Bulgaria U-turns over Ukrainian grain
Bulgaria will not abide by the post September 15 extended ban on grain imports from Ukraine. The draft decision, taken out of solidarity with Kyiv, was submitted to parliament on Monday. If approved, it will oblige the Bulgarian cabinet to leave the anti-Ukrainian grain club within the EU, and risks riling domestic producers and farmers.
This runs contrary to the actions of the Bulgarian cabinet in the spring, when several states in addition to Bulgaria - Poland, Hungary, Romania and Slovakia - obtained from the EC a temporary moratorium on the import of cheap Ukrainian grain on domestic markets (without transit) in order to protect local producers.
Minister of Finance Assen Vassilev said that the former cabinet of Galab Donev had hiked the price of bread, flour, oil and fodder, and hence - milk and meat products. He maintained that the grain production sector declares billions in profits, and also receives subsidies, and is exempt from excise duty for fuel.
July export data shows decline
The decline in exported goods from Bulgaria continued in July. Exports from the beginning of the year to July equals BGN 50.7 billion and is 5.5% down compared to the same period of the record year 2022, according to preliminary data of the national statistics.
Most products reported a decline, but the biggest fall came in the categories of fuel, electricity and metal products. Some of the decline in exports is now being offset by continued growth in machinery and equipment sales, which have been the strongest performing group this year.
Compared to June the export is 13.5 % down.
First green bond
First Investment Bank will seek to raise €300 million through a green bond issue, with Citibank, Landesbank Baden-Württemberg and Raiffeisen Bank International as lead managers. From the announcement of the bank to the stock exchange (BSE), it is clear that, starting on Tuesday, meetings with potential investors will begin. According to information from Capital there is already an open digital roadshow room with a presentation and a prospectus.
The books mature in three years, with the primary objective of meeting minimum equity and eligible liabilities (MREL) criteria. With the tightening of regulatory requirements, all banks are under pressure to issue subordinated instruments that meet the conditions and can absorb losses if needed.
In particular, for FIB, from next year the level set by the BNB rises to 36.4% of risk-weighted assets compared to 29.3% now.
The bond's profitability is forecasted between 10-12%.