Since 2003, all companies registered in Bulgaria have been required to use the International Financial Reporting Standards (IFRS) for their consolidated financial statements. In this way, Bulgaria introduced the International Accounting Standards (IAS) two years ahead of the European Union member states. The list of organisations includes companies, banks, insurers, mutual funds and other financial institutions.
In 2003 Bulgaria introduced the International Financial Reporting Standards (IFRS) and all companies registered in the country are required to use them for their consolidated financial statements.
Investors in Bulgaria should have in mind that since 2005, International Accounting Standards (IASs) are obligatory for all consolidated and individual company financial statements of listed companies, financial institutions and all large limited liability entities.
In comparison, in the EU, only public companies use IAS. Though doubts exist about Bulgarian SMEs having the capacity to introduce IFRS, the country plans making IAS requirements obligatory for them.
IAS introduction is regulated by the Accounting Act, which states that the reporting period is from January 1 to December 31.
Banking
Credit expansion remains a serious problem of the Bulgarian banking sector.
The loan increase has caused concerns to the International Monetary Fund (IMF) and the World Bank. In 2006 the IMF has agreed only to partial removal of the imposed credit limitations.
Loan restrictions were imposed because the credit expansion threatened the stability of Bulgarian banks. IMF restrictions included forcing banks exposed to credit risk to hold additional reserves for covering liquidity losses. Banks soon found a way of avoiding the limitations, transferring credit deals to leasing companies, which are subject of fewer regulations.
According to Bulgarian National Bank's (BNB) annual report on the banking sector condition, loans have amounted up to 4.4 million leva.
Most Bulgarian households have already borrowed loans. Nearly one third of the households choose consumer loans from banks and every fifth household borrows money from friends or relatives.
The majority of consumers prefer drawing smaller loans up to 10 000 leva used for the purchase of white goods and household electronics.
One of the reasons for the credit expansion is the low average wage in the country. Low incomes also account for the smaller deposits in Bulgaria.
Some questions from fellow expats have still gone unanswered.
Monday, October 13 2008
Expat of the Week
redryler
Grew up in Ireland. Wnet to college in London. This was an eye-opener to the world. Have worked for ... read more
What`s on in Bulgaria
Theatre
12 Angry Monologues/12 razgneveni monologa What: The play is a compilation of 12 of the best monologues from Bulgarian actor Velko Kunev on the National Theatre stage over the past 30 years. Alone on the stage, Kunev re-experiences the fates, thoughts, worries and fears of his characters - including Ham When: October 7 and 25, 7pm Where: Ivan Vazov National Theatre
Volpone What: This comedy, written by English Renaissance playwright Ben Jonson, tells the story of Venetian nobleman Volpone who pretends he’s at death’s door to lure the numerous aspirants to his large inheritance and thereby expose their greed and foolishness. Starr When: October 10, 22 and 28 at 7pm Where: Ivan Vazov National Theatre
The Taming of the Shrew/Oukrotyavane na opurnichavata What: Director Marious Kourkinski returns to the stage of the Satirical Theatre with this Shakespearean comedy, which was one of the master’s earlier plays. The original play depicts a nobleman, Petruccio, who, for pragmatic reasons, marries a shrew – a loud-mo When: October 10 at 7pm Where: Aleko Konstantinov Satirical Theatre
Cultural Institutes
Pavel Besta and his inspirations What: This exhibition by Czech artist Pavel Besta coincides with his 50th birthday. His paintings are in the realm of the grey and sorrowful. Besta discusses universal questions touching on the beating hearts and disillusioned faces who dwell in the country’s o When: Until October 31 Where: the Czech cultural centre, 100 G. S. Rakovski Str, Sofia
Art
Painters from Plovdiv exhibit in Sofia What: Natally gallery is organising a general exhibition featuring artists who have depicted Plovdiv’s gentle pace of life in their works. Visitors can admire the delicately smiling characters looking over from Angel Vassilev’s paintings, or the colourful abstr When: Until October 30 Where: Natally, 38A Gourko Str, Sofia
The return of Dimitar Voinov What: Racoursi gallery presents Bulgarian painter Dimitar Voinov, who has lived and worked in Germany since 1986. Now, 22 years later, he is exhibiting in Bulgaria for the first time. His paintings reveal the use of classic techniques, combined with ambiguous s When: Until October 31 Where: Racoursi, 4A Han Kroum Str, Sofia
Eva Peneva and Yulian Yordanov’s graphics for four hands What: This collaboration between two artists is a long-nurtured idea that finally comes to life. Yordanov presents 13 of his graphics including titles like Leda, Fragrance or Temptation. To find an adequate answer to his challenge, Peneva painted glass using va When: Until October 20 Where: Teo, 34 Macedonia Str, Varna
Soshana: Around the world in 80 years What: Austrian painter Susanne Schuller-Soshana is a true cosmopolitan. As one art critic puts it, she has travelled the world not in 80 days, but in 80 years. During her nomadic life, she has met some of the defining titans of the last century’s art scene – in When: Until October 16 Where: Astri, 34 Tsar Samouil Str, Sofia
The apple in the minds of several artists What: Though it has a small exhibition area, this gallery always offers carefully selected artists the chance to flaunt their talents. In this general exhibition nine artists have come together to explore the ‘apple theme.’ Works by Boiko Kolev, Rossen Rashev, When: Until October 20 Where: Art Gallery Paris, 8 Paris Str, Sofia
LIKE MOTHER, LIKE DAUGHTER – ANI KARALAMBEVA AND NIYA ABRASHEVA What: Drawing on her experience and expertise as a long-time textile designer, Ani Karalambeva collaborates with her daughter Niya Abrasheva to create beauty in the ever-saturated world of fashion and interior design. The exhibition presents mixed media wall pa When: Until October 8 Where: Azza Gallery of Modern Art, 25 Cherni Vruh Blvd, Sofia
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