APRIL 2012 No 5 / 2012

> In April there is a second consecutive rise in traded

volumes of the deposit deals and a new drop in the

repo deals; the interest rate levels remain stable

> For a consecutive month the ratio USD-BGN remains

stable

> The turnover of the deals in equities on the BSE-Sofia

AD marks significant growth in April

DEBT MARKET

Benchmark yield curves in the euro area 02.04.2012 and 02.05.2012

0

1

2

3

4

5

6

o/ndepo

1wdepo

1mdepo

3m depo

12m bill

3ybond

5ybond

7ybond

10ybond

instrument

ann

ual

yie

ld (

%)

02.04.2012

02.05.2012

Benchmark yield curves in Bulgaria 02.04.2012 and 02.05.2012

0

1

2

3

4

5

6

o/ndepo

1wdepo

1mdepo

3m depo

12m bill

3ybond

5ybond

7ybond

10ybond

instrument

ann

ual

yie

ld (

%)

02.04.2012

02.05.2012

Bulgaria and euro area benchmark yield curves 02.05.2012

0

1

2

3

4

5

6

o/ndepo

1wdepo

1mdepo

3m depo

12m bill

3ybond

5ybond

7ybond

10ybond

instrument

ann

ual

yie

ld (

%)

Bulgaria

euro area

Middle of

2

Sofibid and Sofibor

Yields on EUR-denominated govt securities in Bulgaria and on the euro area curve 02.05.2012

-1

0

1

2

3

4

5

6

7

3m d

epo

12m

bill

2y b

ond

3y b

ond

4y b

ond

5y b

ond

6y b

ond

7y b

ond

8y b

ond

9y b

ond

10y

bond

15y

bond

instrument

ann

ual

yie

ld (

%)

BG domestic

BG global

euro area

SOFIBOR and 3M T-bill issuance, January - April 2012 (%)

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

03.0

108

.0113

.0118

.0123

.0128

.0102

.0207

.0212

.0217

.0222

.0227

.0203

.0308

.0313

.0318

.0323

.0328

.0302

.0407

.0412

.0417

.0422

.0427

.04

3M SOFIBID 3M SOFIBOR 3M T-bill LEONIA BIR

1. MONEY MARKET Plamen Petrunov

(+359 2) 9145 1610 In April the money market has a second consecutive increase

in the depo deals volume and a noticeable drop in the

volume of the repo deals, compared to March. The interest

rates remain without significant changes.

3

Interbank Money Market, volumes (BGN mln)

0

500

1000

1500

2000

2500

3000

3500

4000

February 2012 March 2012 April 2012

deposit deals repo deals

A second

consecutive rise of

the traded volumes

in the deposit deals

and a sizeable fall in

repo-deals in BGN…

The interbank money market monthly volume has a very

slight decrease in April - by 3.6 per cent below March to BGN

3339.8 million. The fall results from a significant decrease in

the repo-deals volume by 34.7 per cent to BGN 638.2

million, while the deposit lending deals volume increases by

8.6 per cent to BGN 2701.5 million.

… a significant

decrease in the

foreign exchange

deposit lending deals

volume

The total monthly volume of term transactions in Euromoney

market dealing decreases significantly in April compared with

the previous month, after a drop in the depo deals volume by

19.5 per cent - to BGN 6616.4 million. The repo deals

volume (which has a very small share in the market) also

decreases by 20.4 per cent to BGN 109.7 million.

Interbank Euromoney Market, volumes (BGN equivalent in mln)

0

1000

2000

3000

4000

5000

6000

7000

EUR EUR EUR USD USD USD Other Other Other

February2012

March 2012 April 2012 February2012

March 2012 April 2012 February2012

March 2012 April 2012

deposit deals repo deals

4

The banking system remains highly liquid and the average

daily excess reserves in April are BGN 350983 thousand after

BGN 344805 thousand in March (excess reserves are

calculated taking into account a calendar month, and not the

actual maintenance period – from the 4th of each month till

the 3rd of the next). In eight calendar days altogether of the

month there is a relative resource shortage (negative excess

reserves).

Liquidity in the

banking system

remains high

Interbank money market and excess reserves, April 2012 (BGN mln)

-400

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

02.0

403

.04

04.0

405

.04

06.0

409

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

421

.04

23.0

424

.04

25.0

426

.04

27.0

4

money market excess reserves

Liquidity in the banking system is influenced every month by

monetary flows through government securities (bills and

bonds of the Ministry of Finance), and in April there is a net

inflow to banks of BGN 55.0 million as an increase in

resources. Pension transfers lead to an increase in resources

by BGN 706.5 million.

5

Deposit Deals, April 2012 (BGN mln)

0

20

40

60

80

100

120

140

160

180

200

02.0

403

.04

04.0

405

.04

06.0

409

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

421

.04

23.0

424

.04

25.0

426

.04

27.0

4

all deposit deals unsecured of which overnight secured

1.1. Interbank market: deposit lending and repo-

transactions

Deposit lending maintains a prevailing share in the interbank

money market volume (deposit lending and repo-deals). For

April this share is 80.9 per cent of the interbank transactions,

after 71.8 per cent in March - resulting from the serious

decrease of the repo-deals volume in combination with the

further increase in the deposit deals volume. Deposit lending

remains banks’ main tool for managing current daily liquidity.

Unsecured market

In April term unsecured deposit lending between market

participants amounts to BGN 2701.5 million, and 89.4 per

cent of this (BGN 2415.6 million) are overnight deals,

compared with 86.0 per cent share (BGN 2138,1 million) in

March.

Unsecured Deposit Market, April 2012 (BGN mln)

020

4060

80100120

140160

180200

02.04

03.04

04.04

05.04

06.04

09.04

10.04

11.04

12.04

17.04

18.04

19.04

20.04

21.04

23.04

24.04

25.04

26.04

27.04

overnight other

6

Overnight Market Rates, April 2012

0.00

0.05

0.10

0.15

0.20

0.25

0.30

02.04

03.04

04.04

05.04

06.04

09.04

10.04

11.04

12.04

17.04

18.04

19.04

20.04

21.04

23.04

24.04

25.04

26.04

27.04

Effective overnight rate - unsecured deposit dealsSOFIBID O/NSOFIBOR ON

The monthly average for the overnight interest rate on

unsecured deposit lending slightly decreases - to an annual

0.14% after 0.15% in March.

The monthly average of the LEONIA, a reference rate based

on unsecured overnight deposit lending by 14 banks, also

decreases - to 0.14% in April, compared to the previous

month. Hence the size of the BNB base interest rate for May

2012 is 0.14%.

LEONIA moves in very narrow bands (0.14% - 0.15%)

throughout the whole month, still keeping the spread with

the analogous index reflecting the overnight levels of the

euro area, EONIA, negative.

LEONIA / EONIA

0.00

0.10

0.20

0.30

0.40

0.50

02.04

03.04

04.04

05.04

06.04

09.04

10.04

11.04

12.04

17.04

18.04

19.04

20.04

21.04

23.04

24.04

25.04

26.04

27.04

LEONIA EONIA

Note: The absence of values for EONIA on 06 and 09 April is a result from non-working

Easter holidays in the euro area

7

The money market yield curve at the end of April has a slight

move downward in the longest-term area of the curve (more

that 9 months), compared to that in March.

Secured market

There are no secured deposit lending deals observed in April.

On the other hand, the repo deals’ share is 19.1 per cent of

the total interbank money market transactions volume (BGN

638.2 million) while in March their share is 28.2 per cent

(BGN 977.1 million).

MARKETS:

value in millions of BGN

equivalent in millions of EUR

value in millions of EUR

equivalent in millions of BGN

value in millions of USD

equivalent in millions of BGN

equivalent inmillions of EUR

equivalent in millions of BGN

equivalent in millions of EUR

TYPES OF DEALS:

unsecured deposit deals 2701.6 1381.3 2374.4 4643.9 1937.5 2879.9 1472.5 35.0 17.9

secured deposit deals - - - - - - - - -

repo of Bulgarian govt securities* 638.2 326.3 40.3 78.8 30.8 45.8 23.4 - -

outright purchases of short-term BGN Bulgarian govt securities - - - - - - - - -

outright purchases of long-term** BGN Bulgarian govt securities* 102.8 52.6 - - - - - - -

outright purchases of long-term** forex Bulgarian govt securities* 19.6 10.0 31.0 60.6 3.8 5.6 - - -

* at market value; for repos - only the security purchase (money lending) leg

** bonds of over 1 year in original maturity

Source: BNB, from commercial banks' daily reports

BULGARIAN INTERBANK MONEY MONEY MARKET AND EUROMONEY MARKET DEALS BETWEEN BULGARIAN BANKS, APRIL 2012 (in millions of the respective currencies)

interbank money market euromoney market deals between Bulgarian banks

deals in BGN deals in EUR deals in USD deals in other currencies

The money market yield curve

reflects theaverage value of

SOFIBIDand SOFIBOR

0.00

1.00

00

00

00

00

00

ON

SW 2W 3W 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M

11M

12M

6.

5.

4.

3.

27.04.20122.

30.03.2012

8

1.2. Outright purchases of securities on the secondary

market

On the interbank secondary market for government

securities, the market value of outright purchases in April

amounts to BGN 122.4 million (after BGN 75.6 million in

March), and all the deals are with longer than 12 months

securities. There are no deals in short-term (with initial

maturity less than one year) government securities.

Outright deals in Bulgarian government securities, April 2012 (BGN mln)

0

10

20

30

40

50

60

70

02.0

403

.04

04.0

405

.04

06.0

409

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

421

.04

23.0

424

.04

25.0

426

.04

27.0

4

BGN-denominated securities up to 12M BGN-denominated securities over 12M

forex-denominated securities

On the Euromarket in April the total volume of outright

purchases of government securities is BGN 66.4 million, after

BGN 104.3 million in March.

9

2. CAPITAL MARKET Boris Malinchev

(+359 2) 9145 1704

The following primary auctions of government securities were

carried out by the Bulgarian National Bank as an agent of the

Ministry of Finance in April:

- on 2 April for a batch of an issue BG2040008216 (10Y

government securities) with maturity date 16 January

2018, at the amount of BGN 50 million and interest rate

4.50%. For participation at the auction were admitted

orders at the amount of BGN 47 000 000. The Ministry

of Finance approved bids at the amount of BGN 42 200

000 ;

- on 23 April for a batch of an issue BG2030012111 (2Y

government securities) with maturity date 8 February

2014, at the amount of BGN 35 million and interest rate

2.25%. For participation at the auction were admitted

orders at the amount of BGN 75 150 000. The Ministry

of Finance approved bids at the amount of BGN 35

million;

- on 9 April for a batch of an issue BG2030011113 (5Y

government securities) with maturity date 30 March

2016, at the amount of EUR 35 million and interest rate

4.00%. For participation at the auction were admitted

orders at the amount of EUR 45 500 000. The Ministry

of Finance did not approve the presented bids;

In April the Bulgarian Stock Exchange – Sofia AD (BSE-Sofia)

registered for trading on the bonds segment the following

corporate bond issue:

- 3Y bonds for EUR 3 million, issued by TBI Credit

EAD-Sofia, interest 8.75%, issue date 25.10.2011, 6-

month coupon payment, (stock-exchange code A27F).

10

The monthly secondary market stock-exchange turnover of

corporate bonds decreased by nearly 60% in April,

amounting to BGN 4.0 million (a daily average of BGN 0.25

million) from BGN 9.9 million in March. Outside the stock

exchange were concluded deals at the amount of BGN 0.8

million.

BSE transactions with bonds, April 2012 (date T; BGN mln)

0

5

10

15

20

02.0

403

.04

04.04

05.0

410

.04

11.0

412

.04

17.0

418

.04

19.0

420

.04

23.0

424

.04

25.0

426

.04

27.0

4

Bonds Segment Bonds / OTC

The prices of EUR-denominated 2013 globals went down to

the 103% level, and of USD-denominated 2015 globals kept

staying at the 113% mark.

On the secondary market the price of the compensation

instruments made a substantial increase at the end of the

month to BGN 0.49 per item. The compensation instruments

segment monthly turnover slightly increased, amounting to

BGN 1.0 million (a daily average of BGN 0.06 million)

compared with the BGN 0.9 million in March.

BSE transactions w ith compensatories, April 2012 (date T; BGN thousand)

0

200

400

600

800

1000

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

423

.04

24.0

425

.04

26.0

427

.04

Compens.instruments Segment compens.instruments / OTC privatis. (comp)

11

ASSET MARKETS

GROSS ASSETS:

real estate

(National Statistical Institute – quarterly

data)

NET ASSETS:

equity

commodities

forex

BG40 an d SOFIX

145

.04

22.0

4

27.0

4

250

300

350

400

450

500

75

85

95

105

115

125

135

03.0

1

08.0

1

13.0

1

18.0

1

23.0

1

28.0

1

02.0

2

07.02

12.0

2

17.0

2

22.0

2

27.02

03.0

3

08.03

13.0

3

18.03

23.0

3

28.03

02.0

4

07.0

4

12.0

4

17

BG40 SOFIX (r ight s c ale)

Re a l Es ta te P r ic e s (BGN pe r s q. m .)

800

810

820

830

840

850

860

870

880

890

0 3 . 01 13 . 01 23 .0 1 02 .0 2 1 2 . 02 2 2 . 02 03 . 0 3 13 .0 3 2 3 . 03 0 2 . 04 12 .0 4 22 .0 4

Gold (XAU/BGN)

1400

1600

1800

2000

2200

2400

2600

2800

03.0

1

08.0

1

13.0

1

18.0

1

23.0

1

28.0

1

02.0

2

07.0

2

12.0

2

17.0

2

22.0

2

27.0

2

03.0

3

08.0

3

13.0

3

18.0

3

23.0

3

28.0

3

02.0

4

07.0

4

12.0

4

17.0

4

22.0

4

27.0

4

FOREX (USD/BGN)

1.20

1.25

1.30

1.35

40

1.45

50

1.55

1.60

1.65

1.70

03.0

108

.0113

.0118

.0123

.0128

.0102

.0207

.0212

.0217

.0222

.0227

.0203

.0308

.0313

.0318

.0323

.0328

.0302

.0407

.0412

.0417

.0422

.0427

.04

1.

1.

12

Boris Malinchev EQUITY CAPITAL (NET ASSETS) (+359 2) 9145 1704

TRADE IN SECURITIES REGISTERED ON THE BSE-SOFIA : STOCK-EXCHANGE AND OTC TURNOVER (in millions of BGN) April 2012

municipal bonds

corporate bonds

of public companies

of non-public

companies

BSE trading

of which: 28.8 8.7 1.9 0 4.0 0.0 1.0 0.0 0 0.8 0.0 0 0

regular deals 28.8 8.7 1.9 0 4.0 0.0 1.0 0.0 0 0.8 0.0 - -

privatis. segment deals (cash) 0 0 - - - - - - - 0 0

Privatis. Segm. (compensative)* 0 0 - - - - - - - 0 - 0 0

Initial Public Offering Segment* 0 0 - 0 0 - - 0 - 0 - - -

OTC trading (purchases and sales, repo, tender purchases, redemption, registration etc.)** 29.7 5.7 0.6 0 0.8 0 0.0 0 0 1.7 2 - -

Source: BSE-Sofia daily reports

* Not included in the above totals

** reported through BSE trading platform

Trade in equities not registered on the BSE-

SofiaUCIT's

SegmentCompensation Instruments

Segment

MARKETS ALTERNATIVE MARKET Bonds Segment

MAIN MARKETPremium Equities Segment

Standard Equities Segment

Special Purpose Vehicles Segment

Structured Products Segment

Subscription Rights

Segment

Equities Segment

Special Purpose Vehicles Segment

The Bulgarian Stock Exchange – Sofia (BSE-Sofia) monthly

turnover in April nearly doubles (irrespective of only 16

stock-exchange sessions during the month), amounting to

BGN 40.2 million (a daily average of BGN 2.5 million),

compared to BGN 20.6 million in March. More significant

turnover reaches the trade in shares of Sopharma AD (BGN

27.7 million). The turnover in deals concluded off-stock-

exchange (reported through the stock-exchange platform) is

BGN 39.7 million. More significant deals has the trade in

shares of Sopharma AD (BGN 7.7 million) and Chimimport

AD (BGN 11.2 million).

BSE transactions with shares, April 2012 (date T; BGN mln)

0

510

15

20

2530

35

40

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

423

.04

24.0

425

.04

26.0

427

.04

AltM/SPV/OTC

AltM/SPV

AltM /Equities/OTC

AltM/Equities

priv atis.(BGN)

SPV/OTC

SPV

Standard/OTC

Standard Equities

Premium/OTC

Premium Equities

13

The prices of the Bulgarian stock market during the month

show a little fluctuating trend similar to that of the prices of

the leading world and regional stock markets.

DAX, SOFIX and BET,April 2012

4000

4500

5000

5500

6000

6500

7000

7500

8000

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

423

.04

24.0

425

.04

26.0

427

.04

250

300

350

400

450

500

DAX BET SOFIX (right scale)

BGTR30, BGREIT and CGIX in April 2012 г.

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

4.2 4.11 4.20 4.27

BGREIT

CGIX

BGTR30

14

Pension fund price indices, April 2012 (1 July 2004 BGN 1)

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

1.40

1.45

1.50

02.0

403

.0404

.0405

.0406

.0407

.0408

.0409

.0410

.0411

.0412

.0413

.0414

.0415

.0416

.0417

.0418

.0419

.0420

.0421

.0422

.0423

.0424

.0425

.0426

.0427

.04

VOLIDEX PROFIDEX UNIDEX

Prices of the bank shares in Bulgaria, eurozone and emerging markets, January - April 2012

20253035404550556065707580859095

100

03.0

110

.01

17.0

124

.01

31.0

107

.02

14.0

221

.02

28.0

206

.03

13.0

320

.03

27.0

303

.04

12.0

423

.04

125.000145.000165.000185.000205.000225.000245.000265.000285.000305.000325.000345.000365.000385.000405.000425.000445.000465.000485.000505.000525.000545.000

BANKSBSE

BANKSEMU

BANKSEM

BG40 and the equities prices of Bulgarian banks, listed on the BSE - Sofia, April 2012

100.00

105.00

110.00

115.00

120.00

125.00

130.00

135.00

140.00

02.04 10.04 18.04 24.04

50.00

60.00

70.00

80.00

90.00

100.00

BG40

BANKSBSE(rightscale)

15

The prices of the banks listed on the BSE-Sofia followed in

general the movement of the leading stock indices, the

SOFIX and the BG-40 as well as of the leading stock

markets, and in general terms coincided with the relatively

stable trend of the eurozone banks index.

There were no placements of shares on the IPO segment of

the BSE-Sofia in April.

BSE primary market, April 2012 (date T; BGN thousand)

0

200

400

600

800

1000

02.0

403

.04

04.0

405

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

423

.04

24.0

425

.04

26.0

427

.04

shares rights/shares bonds

Lubomir Tonev 3. FOREIGN EXCHANGE MARKET

(+359 2) 9145 1608 The foreign exchange trading in April reinforces the trend

from the previous months of lack of sharp movements in

exchange rates of the most traded currencies. The positive

news about a gradual recovery of the economies on both

sides of the Atlantic still can not overcome the concerns of

market participants about higher interest rates on European

countries debt and prevent them to take riskier positions.

Low activity reflected in a decrease in the index of investor

confidence in the euro area in April and the Chairman of the

Fed mentions the existence of problems in restoring the U.S.

economy, which in its turn strengthens the speculation that

the U.S., despite the refusal still will apply "quantitative

easing" policy. The political crisis in the Netherlands, the

results of the first stage of the presidential elections in

16

France and the unpredictability of the parliamentary elections

in Greece due in early May, fuel more and more the tensions

about the possibilities of the world to overcome soon the

possible effects of the debt crisis. In this aspect acts the

decision of the G20, that the IMF funds, which assists

troubled European economies grow by another USD 400

billion.

The movement of the USD against the BGN in April is in a

very narrow range within approximately BGN 0.02

throughout the month. The average monthly exchange rate

is BGN 1,48639 and it hardly differs from the average rate

for the previous month BGN 1,48164.

Daily BNB reference exchange rate for the USD,April 2012 (BGN per USD 1)

1.40

1.42

1.44

1.46

1.48

1.50

1.52

1.54

1.56

1.58

1.60

02.0

403

.04

04.0

405

.04

06.0

409

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

421

.04

23.0

424

.04

25.0

426

.04

27.0

4

17

Daily USD turnover and exchange rates of banks, April 2012

0

10

20

30

40

50

60

02.0

403

.04

04.0

405

.04

06.0

409

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

421

.04

23.0

424

.04

25.0

426

.04

27.0

4

BG

N p

er U

SD

1U

SD

mln

1.40

1.42

1.44

1.46

1.48

1.50

1.52

1.54

1.56

1.58

1.60

traded between banks bought from customerssold to customers average rate for purchases from customersaverage rate for sales to customers average interbank rate

The total turnover on the local foreign exchange market (a

gross sum of all sales and purchases by reporting entities) in

April is EUR 40827.2 million, and compared with the previous

month decreases significantly by EUR 11835.5 million. The

decrease in turnover is due to the consecutive celebration of

Easter in Catholic and Orthodox styles and the reduced

activity on the Bulgarian forex market during the Catholic

Easter holidays. The average daily turnover in April is EUR

2148.8 million, its decreased slightly compared with the

previous month. The decrease in turnover, compared to

March is realized mainly in spot trade segment between the

BNB and commercial banks. There is a slight decrease in the

spot trade between commercial banks and their final

costumers, while the interbank spot trade marks an increase

in turnover in comparison with the previous month.

The trade between the BNB and the banks in April is EUR

18500.4 million and shows a decrease compared to the

previous month by about EUR 5655.1 million. Unlike to the

previous months the central bank is a net buyer of foreign

exchange with a positive balance of EUR 145.8 million. In

18

deals with budgetary organisations, the BNB is a net seller of

foreign exchange with a positive balance of EUR 50.1 million.

Foreign exchange trading between banks, April 2011 to April 2012 (in mln of EUR)

124.4

106.4

179.0

170.5

134.0

179.0

78.8

175.9

167.3

113.7

152.0

110.7

177.0

April-11

May-11

June-11

July-11

August-11

September-11

October-11

November-11

December-11

January-12

February-12

March-12

April-12

Monthly EUR trading between BNB and banks,April 2011 to April 2012(EUR mln)

6473

6837

8085

8080

9754

7828

9557

10099

9651

10663

11753

12044

9323

-6515

-6751

-8041

-8001

-9562

-7700

-9604

-10111

-9784

-11071

-11967

-12112

-9177

-42

44

79

192

128

-47

-12

-408

86

-133

146

-68

-214

April-11

May-11

June-11

July-11

August-11

September-11

October-11

November-11

December-11

January-12

February-12

March-12

April-12

bought from banks sold to banks net

.

19

EUR exchange rate, April 2012 (BGN per EUR 1)

1.91182

1.95583

1.99984

02.0

403

.0404

.0405

.0406

.0407

.0408

.0409

.0410

.0411

.0412

.0413

.0414

.0415

.0416

.0417

.0418

.0419

.0420

.0421

.0422

.0423

.0424

.0425

.0426

.0427

.04

BNB interbank banks from customers banks to customers

Daily EUR turnover of banks, April 2012 (EUR mln)

0

20

40

60

80

100

120

140

160

02.0

403

.04

04.0

405

.04

06.0

407

.0408

.04

09.0

410

.04

11.0

412

.04

13.0

414

.0415

.04

16.0

417

.04

18.0

419

.04

20.0

421

.04

22.0

423

.0424

.04

25.0

426

.04

27.0

4

traded between banks bought from customers sold to customers

Interbank spot trading without the participation of the BNB in

April increases by nearly 30 percent compared to the

previous month, reaching EUR 177.0 million.

The turnover between banks and their final customers in

April is EUR 3392.2 million. The decrease compared to March

20

is EUR 248.1 million. Unlike the previous month the

purchases of foreign currency exceed the sales by EUR 160.9

million.

Foreign exchange trading of banks with customers - total, April 2012 (in mln of EUR)

-200

-150

-100

-50

0

50

100

150

200

02.04

03.0

4

04.0

4

05.04

06.04

09.04

10.04

11.0

4

12.0

4

17.0

4

18.04

19.04

20.0

4

21.0

4

23.0

4

24.0

4

25.04

26.04

27.04

bought from customers sold to customers net

Foreign exchange trading of banks with nonresidents, April 2012 (in mln of EUR)

-200

-150

-100

-50

0

50

100

150

200

02.0

403

.04

04.0

405

.04

06.0

409

.04

10.0

411

.04

12.0

417

.04

18.0

419

.04

20.0

421

.04

23.0

424

.04

25.0

426

.04

27.0

4

bought from nonresidents sold to nonresidents net

21

Financial institutions registered in the BNB under Art. 3, Para

2 of the Law on Credit Institutions and reporting daily to the

BNB foreign currency trading against levs in the country

slightly decrease their turnover in April compared with the

previous month. They buy foreign currency at the amount of

EUR 70.4 million and sell foreign currency equal to EUR 68.8

million.

Foreign exchange market April 2012(in mln of EUR)

Purchases Sales BalanceInterbank market (commercial banks) 177.0 177.0 0.0(Commercial) banks with customers 1776.6 1615.7 160.9 - of which: with nonresidents 68.1 55.8 12.3

BNB total 9388.0 9192.4 195.6 BNB with banks 9323.1 9177.3 145.8 of which: *with banks - SPOT 6474.0 2949.8 3524.2 *with banks - TOM 17.6 0.0 17.6 *with banks - TODAY 2831.5 6227.5 -3396.0 *with banks - NOTES 0.0 0.0 0.0 BNB transactions with budgetary organisations 64.9 14.8 50.1 BNB notes operations at counters 0.0 0.4 -0.3

Source: BNB, from banks’ and BNB’s daily reports

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3

1-interbank (without BNB); 2-banks with customers; 3-forex trading of financial institutions

Currency structure of forex trading for some participants, April 2012

Others

USD

EUR

22

Forex swaps and forwards in EUR terms (estimate)

FX swap and forward transactions - banks with final customers (in mln of EUR)Purchases Sales Balance

April 2012 3581.3 3657.7 -76.4 - of which: with nonresidents 3518.2 3611.6 -93.4FX structure (percentage)EUR 98.8 99.3Others 1.2 0.7

Interbank FX swap and forward transactions banks (in mln of EUR)Purchases Sales Balance

April 2012 43.0 43.0 0.0FX structure (percentage)EUR 100.0 100.0

The figures for foreign exchange swap deals include both the sales of foreign currecies for BGN and the subsequent purchase operations.

Source: BNB, from banks’ daily reports

TENDENCIES

Short-term expectations:

– the interbank money market to remain with low interest

rate levels;

– the SOFIX to move within the interval of 310 - 320 points;

– USD/BGN to move within 1.48 – 1.53.

23