All sectors of the Bulgarian economy will grow slower than usual in 2009 but only a small bunch will feel pressure from the global economic deterioration, leading economists told Dnevnik while none made any specific forecasts.

Both businesses and the two governments which will steer the country next year will face mounting challenges as the crisis deepens and the domestic financial sector cools off.

It is absurd to expect that the crisis will spare Bulgaria’s financial system, and any rash spending would be a disaster, Deloitte Bulgaria chairman Iliyan Vasilev told Dnevnik.

Resort construction will be severely hit, and the housing, office and logistics segments will suffer milder effects, forecast Georgi Ganev of Center for Liberal Strategies.

Segments of the processing industry integrated into global production chains slipping into deep recession are also in for trouble, according to Ganev.

This year’s gross world product will inch up a humble 2.1% dragged by waning exports of emerging economies and the squeeze in global consumption, forecast Olivier Blanchard, economist at the International Monetary Fund.

In Bulgaria’s financial sector, credit growth will cool down to some 10%, and a further slowdown is not out of the way, according to Georgi Ganev.

On the other hand, deposits will continue to grow steadily and even speed up, squeezing net interest margin, experts say.

Analysts made tentative projectsions on the development of the Bulgarian capital market in 2009.

At any rate, investors will think twice before picking a company to spend on, said Kamen Kolchev, board chairman of Elana Financial Holding.

Speculators will keep a low profile in 2009 as liquidity has dried up and the bearish trend persists, said Tsvetan Lazhanski, CEO of bottling company Devin, which trades on the Bulgarian Stock Exchange.

(Dnevnik)

Bulgaria will spend over BGN 2 billion on the construction of waste depots and platforms, separation installations and biodegradable waste composting sites by 2013, under a new five-year waste management programme coming into force in 2009.

A total of BGN 652 million has been slated for completion of all 55 regional depots to be scattered across the country, said Maria Ninova, head of the waste management department at the environmental ministry.

The EU’s Environment Operational Programme, the state budget and private investors will finance the development of 15 facilities for composting, prior processing, and construction waste treatment, medical waste incinerators and the creation of a national hazardous waste centre.

Municipalities located away from regional depots will be serviced by 35 waste transfer stations sorting and processing waste.

Statistics show that Bulgarian villages generate an average of 169 kilograms of household waste per person of which 50 kg is biodegradable. The respective quanities for cities are 300-350 kg and 140 kg.

(Dnevnik)

Bulgaria’s Road Infrastructure National Agency suspended on December 30 the tender for the construction of two sections of Trakia motorway.

Thus the construction of the 36-kilometer stretch linking Nova Zagora and Yambol, and the 32-km road between Stara Zagora and Nova Zagora was postponed by an indefinite period.

The contractor was to be picked by January 2, 2009.

The agency’s move follows a letter by the European Commission’s Internal Market and Services Directorate General urging that no contracts be signed and no action be taken that can be presented as a fait accompli.

The letter follows indications of possible violations of Community law in the assignment of procurements and is aimed at preventing any implications that might arise from possible violations.

Brussels will decide whether or not to unfreeze the tender once RINA has replied to a set of questions.

(Dnevnik)

It is time the state committed to improving infrastructure because bad roads threaten to drive away Romanian holidaymakers, Bulgarian Hotel & Restaurant Association chairman for northeastern Bulgaria, Dimitar Dimitrov, told Dnevnik.

The association’s board will gather in mid-January to discuss measures to fight against the ongoing global crisis.

BHRA is one of a string of organisations planning to call on Bulgarians to opt for domestic tourist services to help the economy.

Many local resort operators will follow the lead of West European peers and cut prices and offer bonuses.

Bulgaria’s tour companies will manage to stay afloat in the face of the worldwide crisis provided that the state does not keep tourists away as it did last year by the introduction of visas for Russians, said Dimitrov.

The state should step up advertising spending and ease the visa regime for Russian tourists, according to Dimitrov.

Although some hoteliers say online bookings have dropped by 10-15%, restaurants and hotels in the region were 80% or 100% full around Christmas and New Year’s Eve, Dimitrov said.

(Dnevnik)

Bulgarian banks amassed BGN 1.318 billion in profit from January to November, up 25.8% from the same period of 2007, showed central bank data.

The profit is expected to surge to BGN 1.5 billion for the full 2008.

Attracted resources switched back to steady growth gaining BGN 90.338 million during the eleven months of the year to BGN 60.186 billion after shrinking by BGN 831.8 million in October as the global financial gloom and doom had both households and companies scrambling to withdraw deposits.

In December, corporate deposits dropped by a tiny BGN 40.3 million compared to BGN 924.5 million in October against a respective 12 months before.

Such minor fluctuations in attracted resources are an indication of strong confidence in the Bulgarian banking system despite the global financial uncertainty, the Bulgarian National Bank said in a statement.

Household deposits made the biggest contribution of 36.2% to banks’ attracted resources.

Resources from non-lending companies and institutions accounted for 31%.

Resources from lending institutions picked up 3.5% on the month.

The combined assets of Bulgarian banks hit BGN 68.8 billion in November 2998, posting a 25% rise over the year and up BGN 164 million on the month after shrinking BGN 737.3 million month-on-month in October.

(Dnevnik)

A three-member panel of the Supreme Administrative Court confirmed a BGN 2.45 million fine imposed on insurers for fixing the price of the mandatory motor third-party liability policy.

In July the anti-trust watchdog slapped the record hefty fine on 14 insurance companies which had signed a memorandum to work out common stances, take concerted action and create favourable conditions in the segment.

The Association of Bulgarian Insurers contested the fine on Euroins, Armeec, Allianz Bulgaria, Bulgarski Imoti, Victoria, Generali Insurance, Energia, Bulstrad, Bul Ins, Interamerican Bulgaria, Municipal Insurance Company, HDI, DSK Garancia and Lev Ins.

The decision of the three-member panel taken on December 30 can be challenged before a five-member panel of the Supreme Administrative Court within 14 days after notification.

“I still have not seen the decision and cannot say whether we will appeal,“ ABI chairman, Orlin Penev, told Dnevnik.

According to the court, by declaring what seem to be legal objectives, insurers set unlawful price formation rules on risk premiums and brokers’ commissions, thus hurting competition on the market.

(Dnevnik)