A collapse in tax revenue triggered by the ongoing worldwide financial and economic meltdown put a heavy question mark over Bulgaria’s 2009 budget.

The problem was recongnised by both key units tasked to replenish the treasury – the National Revenue Agency and the Customs Agency.

Value-added tax revenue, which speaks for the biggest portion of 47% of the total, threatened to sink deep below the target.

Customes Agency executive director Hristo Kulishev said in his annual report on Monday that imports have marked a steep drop since the year’s start to levels of a few years ago, and January’s VAT revenue are seen coming BGN 100 million short of the target.

Experts of the agency said it will be seen by the end of February if revenue will start to recover or fall further.

If January’s pace continues, full-year VAT revenue may be BGN 1.2 billion less than planned.

For comparison, the sales tax generated BGN 4.03 billion out of 2008’s total indirect tax revenue of almost BGN 7.5 billion, under preliminary data.

Corporate taxes and taxes for physical entities will also show disappointing data at the end of the first quarter, forecast a source of the agency speaking on condition of anonymity.

Although grim data continues to stream in, the budget will not be revised, the Finance Ministry told Dnevnik. But experts do not rule such an option after July’s general elections.

The current budget has two buffers worth a combined BGN billion against the effects of the global economic downturn. The budget surplus target is set at 3% of the expected gross domestic product, or BGN 2.19 billion.

The Government also cut down by 10% the planned non-interest ministry expenses saving BGN 2.9 billion.

Budget 2009 came under seething criticism, especially for what businesses, analysts and opposition called a far-fetched economic growth of 4.7%. The European Commission on Monday projected the growth pace will slow down to 1.8% but still the country will suffer much lesser consequences than most other EU newcomers and avert recession.

(Dnevnik)

Czech company CEZ, which owns the power distributors in western Bulgaria, said it has called on the energy regulator to keep quarterly meter reading for household consumers.

The State Energy and Water Regulatory Commission (SEWRC) revoked the metering mechanism and gave the company some six months to switch back to monthly metering.

The distributor said the new mechanism will swell its expenses by BGN 14 million in 2009 and by a further BGN 10.8 million each year.

The energy watchdog overturned quarterly metering in mid-October saying it was unpopular with users. At the end of the same month, however, Parliament kept open an option to match data at the end of each quarter, which does not go against the local energy efficieny act.

The SEWRC will study the distributor’s request before reviewing on its decision, said deputy chairman Valentin Kirchev.

CEZ has estimated that since May 2008 80 percent of its household customers have paid for less power than they have really consumed.

Going back to monthly metering will cost CEZ extra staff and installing new software, the company said.

(Dnevnik)

Bulgarian private Darik Radio will buy two news helicopters worth USD 1 million in 2009, said Radosvet Radev, executive director of the company.

The first chopper should fly in in the spring.

The vehicles will be leased out to any interested media, said the channel’s marketing director, Konstantin Valkov.

The rent has not been set yet but will be based on the maintenance costs.

Darik has already registered a 100%-owned new company, Darik Sky, headed by the media’s technical director, Ivan Kalev.

The Robinson R44 Raven II vehicles have been designed and manufactured by U.S. company Robinson Helicopter to cater for the needs of the big television networks in America, Australia and Western Europe. They can fly at up to 200 km/h for up to three hours without refueling.

Darik Radio posted a revenue of around BGN 9 million for 2008, saying this was a rise on the previous year without giving further details.

The latest poll of media monitoring agency TNS/TV Plan revealed that Darik Radio was the favourite station with Sofianites aged 20 to 64.

(Dnevnik)

Housing prices in Bulgaria’s big cities fell by some EUR 100 per square metre on average in 2008, showed a survey of local real estate company Yavlena.

In Sofia, deals are only struck at the moment by buyers in urgent need of a home and by cash-strapped sellers.

The other group of buyers comprises people with disposable cash who invest in real estate at a 20% lower price compared to early 2008 levels.

Demand for prefab concrete apartments has almost dried up. Buyers are also snubbing homes in an early construction stage.

The capital’s costliest flats are located in downtown area. Still, prices there sank to EUR 2,000 per square metre from EUR 3,000-6,000 at the beginning of the year.

No sharp price corrections are seen in southern districts, traditionally a top buyers’ location, ranging between EUR 1,050 and EUR 1,250 per square metre throughout 2008.

Nadejda and Levski districts registered the steepest drops – prices there slid by 18% from the year’s start.

The prices of two-room flats in Mladost district fell to an average of EUR 55,000 from EUR 72,000.

(Dnevnik)

Almost half a year after it came into force, Bulgaria’s student lending scheme is still idle as the global financial turmoil makes banks increasingly cautious, Education Minister Daniel Valchev said.

The Association of Banks in Bulgaria, on the other hand, says the ministry is dragging out the approval of a model contract lenders will sign with the minister over each loan they make.

Last week Mr. Valchev threatened a state lending agency will be set up and banks will “be over with” unless they start giving out loans to students by March 1.

The agency could start off with BGN 10 million now earmarked for loan guarantees.

It is still not estimated how many students will be able to take loans if they came from the state.

The bank association helped the ministry work out the model contract to make sure it gets lenders’ support, said the association’s chief secretary, Irina Martseva without elaborating further.

Banks warned during discussions of the bill that the system may fail over the mechanisms for triggering the state guarantee on bad loans. The law stipulates that the state guarantees the loan only after lenders have gone all the way to make the borrower pay back.

Other bones of contention were the state premium on loan servicing and the interest rate.

(Dnevnik)

Dalkia Varna, the former Varna district heating company, will not curtail investment plans under pressure from the ongoing global financial crisis, said executive director Ilia Nikolaev.

The company wil pour BGN 2 million to replace the pipelines in its heating energy transmission grid and a further BGN 1.5 million to expand the network and hook in new customers. The firm currently heats some 12,000 households.

Dalkia will speed up its project to build a biomass-fuelled installation, said the company’s chief executive, Dominique Duda.

The facility was to go online by the year’s end but the start will be most probably put off until 2010, according to the official.

The plant will have a rated capacity of 5 MW and feed on straw or pure woodchips.

The new unit and the co-generation facilities opened in Varna last autumn will cut natural gas consumption in the city to the lowest possible level, under company estimates.

Under a new pricing strategy aimed at collecting outstanding debts and encouraging loyal payers, as of this month Dalkia Varna will offer a 5% discount for buildings where more than 80% of the households use central heating. Customers who pay their bills by the end of each current month will get a further 10% price discount.

Unpaid bills have generated Dalkia Varna a loss of BGN 1.2 million, interest excluded, the utility said.

(Dnevnik)