Greece should follow the example set by neighboring Bulgaria and introduce a flat tax, according to Forbes magazine.
Echoing the opinion of Steve Forbes, the 64-year-old publisher of the magazine, the article argues that the lack of decline in Greek government spending is due to general economic uncertainty, as well as the effects of the large tax rate increases on an already-overtaxed private sector.
"Bulgaria has a flat tax system with a 10% income tax rate and a 10% corporate tax rate....
NPP Kozloduy to Sell Electricity Abroad without Intermediaries
(Sofia Jan 5, 2013) - The management of Bulgaria's NPP Kozloduy will apply to the State Energy and Waters Regulatory Commission for a full license to sell its electricity to end-users abroad, NPP Kozloduy CEO Valentin Nikolov said.
Presently, NPP Kozloduy uses intermediary companies to sell its output to end-users in several EU member states, including Germany and Austria.
"At the beginning of next week I am going to...
Bulgaria to Pay EUR 879 M on Foreign Debt in 10 Days
The next bonds maturity dates are in 2015 and 2017
(Sofia, Jan 5, 2012) - EUR 879,849,875 ? this is the sum that Bulgaria is to pay on its foreign debt on January 15th, 2013, the finance ministry said.
Thus, Bulgaria will fully pay off the emission of Eurobonds with a 7.5-percent interest, emitted in 2002 by Milen Velchev, finance minister in the Saxe-Coburg-Gotha-led Cabinet.
So as to pay off this loan, the Bulgarian...
Finmin Djankov: Some incomes will increase in 2013
(Sofia, Jan 5) - "The Financial 2012 finished better than expected," Bulgaria's Finmin Simeon Djankov commented for the Bulgarian National Television (BNT).
"Due to overfulfilment of the revenues by the National Revenue agency and Customs agency, the budget deficit for 2012 is by 3 times less than planned and this will allow an additional increase of some of the incomes in 2013," Mr Djankov stated.
At this stage Finmin Djankov...
Nearly BGN four million have been wired Friday for salaries of workers at Bulgaria's State-owned arms manufacturer, VMZ Sopot.
The news was announced by Prime Minister, Boyko Borisov, at an emergency briefing at the Council of Ministries building. He declared the workers will receive the entire amount of their overdue pay.
It was further reported that Borisov is meeting Friday with the Presidents of the two main trade unions in the country – Konstantin Trenchev of the Confederation of...
Czech-owned power utility CEZ has always strictly adhered to Bulgarian legislation and the normative acts of the European Union, the company says in a press release.
According to its press office, for the electric power distributor, part of CEZ Bulgaria Group, obeying the law, including tax law, was a guiding principle that should not even be commented on.
The statement comes on the heels of news that the prosecution in Bulgaria has requested the revocation of the company's license over...
Bulgaria's fiscal reserve increased to reach BGN 6.5 M after the successful sovereign bond issue, Finance Minister, Simeon Djankov, has boasted.
According to Djankov, by the end of July, when the country must make obligatory payments to the EU, the reserve will reach BGN 7 M.
The Minister showed to the media a thick folder, saying it contained all documents about the deal that will be provided to the Members of the Parliament, who can check them in the library of the Finance...
Fitch rating agency has affirmed the long-term issuer default ratings of three mid-sized Bulgarian banks.
The banks are Societe Generale Express Bank AD (SGE) and Allianz Bank Bulgaria AD (ABB) at 'BBB+' with a Stable Outlook.
Fitch has also maintained MKB UnionBank AD's (MKBU) Long term IDR of 'BBB+' on Rating Watch Negative (RWN).
At the same time, the agency has affirmed ProCredit Bank (Bulgaria) AD's (PCB) Long-term IDR at 'BB+' with a Stable Outlook and upgraded PCB's Viability...
Bulgaria's success in floating EUR 950 M worth of five-year bonds last week at a yield of only 4.25% comes close to the price higher-rated Lithuania achieved earlier this year, the finance minister has boasted.
The Lithuanian government raised EUR 400 M on international markets in April 2012 after issuing a euro-denominated bond with 4.21% yield.
"It is important to point out however that Lithuania enjoys a higher credit rating than Bulgaria's," Finance Minister Simeon Djankov...
Ten years after Bulgaria last appeared on the international capital market, the country made a successful comeback, but the biggest test is yet to come, according to analysts.
Bulgaria could have achieved an even better interest rate, but deliberately underestimated its prospects to please investors and lure them to subsequent issues, according to sources, cited by the local media.
Bulgaria tapped last week international markets to raise funds to repay the first tranche of about EUR 835 M...
The privatization process for VMZ Sopot, Bulgaria's largest defense industry plant, is to be launched Tuesday, according to Energy and Economy Minister Delyan Dobrev.
In a Thursday interview, he stressed that the state could no longer afford to seek money to pay the salaries of the plant's workers every other month, which was why it would go private.
Dobrev explained that the privatization strategy adopted by Parliament in 2011 envisaged a commitment for the buyer to keep the plant's...
Bulgaria has set pricing on its euro-denominated, benchmark-size, five-year bond in the area of 350 basis points over midswaps, one of the banks running the deal said Monday.
BNP Paribas, HSBC, and Raiffeisen Bank International (RAIFY) are the lead managers on the issue, which is expected to price later Monday.
Bulgaria is rated Baa2 by Moody's Investor Services and BBB by Standard and Poor's Corp. Bulgaria was last in the euro-denominated bond market in 2002.
Bulgaria started on June...
Bulgarian Finance Minister and Deputy PM Simeon Djankov has made clear his high expectations for the country's upcoming Eurobond float.
"There has been a calming of the international markets since the EU leaders' summit on Friday. Bulgaria will benefit from that because it is about to float Eurobonds," Djankov stated in the Black Sea city of Burgas on Friday, as cited by Dnevnik.
"I expect great news in this respect by the end of next week," he added.
Bulgaria started on June 25 a...
Bulgaria's state budget has come to a positive balance for the first five months of 2012, after May became the second month in a row to register monthly budget surplus, the Bulgarian Finance Ministry announced Tuesday.
According to preliminary data, Bulgaria had a positive monthly budget balance in May 2012 amounting to BGN 284.4 M.
Thus, Bulgaria's budget balance for January-May 2012 has already reached a surplus of BGN 67.4 M, after a monthly surplus of BGN 473.8 M in April 2012.
Bulgaria starts on June 25 a series of investor meetings across Europe ahead of the eurobond issue that the country plans to float this year, one of the banks organizing the meetings said.
Bulgaria's parliament ratified at the beginning of June contracts with BNP Paribas, HSBC and Raiffeisen as mediators for the eurobond issue. The three banks will organize the meetings with investors.
Bulgaria plans to tap international markets to raise funds to repay the first tranche of about EUR 835 M...
UniCredit Bulbank, part of the UniCredit Group, said it plans to launch a package of banking services tailor-made for the needs of foreigners living in Bulgaria.
The product, named Expat package, is the first of this type in the country.
The new package of services and products can be used by all foreigners with a minimum salary of 4000 euros, transferred to an account in UniCredit Bulbank.
The package combines the most commonly used banking products and services. It provides...
Bulgaria's Deputy Prime Minister and Minister of Finance Simeon Djankov has been invited to join the World Bank Knowledge Advisory Council, the press service of the Finance Ministry announced.
The World Bank Knowledge Advisory Council is supposed to advise the President and the Managing Directors of the financial institutions on matters related to the knowledge agenda.
This is said to include strategic advice on the roles the Bank plays as producer, connector and customizer of knowledge,...
Bulgaria's Deputy Prime Minister and Finance Minister, Simeon Djankov, has promised additional funding from Budget 2013 for municipalities with a stable fiscal state.
The news was announced by Djankov during his visit of the Danube city of Silistra, explaining that there will be a ban to use the said additional funding for salary increases or bonuses.
The financial state of all Bulgarian municipalities will be published by the end of June, according to the Minister.
He traveled to...
Bulgaria's parliament ratified on Friday the contracts with BNP Paribas, HSBC and Raiffeisen as mediators for the eurobond issue that the country plans to float this year.
The motion, tabled by the government, was approved by 101 members of parliament, 34 voted against, while 12 abstained.
Bulgaria plans to tap international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year eurobonds maturing on January 15, 2013.
The bonds offered on...
According to flash data about revenues as of beginning of May 2012, Bulgaria's State budget is balanced for the first time since June 2009.
The information was reported Friday in the Parliament by Deputy Prime Minister and Finance Minister, Simeon Djankov.
He stressed that his ruling center-right Citizens for European Development of Bulgaria party, GERB, began its term with a legacy of huge deficit, left by his predecessor in the Cabinet of the Three-Way Coalition, and two years were...
Bulgaria's government has selected BNP Paribas, HSBC and Raiffeisen as mediators for the eurobond issue that the country plans to float this year.
This becomes clear from a bill for ratifying the contracts with the three banks that the cabinet has tabled to Bulgaria's parliament, thus confirming earlier media reports.
BNP Paribas, HSBC and Raiffeisen will be appointed to advise the Bulgarian state as well as manage the sale of the bond.
The authorities evaluated bids submitted by 17...
Bulgaria's government of Prime Minister Boyko Borisov and his center-right GERB party will not raise taxes until its term ends in 2013, the country's Finance Minister and Deputy PM Simeon Djankov promised Thursday.
In in interview for the Bulgarian National Television, Djankov also revealed he has reached a consensus with Interior Minister and fellow-Deputy PM Tsvetan Tsvetanov concerning the "new state budget balance" issue.
Recently, the Finance Minister stated that the Bulgarian...
The Gross Domestic Product, GDP, increased by 0.2% in both the Eurozone and the EU during the second quarter of 2011, compared with the previous quarter, according to flash estimates.
In the first quarter of 2011, growth rates were +0.8% in both zones.
The estimates were published by Eurostat, the statistical office of the European Union.
Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 1.7% in both zones in the second quarter of 2011, after...
Bulgarian banks have seen a significant growth in deposits over the last two months thanks to Greek and Romanian nationals, who rush to stash their savings here, officials and bankers say.
The deposits of foreign citizens and companies in local banks have increased by BGN 18 M and BGN 49 M respectively in June over the previous month, according to figures, cited by 24 Hours daily.
"There has been recently a noticeable trend among Greek citizens and businesses, who prefer to open deposit...
Bulgaria's government has been giving too much money for the security sector, and too little for, and that is bound to change in 2012, Finance Minister Simeon Djankov has promised.
"The major focus of the 2012 Budget Act will be the redistribution of funds from the security sector, which includes the Interior Ministry, the intelligence services, and the State National Security Agency DANS, towards science, education, and culture," Djankov pledged speaking for Nova TV Tuesday morning.
Bulgarian Revenue Agency, NRA, has launched a probe of 47 yachts at the beach resort towns of St. Vlass and Nessebar on the southern Black Sea coast.
The information was reported Tuesday by the NRA press center.
The revenue agents have listed the registration plates of the yachts and now Maritime Administration is identifying their owners. NRA will follow with a check to see if the latters' declared income corresponds to their asserts. There will be an audit of the violators.