Buy & Sell Bulgaria Insight Newsletter

Famagusta Gazette, 08.OCT.09

Cyprus President Dimitris Christofias, left, talks to his Bulgarian counterpart Georgi Parvanov, right, during their official meeting at the Presidency building in the capital of Bulgaria, on Oct. 6, 2008.

Bulgaria expects that the intensification of UN-led negotiations on Cyprus will lead to a final settlement of the Cyprus problem, President of Bulgaria Georgi Parvanov has said, adding that his country supports UN Security Council decisions and respects the right of each side to outline its positions.

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Oct 2, 2009, Novinite.com

The required capital to register a limited liability company has been lowered to the symbolic BGN 2 or EUR 1 by the Bulgarian Parliament.

The MPs approved the change in Bulgaria’s Commercial Law Friday at the second and final reading of the amendments in the Trade Act, lowering the required registration amount from BGN 5 000 to BGN 2.

The proposal had received the preliminary approval of the new cabinet in August this year and was promised by the now ruling Citizens for European Development of Bulgaria (GERB) party before the July general elections.

On his part, Finance Minister, Simeon Djankov, included the measure in the the anti-crisis packet as a way to encourage local business.

Source: Standard.ro

Wind generators near Kavarna

Although the wind energy potential in Romania is 14,000 MW, four times higher than Bulgaria’s, the latter’s installed power is more than 13 times higher than Romania’s, 160 MW compared to 12 MW, according to market data.

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By Michalis Makris, EIG Investment Consultant

There is no doubt that the recent economic crisis has left its marks on the Bulgarian economy as well. Nonetheless, there are strong arguments to support that once international markets start to recover, Bulgaria, currently the EU’s poorest state, will probably offer the highest development prospects and investment returns in the Central and Eastern European region.

In June, the European Bank for Reconstruction and Development became the latest addition to the club of institutions forecasting a contraction of Bulgaria’s economy in 2009. It estimated that Bulgaria’s GDP growth will shrink by 3% this year and a further 1% in 2010. This estimate is in line with the predictions made by the European Commission in the beginning of June 2009. Moreover, a recent article in the Financial Times, dated June 10^th 2009, stated that in the first quarter of 2009, the Bulgarian GDP fell by 3.5%. This is the first tangible proof that Bulgaria has been hit by the crisis. It is also the first time that Bulgaria’s GDP dropped since the financial and economic crisis of 1997.

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Novinite.com, August 27, 2009

Photo by BGNES

The natural conditions in Romania and Bulgaria make these countries some of the best placed in Europe for producing wind energy. Interest in investing in wind power is high in both countries, but legislative ambiguity and the limited capacity of national electricity grids are delaying the building of new wind parks.

Bulgaria could have a wind power production capacity of 3,400 MW in a few years, according to the European Bank of Reconstruction and Development (EBRD). Unlike Romania, Bulgaria is at the moment highly dependent on energy imports, taking most of the fossil fuels it uses from Russia.

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The reduced flow of foreign investments is one of the main reasons for the crisis in the Bulgarian economy. The records for the first six months indicate an economic drop of 4.2% in comparison with the same period of 2008. Meanwhile, countries like Germany, one of the main foreign trade partners of Bulgaria, observe some positive signals for getting out of the recession. In addition, world well-known trade-marks, which did not have representations in our country up to now, are expected to open their shops in Bulgaria this autumn. According to the Executive Director of the Bulgarian Investment Agency, Stoyan Stalev, a foreign capital of BGN 2 billion will be invested in the Bulgarian economy.

The data for the first six months of 2009 indicate that the FDI have reached about € 1.6 billion. This is about 30% less than the reported statistics for the same period of last year. All the same, this is a satisfactory result, considering the difficult year experienced worldwide. At present, the leading spheres of activity, in which investments are being made, are the financial, the commercial, the real estate and the industrial sectors.

Stalev explains that Bulgaria has a good legal system; companies are quickly registered by foreigners in Bulgaria and they enjoy an equal treatment like the Bulgarian citizens. There are also no limitations on the capital and the profit exportation.

The Bulgarian government, all EU member-states and countries outside the community share Stalev’s idea of major investment projects to be financed by the state, however, this is possible once we enter a more favourable fiscal year.

Novinite.com, August 20, 2009

Bulgaria’s PM Borisov with Olympic Committee President, Stefka Kostadinova (right). Photo by BGNES

Bulgaria’s new government of the GERB party is considering the opportunities for giving tax breaks to companies sponsoring sports activities and investing in sports facilities.

This has become clear Thursday as Bulgaria’s Prime Minister, Boyko Borisov, met with the head of the Bulgarian Olympic Committee, Stefka Kostadinova, who set the Olympic women’s high jump record in 1996.

The meeting between Borisov and Kostadinova was also attended by Sports Minister, Svilen Neykov, and Deputy Finance Minister, Vladislav Goranov. The top officials agreed to carry out a survey of the best European practices for stimulating private investors to sponsor sports events and facilities.

Novinite.com, August 11, 2009

Bulgaria’s CO2 emissions reached 52,8 M tons in 2008, making it one of the few EU countries to achieve its targets under the Kyoto Protocol.

Global carbon dioxide emissions in 2008 rose 1,94 % year-on-year to 31,5 B tons, German renewable energy industry institute IWR said on Monday, based on official information and its own research on 65 countries worldwide.

Kyoto set Bulgaria a target of an 8% reduction in carbon dioxide emissions based on 1990 statistics, when Bulgarian emission reached 75 M tons. Currently the emissions are 30% less.

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27 July 2009 | 14:43 | Source: novinite.com

PM Boiko Borissov submitting his list of cabinet ministers to President Georgi Purvanov

Bulgaria’s new government headed by Prime Minister Boyko Borisov of The Citizens for European Development of Bulgaria (GERB) party was sworn in Monday morning. Bulgaria’s parliament expectedly approved the structure of the center-right government of Boyko Borisov, leader of the winner in the recent general elections GERB, voting 162-77.

The new Bulgarian government consists of 15 Ministers. Former senior World Bank economist Simeon Djankov is the new Minister of Finance; the GERB party Chair Tsvetan Tsvetanov is the new Interior Minister; Sofia Deputy Mayor Yordanka Fandakova is Minister of Education. The biggest surprise in the new government is Traycho Traykov, procurist of EVN electricity distribution company, who headed the Ministry of Economy, Energy, and Tourism. Sculptor Vezhdi Rashidov is the Minister of Culture; former MEP Nikolay Mladenov - Defense Minister, and prosecutor Margarita Popova - Justice Minister. MEP Rumiana Jeleva took over the Foreign Ministry, and the Mayor of the city of Vratsa Totyu Mladenov - the Social and Labor Ministry. Bozhidar Nanev, GERB MP and surgeon at Varna University Hospital is in charge of the Health Ministry. Construction businessman Rosen Plevneliev will be Regional Development Minister. Environment consultant Nona Karadzhova is the next Environment Minister. Alexander Tsvetkov, currently Deputy Mayor of the capital Sofia, is the new Transport Minister. Miroslav Naydenov took over the Agriculture Ministry, after MP Dessislava Taneva withdrew her nomination in the last minute. Bozhidar Dimitrov, the director of Bulgaria’s National History Museum is Minister without a portfolio in charge of the Bulgarian citizens abroad. Svilen Neykov, Bulgarian rowing champion and coach and husband of Bulgarian Beijing Olympics gold medalist Rumyana Neykova, are in charge of the newly created Sports Ministry.

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In 2008, Bulgaria had the lowest price level for goods and services of all 27 EU member states, according to latest Eurostat data.

The most expensive EU countries are Denmark with 141% of the EU average, followed by Ireland (127%), Luxembourg (116%), Sweden (114%), Belgium and France (both 111%).

Bulgaria’s consumer prices for goods and services were only 51% of the EU 27 average. Other cheapest EU states are Romania (62%), Lithuania (67%), and Poland (69%).

In the different categories of goods and services, Bulgaria’s price levels are lowest in the EU for food and non-alcoholic beverages in 2008 - 67% of the EU 27 average compared to the most highest level - 147% of the average in Denmark.

For cigarettes Romanians paid the least, while smokers in Ireland had to pay dearly.

Clothes are one of the goods, which prices did not vary so much during the period under review. However they were the cheapest in the UK and the most expensive clothes were the ones in Finland.

Again, in the UK electronics could be purchased at a profit, while in Malta they were the most expensive good.

In addition, Bulgaria’s prices for restaurants and hotels services were only 40% of the EU average, whereas the highest prices in the Union in this category, Denmark’s, are 151% of the EU average.

Sofia News Agency, 19 May, 2009

US Ambassador to Sofia, Nancy McEldowney participated in the Bulgaria-US renewable energy forum, held Tuesday in Sofia. Photo by BGNES

The investments in public-private projects for energy efficiency in Bulgaria will amount to BGN 9 B.

The data was reported by Bulgaria’s Deputy Prime Minister and Foreign Minister, Ivaylo Kalfin, during the Bulgaria-US renewable energy forum, held in Sofia.

Kalfin pointed out that in 2010 only, energy efficiency investments will reach at least EUR 500 M, adding that by 2020, 16% of all energy produced in Bulgarian would come from renewable energy sources, approaching the European Union goal of 20%.

The Deputy PM further said that many US companies entering the Bulgarian market work in the renewable energy sector.

The American Chamber of Commerce, on their part, noticed the increased interest from US small and medium businesses towards Bulgaria’s economy, deemed by experts a very positive trend since in times of crisis this type of enterprises are more flexible and manage to remain on the market.

US Ambassador to Sofia, Nancy McEldowney, stated she sees Bulgaria becoming in the future the energy center of the Balkans. The Ambassador had some advice such as replacing the electric bulbs in each Bulgarian household with energy saving ones in order to preserve energy resources.

Sofia News Agency, May 6^th, 2009

Bulgaria’s colours were sanctified as the country celebrated Saint George’s Day as a day of the bravery of the Bulgarian Army. Photo by BGNES

Bulgaria celebrated on May 6, the day of Saint George the Victorious, the valour of its army. May 6 has been pronounced Day of the Bulgarian army with a decision of the Bulgarian Cabinet in 1993. Since 1998 it is being marked as a national holiday.

“Bulgaria’s armed forces stand guarantee for the country’s security,” President Georgi Parvanov said in his address at the grandiose military parade on Alexander Batenberg square in Sofia.

In his words the Bulgarian army is a symbol of strength, patriotism and high morale.

The president pointed out that Bulgaria has a strong, modern European army, which not only protects the country’s territory, but is also a predictable and worthy partner in securing international peace and stability.

Politicians and militaries bowed heads to pay respect to Bulgarian warriors who died at the battlegrounds and the country’s colors were sanctified.

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The Irish President, Mary McAleese (middle) and to the right Mr. Christopher Violaris, CEO of EIG, and Mr. Oisin Creagh, Director/Architect of Murray ÓLaoire Architects

Bulgaria’s leaders, President Parvanov and PM Stanishev, welcomed the President of Ireland, Mary McAleese, to Sofia Wednesday 25^th March, 2009.

“The large number of Irish who visit Bulgaria are the natural bridge between our two countries because the contact between people is the most important thing, and it has been growing steadily in the recent years”, President McAleese said during her meeting with Stanishev.

On Thursday, 26^th March, 2009, Ireland’s President opened a seminar entitled “Bulgaria and Ireland - European Partners” at Sofia University, followed by a business lunch hosted by Enterprise Ireland, held at the Alexander’s Ballroom, Radisson SAS Grand Hotel Sofia. The event gathered Irish and Bulgarian business leaders aiming to reflect the strong trade, investment and cultural links shared by Ireland and Bulgaria. The CEO of Eurolink Investment Group, Mr. Christopher Violaris, made very beneficial contacts with major Irish investors and exchanged views together with the Group’s Assosiates Mr. Oisin Creagh, Director of Murray ÓLaoire Architects and Mr. Frank O’Dowd, golf designer of Intergolf Inc, regarding our projects and the creation of New Varna. Mrs McAleese expressed her opinion that Bulgaria has positioned itself on the world intellectual scene. She made many comparisons between the two countries and noted that despite the significant distance Bulgaria and Ireland have similar values and history. In her words, the economic and cultural exchange between Ireland and Bulgaria proves their similarity. ‘We understand each other in the depth of our souls, as if we have known one another our whole lives’, said the Irish President. McAleese pointed out that many people from Ireland wish to visit Bulgaria. According to her more than 70 000 Irish citizens have traveled to the Black Sea country in 2008.

Later on the same day, Mrs McAleese visited the Centre for Autism and attended an Irish community reception. She will complete her visit to Bulgaria by traveling to the southern city of Plovdiv, and the Bachkovo Monastery on Friday, 27^th March, 2009.

Paradoxically, President McAleese’s visit to Sofia ends just before the Ireland-Bulgaria World Cup 2010 football qualifier taking place on the forthcoming Saturday.

14^th March, 2009, Sofia Weekly

The euro has started taking over from the lev, as the main currency preferred by Bulgarian businesses and property owners, data shows. Bulgarian National Bank (BNB) figures released for January 2009 showed a huge rise in euro denominated loan portfolios. Euro denominated housing mortgages in January totaled BGN 22.9 mn in comparison with BGN 106 mn in December 2008. At the same time, households borrowed BGN 21.6 mn less lev denominated credits, following a drop of BGN 4.9 mn in December. In October and November, euro loans grew by BGN 9.8 mn and BGN 111.3 mn respectively. Euro loans totaled BGN 9.9 mn and BGN 153.1 mn. Over the past five months, the share of euro denominated household mortgages expanded from 45.6% to 48.1% of the total mortgages in Bulgaria. The trend is mirrored in the consumer credit market, where euro denominated loans account for only 12% but rose for a third month in a row as BGN denominated credits dwindled, the Bulgarian daily newspaper Dnevnik reported.

Liberty Monument at “Shipka”

Bulgaria celebrated the country’s National Holiday, March 3^rd and the 131^st anniversary of its Liberation from five centuries of Ottoman dominance.

A solemn ceremony, including hoisting of the national flag in front of the Unknown Soldier Monument in Sofia was held with the participation of Bulgaria’s President, Georgi Parvanov, the Speaker of the Parliament, Georgi Pirinski, and the Russian Ambassador to Sofia, Yuri Isakov.

Parvanov, who is also Supreme Commander-in-Chief of the Bulgarian Armed Forces, attended planned ceremonies throughout the day. He took the salute of the representative units of the Bulgarian Army, which were held in the evening at the ‘Narodno Subranie’ (National Assembly) square in the capital. The President and First Lady, Zorka Parvanova, hosted the traditional reception at the historical museum at the Presidential Residence ‘Boyana’.

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Romanian businesses have massively started to move to Bulgaria, in an attempt to avoid the worst affects of the current global financial crisis in their home country, Bulgarian daily newspaper ‘Standart’ reported.

The Bulgarian border city of Ruse has already seen a boom in rental property business and is expecting this to continue well into 2009.

This business orientated migration comes about due to the lower running costs of businesses in Bulgaria, up to 40% less according to some experts. Wages for staff are much lower along with insurance payments and electricity bills according to Kamen Kolev the Director of the Bulgarian Industrial Association.

Kolev also added that multi-national companies from Bulgaria’s Southern neighbor Greece are also starting to re-direct their attention to Bulgaria for the same reasons. He added that the average wage in Bulgaria is EUR 267 while in Greece it is EUR 1400.

The Greek newspaper ‘To Vima’ concluded that cheaper running costs are attracting Greek companies and multi-nationals to Bulgaria, stating that Tate&Lyle Greece, Unilever, US company Crown Cork & Seal and German firm Triumph have already started or completed the move North.

One of the best Bulgarian movies in nearly a decade, “Dzift” is representing Bulgaria at the Chicago festival of EU movies.

Until April 12, the Gene Siskel Film Center of the School of the Art Institute in Chicago will host the 12-th Annual European Union Film Festival.

The European Union Film Festival is the largest showcase in North America for the cinema of the EU nations. All the 27 nations are represented in this year’s festival, which includes 59 feature films, all Chicago premieres. The festival features the most provocative, evocative film entertainment Europe has to offer, including European blockbusters, edgy avant-garde, escapist comedies, thoughtful documentaries, films by acclaimed directors, and new discoveries.

The movie “Dzift” of the renowned Bulgarian director Yavor Gurdev will be shown twice in March. Gurdev will meet the audience in person, after the second show.

The movie “Dzift” has won the top prize at the 28th Bulgarian Film Festival “Golden Rose” in Varna and the Best Director award at the Moscow Film Festival.

“Dzift,” featuring the actor Zahari Bakalov and model turned actress Tanya Ilieva is considered to be one of the best Bulgarian movies made during the last several years.

After the movie’s success in Moscow, a US producing company has contacted the team with an offer to create an American version and remake of “Dzift.”

The Sofia Weekly, 14 Feb, 2009

The office of the Bulgarian Prime Minister, Sergey Stanishev, has confirmed that he will open the Invest in Bulgaria 2009 Summit, which is scheduled to take place at Sheraton Sofia Hotel Balkan, on March 5-6, 2009.

The Bulgaria Business and Investment Summit is organized by the European Finance Convention - a private company headquartered in Brussels, Belgium, with a second office in London. Bulgaria’s largest English-language news provider, Sergey Stanishev, Prime Minister of Bulgaria

Novinite.com (Sofia News Agency), is an official media partner of the event.

Apart from Bulgaria’s Prime Minister, who will deliver the keynote address, the forum speakers include Ivan Iskrov, Governor, National Bank of Bulgaria; Stoyan Stalev, Director, InvestBulgaria Agency; Dobrinka Krasteva, Ministry of Finance; Yannis Tsakiris, European Investment Fund; Mardik Papazyan, National Electric Company NEK; Henry Jackelen, UNDP Bulgaria; Lulin Radulov, Black Sea Regional Energy Center; Boryana Pencheva, Ministry of Finance; Petar Statev, ICT Cluster.

Considering Bulgaria’s strengthened image abroad within the last years and the growing investment interest, the Invest in Bulgaria 2009 Summit aims to provide a meeting place for investors, finance and business leaders to assess the private and public sector business opportunities in the Bulgarian market and network under one roof.

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The miraculous rock formations at the North-West Bulgarian town of Belogradchik are second in the provisional ranking in Group D of the global campaign to select the World’s new Seven Wonders.

Thus, in the Group D category, ‘Caves, Rock Formations, and Valleys’, Bulgaria’s Belogradchik Rocks have overtaken the US Grand Canyon, which remains third, and are only behind Serbia’s Davolja Varos (‘Devil’s Cave’).

The initiative committee in support of the Belogradchik Rocks headed by the Mayor of the Belogradchik, Emil Tsankov, is urging all Bulgarians and Bulgaria lovers to vote for the Bulgarian bidder at the website of the campaign, www.new7wonders.com.

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John Atanasoff - The Man Who Invented the Computer, from the official site

Portrait of John Vincent Atanasoff

Few would deny that the invention of the computer has revolutionized society or that the world of today would look quite different without computers. In the relatively short span of time that has elapsed since the world’s first electronic digital computer was invented in 1939, computers have become universal tools that are an integral part of modern life. Yet, comparatively few people know that John Atanasoff, the genius who invented the first computer and initiated the computer revolution, was of Bulgarian ancestry. John Atanasoff was a prominent American inventor who took pride in his Bulgarian heritage and maintained strong ties to his ancestral home of Bulgaria.

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