Bulgarian
business - real estate ans properties, investment, industry, finance and
trade, accomodation
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Bulgaria
- BUSINESS In the early 1990s the banking system, formerly under the direction of the government, underwent significant reform. Legislation passed in June 1991 ended government direction of the Bulgarian National Bank but retained a measure of bank accountability to the National Assembly. In addition a new tier of commercial banks and other lending institutions was introduced. Almost two-thirds of all exports are capital goods, such as machinery and equipment, and one-quarter are consumer goods, mainly of agricultural origin (such as fresh and canned fruits, wine, honey, cigarettes, dairy products, and meat and live animals). About two-fifths of all imports are capital goods. Until its dissolution in the early 1990s, the Soviet Union was Bulgaria's main trading partner. Likewise, membership in the Council for Mutual Economic Assistance (Comecon) determined much of Bulgaria's trade patterns until the disbanding of that organization in 1991.
The history of the Bulgarian equity market dates back almost a century ago. The first provisional Stock Exchange Act adopted in 1907 regulated the structure and functions both of stock and commodity exchanges. On April 15th, 1914 under the King's Decree №7 the first real stock exchange was established in Bulgaria. At the beginning 21 companies were listed on the exchange with a total capital of BGL 81 million. After the World War I the Stock Exchange was reopened in 1920 operating predominantly forex rather than securities transactions. In the 30’s some 30 companies got to be listed on the Exchange and generated substantial turnover. After World War II the Stock Exchange ceased its operations. The dynamic development of the capital market in the period 1996-1999 necessitated new legislation in this field. In December 1999 a new Public Offering of Securities Act was adopted by the Bulgarian Parliament. The law governs the public offering and trade in securities, the activities of the regulated securities markets, the Central Depository, investment intermediaries, investment companies and the conditions for carrying out such activities, as well as the State control over them. The law is aimed at providing protection for investors and creating the prerequisites for development of a transparent capital market in Bulgaria with criteria very close to the ones of the European Union. In compliance with the new legal requirements and as a response to the changed market conditions the BSE-Sofia has adopted new Rules & Regulations. In October 2000 the RTS Plaza trading system, based on the NASDAQ quotation system was launched at the BSE-Sofia with the assistance of American and Russian experts. It is an order and/or dealer driven trading system with multiple market-makers. On October 21, 2000 the BSE-Sofia lauched its officail index – SOFIX. The SOFIX is price index, market capitalization weighted, with base value of 100 points. The SOFIX portfolio consists of the top domestic stocks. The final important change in the first quarter of 2003 was the requirement for International Accounting Standards to be observed by all institutions in the banking sector and other financial companies traded on the BSE-Sofia. The move represents a first step with all companies required to adhere to the system from 2005, moving closer to international standard regulations on transparency. |
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