InvestBulgaria Agency August 2014 InvestBulgaria Agency issue 8 (11), year 2 Economic News - Business, Investments, Trade Headlines from the European institutions Analysis of Sector Monthly Investment Opportunities of Municipality Electronic Publication Interview Chambers of Commerce in Bulgaria Macroeconomic Indicators Upcoming Events INVESTBULGARIA AGENCY TODAY WE PRESENT: Vаssil Shtonov Interim Minister of Economy and Energy Mr. Shtonov was born in Plovdiv on April 25, 1972. He graduated the English Language School in Plovdiv. In 1995 he graduated the University of Pennsylvania in the USA with a bachelor's degree in electronic engineering science and finance. He is also master of sciences in business administration at the Massachusetts Institute of Technology (MIT), graduating in 1999. Until 2004, he has worked as an investment banker in the field of energy and technologies in the USA, as well as as a consultant in the field of management. Mr. Shtonov has managed some of the biggest deals in mergers and acquisitions, such as the merger of Bell Atlantic with GTE in 2000. In 2004 Vasil Shtonov establishes the office of international consultant company McKinsey in Sofia where he worked until 2009, mainly in the field of banking, telecommunications and energy. Since 2010 until August 4, 2014 Mr. Shtonov works as Marketing and Strategies Director at Bulgaria's Blizoo cable operator. He speaks English. The Ministry of Economy and Energy is facing some urgent issues which have to be resolved as soon as possible. Our efforts are aimed at stabilizing the economy and energy in order to regain the investors’ trust. InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320, e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency Improvement of the business environment is also important for us in order to aid the development and growth of small and medium enterprises. These are the main source of jobs and generate innovative ideas which to a great extent provide the potential for economic growth. Urgent measures are in need to be taken in order to boost foreign trade, aid the business enter new markets and support the export- oriented enterprises. The need of a full-scope state policy in the electricity sector makes financial stability of the sector as well as improvement of the work efficiency of State enterprises a priority. After we present the real situation in the sector - where do the obligations in it come from and how will they develop in the future – we will create a program consisting of a number of measures. We made a decision to create an Energy Board as a permanent consultative body to Council of Ministers in which all concerned parties will take part. Bulgarian energy industry will be healed through a consensus between all concerned parties. We will regain the beneficiaries’ trust and the trust of the partners under the OP ‘Competitiveness’ to ensure that the means get to the Bulgarian business in a just and effective way. The total budget of the new operational programme ‘Innovations and competitiveness’ will reach 1.39 billion euro. There is a plan for creation of a Guarantee fund during the next programming period: 2014 – 2020. Thus one of the main problems of the business will be solved – the lack of enough collateral if crediting is needed. стр. 2 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency ECONOMIC NEWS – BUSINESS, INVESTMENTS, TRADE ECONOMIC INDICATORS Bulgaria to pour BGN 1 billion in R&D in 2015 Foreign Direct Investments, Current and Financial Account Bulgaria is to spend BGN 937.9 million on innovations in 2015, almost twice the amount allocated in 2011, when the expenses for research and development amounted to BGN 429.6 million. The decision is part of the last version of the Innovation Strategy for Intelligent Specialization 2014-2020, which is aimed at determining the distribution of EU funding under the program "Innovations and Competitiveness" in the 2014-2020 programming period, Standart wrote. Bulgaria's public spending on innovations will total BGN 525.6 million next year, including BGN 275 million through EU funds, BGN 197 million from the state budget and BGN 53.6 million from institutions of higher learning. Business climate Companies and non-profit organizations are expected to spend around BGN 412.3 million on technological innovations in this period. amcham.bg Bulgaria ranks fourth place in the world in low taxes for foreigners Bulgaria is fourth in the world ranking of destinations with the lowest taxes for foreigners, published by the "Daily Mail". Bradley Hekford, company specializing in international expatriation, Main Interest Rate compiled the top ten countries with low tax burden based on criteria 0.04% - 01.08.2014 such as quality of life, legal and physical security, quality of economic investment, accessibility of the site and opportunities for recreation. Bulgaria is placed at fourth place in the ranking for lowest tax burden in Europe with 10% tax on personal income. Europeans don't have to invest in order to gain citizenship, but non-Europeans must be willing to invest 400,000 pounds in government bonds, marked by Bradley Hekford. First in the list are placed Bahamas who are close to the U.S.A. and Inflow, outflow and unemployed enjoy the splendid surroundings and political stability. The country, persons which consists of over 700 small islands, offers an excellent standard of living and 0% tax on personal income. www.news.bgnes.com CORADO Bulgaria invests BGN 25 million The factory for radiators and heating CORADO Bulgaria will invest BGN 25 million in its manufacturing base in Strazhitsa. The company aims to increase its product range and thus to strengthen its leading position in the country and abroad. The Executive Director engineer Irji Rzheznichek revealed that part of the facilities will work this year. Source: NSI стр. 3 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency HICP and contributions by main components "From the beginning of the year we have started the installation of the second modern line that is fully automated and is over three generations from the existing. This will expand the production capacities. The first investment amounts to about 3 million euro. Production will begin at the end of the year and the capacity is about 650 000 units per year", revealed for “Pressadaily” Mr. Rzheznichek. pressadaily.bg Bulgaria is the largest exporter of sunflower in the world Bulgaria is the largest exporter of sunflower seeds in the world. Our country has moved out of the top spot Ukraine, according to the World Trade Organization. Last year, the revenues from export of GG debt and fiscal reserve sunflower reached 743.625 million dollars. The largest part of Bulgarian sunflower is exported to the Netherlands, Turkey, France and Portugal. The growth in the exports of sunflower in 2013 compared to 2012 was 46%, and averaged over the period 2009-2013 - 21%, according to statistics. Bulgaria holds a share of 17.8 percent of world exports of sunflower. In recent years in Bulgaria are used new technologies from the world leaders in agriculture. While in 2003 the average yield per hectare sunflower was 120 kg, whereas in 2010 has reached to 210.5 kg / ha. 24chasa.bg Increase in the retail sales in Bulgaria and the EU in Merchandise trade dynamics June 2014 Retail sales in the 28 countries - members of European Union rose in June after stagnating in May, while there was an improvement in retail in Bulgaria for the second consecutive month, show the latest Eurostat data. Retail sales in the EU in June rose 0.3% on a monthly basis after their stagnant (0.0%) in May (upward revision from a previous estimate of a decline of 0.1%) as the last retail sales registered decline in December 2013. According to European statistics on retail sales in Bulgaria rose by 0.3% on a monthly basis (similar to the entire EU) after their growth by 1.4% in May (solid upward revision from previous assessment Eurostat decrease of 0.1% ). This represents an improvement of retail in Bulgaria for second consecutive month after three previous months of decline (from February to April). On an annual basis, retail sales in June in our country reported a sharp increase after a delay of their growth in стр. 4 от 26 InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320 e-mail: [email protected], http://www.investbg.government.bg issue 8 (11) / August 2014 InvestBulgaria Agency the previous month. According to Eurostat retail in Bulgaria registered a Selected Decisions solid increase of 2.4% (compared to June-2013) after an increase of 1.4 of the Government percent in May and an increase of 2.2% in April. And this indicator of the Republic of Bulgaria Bulgaria is situated in the "golden mean" of retail sales for the entire for the period European Union. 30.07.2014-27.08.2014 г. bnr.bg AFP: IT outsourcing boom boosts struggling Bulgaria 06.08.2014 After a timid start 15 years ago, the Balkan country is now a hub for KRISTALINA GEORGIEVA IS THE information technology and back-office outsourcing, reported AFP. BULGARIAN CANDIDATE FOR A VICE-PRESIDENT OF THE As well as call centres, firms offering software and web development, EUROPEAN COMMISSION AND data services and technical support are attracting business from foreign companies finding it cheaper to sub-contract abroad.