BSE PROSPECTS
The Bulgarian Stock Exchange (BSE) is screening opportunities to start trading derivative instruments, bourse managers told reporters at a news conference on its plans for this year, Dnevnik daily reported. While hopes are that the launch of derivatives might take place already this year, none of the participants would commit to a specific deadline, nor define the type of derivatives under scrutiny or if the market was ready to use this type of securities. Derivatives are securities drawing on primary financial instruments such as shares and bonds, whose valuation is directly dependent on the performance of the securities on which they are based.

EMPORIKI PLANS
Emporiki Bank Bulgaria plans to double its network to 40 branches and four business centres targeting small and medium-sized firms. It also plans to increase its capital by 20 million euro and expand its retail business by the end of next year, Christos Katsanis, head of international development division at Emporiki Group, told a news conference on May 8. The aggressive push into the Balkans forms part of a five-year business plan endorsed by Emporiki Group shortly after its takeover by France’s second-largest financial institution Credit Agricole in 2006. It mainly focuses on strengthening the bank’s positions through organic growth in the markets where it is already present.

LICENCE REJECTED
At a May 8 meeting, the board of directors of Bulgarian National Bank (BNB) turned down a banking licence application by Financia Bank, 70 per cent owned by Bulgaria’s Alfa Finance Holding, BNB said in a statement. The entity, currently being registered, is yet to comply with the regulations of the Credit Institutions Act, the statement said. BNB, however, is ready to review the banking licence application again if the financial institution finds an EU-registered entity with rich experience in the banking market to be a majority shareholder.

PROFIT SAGGING
More than half of the 69 industrial companies listed on the Bulgarian Stock Exchange have reported year-on-year declines in net profit for the first quarter of 2008, investor.bg reported on May 7. A total of 40 companies reported lower profit, although 42 said that their sales revenue went up, pointing out a trend for expenditures growing at a faster pace than revenues. Some companies attributed their sagging net profit to the volatility of raw materials prices on international markets, as well as the inconsistent behaviour of the US dollar against the euro.