Bulgarian Business Club - Issuu 1 by BG Media London

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BULGARIAN BUSINESS CLUB

3 JANUARY 2015 YEAR

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PM BORISOV, DEPUTY PM KUNEVA PRESENT ‘BULGARIA IN SCHENGEN’ BOOKLET

BULGARIA’S BORISOV, GERMANY’S MERKEL TO DISCUSS SOUTH STREAM, EU FUNDS

Issue 1 PAGE 5

Issuu Highlights BULGARIA SENDS GAS HUB PROPOSAL TO EUROPEAN COMMISSION Bulgaria has sent to the European Commission an official proposal for the construction of a gas hub on the territory of the country.............Page.3

BULGARIAN REGULATOR RAPS KPMG OVER CORPBANK AUDITS KPMG's audits of troubled Bulgarian lender Corporate Commercial Bank were marked by "significant gaps and inconsistencies".............Page.13

Bulgarian Prime Minister Boyko Borisov is set to meet German Chancellor Angela Merkel on Monday.

PAGE 8

MINISTRY OF TRANSPORT WORKING TO PROVIDE SMART TRANSPORT SERVICES Doha, December 14 (QNA) – The Ministry of Tr a n s p o r t , during the brief period since its establishment, worked to develop and improve transportation services as well as to study and supervise..................Page.19-20

UK INFLATION RATE AT 12-YEAR LOW OF 1% Lower fuel prices have pushed the UK’s rate of inflation down to a 12year low, official statistics show......................................Page.22

3 January 2015

BG Business

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BULGARIA SENDS GAS HUB PROPOSAL TO EUROPEAN COMMISSION Bulgaria has sent to the European Commission an official proposal for the construction of a gas hub on the territory of the country.

Tomislav Donchev, Deputy Prime Minister in charge of EU funds and economic pol-

icy, made clear Friday that the letter, which had been sent to Maros Sefcovic, Vice-President of the European Commission in charge of Energy Union, presented a proposal which had been discussed d u r i n g W e d n e sday’s sitting of the Council of Ministers. Donchev, as cited by the Bulgarian Telegraph Agency, announced in Parliament that the gas hub pro-

ject was in line with the ongoing efforts to launch the EU Energy Union. He underscored that the gas hub project was not a revised version of the South Stream gas pipeline project. Donchev noted that the gas hub project, if implemented, would not only get gas form one pipeline running across the Black Sea seabed. He said that talks were yet to be held on the matter, first of all with European Commis-

sion offices and with EU Member States. Donchev said that he had invited Maros Sefcovic to visit Bulgaria at his earliest convenience so that the gas hub proposal can be discussed as soon as possible. “Given Bulgaria’s degree of dependence, it is difficult for me to come up with a statement which guarantees maximum security of gas supplies for the country in the short term, for instance over the next year.

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3 January 2015

Bulgaria EU

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PM BORISOV, DEPUTY PM KUNEVA PRESENT ‘BULGARIA IN SCHENGEN’ BOOKLET Deputy Prime Minister Meglena Kuneva and Prime Minister Boyko Borisov presented Wednesday a booklet on Bulgaria’s preparedness for accession to the Schengen. Agreement Kuneva, as cited by the Bulgarian Telegraph Agency, made clear that the meetings of Borisov in Brussels with the heads of the European Commission, the European Parliament, and the Council of the European Union had revealed that the country enjoyed top-level political support in Europe for joining the border-free area. “As you know, sometimes the devil is in the details,” she declared. Kuneva presented the booklet to her colleagues in the government, stressing that it contained clear evidence of Bulgaria’s readiness for Schengen accession, including documents and photos provided by the Interior Ministry. Kuneva and Borisov announced that Bulgarian ministers and deputies would give away the “Bulgaria in Schengen” booklet as a gift during their visits to EU countries. Kuneva noted that it would be translated in English and urged the Foreign Ministry to do everything possible to make sure that EU countries were aware of Bulgaria’s achievements in the sphere. Borisov insisted that the booklet had to be translated in German, Dutch, and French too. At the end of last month, Kuneva warned that the upcoming report of the European Commission under the Co-operation and Verification Mechanism would be very harsh on Bulgaria as the comparison with Romania would not be in our favor.

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3 January 2015

INTERNATIONAL BOOK FAIR STARTS IN SOFIA ON TUESDAY

Culture

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LOS VIVANCOS FLAMENCO SHOW IN SOFIA

International Book Fair starts on Tuesday in the National Palace of Culture (NDK). It will be on till December 14 and is organised by the Bulgarian Book Association, which celebrates its 20-th anniversary. The Book Fair will present 200 exhibitors from Bulgaria, as well as Romania, Hungary, Iran, Serbia, Russia and Spain’s Instituto Cervantes. There will be a cultural programme, book signings and a children’s corner. Most of the exhibitors will offer discounts. The special event during the fair, the Sofia International Literary Festival, this year focuses on Nordic literature. The event is expected to attract more than 40 000 visitors.

The Los Vivancos troupe will perform in Sofia on December 14 in Hall 1 of the National Palace of Culture (NDK). The seven brothers will present their latest spectacle – Aeternum – which is a fusion of flamenco, theatre and acrobatics. Since their debut in 2005, Los Vivancos have won numerous awards for dance and their shows have been attended by millions of fans across the world. The event in Sofia is organised with the support of the Embassy of Spain in Bulgaria.

SOFIA DECLARED UNESCO CITY OF FILM The City of Film program is part of UNESCO‘s Creative Cities Network. The new cities were announced by UNESCO Director-General Irina Bokova in Paris. Bokova is to hand out a certificate to Sofia Mayor Yordanka Fandakova during a visit to Bulgaria’s capital, according to unconfirmed reports of mass circulation daily 24 Hours. The Creative Cities Network, which has been functioning since 2004, includes seven categories: Literature, Film, Music, Craft and Folk Art, Design, Media Arts, and Gastronomy. The holder of the title receives greater support for developing creative potential in the sphere.

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BULGARIA’S BORISOV, GERMANY’S MERKEL TO DISCUSS SOUTH STREAM, EU FUNDS Bulgarian Prime Minister Boyko Borisov is set to meet German Chancellor Angela Merkel on Monday. Borisov, who headed the government for a

second term in October, is on an official visit to Berlin at the invitation of his German counterpart. The abandoned South Stream gas pipeline and EU funding is due to top the two leaders’ agenda. A week after Russian President Vladimir Putin announced the end of South Stream early in December, Sofia came up with a proposal that Europe should help it to set up a hub for Russian gas at the entry of the pipeline into Bulgaria. The Bulgarian PM is expected to discuss the issue with Merkel, though

Diplomacy

Moscow is so far determined not to go on with the project. Borisov arrived in Germany on Sunday afternoon and met representatives of Berlin‘s Bulgarian community in a few hours. As many as three of his four deputies are accompanying him. These are M e g l e n a K u n e v a , Tomislav Donchev and Ivaylo Kalfin, in charge of EU policies, EU funding, and social policy respectively. The three deputies belong to three different parties, with Kuneva heading a party within the Reformist Bloc, Donchev being a member of the main ruling Citizens for European Development of Bulgaria (GERB) and Ivaylo Kalfin representing Alternative For Bulgarian Revival (ABV). Tsvetan Tsvetanov GERB party’s head in Parliament, Radan Kanev, who heads the Reformist Bloc (RB) in Parliament, and Delyan Dobrev, Chair of the Energy Committee, are also part of the delegation.

3 January 2015

Domestic

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GERB TO SEEK REFORMIST BLOC’S SUPPORT FOR FORMING GOVERNMENT WEDNESDAY

Centre-right GERB, the biggest party in Bulgaria’s new parliament, will meet the right-wing Reformist Bloc on Wednesday for consultations over formation of government. GERB, which won most votes in October 5 early elections but remained short of outright majority, will have 84 of the 240 seats in the new Parliament which has made it seek support from smaller parties to forge a government coalition. The Reformist Bloc (RB), which will have 23 seats, is the fourth-biggest out of a

total of eight political parties and coalitions that passed the four-percent threshold to enter parliament.

the third biggest parties in the new Parliament.

RB has been widely tipped by political analysts as a highly likely partner of GERB in a future government coalition.

RB leaders have issued c o n fli c t i n g m e s s a g e s about the party’s intentions to enter a government coalition with GERB, including the announcement on election night that RB would not accept GERB leader Boyko Borisov as prime minister in a future coalition cabinet. Radan Kanev, one of the RB leaders, admitted later that the statement had been a mistake.

GERB team met separately with representatives of the Bulgarian Socialist Party (BSP) on Monday and mainly ethnic Turk Movement for Rights and Freedoms (DPS) on Tuesday, which are the second- and

GERB and RB teams will meet at 1pm Sofia time on Wednesday in Sofia.

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Energy

3 January 2015

DRILLING AT BULGARIA’S KHAN ASPARUH BLOCK DELAYED UNTIL 2016

Hydrocarbon drilling at Bulgaria’s Khan Asparuh Black Sea block will be delayed by up to a year due to the slump in global oil prices, the international consortium holding the exploration licence has decided. According to mediapool.bg, the consortium comprising France’s Total, Austria’s OMV and Spain’s Repsol has agreed to alter its budget and the exploration plan for next year, under which drilling should have started in mid-2015.

The consortium cited the “considerable and incessant decline of global oil prices that has occurred over the past few months, affecting the internal budgets of the companies” involved in the project as the reason for the temporary freeze. It has also informed Bulgaria’s Energy Ministry about its decision. The start of drilling has been postponed until 2016 with the three members of the consortium hoping to commence exploration works at

the beginning of the year rather than in mid-2016.

of hydrocarbons, mediapool.bg said.

The decision entails suspension of a number of procurement orders for the supply of equipment, food and fuel to the drilling platform.

News of the delay of drilling at Khan Asparuh come less than two weeks after the government announced it would launch tenders for exploration for oil and gas in two areas within Bulgaria’s economic shelf and exclusive e c o n o m i c z o n e , S i l i star Block 1-14 and Teres Block 1-22, as part of plans to decrease the country’s dependence on imports of Russian natural gas.

The consortium, which plans to invest USD 260 M in the project, completed 3Dseismic studies at Khan Asparuh block earlier this year. According to inside sources the studies suggest the block has the potential to deliver reasonable amounts

3 January 2015

Finance

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BULGARIAN REGULATOR RAPS KPMG OVER CORPBANK AUDITS Corpbank's books were audited by KPMG at the end of the 2013 financial year. It found less than one percent of the bank's loans to be nonperforming, against an average of 17 percent for Bulgarian banks. UNDER FIRE The regulator said KPMG had found inconsistencies in how documents were maintained at Corpbank, which could have been assessed as indications of possible fraud. This should have prompted the auditor to review the assessed risks at Corpbank and change the way it audited its books, the regulator added. (Reuters) - KPMG's audits of troubled Bulgarian lender Corporate Commercial Bank were marked by "significant gaps and inconsistencies", a regulator said, in findings that put the country's financial sector under renewed scrutiny. Corpbank, majority-owned by a Bulgarian businessman now charged with embezzlement, was hit by a bank run in June that triggered the Balkan country's worst financial crisis since the 1990s and raised concerns about banking supervision. The auditing regulator's findings come a week after Standard and Poor's cut Bulgaria's sovereign credit rating to junk, citing weaknesses in its domestic banking system. The Commission for Public Oversight of Statutory Auditors launched an investigation into KPMG's audits between 2009-2013 following the collapse of Corpbank. "Commitments for an independent financial audit of the annual financial reports of Corporate Commercial Bank were carried out in the presence of some significant gaps and

inconsistencies with the requirements of international standards on auditing in connection with the bank's lending," the regulator said in its decision, taken late on Tuesday. KPMG in Bulgaria declined comment on the findings. The regulator's chairwoman Vanya Doneva said it would decide early next year what sanctions to impose and upon whom. It could either sanction individual auditors or KPMG's Bulgaria unit, or both. "This certainly is a serious blow to KPMG's image and reputation," said Georgi Ganev, an economic analyst with Sofia-based Liberal Strategies Institute. Bulgaria's central bank seized control of Corpbank during the run in June and shut it down. It stripped the fourth-largest lender of its licence in November and asked a court to open insolvency proceedings after an audit pointed to a huge capital shortfall and major failings in the way Corpbank was run.

The regulator also cited "threats" to the integrity and independence of a particular auditor, which were not reported and assessed as such. It did not name the auditor or elaborate on these threats. Under Bulgarian law, the auditing regulator may impose a fine of up to 20,000 levs ($12,585) and ban an auditing firm or individuals from operating for up to two years.

Clients rushed to withdraw money in June after media reports surfaced of murky deals at Corpbank. At the time, the bank's main shareholder, Tsvetan Vassilev, was feuding publicly with a powerful rival. Vassilev says the bank run was a plot hatched by his competitors. The fallout from the Corpbank crisis has continued to rumble. The central bank governor said he was ready to resign, the government has been forced to take on new debt to pay out guaranteed depositors and Vassilev, who denies any wrongdoing, is awaiting extradition proceedings in Serbia. Source : standartnews.com

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3 January 2015

Sport

BULGARIA INTMIN CONTINUES INVESTIGATION OF ALLEGED FOOTBALL MATCH FIXING as well as Martin Kamburov and Yordan Gospodinov, who still play for the team from Plovdiv have been interrogated. The specialised operation started on December 9, with the Interior Ministry carrying out interrogation of witnesses, searches and seizures in six Bulgarian towns.

The Interior Ministry continues its investigation of alleged match fixing and illegal betting in the Bulgarian football on Thursday. It is expected that football players from the A Football Group will be interrogated in different towns, private NOVA TV reports. It is still unclear whether the nine people that were detained for 24 hours during Wednesdayâ&#x20AC;&#x2122;s operation of the Criminal Police will remain in custody. The Interior Ministry announced on Wednesday that during the operation items and documents proving the criminal activity of the group were seized. The investigation is under the guidance and supervision of the specialised prosecution. According to Gong.bg, the defender of the Bulgarian national team and second captain of current A Group leaders CSKA Aleksander Tunchev, top scorer of Lokomotiv Plovdiv Martin Kamburov, and Cherno More defender Kiril Kotev, have been detained during the operation of the Interior Ministry. Among the interrogated are football players, managers and referees. According to NOVA TV, the main focus is on players of Lokomotiv Plovdiv in the period during which Konstantin Dinev was owner of the club. Former player Yordan Todorov,

The investigation started after the Union of European Football Associations (UEFA) submitted a signal to the Bulgarian Football Union (BFS). A representative of UEFA said for the Bulgarian National Television that this was one of the largest operations in the last years. According to private bTV station, the teams accused in match-fixing are Lokomotiv Plovdiv and former A Group competitors Lyubimets. The investigators have several recordings, including a conversation between Martin Kamburov and his brother, in which the two discuss football bets. The President of BFS Borislav Mikhailov announced on Wednesday that no players in the national team were involved in match fixing. The former national coach Plamen Markov said for the Bulgarian National Television on Thursday that the involvement of the police was a good sign that Bulgarian football will be cleansed, while footballers will know the consequences of such criminal moves. Markov reminded that previously when UEFA had submitted signals of match fixing in Bulgaria, BFS promised to investigate the cases, but to no effect. This is not the first scandal with match fixing in Bulgaria, as earlier this year three players from the junior national team were suspended over allegations that they were involved in manipulations.

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3 January 2015

SPORTS NEWS

3 January 2015

Tourism

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BULGARIA’S WINTER RESORTS OPEN SKI SEASON Bulgaria’s largest ski resorts – Bansko, Borovets and Pamporovo open this year’s ski season on Saturday, reports the bTV national channel. According to the information, this season the three resorts will keep the ski pass prices from last year, while the Tourism Ministry expects a 4-5% increase in number of tourists. Ivan Obreykov, marketing director of the Bansko ski zone told the BNR public broadcaster that by December 20 the one-day ski pass will be at the discount price of BGN 30. According to him, this season the resort introduces a new service – helicopter rescue in case of an accident. It will be available for a very small fee upon purchasing of a ski pass.

On Saturday the pistes and lifts in Bansko and Pamporovo will work gratis, but the ski zone in Borovets will remain closed, due to the lack of snow and the warm weather. According to Lyuba Klenova, marketing director of the operator of the Borovets ski zone told journalists that this season the number of snow guns and illuminated ski pistes has been doubled. Pamporovo will be offering free ski training for absolute beginners and children.

BULGARIAN BUSINESS CLUB

3 January 2015

QATAR-BULGARIA BUSINESS FORUM

VISIT QBBF www.bulgarianbusiness.org.uk www.facebook.com/QatarBulgariaBusinessForum

Qatar-Bulgaria Business Forum (QBBF) is a London based NGO

3 January 2015

KAHRAMAA TO CELEBRATE NATIONAL DAY WEDNESDAY

Doha, December 16 (QNA) – Qatar General Electricity and Water Corporation (Kahramaa) on Wednesday will celebrate the National Day through a set of events to be held in front of its headquarters in Al Dafna. On the occasion, Kahramaa President Essa bin Hilal Al Kuwari congratulated HH the Emir Sheikh Tamim bin Hamad Al-Thani and HH the Father Emir Sheikh Hamad bin Khalifa Al-Thani as well as the Qatari people and residents of Qatar. Under the wise leadership of HH the Emir Sheikh Tamim bin Hamad Al-Thani, Al Kuwari said, Kahramaa has succeeded in carrying out a set of vital projects in electricity and water and is still investing in the infrastructure of both sectors so as to cope with the comprehensive development in the country and the increasing

Qatar Business demand for the two basic services. He reaffirmed Kahramaa’s keenness on providing Qatar’s needs of electricity and water according to the

best international and local standards in line with Qatar National Vision 2030.

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its establishment, worked to develop and improve transportation services as well as to study and supervise the implementation of new projects in order to achieve the expansion of economic movement and serve the national development requirements. The Ministry of Transport is specializes in organizing land, sea and air transport business in the State to meet the country’s need to intelligent and sophisticated transport networks serving the enormous boom in taking place Qatar on all levels.

ing two million containers per year. During the period October 1, 2013 to August 30, 2014 Qatar Ports Management Company (Mawani Qatar), carried out maintenance work to all navigational aids in Doha port Channel, Umm Bab, Shira’wa Island, Ruwais port, Thakheerah and Fisht Al-Yabis. April 2014, saw the opening of the Doha Port Services Complex building. In addition, the Ministry of Transport in coordination with the concerned authorities in the State, started the implementation of the plan

He also reiterated Kahramaa’s commitment to transform the performance of its staff, assets and systems according into an international standard of performance, technical innovation, environmental sustainability and social responsibility by 2030. (QNA)

MINISTRY OF TRANSPORT WORKING TO PROVIDE SMART TRANSPORT SERVICES Doha, December 14 (QNA) – The Ministry of Transport, during the brief period since

Many accomplishments were achieved by the Ministry during the past year, including the completion of the state’s public transport plan and put it into effect for 5 years. It was also during the past year, the development of the new port project plan by adding new areas to the container terminal to accommodate bigger numbers reach-

of developing Ruwais seaport, to facilitate the movement of the vessels, cargo and passengers, and stimulate trade between the countries in the region. The project will be opened during the month of January 2 0 1 5 .  The Ministry of Transport also oversaw the addition in 1000 public transport buses to “Karwa” fleet in order to improve public transport in the country.

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Qatar Business

The Ministry also oversaw Qatar Railways Company’s “Rail”

3 January 2015

receiving first drill to dig the Doha Metro tunnel.

in addition to hosting the summit and exhibition of the International Federation of Public Transport on 25 – 27, November 2014.

One of the Ministry’s most prominent achievements is the opening of in Hamad International Airport, to which the operations of all airlines were transferred.

Culminating the Ministry’s efforts, the State of Qatar earned the membership of the executive council of the Arab Aviation Authority, in its 20th session.

HE the Minister of Transport directed officials in the ministry to attach greater importance to the scholarships program within the framework of the ministry’s plan to develop human resources and improve efficiency through education.

The ministry has set up a committee for Qatar Flight Information Region (FIR), which is concerned with taking all necessary measures to create Qatar FIR. (QNA)

During the school year 20132014, the Ministry got 11 students enrolled in its scholarship program to continue their education in prestigious universities in the United States and the United Kingd o m .  Meanwhile, the Ministry of Transport has sought to develop the legislation associated to transport sector in the state by issuing ministerial laws and decisions in the field of land, sea and air transport and the signing of agreements and memoranda of understanding with a number of countries in related areas. During the past year, the Ministry hosted and organized a number of regional and international conferences and workshops. Among the important events was the workshop on the requirements and procedures of GCC States railway project, and a workshop maritime safety. in cooperation with the Japanese classification authority

3 January 2015

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UK Business

3 January 2015

UK INFLATION RATE AT 12-YEAR LOW OF 1% Lower fuel prices have pushed the UK’s rate of inflation down to a 12-year low, official statistics show. The Consumer Prices Index inflation measure – which assesses the cost of basic household goods – fell to a rate of 1% in November from 1.3% in October. The fall is being dubbed an “early Christmas present” for consumers. But some investors are concerned that it could slow the UK’s economy, as people delay purchases, expecting prices to fall even further. Inflation as measured by the Retail Prices Index fell to a five-year low of 2%, down from 2.3%. As Duncan Kennedy reports, not everyone in the UK is feeling the difference.

CHEAPER TRAVEL The Office for National Statistics said falling fuel prices, caused by the decline in global oil prices, have brought the costs of both road and air travel down, with petrol prices down 5.9% in November. Additionally, food prices fell by 1.7%, helped by supermarket price wars, while recreation and culture prices fell by 0.3%. Both food and fuel account for a large part of the ONS’ inflation calculations. In the first few months of 2014, UK inflation generally rose, reaching 1.9% in June. But the recent low rate of inflation means that earnings are finally rising faster than prices, after years of failing to keep up. The latest report on the rate at which average wages in the UK are growing is due on Wednesday.

FLIGHTS DISRUPTION: NATS BOSSES ‘WERE WARNED’ ABOUT PLANS Meanwhile, one MP has called for Nats’s chief executive to be docked his bonus. The CAA’s warning came after Nats completed a report into a telephone failure at the Swanwick control room last December, which resulted in 300 cancelled flights. The UK’s national air traffic control service Nats was reportedly warned four months ago that its plans on how to deal with technical failures were unclear.

Faulty code

The Independent says the Civil Aviation Authority criticised a report into a fault which grounded flights last year.

The report included an assessment of contingency and resilience plans. According to the Independent, the CAA responded that its “themes on avoiding a recurrence” were a “good first step but lack detail and clarity”.

It follows Friday’s disruption to UK flights caused by a computer malfunction at Nats’s Swanwick centre.

It was one of a number of technical hitches to hit the partly-privatised service since the centre opened in 2002.

The CAA also asked for Nats to submit more detailed plans which would include a timescale for changes, and to explain who was to be accountable for fixing certain problems. Friday’s disruption was caused by a single faulty line of code in one computer system, Nats chief executive Richard Deakin said on Saturday. The failure caused problems at airports around the country – including at Heathrow and Gatwick, where departing flights were grounded for several hours. Thousands of passengers faced delays and cancellations. Flights returned to normal on Saturday, although almost 40 were cancelled at Heathrow.