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News roundup: Bulgaria property and finance

Two financial reports were recently released by Moody's. Both of which demonstrate good news for Bulgaria. The first of these was projections for fiscal deficit and unemployment across a series of countries, to give a measure of the economic picture for 2010.

Interestingly in this index, Bulgaria is reported likely to have a negligible 2010 budget deficit and unemployment of less than 10%, making it the most upbeat country in the index.

Spain was the country which fared worst, with not only a high deficit but increasing jobless numbers.

In their second piece of good news, Moody's Investor Service changed Bulgaria's outlook from stable to positive, the first positive rating on an EU country since the latter part of 2008.

Industry Watch also had good news for buy to let investors, saying that this would provide better returns than capital appreciation - and also noted property investors, rather than lifestyle buyers, are already on the increase. At last the Bulgarian government has passed the new law that all monies for property transactions must pass through the banking system. The law will probably be in effect late spring. This will bring about much needed transparency, via a property disclosure form where the parties state that the price on the deeds is actually the price being paid. Following on from this, stability on property valuations should arise.

Talking about money, Unicredit report that Bulgarians' debts have decreased and savings increased. Unlike some of their western counterparts, the Bulgarians have started saving and cut spending in the crisis. According to Unicredit, 87% of Bulgarians' wealth is in property, with the greater part of the remainder kept in the bank as savings. There is little in the stock exchange or other forms of investment and it is the avoidance of this type of risk which is helping Bulgarians get through the crisis.

Fractionallife reports on the launch of a fractional property ownership club in Bulgaria, from Bulgarian Property Consultants. The report says that BPC 'has developed and identified a new and dynamic business formula and has already received enormous interest from Bulgarian banks.' Shareholders are grouped into a club enabgling them to benefit from a low investment with returns of 10%. BPC has launched Cabacum Beach with 22 apartments and shares will be available shortly at under 4,000 euros.