKB Bank and ZTP and OTP Bank Nirta against a loan of BGN 125.7 million. The debt is assessed at slightly less than BGN 125.7 million. City clinic plans to invest about BGN 200 million in expansion of its present base in the capital city via opening a new hospital, construction of a Varna-based hospital, purchase of a functioning hospital in a regional city, as well as with construction of oncological hospital. Because of this in January the company attracted two new investors with a capital of BGN 5 million each. These are Åmpower Capital and financial investor Alexander Minov. In Bulgaria GTC is majority owner in Galleria Stara Zagora è Galleria Burgas.
Source: Capital (27.03.2015)

Profits of banks in Bulgaria up to BGN 196 million The profit of banks in Bulgaria in end-February 2015 was formed mainly by the profits of the first five banks. They were put in the first group by BNB and include UniCredit Bulbank, DSK Bank, First Investment Bank (Fibank), United Bulgarian Bank (UBB), and Raiffeisen Bulgaria. They account for 80.6% of the total positive result of the system, or BGN 158 million. The third group includes six branches of foreign banks in Bulgaria. Their profit amounts to BGN 7.4 million. The total amount of bank profits for the first two months of the year stood at BGN 196 million, or BGN 47 million more than the same period in 2014, BNB reports.
Source: investor.bg (01.04.2015)

Albeit slowly, the furniture industry in Bulgaria is developing, but in recent years, it relies more on exports than domestic consumption, according to industry data. However, some companies obviously have difficulties lately, as in the register of public sales only in the last 10 days have been registered several notices for sale of assets of companies in the sector. One of them is related to the Gabrovo-based Solex Investment, which sells furniture under the brand MeBex. Bailiff sells several warehouses and administrative building of the company for the sum of BGN 235 thousand. The sale is to satisfy the creditor of the company - First Investment Bank (FIB).
Source: investor.bg (07.04.2015)

The company Alpha Media Group Ltd., in whose assets are the properties of the family of Delyan Peevski located in Bulgaria and Greece, has changed its offshore owner from Bahamas with new one from the Seychelles, according to the site Bivol. Alpha Media Group e owner of E.K.P.I., which was founded in 2006 under the name Eco Road JSC. In early 2007 ownership is transferred to Diema Group JSC, after which the company was renamed. According to an investigation of the site Noresharski, by the end of 2013 Alpha Media Group is owned by the British company Nate Holdings Limited (Nata Holdings Limited), which in turn is owned by a Bahamian offshore Nate Limited. On May 20, 2014, however, Nate Limited sold all its shares in Tate Holdings Limited to Jenkopt Limited, which is registered in Hong Kong. Its owner in turn is the Seychelles-based company Tyltrad Limited.
Source: mediapool.bg (18.05.2015)

Remotex’s new owner is looking for new customers The new owner of the bankrupt Remotex-Radnevo’s assets is preparing the company for renovation of its activity by the end of June. 500 employees, who are to start work in Radnevo, are being looked for. There are orders for repair of machinery out of the state mining plant in the Maritsa basin. By the end of the year several millions of BGN will be insured for investment in equipment. That is what Remotex-Radnevo’s new owner Nikolay Vulkanov said after he bought it for BGN 21 million in cooperation with Greek national Ioannis Giofkos. Mr. Valkanov is owner of Minstroy holding. Seller of Remotex-Radnevo was First investment bank. The deal for transfer of the company has not been registered in the Registry agency. The new owner bought an asset set free from its basic obligation to the bank. Remotex - Radnevo is structurally defining enterprise not only to the state Mines Maritsa East, but for mining as a whole. There is a need for such type of establishment which carries out repairs of machines, engines, spare parts in the group of companies lead by Minstroy.
Source: Capital (26.05.2015)

IFC and Fibank confirm cooperation in Washington Deputy Chairman of the Steering Committee of Fibank Maya Georgieva participated in a panel discussion on implementation of good corporate governance in financial institutions at the annual meeting of the International Finance Corporation (IFC), which was held in Washington from 17 to 19 June 2015. Among the participants in the meeting were GarthBedford, a representative of the group of financial institutions managing the work with Fibank on risk management. Mr. Bedford participated via a direct videoconference. The other participants were Cyril Neykov of the Group for Corporate Management of the IFC, who managed the work with Fibank from 2012 to 2014, Morgan Landy, Director; Darin Hartslar: Manager of Corporate Management of the IFC as well as representatives of the International Finance Corporation from over 50 countries worldwide. The purpose of the discussion was to provide an example of successful cooperation between the IFC and the First Investment Bank as an investment client receiving recommendations in the area of corporate governance. Work on the implementation of this successful model includes both assessment and implementation of the latest trends in the field of good corporate governance. The panel discussion was designed to show how a successful working model can be replicated in other regions of the world. In April 2014 the First Investment Bank required a reassessment of the changes already made to improve corporate governance. The evaluation was completed in late May with the assistance of IFC to develop a specific plan with clear targets and deadlines.
Source: Standart (25.06.2015)

Bankruptcy of Remotex announced Stara Zagora District Court declared the bankruptcy of one of the largest repair enterprises in Maritza East complex - the privatized in 2002 Remotex-Radnevo. The case was based on claims of FIB and Burgas-based Alsi, which claim to BGN 23.5 million. For beginning of insolvency, the Court has set January 2, 2014. Temporary trustee was appointed. According to the conclusion of the expert appointed by the court, as to 21 March 2015 the company had short-term assets worth BGN 43.4 million, while its liabilities were BGN 34.7 million. Sinking of the plant, which employed nearly 900 people, started in 2013. The then owners borrow from the Bank, which transferred to related companies. Salaries have not been paid in full for almost two years. Part of the basis of the bankrupt factory is now owned by Minstroy Holding. According to its head Nikolay Valkanov, 500 workers are to be recruited and production is to recover.
Source: Presa (13.07.2015)

Bulgarian unit of Greece’s Eurobank EFG to acquire local branch of Greece's Alpha Bank Bulgaria’s Postbank, a unit of Greece’s Eurobank EFG, signed on Friday a memorandum of understanding for the acquisition of Alpha Bank’s Branch in Bulgaria, the two banks said in a joint statement. "The proposed transaction is fully aligned with Alpha Bank’s restructuring plan, as approved by the European Commission in 2014, and its commitment to focus its operations only on its core markets," the two banks said in a statement published on Postbank's website. "It also serves ideally Postbank’s strategy to expand its operations and further enhance its presence in the Bulgarian market as one of the most stable and sustainable financial institutions with assets of more than EUR 3.2 billion," the statement added. The deal covers the entire banking operations of the Alpha Bank Branch, which consists of deposits worth EUR 254 million and gross loans worth EUR 410 million. It is expected to be completed by the end of the year following the execution of definitive transaction documentation and the obtaining of all approvals required to complete the proposed transaction in Bulgaria, Greece and from the relevant bodies in the European Commission. The deal will strengthen Postbank's market position in the Bulgarian banking sector and expand its customer base in both the retail and corporate business banking segments, the statement added. Following the completion of the acquisition, Postbank will become the fourth largest bank in Bulgaria ranked by deposits and loans. Its network will consist of more than 200 locations thoughout Bulgaria. "The proposed transaction is expected to contribute positively to Postbank’s pre-provision income from the second year of combined operations and significantly improve its coverage ratios, while it maintains its strong capital ratios above 20% and substantial liquidity buffers well above the regulatory requirements," the banks also said.
Source: Capital (20.07.2015)

A new home near the abandoned amusement park The abandoned amusement complex Sofia land next to Maleevi’s tennis courts will have a new neighbor- a new residential complex. The area on which the site will be located is more than 22 acres and represent ex-parking. Construction work started in the middle of July and has to be over in 24 months’ time. For years, there is speculation about the impending construction of a residential complex on the site of the amusement park that closed in 2006. Building permit of the residential complex with underground parking lots is issued in April 2015. Investor is Bilto overseas trading. The company is owned by the registered on the Virgin island Adorna management limited. Bilto becomes owner of the property in May 2007 for the sum of BGN 25.4 million, as it takes over the site by the owner at that time Volf imobilien. Construction is executed by Markan. Construction supervision is charged to Complect consult. Bilto overseas trading took a loan to the amount of EUR 13.3 million from First investment bank and pledged the site. Actual concept of the residential complex has not yet been revealed by investors; in any case, there will be interest for purchase of premises in the new residential building. The area is preferred for living because of the park in close proximity and is opted for by customers with good income. In addition it is suitable for buying of investment property and rent. Price of EUR 70,000 is achievable for such one-bedroom apartment in the area. Prices for a premise probably will be around EUR 1,100 for square meter, as these are levels for an apartment.
Source: Capital (23.08.2015)

Bulgaria's Lukoil Neftochim Remains Third Biggest Company in Southeast Europe Lukoil Neftochim Burgas, the largest crude oil refinery in Southeastern Europe and the largest industrial enterprise in Bulgaria, retained its third position in the latest annual ranking of SeeNews released on Tuesday. The company which specialises in the production of fuel, petrochemicals and polymers retained its ranking from 2013. Its total revenue for 2014 exceeded EUR 3.3 B, the company registering a net loss of more than EUR 272 M. The Top 100 list ranks the 100 biggest companies registered in Albania, Bosnia-Herzegovina, Bulgaria, Macedonia, Moldova, Romania, Slovenia, Serbia, Croatia and Montenegro. Two Romanian companies – Automobile Dacia SA and OMV Petrom SA occupy the first two positions with the car manufacturer having ousted the oil and gas producer from the first place in 2014. The other Bulgarian companies on the list are: Aurubis Bulgaria AD (8), Lukoil Bulgaria EOOD (13), the National Electricity Company (15), Bulgargaz EAD (41), CEZ Elektro Bulgaria AD (47), OMV Bulgaria OOD (49), Kaufland Bulgaria EOOD & Co KD (61), Saksa OOD (82), AETs Kozloduy EAD (92) and the Bulgarian Telecommunications Company AD (95).
Source: Standart (07.10.2015)

FiBank repaid the bulk of state aid First Investment Bank repaid the bulk of state aid individual reports of banks show as of September 30, which were distributed by BNB. Claims of the government sector in the bank decreased to BGN 556 million. Towards March 31, they were BGN 815 million. The bank received state aid amounting to BGN 1.2 billion in July 2014 and then is repaying it on schedule. The third largest credit institution which is implementing a program for restructuring, posted a profit of BGN 10 million. The amount of reported profit as of 30 September in the banking sector of Bulgaria is assessed at BGN 795 million. This is by BGN 194 million more as compared to that realized in the first nine months of 2014. A month earlier the reported profit was BGN 713 million.
Source: investor.bg (02.11.2015)

Bulgarian Banks Jan-Sept Profit Up 32% Y/Y Commercial banks in Bulgaria posted BGN 795 M net profit for the first nine months of 2015, an increase of 32% year-on-year and 7% above the figure for the whole of 2014, the central bank has said. The nine-month profit of the 28 commercial banks doing business in Bulgaria was also higher than the earnings of BGN 780 M posted for the post-crisis year 2009, investor.bg noted in its coverage of the news. The Bulgarian banks’ profit had been falling for five years in a row starting in 2008. The first increase was registered in 2013. The banks’ profit rose last year as well. The Bulgarian National Bank (BNB) attributed the improved profitability of the banking sector on an annual basis in January-September mainly to lower interest expenses as well as higher income from commission and fees and decreased impairment costs. The assets of the banking system increased in the third quarter with the balance sheet total of the sector increasing by BGN 1.6 B, or 1.9%, to BGN 85.5 B. The liquid assets of the banking sector increased by BGN 1.4 B between end-June and end-September, reaching BGN 25.1 B.
Source: Capital (02.11.2015)

Five banks attract 77% from deposits in last 12 months Five of the banks operating in the country have attracted 77% of household deposits in the last 12 months. Leaders in this regard are UniCredit Bulbank and First Investment Bank, whose deposits recorded a growth of over BGN 1 billion- BGN 1.522 billion and BGN 1.119 billion respectively. Savings of Central Cooperative Bank and SG Expressbank have grown by more than BGN 800 million. Top five of the ranking is completed by DSK Bank, followed by Raiffeisenbank, Invest Bank, International Asset Bank, CIBANK and Allianz Bulgaria, which together with Bulgarian-American Credit Bank and Piraeus Bank added BGN 100 million new deposits. Reflux of new funds in the period is reported at Alfa Bank (BGN 257 million less), Postbank (BGN 181 million less), ProCredit Bank (BGN 171 less) etc. At the end of the third quarter of 2015 household deposits in the country were BGN 42.984 billion as compared to BGN 42.48 billion about three months ago and BGN 36.79 billion a year ago.
Source: profit.bg (05.11.2015)

According to the central bank's data about the condition of the banking system in Bulgaria, banks have registered profits exceeding BGN 900 million in the first ten months of 2015. They have made BGN 111 million in profits this October alone, compared to just BGN 60 million in October of last year. 2015 turned out to be one of the most profitable years for Bulgarian banks. Profits in the banking system have risen by 35 per cent on an annual basis. The topic is covered by most newspapers.
Source: 24 chasa (02.12.2015)

Bulgaria’s FIBank Repays over Half of 2014 State Aid First Investment Bank (Fibank) has repaid BGN 775 millionout of a 1.2 billion leva liquidity support package which it received in June 2014, including interest, the Finance Ministry reported on Saturday. According to a plan approved by the European Commission, the remaining BGN 450 million should be repaid by May 2016. The Bulgarian government provided liquidity support to Fibank in the shape of a deposit of BGN 1.2 billion as part of a liquidity scheme approved by the European Commission on June 29, 2014. The interest on the deposit is determined on a market basis. Due to limitations concerning new government debt in 2014, the deposit was made for a short term of only five months, which elapsed on November 28, 2014. Therefore, the Finance Ministry sought, and eventually obtained, permission from the European Commission to provide more state aid that should be recovered by May 28, 2016.
Source: investor.bg (14.12.2015)

Organic Dairy farm for BGN 4 million will start work near Gorna Oryahovitsa Gorna Oryahovitsa -based company Planeta 98 which is engaged in agriculture, animal breeding and meat processing intends entering milk processing business as well. At present the company is building its own dairy farm with daily processing capacity of 15 tons of milk and plans to produce traditional Bulgarian products - cheese, butter and yoghurt. A few months after its opening the creamery should be put in the category "bio”. The investment in the project is assessed to BGN 3.8 million, partially funded under European program together with a bank loan. The new farm is expected to start operation in May 2016 as 15 new employees will be hired there. In November Planeta 98 bought the plot of the ex-warehouse for engines in the village of Polikraishte for BGN 120 thousand. The milk for the new creamery-12 tons will come mainly by the own cow farm of the company, which at present is in a process of transition from conventional to organic production. Planeta 98 is growing 600 lactating and the same number of young animals fed with their own feed in the village of Polikraishte. In the dairy farm traditional Bulgarian dairy products will be produced, as some of them will be exported to Germany, Austria, the Netherlands and Italy. The idea is to 70% of future produce to be implemented outside Bulgaria. Besides dairy farm, farmland and company stores, Planeta 98 has a poultry farm in the village of Vurbitsa and pig farm in Pisarevo.
Source: Capital (17.12.2015)

Small charge from Turgovishte Producer and distributor of batteries Industrial batteries from Turgovishte is a small company with almost boutique production and 10 employees. For a company with only BGN 1 million turnover for 2014 the company’s plans might seem ambitious-new markets and extension of production. Expected growth of sales for the present year is 20-30%. Industrial batteries produces traction batteries under the brand of Perpetuum. They are used in electric vehicles. Outside its own production Industrial batteries is the official distributor of Bulgarian and foreign producers. Apart from this Industrial Batteries offers a number of services which almost completely close the cycle of production. Except in Bulgaria, the company operates on the Romanian market, where it has an office since 2011. As a proportion of the local market it provides about 60 percent of sales, while the remaining 40% comes from our northern neighbor. The small size allows the company to be more flexible and to offer customers special customized batteries according to their needs. The company is preparing the launch of additional production, which will expand its operations. The project activities will begin in January. The first step is buying the base where production process will be located. It will be situated on the same site where the plant for batteries is. To purchase the equipment itself Industrial Batteries plans to apply under the operational program Competitiveness and Innovation. The project is expected to be completed within the next year.
Source: Capital (22.12.2015)