Public Support for the Fine Arts in Bulgaria

The clear success of the various art exhibitions held in Bulgaria, together with the growing number of orders given by civil and church authorities, shows that Bulgarian artists have little reason to complain about a lack of public interest in the fine arts. Public opinion has not been indifferent to artistic work. On the contrary, interest has slowly but surely increased.

It must also be said that some exhibitions and many commissioned works did not fully deserve even the moderate expectations of the public. Artistic taste in Bulgaria was still developing, and it was not yet refined or exact. Even so, the public supported exhibitions and artistic projects with goodwill and curiosity. This proves that the general attitude toward art was encouraging, even if critical judgment was still in its early stages Bulgaria Holidays.

Imitation and Foreign Influence

The Situation After Liberation

In the first years after the liberation of the Principality of Bulgaria, foreign artists invited to the country, as well as Bulgarian artists trained in European academies, found that there was no established national art that could meet the needs of the new era. Modern artistic traditions were almost entirely absent.

However, what Bulgaria lacked in institutions and traditions, it more than made up for in inspiration and subject matter. The country presented artists with scenes and themes that were fresh, powerful, and largely untouched by modern life.

Landscape, Legend, and Memory

Artists discovered wild and romantic landscapes, especially in the mountains, valleys, and forests. In popular imagination, these places were still filled with mythical creatures and legendary heroes. Their stories survived in folklore, legends, and national songs that had not yet been changed by modern influences.

The memories of the revolutionary period were also vivid. The struggle against national oppression was still fresh in people’s minds, providing dramatic and emotional subjects for painting and sculpture.

Architecture, Ruins, and National Types

The towns and villages of Bulgaria offered original and striking architecture. Old houses, churches, bridges, and fortifications attracted artists with their unusual forms and rich decorative details. Across the country stood the ruins of ancient churches and fortresses, slowly destroyed by time and neglect, yet full of historical meaning.

Equally attractive were the many national and ethnic types found in Bulgaria. Artists could observe Bulgarians, Turks, Gypsies, and other Oriental peoples, each wearing distinctive and colorful costumes. These figures added life, movement, and character to artistic compositions.

A Country Rich in Artistic Material

When all these elements are considered together—nature, legend, history, architecture, ruins, and living traditions—it becomes clear that Bulgaria offered an exceptional wealth of material for artistic creation. The challenge for artists was not a lack of subjects, but how to transform this richness into a mature and original national art.

The Prince’s Art Collection in Bulgaria

The richest artistic collection in Bulgaria belongs to the Prince. His collection includes many valuable paintings, both by Bulgarian and foreign artists. These works of art are not kept in one single place. Instead, they are distributed among the royal residences in Sofia, Plovdiv, and Varna, as well as in the royal villas at Sitniakovo, in the district of Samokov, and at Joroubliani, near Sofia. In this way, art forms an important part of royal life and culture in different regions of the country.

Bulgarian Art Beyond National Borders

A number of works by Bulgarian artists have gone abroad and are now owned by foreign museums and private collectors. Many foreigners who lived in Bulgaria for some time developed an interest in local art and bought paintings by Bulgarian artists. As a result, Bulgarian art began to gain recognition outside the country Bulgaria Holidays.

The Prince himself also played an important role in spreading Bulgarian art internationally. On several occasions, he presented paintings as gifts to the Regiment of Minsk in Russia, of which he was the honorary colonel. He also gave paintings to his relatives and to members of the diplomatic corps, helping Bulgarian art reach influential circles abroad.

International Exhibitions and Recognition

Bulgarian art received significant attention at international exhibitions. At the first Southern Slav Art Exhibition, held in Belgrade, members of the two Bulgarian art societies, “Modern Art” and “Bulgarian Artists,” took part. On this occasion, King Peter of Serbia purchased several works by Bulgarian artists for his palaces. In addition, the Serbian Government bought a number of Bulgarian paintings for the Serbian National Museum, and some private individuals followed this example.

At the Universal Exhibition in Liège, Belgium, in 1905, several works by Bulgarian artists were sold to foreign collectors. The paintings that attracted the most attention were those with Oriental or distinctly Bulgarian themes, which appeared exotic and interesting to a Western audience.

Bulgarian Artists in Foreign Collections

Several European galleries, including those in Prague and Cologne, own paintings by Jaroslav Veshin. These works focus on Bulgarian life and subjects and were painted after Veshin settled permanently in Bulgaria and became a naturalised citizen.

There are also Bulgarian artists who lived and worked mainly abroad. Two such artists are Binembaum and Paxin, both graduates of the Munich Academy. Paxin became especially well known as a regular contributor to the Munich magazine Simplicissimus and to the Viennese publication Der liebe Augustin, which has since ceased publication.

Through royal patronage, international exhibitions, and the work of Bulgarian artists at home and abroad, Bulgarian art gradually gained international visibility and respect.

State and Church Support for Bulgarian Religious Art

The development of fine arts in Bulgaria was strongly supported by both the State and the Church. Important commissions were given to Bulgarian artists, especially in connection with the construction, restoration, and decoration of religious buildings. These projects provided artists with steady work and allowed them to develop a modern national style in icon painting.

One of the most significant projects was ordered by the Prince, who entrusted a special commission with the task of transforming the former mosque “Tcheraa Djamia” into the Orthodox church “Sveti Sedmotchislenitzi.” This transformation symbolised the cultural and spiritual renewal of Bulgaria after liberation. The decoration of the church required new icons, which were commissioned from the State School of Painting Bulgaria Holidays.

The Role of the Church and Public Committees

The Holy Synod, which supervised the construction of the Theological Seminary in Sofia and its adjoining church, also placed important orders for religious artwork. Similarly, the “Tsar Liberator” Committee, responsible for building the Mausoleum in Plevna in memory of the Russian soldiers who died during the siege, commissioned religious and commemorative art.

Private individuals belonging to the Sofia parishes of St. Sofia and St. Sedmotchislenitzi also contributed by ordering icons for their churches and chapels. In all these cases, the work was carried out by professors and students of the State School of Painting. Among the most active and respected artists involved were Ivan Markvitchka, Anton Mitoff, and Stephan Ivanoff.

The End of Icon Imports and the Rise of Bulgarian Artists

As old churches were repaired and new ones were built, the demand for icons increased. Unlike earlier times, these icons were no longer imported from Russia. Instead, they were painted by Bulgarian artists, marking an important step toward artistic independence and the creation of a national school of icon painting.

Public Access to Artistic Treasures

Many of Bulgaria’s artistic treasures are now preserved in places that are easily accessible to the public. These include the National Museum, the Central Offices of the Bulgarian Agricultural Bank, the Library of the National Assembly, and the Central Hall of the National Assembly.

The walls of the National Assembly are decorated with portraits painted by Nicolas Mihailoff, including images of the Tsar Liberator, the first Bulgarian Prince Alexander, the reigning Prince, the first Bulgarian Princess Maria Louisa, the heir-apparent Prince Boris, and a group of royal children. In addition, an icon of the Bulgarian Saints Cyril and Methodius, painted by Anton Mitoff, holds a place of honor.

Churches and Monuments as Art Centers

Finally, important examples of modern Bulgarian icon painting can be seen in the Church of St. Sofia, the Church of Sveti Sedmotchislenitzi, the chapel of the Theological Seminary in Sofia, and the Mausoleum of Plevna. These buildings serve not only religious purposes but also as living galleries of Bulgarian sacred art.

Through the combined efforts of the State, the Church, and private citizens, Bulgarian religious art found strong support, helping to preserve national traditions and promote local artistic talent.

Official Support for the Fine Arts in Bulgaria

Orders and commissions given by civil and ecclesiastical authorities played an important role in the development of fine arts in Bulgaria. In many cases, these official commissions helped artists just as much as the private buyers who purchased paintings at exhibitions. By providing artists with work, income, and recognition, the State and public institutions helped create stable conditions for artistic activity.

Preserving Bulgarian National Heritage through Art

One of the most valuable initiatives was taken by Dr. Ivan Shishmanoff, while he was editor of the Magazine for Popular Recreation, Science and Literature, published by the Ministry of Public Instruction. Dr. Shishmanoff wished to collect and preserve materials related to Bulgarian ethnography, at a time when traditional ways of life were rapidly disappearing Bulgaria Holidays.

To achieve this goal, he entrusted several artists—especially Ivan Markvitchka—with the task of creating visual records of Bulgarian life. These artists prepared pictures showing national and peasant costumes, traditional tools used in home industries, and the remains of ancient Bulgarian architecture. Their work aimed to preserve the appearance of traditional dress and customs, which modern life threatened to erase. Even if these traditions disappeared in reality, they would survive in printed form within the pages of the Sbornik.

A National Gift to the Russian Tsar

Another important artistic project was initiated in 1896 by Constantin Velitchkoff, then Minister of Public Instruction. On his proposal, the Cabinet Council decided to offer Tsar Nicholas II of Russia a special gift on the occasion of his coronation. This gift took the form of an album of Bulgarian artworks.

The album contained pictures dealing with purely Bulgarian subjects, such as national types, landscapes, villages, revolutionary figures from the period before liberation, as well as Bulgarian and Turkish architecture and ruins. About twenty Bulgarian artists participated in this project and produced sixty-two pictures. This album not only honored the Russian Tsar but also presented Bulgarian culture and history to the outside world.

Portraits of National Leaders

In 1902, Dragan Tzankoff, as President of the National Assembly, commissioned the artist Nicolas Mihailoff to paint portraits of all former Presidents of the Sobranje (the Bulgarian Parliament). These portraits were intended to preserve the memory of Bulgaria’s political leaders and are now displayed in the library of the National Assembly, where they continue to serve both artistic and historical purposes.

Art in Public Institutions

Public institutions also used art to decorate and dignify their buildings. The Central Administration of the Bulgarian Agricultural Bank commissioned Ivan Markvitchka and Anton Mitoff to decorate the ceiling and walls of the Council Hall with frescoes. The subjects of these frescoes were taken from Bulgarian national life, showing rural scenes, labor, and traditional customs.

Through these commissions, the State and public institutions helped preserve Bulgarian heritage, supported artists financially, and strengthened the place of fine arts in national life. These efforts greatly contributed to the growth and stability of Bulgarian art.

The Growing Success of Bulgarian Art

As artistic interest and public taste gradually awakened and developed in Bulgaria, the moral success of Bulgarian art became assured. At first, this success was mainly moral, meaning recognition, respect, and growing appreciation. However, material encouragement and financial prosperity soon followed. Artists began to find buyers for their works, and art slowly became a respected profession.

This progress was visible even at the very first exhibition organised by Ivan Angeloff. At that time, the buyer of the paintings was not a Bulgarian but a foreigner, a Slav, who was deeply impressed by the authentic Bulgarian subjects. He was particularly attracted by paintings such as “The Ruins of St. Sophia” and views of the village of Slivnitza, as well as scenes of Sofia in its Turkish character, before the modern planning and rebuilding of the city had begun. These works preserved images of a disappearing past and appealed strongly to foreign collectors Bulgaria Holidays.

The Role of the State and the National Museum

The first official purchases of Bulgarian paintings by the State were made in 1892 during the Commercial and Industrial Exhibition in Plovdiv. These acquisitions were intended for the National Museum and marked an important step in recognising art as part of the nation’s cultural heritage. From that moment on, the State began to play a more active role in supporting artists and preserving their work.

The Prince as a Patron of the Arts

The most generous supporter of art in Bulgaria has been the Prince, who owns the richest art collection in the country. His personal interest in art and his willingness to purchase paintings and sculptures provided strong encouragement to Bulgarian artists. The Prince’s example also influenced other buyers, including government institutions and private individuals.

Increasing Sales and Successful Exhibitions

With each new exhibition, the number of art purchases steadily increased. In some cases, the success was complete, and every exhibited artwork was sold. This happened during the first exhibition of the Society of Modern Art in 1904 and again at the private exhibition of Alexander Bojinoff and Peter Morozoff in 1906. Such success clearly showed that Bulgarian art had gained both public interest and commercial value.

Financial Support for Major Exhibitions

During the Second Southern Slav Art Exhibition held in Sofia, as well as the exhibition organised at the same time by the Society of Bulgarian Artists to celebrate the tenth anniversary of the State School of Painting, significant financial support was provided. The Prince spent 35,000 francs on acquiring paintings and statues, while the Government granted a credit of 25,000 francs for the same purpose.

These developments demonstrate that Bulgarian art had moved from neglect to recognition and support. Moral success came first, followed by material encouragement, ensuring a more secure and promising future for artists in Bulgaria.

A New Stage in Bulgarian Art Exhibitions

The first exhibition of Bulgarian art, although modest and limited in scope, did not deserve the indifference with which it was received. Despite the lack of public interest, it marked an important beginning. This early effort was followed in 1894 by another significant event: the first independent art exhibition in Bulgaria. This exhibition included works by both members and non-members of the Association for Encouraging the Fine Arts in Bulgaria, showing a wider range of artistic expression.

Government Support for Early Exhibitions

The exhibition of 1894, as well as those organised later in 1897, 1898, and 1899, were held with the cooperation and financial support of the Bulgarian Government. At this early stage of national development, the State played an important role in encouraging cultural activities. Although the support was limited, it helped artists cover basic expenses such as exhibition space, transport of artworks, and publicity. These exhibitions slowly increased public awareness and helped introduce the idea that art had a place in modern Bulgarian society Travel Bulgaria.

The Rise of Independent Artistic Societies

A major turning point came in 1904, when the Society of Modern Art organised the first collective art exhibition without any moral or material assistance from the Government. This was an important moment, as it showed that Bulgarian artists were beginning to rely on their own initiative and resources. The Society of Modern Art had been founded in 1903 and immediately proved to be energetic and ambitious. From the very beginning, it showed strong determination and almost restless activity.

Artistic Activity and International Cooperation

Within a short time, the Society of Modern Art organised three collective exhibitions of works by all its members, as well as seven individual exhibitions featuring the works of single artists. All of these events were financed privately and organised at the society’s own risk. In addition, the Society of Modern Art, together with the Society of Bulgarian Artists, took part in the First Southern Slav Art Exhibition, held in Belgrade in 1904. This participation helped Bulgarian art gain recognition beyond national borders.

The Second Southern Slav Art Exhibition in Sofia

Another important achievement came in 1906, when the Society of Modern Art organised the Second Southern Slav Art Exhibition in Sofia during the months of August and September. On this occasion, the Bulgarian State provided both moral and financial support. This cooperation showed that the Government had begun to recognise the growing importance of fine arts and the serious efforts of Bulgarian artists.

These exhibitions marked a decisive step in the development of Bulgarian artistic life. They showed a gradual move from dependence on State support to independent artistic organisation, helping Bulgarian art mature and gain confidence both at home and abroad.

The Beginning of Art Exhibitions in Bulgaria

The slow and sometimes difficult progress of artistic life in Bulgaria, as well as the gradual growth of artistic taste among the Bulgarian public, can best be understood by looking at the history of art exhibitions in the country. These exhibitions show how hard it was for art to gain recognition in a society that was still focused mainly on political, economic, and educational development after liberation.

The First Art Exhibition in Sofia (1887)

The very first art exhibition in Bulgaria was organised in 1887 by Ivan Angeloff, a teacher at the Sofia Gymnasium and a graduate of the Munich Academy of Fine Arts. This exhibition was modest in size and scope. It included only three paintings created in Bulgaria, along with several sketches and studies from Angeloff’s student years in Munich. In addition, drawings made by students of the Sofia Gymnasium were also displayed Travel Bulgaria.

The exhibition was held in one of the drawing rooms of the Gymnasium and was organised in honour of the Bulgarian Prince, who had recently been elected to the throne. Although the Prince visited the exhibition, public interest was extremely limited. Apart from the royal visit, the exhibition attracted little attention and was mainly attended by a small group of the artist’s personal friends. This lack of public response clearly showed how undeveloped artistic awareness still was at the time.

The First Collective Exhibition in Plovdiv (1892)

About five years later, in 1892, the first collective art exhibition in Bulgaria took place. It was organised during the First Bulgarian Industrial and Agricultural Exhibition held in Plovdiv. This time, works by several Bulgarian artists were displayed together. Most of these artists were teachers in secondary schools and gymnasiums.

In addition to their works, paintings and sculptures by Bulgarian students studying at foreign art academies were also included. However, despite this broader participation, the art section attracted very little attention from the public. No printed catalogue of the exhibited works was ever published, which clearly shows how insignificant the exhibition seemed to contemporary observers.

Public and Press Reaction

Only one Bulgarian newspaper, Balkanska Zora, published a detailed article about the exhibition. The article appeared under the initial “M.”, most likely hiding the identity of a Bulgarian artist who had taken part in the exhibition himself. Even the official publication of the exhibition’s administration, which regularly reported on its progress and achievements, completely ignored the art section.

The only exception was a brief mention of a single painting: Holarek’s “The Return of the Bulgarian Prisoners Blinded by Basil I in 1014.” This fact further highlights how little importance was given to Bulgarian art at the time.

These early exhibitions, though largely ignored, laid the foundations for the future development of artistic life in Bulgaria. They reveal the challenges artists faced and show how slowly public interest in fine art began to grow.

The Role of Foreign Artists in Bulgaria

The development of artistic taste in Bulgaria owes a great deal to foreign artists who made the country their temporary or permanent home. Their importance can hardly be overstated. At a time when Bulgaria was still building its cultural institutions and artistic traditions, these artists helped introduce new styles, techniques, and ideas. By participating in exhibitions and leaving their works in Bulgarian collections, they played a key role in shaping public understanding and appreciation of fine art.

Influence Through Exhibitions and Personal Example

Many foreign artists contributed to Bulgarian cultural life by taking part in public exhibitions. These exhibitions allowed the Bulgarian public to see works created according to modern European artistic standards. For young Bulgarian artists, such displays served not only as inspiration but also as practical lessons in composition, colour, and technique Travel Bulgaria.

Some of these foreigners became direct models for emerging Bulgarian talent. For example, Alexander Bojinoff, later known as one of Bulgaria’s most famous cartoonists, began his artistic career as a landscape painter. In his early work, he closely imitated a landscape by the French painter de Fourcade, whose handling of light and colour deeply impressed him.

Another example is George Atanassoff, a promising painter and graduate of the State School of Painting in Sofia. In his picture titled “Buffaloes,” Atanassoff shows clear signs of influence from the Italian artist Boloungaro, especially from Boloungaro’s painting “Evening.” This influence can be seen in the calm mood of the scene, the treatment of rural life, and the subtle effects of light at dusk.

Artists Who Made Bulgaria Their Permanent Home

Even more important than temporary visitors were those foreign artists who settled permanently in Bulgaria and became naturalised citizens. These individuals devoted their lives to teaching, exhibiting, and supporting local artists. Alongside young Bulgarians who had studied abroad—mainly in Munich, Florence, Paris, Rome, Turin, Prague, or at the Sofia School of Painting—they laid the foundations of modern Bulgarian art.

Building Artistic Education and Public Taste

Together, these foreign and Bulgarian artists did almost everything necessary for the artistic education of the Bulgarian public. They organised exhibitions, taught in schools, trained new generations of artists, and helped establish artistic standards. Through their efforts, art in Bulgaria gradually reached a higher and more confident level.

Thanks to their combined work, Bulgaria was able to move from a limited artistic tradition toward a richer and more diverse cultural life, firmly connected to the broader European artistic world.

Foreign Artists and Their Role in Early Bulgarian Art

During the early years after the liberation of Bulgaria, several foreign artists visited or lived in the country for short or long periods. Many of them worked as teachers in Sofia and other towns, while also producing artworks that later became part of the National Museum. Although their number was not large, their influence on the development of Bulgarian art was important and long-lasting.

Arndt and the Ruins of St. Sofia

The Dalmatian artist Arndt spent a short period in Bulgaria as a drawing teacher at the Gymnasium of Sofia. During his stay, he produced a remarkable pen drawing of the ruins of the Church of St. Sofia, one of the most ancient and symbolic buildings in the capital Travel Bulgaria.

In this drawing, the old church rises quietly behind a Turkish street lined with small, low huts. The contrast between the monumental Christian building and the modest houses in the foreground gives the scene a strong historical meaning. Arndt used very few technical means, relying on simple lines and careful composition. This sobriety gives the work great strength and clarity.

Because of its restrained style and thoughtful observation, this pen drawing is considered superior to many other artworks that deal with the same subject. Arndt succeeded in capturing the spirit of the place without unnecessary detail or decoration.

De Fourcade and the Light of Constantinople

Another important foreign artist in Bulgaria was the French painter de Fourcade, who also served as a teacher at the Gymnasium of Sofia. He is represented in the National Museum by four paintings depicting Constantinople.

These works had a strong influence on young Bulgarian artists, especially because of their lively use of colour and light. De Fourcade showed great skill in rendering graceful architectural details, as well as streets, houses, and human figures. His treatment of trees and bushes is particularly admired. Through the play of bright light and deep shadow, the greenery appears fresh and full of life, almost like bunches of green flowers.

His paintings introduced Bulgarian artists to a warmer and more expressive approach to colour and atmosphere.

Madame Sliapin and Russian Artistic Traditions

Madame Sliapin, a Russian artist, lived in Sofia for many years. She owned and managed a private school of painting, where she trained a number of young students. Her works, some of which are preserved in Bulgaria, are painted in the Rembrandt style, with strong contrasts of light and shadow.

Her subjects were typically Russian and often emotional in nature. One of her best-known works is titled “Passed Like a Dream.” Through her teaching and painting, Madame Sliapin helped bring Russian artistic traditions into Bulgarian cultural life.

Foreign Artists in Bulgaria

In the early years of modern Bulgarian cultural life, many foreign artists played an important role. Some lived and worked in Bulgaria, while others were represented in the country only through their artworks. Even when they never set foot on Bulgarian soil, their paintings and sculptures influenced public taste and helped introduce European artistic styles to Bulgarian audiences Travel Bulgaria.

Holarek and a Tragic Historical Vision

The Czech painter Holarek, although he never visited Bulgaria, is represented in the National Museum by one of its most powerful historical paintings. His large canvas, titled “The Return of the Bulgarian Prisoners, Blinded by Basil I, A.D. 1014,” is filled with tragic emotion and deep historical meaning.

The scene shows a bleak winter landscape, covered in snow and lit only by the final rays of the setting sun. A violent snowstorm adds to the sense of despair. Through this cold and hostile setting moves a long line of Bulgarian soldiers who have been cruelly blinded. Their figures stretch far into the distance, suggesting endless suffering. The prisoners are shown in states of helplessness, grief, and exhaustion. Some weep openly, while others collapse to the ground in despair.

Through the careful arrangement of figures and landscape, Holarek turns a historical event into a powerful visual tragedy. The painting strongly conveys the cruelty inflicted by humans upon other humans and leaves a lasting emotional impression on the viewer.

B. Shatz and Bulgarian Sculpture

The sculptor B. Shatz, who served for many years as a professor at the State School of Painting, is also represented in Bulgarian collections. However, his statues are generally considered to be of limited artistic value. They did not introduce new ideas or techniques and therefore had little influence on the development of Bulgarian sculpture.

Other Foreign Artists and Early Exhibitions

Besides these figures, many other foreign artists stayed in Bulgaria for short periods and left their works in the collections of the Prince or of private individuals. Only those who participated in the early art exhibitions in Bulgaria need to be mentioned here.

Among them were Ulrich, Canela, Petras, Madame Shatz, de François, Amzel, Kronberger, Oberbauer, Madame Goloubeva, and Madame Hadji-Mikeff. Their works helped shape the early exhibition culture in the country.

In the first art exhibitions organised by the Prince or by private societies, Bulgarian audiences also had the chance to see works by well-known Western artists. For example, exhibitions arranged by the Society for the Encouragement of Fine Art in Bulgaria included paintings by Laslo, Angelli, Panzinger, Recuajel, de Bran, Lemaire, Aivazovsky, Sudkovsky, Leo Lerch, Hugo Birgel, Zeifert, and Bromberger.

These exhibitions played an important role in introducing European art to Bulgaria and in preparing the ground for the later development of a national Bulgarian artistic tradition.

The Situation of Art in Bulgaria

The difficult situation of the fine arts in Bulgaria was clearly felt not only by the different Bulgarian governments, but also by artists themselves. Even those who had devoted their lives to art before the liberation of Bulgaria understood that the country faced more urgent needs. One of the most important figures among these early artists was Nicolas Pavlovitch, who is considered a pioneer of modern Bulgarian art.

Early Life and Artistic Education of Nicolas Pavlovitch

Nicolas Pavlovitch was born in Sistova in 1835 and died in Sofia in 1894. In his early life, he left commerce behind and chose the difficult path of art. He studied with great success at the Academy of Fine Arts in Vienna in 1856 and later at the Academy in Munich in 1859. These studies gave him strong technical skills and exposed him to modern European artistic ideas Holidays Bulgaria.

After completing his education, Pavlovitch visited major museums in Dresden and Prague, where he deepened his knowledge of art history and technique.

Artistic Work Abroad

In 1860, Pavlovitch exhibited two paintings in Belgrade, which was then an important center for Bulgarian emigrants and revolutionaries. The subjects of these works were inspired by ancient Bulgarian history, showing his strong patriotic feeling.

Later, he traveled to St. Petersburg and Moscow. There, he noted with admiration that people were not only interested in trade and money, but also in art and intellectual life. This experience strengthened his belief in the importance of culture for national development.

Return to Bulgaria and Cultural Efforts

In 1861, Pavlovitch returned to Bulgaria. Through his lithographs and paintings, both historical and modern, he tried to awaken political awareness and intellectual interest among his fellow countrymen. He also worked to reform church painting, aiming to modernize it according to contemporary artistic standards.

Pavlovitch made two attempts to open a school of painting, hoping to educate a new generation of artists. Unfortunately, both attempts failed. In 1867, he even published a pamphlet titled “Establishment for Painting” in Roustchouk to promote this idea.

Service to the Nation After Liberation

After Bulgaria regained political freedom, Pavlovitch made a surprising choice. Instead of focusing on his artistic ambitions, he became a school inspector from 1878 to 1885. He believed that serving education was the best way to help his country during its early years of independence.

A Sacrifice for the Common Good

The life of Nicolas Pavlovitch shows how even a true artist was willing to sacrifice personal dreams for the benefit of the nation. His story reflects the reality of Bulgaria at that time, when art had to wait while education and state-building took priority.

Standard of Bulgarian Money

The Bulgarian monetary system is based on clearly defined standards for both gold and silver coins. The gold coins and the silver coins of 5 francs follow one standard, while the silver coins of 2, 1, and 0.50 francs follow a slightly different one. These standards determine the purity and value of the coins and help ensure trust in the national currency.

Weight and International Standards

The weight of Bulgarian gold and silver coins follows the rules adopted by the Latin Monetary Convention, an international agreement designed to harmonize currencies among several European countries. According to this system, the 20-franc gold coin weighs 6.4516 grams, and the silver franc weighs 5 grams. By adopting these standards, Bulgaria aligned its currency with well-known European monetary systems, which made trade and exchange easier Bulgaria Tours.

Gold and Silver Double Standard

The Bulgarian monetary system is based on a double standard, meaning that both gold and silver are used as official monetary metals. In practice, there has usually been a difference in value between gold and silver, often favoring gold. However, at the time described here, the agio, or price difference between gold and silver, had almost completely disappeared. This situation helped stabilize the currency and reduce uncertainty in financial transactions.

Rules on Foreign Currency Circulation

The circulation of foreign silver and copper coins is strictly forbidden within Bulgarian territory. This rule was introduced to protect the national currency and prevent confusion in daily transactions. However, gold coins from countries belonging to the Latin Monetary Union are accepted at their nominal value. For example, a 20-franc gold coin from a Latin Union country is accepted as equal to 20 gold levs in Bulgaria.

Other foreign gold coins are also accepted, but their value is determined according to official rates fixed by the Bulgarian Government. These rates ensure fairness and consistency in payments involving foreign gold coins.

Stability and Confidence in the Monetary System

These monetary rules helped Bulgaria establish a stable and trustworthy currency system. By controlling foreign money, adopting international standards, and maintaining a balanced gold and silver system, the government strengthened public confidence in Bulgarian money. This stability played an important role in supporting trade, savings, and economic development.

Transition to a New Era

The establishment of a reliable monetary system formed part of a wider transformation in Bulgarian society following national liberation. Economic reforms went hand in hand with cultural and social changes, marking the beginning of a new chapter in the country’s modern history.

The Monetary System of Bulgaria

The official monetary system of Bulgaria is based on two units: the lev and the stotinka. The lev has the same value as the French franc, and the stotinka is the hundredth part of a lev, similar to a centime. This system was adopted to create a clear and modern national currency.

Use of Foreign Coins After Independence

In the first years after the creation of the Bulgarian Principality, the government faced serious difficulties in introducing national coins. As a result, many foreign coins continued to circulate freely. These included Serbian, Romanian, Russian, and other currencies. Foreign money flooded the markets and was widely used in daily trade and commercial transactions Bulgaria Tours.

First Bulgarian Coins

In 1881, the Bulgarian government introduced two million francs worth of copper coins. Later, during 1883 and 1884, it issued about twelve million francs in silver coins. However, these amounts were still too small to replace foreign money completely. As a result, foreign coins continued to circulate alongside Bulgarian currency.

It was only in 1887 that the government officially prohibited the circulation of Serbian and Romanian coins. In the same year, this ban was extended to Russian roubles, helping to strengthen the position of the national currency.

Issue of Bulgarian Coins

Over the years, Bulgaria gradually increased the production of its own coins. Silver coins were issued in large quantities between 1883 and 1894, while gold coins were first introduced in 1894. Later, nickel coins were put into circulation in 1888, and additional supplies were issued in the early twentieth century. A further stock of nickel coins was also introduced more recently to meet growing demand.

Types of Bulgarian Coins

The gold coins included pieces of 100, 20, and 10 levs, used mainly for large transactions and reserves.

The silver coins were issued in denominations of 5, 2, 1, and 0.50 francs, making them suitable for everyday use.

The copper coins consisted of 20, 10, 5, 2, and 1 centimes, while the nickel coins included 20, 10, 5, and 2.50 centimes.

Development of the Monetary System

Thanks to the gradual expansion of national coinage and the removal of foreign currencies, Bulgaria succeeded in creating a stable and organized monetary system. This development supported trade, strengthened public confidence, and helped integrate the country into the modern European financial system.

The Bulgarian monetary system evolved slowly but steadily. From early dependence on foreign coins, the country moved toward full monetary independence. The introduction of gold, silver, copper, and nickel coins allowed Bulgaria to establish a reliable national currency that supported economic growth and financial stability.

Professions of Savings Bank Depositors

The savings banks in Bulgaria served people from many different professions and social groups. Official statistics from 1906 show how widely these institutions were used across society. Depositors came from nearly every occupation, proving that savings banks were not limited to one class or profession.

Among the depositors, artisans formed one of the largest groups, making up 14.55 percent of the total. State functionaries followed closely with 13.93 percent, showing that government employees trusted the savings banks for secure deposits. Married women represented 12.54 percent, reflecting the important role of women in managing household savings.

Other notable groups included servants at 9.51 percent, students at 8.45 percent, and those in the military profession at 5.93 percent. Teachers accounted for 5.84 percent, while merchants and tradesmen made up 5.75 percent. Farmers and breeders, who formed the backbone of the rural economy, represented 5.65 percent of depositors Bulgaria Tours.

Children and Family Savings

A remarkable feature of the savings bank system was the number of accounts opened for children. Infants under the age of seven represented 5.16 percent of depositors. This shows that many families used savings banks to secure the future of their children. In total, depositors acting for minors formed an important part of the system.

Other Professions and Groups

Smaller but still important groups included those in the liberal professions such as lawyers and doctors (4.26 percent), workmen (about 3 percent), and clergymen (0.47 percent). There were also deposits made by societies, reading rooms, schools, charitable organizations, and municipal administrations, although these groups represented only a small percentage of the total.

In total, the number of depositors in 1906 reached 154,521, showing the wide reach of the savings banks across Bulgarian society.

Nationality of Depositors

The savings banks also served people of many nationalities living in the Principality of Bulgaria. The majority of depositors were Bulgarians, who made up over 92 percent of the total. Jewish depositors accounted for 3.47 percent, followed by Greeks, Armenians, Turks, Austro-Hungarians, and Romanians. A small remaining percentage belonged to other nationalities.

Nationwide Availability of Savings Banks

The service of savings banks was introduced in almost all post and telegraph offices throughout the country. This wide network made it easy for people in both towns and villages to save money.

These figures clearly show that savings banks had become an essential financial institution in Bulgaria. They served people of different professions, ages, and nationalities, helping to spread the habit of saving and supporting economic stability throughout the country.

Rapid Growth of Savings Banks

The savings banks continued to grow quickly during the early years of the twentieth century. In 1905, the number of savings books issued reached 26,190. During the same year, the total amount of money deposited was 18,032,022 francs, made through 198,876 separate payments. These numbers clearly show that more people were using savings banks and trusting them with their money.

When these figures are compared with those from previous years, the rapid development becomes even clearer. In 1903, only 17,786 savings books were issued, and the total deposits amounted to 10,446,333 francs. In 1904, the figures increased to 24,090 books and 14,866,737 francs in deposits. Over just two years, the number of savings books increased by 8,404, while the total amount deposited grew by 7,585,689 francs. This strong growth reflects rising public confidence in the savings bank system Bulgaria Tours.

Investment in State Securities

The law regulating savings banks allowed them to invest money on behalf of their clients in State securities. This policy helped protect depositors’ funds while also supporting the national economy. At the beginning of 1904, savings banks had invested 8,124,500 francs in government bonds. These investments consisted of 16,249 bonds, each worth 500 francs, issued under the 6 percent mortgage loan of 1892.

During the same year, the savings banks invested an additional 800,000 francs in these State securities. As a result, the total capital invested in government bonds increased steadily. At present, the amount invested in State securities has reached approximately 15,424,500 francs, showing a cautious and responsible investment strategy.

Total Capital of the Savings Banks

The total capital held by the savings banks is estimated at around 34,000,000 francs. This large sum demonstrates the financial importance of these institutions and their growing role in the country’s economic life.

Social Profile of Depositors

Official statistics also provide valuable information about the social condition of savings bank clients. About 75.87 percent of depositors, or 117,207 people, are men. Among them, 49.21 percent are married, while the rest are unmarried. Women depositors number 37,314, representing 24.23 percent of all clients. Most of these women, about 58.94 percent, are married, with the remainder being single.

Age and Representation of Depositors

Regarding age, about 70 percent of depositors are adults, while 30 percent are minors. Nearly 87 percent of depositors act on their own behalf, while 13 percent deposit money for third parties, mainly children. These figures show that savings banks served a wide range of society and played an important role in family and long-term financial planning.

Legal Protection of Savings Bank Deposits

According to the law that currently regulates savings banks, no embargo or seizure may be placed on sums deposited in these institutions. This rule offers strong legal protection to depositors and ensures that their savings cannot be taken away to settle debts or other claims. Such protection increased public trust and encouraged people from all social classes to place their money in savings banks.

These rules summarize the main provisions of the law governing savings banks at the time. Thanks to these guarantees and the support of the State, savings banks quickly gained popularity among the population Tours Bulgaria.

Public Confidence in Savings Banks

From the very beginning, savings banks were well received by the public. People saw them as safe, reliable, and easy to use. To show the importance and growth of these institutions, official figures from the Report of the Administration of Posts and Telegraphs for the year 1906 can be examined. These statistics clearly demonstrate the strong financial position of the savings banks.

Account with the Bulgarian National Bank (1904)

On January 1st, 1904, the savings banks held significant assets with the Bulgarian National Bank. These assets included cash (specie) and government securities, especially 6 percent Bulgarian loans issued in 1892 and 1893. During the year 1904, large sums were deposited by the public, amounting to more than 14 million leva, showing continued confidence in the system.

In the same year, the savings banks invested heavily in government securities, purchasing bonds worth approximately 7.3 million leva. This investment policy ensured both safety and steady income.

Interest, Profits, and Expenses

In 1904, the savings banks earned interest from the National Bank and from bond coupons. Part of this interest was paid directly to depositors, while another portion was transferred to the State Treasury as profit from the operation of the savings banks. Additional expenses included commissions, transfer costs, and fees related to collecting interest and redeemed bonds.

Despite these expenses, the savings banks maintained a strong financial balance. By December 31st, 1904, the stock held by the Bulgarian National Bank consisted mainly of securities and cash, confirming the stability of the system.

Deposits and Payments in 1904

At the beginning of 1904, deposits totaled over 9.6 million leva. During the year, new deposits amounted to nearly 14.9 million leva, bringing the total deposits handled to more than 24 million leva. Payments made during the year were about 10.4 million leva, while the remaining balance at the end of the year exceeded 14 million leva.

Importance of the Savings Banks

These figures clearly show the importance and financial strength of the savings banks. They played a key role in protecting small savings, promoting financial discipline, and supporting the national economy. The savings banks had become one of the most trusted and effective financial institutions in Bulgaria at the beginning of the twentieth century.

The Establishment of Savings Banks in Bulgaria

Savings banks in Bulgaria were created to encourage people to save money safely and regularly. The establishment of post office savings banks was made possible by a law passed in 1885. This law was later replaced by a new one in 1896, which improved the organization and management of the system. From the beginning, these savings banks were closely connected to the State, and the Bulgarian Government acted as the guarantor, meaning that depositors’ money was protected by the government itself.

Rules for Deposits

The savings banks accepted deposits starting from as little as 1 franc, which made them accessible even to people with very small incomes. The maximum amount that an individual could deposit was 2,000 francs, which was the highest sum allowed for ordinary depositors. However, an important exception was made for charitable organizations and friendly societies. These institutions were permitted to deposit amounts of up to 5,000 francs, recognizing their special social role.

Deposits could be made either in the name of the person depositing the money or in the name of another person, most often a minor. This allowed parents and guardians to save money for children and young people Tours Bulgaria.

Savings Books and Easy Withdrawals

Each depositor received a savings book free of charge. This book recorded all deposits using special stamps, which were attached to the pages and initialed by a responsible official. The savings book served as official proof of ownership and balance.

One of the main advantages of the system was its convenience. With this savings book, a depositor could go to any post office in the Principality of Bulgaria to withdraw money. The post office was required to pay the requested amount and record the transaction directly in the book. This made the savings banks very practical, especially for people living far from large towns.

Management of Savings Bank Funds

All funds deposited in the savings banks were transferred by post offices or State comptrollers to the Bulgarian National Bank. The National Bank paid an annual interest of 4.5 percent on these funds. Of this amount, 4 percent was paid to the depositors as interest on their savings. The remaining 0.5 percent was kept to cover the administrative costs of running the savings banks.

Importance of the Savings Banks

These savings banks played an important role in promoting financial security and thrift among the population. By offering safety, government support, and easy access, they helped many people learn the habit of saving and contributed to the stability of the national financial system.

Dividends Paid by the Insurance Company “Bulgaria”

The insurance company “Bulgaria” showed strong and steady financial results during the years 1892 to 1904. One clear sign of this success was the regular payment of dividends to its shareholders. These dividends were paid per share and calculated in gold francs, which reflected the company’s solid financial position.

In 1892, shareholders received a dividend of 7.80 francs per share. This amount increased steadily in the following years. By 1895, dividends had risen to 18 francs, and in 1897, they reached a peak of 23 francs per share. From 1898 onward, the company maintained a stable dividend of 20 francs per share almost every year until 1904. This consistency proved that the company was well managed and able to generate reliable profits even during changing economic conditions.

Market Value and State Recognition

By the early twentieth century, the shares of the company “Bulgaria” were quoted at 245 francs (gold) per share. This high market value clearly showed the confidence of investors. In addition, the shares of “Bulgaria,” like those of the insurance company “Balkan,” were officially accepted by State institutions as legal security. This recognition was very important, as it placed the company among the most trusted financial institutions in the country Tours Bulgaria.

Presence of Foreign Insurance Companies in Bulgaria

Alongside national insurance companies, several foreign insurance companies were also operating in Bulgaria during this period. These companies brought international experience and expanded the range of insurance services available.

The “New York” Life Insurance Company

The “New York” Life Insurance Company began operating in Bulgaria in 1887. It specialized only in life insurance. The Bulgarian branch was located in Sofia and worked under the authority of the company’s General Agency for Europe, based in Paris.

The “Union” Insurance Company

The “Union” Insurance Company had been represented in Sofia since 1897. Like the “New York” company, it focused entirely on life insurance. Its Sofia branch was directly controlled by the central administration in Paris.

Other Foreign Companies

The “Phoenix” Insurance Company from London dealt exclusively with fire insurance and maintained agencies in Sofia and Varna.

The “Anchor” (Der Anker) insurance company offered all kinds of insurance and was one of the oldest foreign insurers active in Bulgaria. Its general agency was located in Sofia.

Finally, “Assicurazioni Generali” of Trieste had recently established itself in Sofia, providing both life and fire insurance, with its Bulgarian general agency also based in the capital.

Changes to the Company’s Bye-Laws

In the year 1898, the bye-laws of the insurance company “Bulgaria” were officially revised. These changes mainly concerned two important areas: the way net profits were distributed and the system of internal administration. The aim of these modifications was to improve the company’s organization and make its financial management clearer and more effective. Such reforms were common at the time, especially for companies that were growing and handling larger amounts of business.

At the same time, the company was given permission to increase its capital to 2,000,000 francs. However, this right was not used immediately. The management decided that there was no urgent need for additional capital, and therefore the company’s capital remained at 1,500,000 francs. This decision shows that the company was financially stable and able to operate successfully without rushing to expand its capital base Tours Bulgaria.

Early Business Activities

During its first years, the company “Bulgaria” focused only on fire insurance. This type of insurance was very important in the late nineteenth century, as fires often caused serious damage to homes, warehouses, and businesses. The company invested its available capital carefully, mainly by granting loans that were secured by mortgages. These investments were considered safe and provided a steady income.

Expansion into New Types of Insurance

As the company gained experience and confidence, it began to broaden its activities. In 1897, it started offering life insurance, which marked an important step in its development. In the same period, the company also added accident insurance and transport insurance to its services. Accident insurance helped protect workers and individuals, while transport insurance covered goods during travel by land or sea. This expansion allowed the company to meet the growing needs of a modern economy.

Business Activity in Turkey

Since 1896, the company “Bulgaria” has carried out a significant amount of business in Turkey. It established several agencies there, which helped it reach new clients and expand beyond national borders. This international activity increased the company’s reputation and financial strength.

Reputation and Shareholder Confidence

The high market value of the company’s shares and the strong dividends paid each year clearly show the confidence of investors. Together with the insurance company “Balkan”, “Bulgaria” was held in very high esteem. Both companies were seen as reliable national institutions, well managed and financially sound, and they played an important role in the development of the insurance sector in the region.

The Growth of the Insurance Company “Balkan”

In 1898, a special law was passed that included the shares of the insurance company “Balkan” in the official list of securities accepted by State institutions. This was an important moment for the company because it showed that the government trusted its financial strength and stability. Being accepted by State institutions also increased public confidence and made the company more attractive to investors.

Early Activities of the Company

Until the year 1897, the activities of the company “Balkan” were limited to three main areas. These were fire insurance, life insurance, and insurance against damage caused by hail. These services were especially important for property owners, farmers, and families who wanted protection against unexpected losses.

After 1897, the company decided to expand its business. It created three new branches of insurance. These included accident insurance, transport insurance, and reinsurance. Accident insurance helped protect workers and individuals, transport insurance covered goods during travel, and reinsurance allowed the company to share risks with other insurers. This expansion showed that “Balkan” was adapting to modern needs and growing economic activity Tours Bulgaria.

Financial Progress and Dividends

The success of the company can be clearly seen in the dividends paid to shareholders between 1896 and 1904. During these years, both founders’ shares and ordinary shares received regular dividends. Although the amounts changed from year to year, the company continued to reward its shareholders even during more difficult periods.

For example, in 1896 and 1897, founders’ shares received 22.50 francs, while ordinary shares received around 18 francs. In later years, dividends were slightly lower, especially in 1902, but they increased again by 1903 and 1904. This steady distribution proves that the company was well managed and financially reliable.

The Bulgarian Insurance Company “Bulgaria”

Another important institution was the Bulgarian Insurance Company “Bulgaria”. Its central office was located in Roustchouk, and it was founded in 1891. The company began with a capital of 1,000,000 francs, divided into 10,000 shares of 100 francs each.

In November 1891, the general assembly of shareholders decided to increase the capital. As a result, in 1892, an additional 500,000 francs were raised by issuing 5,000 new shares. These shares were sold with a premium of 15 francs per share, and the profit from this operation was added directly to the company’s assets. This decision strengthened the financial position of the company and supported its future growth.

Expansion of the “Balkan” Insurance Company

In 1895, the “Balkan” Insurance Company took an important step to strengthen its position in the Bulgarian insurance market. It signed an agreement with two other insurance companies operating in Bulgaria at that time, namely “Dacia Romania” and “National.” This agreement aimed to bring greater stability and unity to fire insurance services in the country Private Tours Istanbul.

Transfer of Fire Insurance Portfolios

Under the terms of the agreement, the fire insurance portfolios of “Dacia Romania” and “National” were transferred to the “Balkan” company on September 1st, 1905. From that date, “Balkan” assumed all rights and obligations related to these policies. This meant that “Balkan” became fully responsible for the clients of the two companies in Bulgaria, including both their benefits and liabilities. As a result, the company greatly expanded its client base and market presence.

Introduction of Life Insurance

At the beginning of 1896, “Balkan” expanded its activities by introducing life insurance into its range of services. Shortly afterward, “Dacia Romania” and “National” transferred all their life insurance policies in Bulgaria to “Balkan.” This move allowed the company to become a key provider of life insurance and to diversify its business beyond fire insurance.

Absorption of Mutual Insurance Activities

During the following year, another important change took place. The final branch of business operated by “Dacia Romania,” which concerned mutual insurance associations, was also transferred to “Balkan.” This transfer completed the consolidation of “Dacia Romania’s” insurance activities under one strong national company.

Strengthening Through Share Transfers

In 1897, “Balkan” further strengthened its financial position. The General Insurance Company “Otetchestro” of Sofia transferred its insurance portfolio and shares to “Balkan.” These shares included 20,000 shares valued at 50 francs each and 10,000 new shares of 50 francs in gold, all fully paid. In return, “Balkan” agreed to pay 25 francs in gold for each original share that had been issued at 75 francs.

After this transaction, “Balkan” held 30,000 shares of 100 francs each, with 50 per cent of the capital paid in. Despite these changes, the company’s total capital remained 1,500,000 francs, as originally fixed.

Expansion into Macedonia

Around the same time, “Balkan” began exploring opportunities beyond Bulgaria. The company conducted an inquiry in Macedonia to assess business potential. The results were positive, and from 1898 onward, “Balkan” started offering insurance services in that region.

Through strategic agreements, portfolio transfers, and regional expansion, the “Balkan” Insurance Company successfully established itself as a leading national insurance institution. These developments allowed the company to grow steadily and to serve a wider range of clients across Bulgaria and neighboring regions.

“Balkan” National Insurance Company

The “Balkan” National Insurance Company is one of the most important native insurance institutions in Bulgaria. Its head office is located in Sofia, the capital of the country. The company was founded in 1895, during a period when Bulgaria was actively developing its financial and insurance sectors.

Foundation and Capital Structure

At the time of its establishment, the company was created with a share capital of 2,000,000 francs. Out of this amount, 1,500,000 francs were paid in during the early years. The company issued 20,000 shares, including 7,500 founders’ shares. Each share had a nominal value of 100 francs. This structure allowed the company to attract both private investors and institutional confidence.

Over time, the capital of the company steadily increased. By 1906, the capital had reached 37,968 thousand francs, showing strong growth and financial stability. The reserve capital and reserve funds were also gradually expanded to protect the company against risks and unexpected losses Private Tours Istanbul.

Growth of Operations

The company’s financial operations expanded rapidly between 1895 and 1906. Deposits, including unlimited deposits, fixed-term deposits, and deposits of orphans, increased significantly. The company also handled funds for the State Treasury, which reflects the trust placed in it by public institutions.

The portfolio of investments, including mortgage loans and loans on securities, grew steadily. Mortgage loans rose to more than 15,000 thousand francs, while loans secured by securities also increased year by year. Net profits followed the same upward trend, reaching more than 3,200 thousand francs by 1906.

The total volume of transactions expanded greatly, exceeding 1,900,000 thousand francs in 1906. This growth clearly shows the company’s rising importance in Bulgaria’s financial and insurance system.

Assets of the Company (1906)

By December 31st, 1906, the company held substantial assets. These included:

State funds and bonds, especially those related to the 5 per cent loan of 1896

Loans on agricultural produce, personal loans, and mortgage loans

Funds held by branches and agencies

Current and special accounts, deposits, and bills

Real estate obtained from insolvent debtors

The total value of assets amounted to 210,373 thousand francs, demonstrating strong financial backing.

Liabilities and Financial Responsibilities

On the liabilities side, the company accounted for:

Paid-up capital and reserve capital

Reserve funds

Deposits of private persons, orphans, and government institutions

Term deposits and current accounts

Outstanding loan obligations, including the 5 per cent 1896 loan

The total liabilities matched the total assets, maintaining a balanced and transparent financial position.

The “Balkan” National Insurance Company played a major role in Bulgaria’s financial development at the turn of the twentieth century. Its steady growth, strong reserves, and wide range of services made it a reliable institution for individuals, farmers, and public authorities. Through careful management and expansion, the company became one of the pillars of Bulgaria’s national insurance system.

Transactions of the Agricultural Bank

The Bulgarian Agricultural Bank carries out many important financial activities that support farmers, rural communities, and local authorities. Its main purpose is to strengthen agriculture and improve economic life in the countryside. The bank’s transactions are designed to meet the real needs of farmers and agricultural cooperatives.

Deposits and Savings Services

One of the main functions of the bank is to accept deposits from individuals, farmers, and institutions. These deposits may be short-term or long-term, depending on the needs of the depositor. The bank also accepts various types of deposits, including personal savings and funds placed for specific purposes. By encouraging savings, the bank helps create a stable source of capital for agricultural development Private Tours Istanbul.

Loans and Credit Facilities

The bank provides several kinds of loans and advances. It grants loans secured by mortgages or financial securities, as well as loans guaranteed by goods, livestock, seeds, and agricultural produce. This system allows farmers who do not own large properties to still obtain credit.

Special advances are also given to farmers for the purchase of cattle, seeds, and agricultural tools or machinery. In addition, the bank offers personal loans to support small farmers in urgent situations. Farmers and cooperative societies can also open uncovered current accounts, which gives them flexible access to funds during the agricultural year.

The bank further assists farmers by buying agricultural machines, tools, cattle, and seeds on their behalf, when requested. This service ensures better prices and reliable quality.

Support for Local Authorities

The Bulgarian Agricultural Bank also supports departments and communes by providing loans intended to improve rural life. These funds are used for projects such as irrigation, roads, storage facilities, and other improvements that benefit agricultural communities.

Commercial Services

Among its commercial operations, the bank collects the value of commercial bills, transfers bills, and handles various financial transactions related to trade. These services help integrate agriculture into the wider national economy.

Interest Rates and Financial Conditions

The bank pays interest on deposits according to the following rates:

5 per cent per year on deposits for five years

4 per cent per year on deposits for three years

3 per cent per year on deposits for one year

For unlimited deposits up to 50,000 francs, the bank pays 1 per cent interest. No interest is paid on sums above this amount.

The interest charged by the bank is:

6 per cent per year on loans secured by securities

7 per cent per year on mortgage loans

8 per cent per year on loans with personal guarantees

Insurance Companies in Bulgaria

General Overview

In Bulgaria, there are currently two native insurance companies and five foreign insurance companies operating in the country.

Foreign Insurance Companies

Foreign insurance companies wishing to work in Bulgaria must deposit a financial guarantee, either in cash or bonds. This security must remain deposited for the entire period during which they operate in the country. They must also follow all rules of the commercial code related to insurance.

Native Insurance Companies

Native insurance companies are not required to deposit any security. The two Bulgarian insurance companies are called “Balkan” and “Bulgaria”. These companies play an important role in providing insurance services within the country.

Expansion of Agricultural Banking After 1895

By 1895, the agricultural banks in Bulgaria had greatly expanded their activities. Their number of transactions increased, and their role in the national economy became more important. In many towns and rural areas where the Bulgarian National Bank did not have its own branches, the agricultural banks acted as its representatives. This cooperation helped extend banking services to remote regions and supported farmers and local traders.

In 1896, the agricultural banks secured a large foreign loan of 30,000,000 francs at an interest rate of 5 per cent. Only five-sixths of this loan was actually issued, but even this amount provided strong financial support. With this new capital, the banks were able to widen their lending activities, increase deposits, and support agricultural production on a much larger scale.

Thanks to this financial strength, the agricultural banks became the main driving force of rural economic life in Bulgaria. Farmers relied on them for affordable credit, while villages benefited from improved access to banking services. The banks helped reduce dependence on moneylenders and encouraged stable economic growth in the countryside Private Tours Istanbul.

Legal Framework and Capital Structure

The agricultural banks are governed by the law of December 31, 1903, which officially gave them the name Bulgarian Agricultural Bank. Their activities were further regulated by another law dated March 24, 1905. These laws defined the structure, purpose, and responsibilities of the bank and strengthened its legal position.

The total capital of the Bulgarian Agricultural Bank amounts to 35,000,000 francs, and this sum is regularly increased by annual profits. However, the law requires that 25 per cent of the yearly profits be reserved specifically for the development of various branches of agriculture. This provision ensures that the bank directly supports farming improvements, innovation, and rural prosperity.

Organisation and Administration of the Bank

Central Administration

The central administration of the Bulgarian Agricultural Bank is located in Sofia, the capital of Bulgaria. From there, the bank coordinates its national activities and oversees policy and financial management.

Branches and Agencies

The bank has an extensive network across the country. It operates branches in 85 district centres and maintains agencies in 75 important villages. This wide presence allows the bank to reach farmers and rural communities efficiently.

Management Structure

The administration of the bank is entrusted to an Administrative Council. This council consists of a governor and four administrators, all appointed by the Prince. Each branch is managed by a director, who is also appointed by the Prince. This system ensures central control while allowing local management.

Difficulties During the Russo-Turkish War

During the Russo-Turkish War, many of the early agricultural banks suffered serious losses. Officials of the Turkish Government removed large amounts of money from these banks. They also took securities and other valuable property that belonged to the banks and their clients. As a result, several banks lost almost all their financial resources.

After the war ended, the situation did not improve quickly. Many debtors refused to repay their loans, arguing that the banks could no longer prove their claims. Only part of the banks’ property was later restored, mainly through the issue of new bonds. Even this recovery was limited and incomplete.

Loss of Records and Financial Uncertainty

The problems were made worse by the destruction or disappearance of registers and official documents. Many records had been lost during the war years. Because of this, it became impossible to determine the exact financial condition of the agricultural banks at that time. Neither the authorities nor the banks themselves could clearly identify how much money was owed or how much capital remained Private Tours Istanbul.

This lack of reliable information created confusion and weakened confidence in the banking system, especially among rural communities that depended on these institutions.

New Regulations Under Russian Administration

On June 20, 1879, the Provisional Russian Administration introduced new regulations for the urban banks operating in Northern Bulgaria. Under these new rules, the banks were officially renamed “agricultural banks” for the first time. This change reflected their main purpose, which was to serve farmers and rural workers.

According to the new regulations, the banks were required to seek their clients mainly among the agricultural population. The system of selling agricultural products remained unchanged, and the net profits from these sales continued to be used to increase the banks’ funds. This helped the institutions rebuild their capital gradually.

Legal Reforms and Stronger Administration

The first major law that placed the agricultural banks on a stable legal foundation was adopted on December 23, 1894. This law placed the banks under the supervision of a special department of the Ministry of Commerce and Agriculture. This reform improved state control and organization.

Later, on February 24, 1897, a new law introduced an Administrative Council. This council consisted of a director and two councillors and was given full responsibility for managing the agricultural banks. These reforms strengthened the structure of the banks and prepared them for future development.

National Agricultural Bank, Sofia

Early Efforts to Support Rural Credit

In 1863, Midhat Pasha, who was the Governor of the Danubian Vilayet, prepared an important plan to help the rural population. His idea was to create special “urban banks” that would mainly serve farmers and villagers. At that time, peasants had very limited access to fair credit and were often forced to borrow money from usurers at extremely high interest rates Private Tour Istanbul.

The Turkish Government approved this plan, and several banks were established in the same year. These early institutions were designed to support agriculture and rural trade. One of their most useful features was that farmers were allowed to repay their loans in kind, instead of paying cash. The banks then sold the agricultural products on the market.

Loan Repayment in Agricultural Products

This system was very practical for farmers, who often lacked money but had crops and livestock. By accepting repayment in grain and other products, the banks made borrowing easier and safer for peasants. To further strengthen the financial position of these banks, the authorities introduced a special agricultural tax. This tax required farmers to deliver a small part of their annual produce to the banks, which helped increase their capital over time.

Expansion Across the Empire

As time passed, it became clear that these banks were of great benefit to the rural population. They provided loans at an interest rate of 12 percent, which was far lower than the 30 to 100 percent commonly charged by private moneylenders. Because of this success, the Turkish Government decided to expand the system throughout the empire.

Peasants in all district centers were required to establish similar banks. This reform helped spread access to fair credit and reduced the influence of usurers in many regions.

Use of Profits for Public Benefit

According to the statutes of these banks, the net profits were divided in a socially responsible way. One-third of the profits was used for public works, such as building bridges, roads, fountains, and schools. These projects improved daily life in rural areas. The remaining two-thirds of the profits were added to the capital of the banks, making them stronger and more stable.

Types of Banking Operations

Before the establishment of the Bulgarian Principality, these agricultural banks carried out three main types of transactions. They granted personal loans to individuals, loans secured by securities, and mortgage loans based on land and property. These activities laid the foundation for the later development of the Bulgarian Agricultural Bank, which continued to support agriculture and rural communities after independence.

Banknotes in Circulation

The banknotes that are actually in circulation are divided into seven different series. These series were created to meet the daily needs of trade, industry, and private transactions across the country Private Tour Istanbul.

There are four gold note series: 5-franc, 10-franc, 20-franc, and 100-franc notes. These notes are mainly used for larger payments and commercial operations. In addition, there are three silver note series: 5-franc, 10-franc, and 50-franc notes. These silver notes are commonly used for smaller payments and everyday trade.

This clear division between gold and silver notes helps maintain confidence in the national currency and supports stable financial transactions throughout Bulgaria.

Distribution of Net Profits

According to the statutes of the Bulgarian National Bank, the net profits of the bank are divided in a fixed and transparent way.

First, 10 percent of the net profits is transferred to the reserve fund. This fund strengthens the financial stability of the bank and protects it against possible losses.

Next, 3 percent is distributed as premiums to the members of the Administrative Council and to the bank’s officials. These payments serve as a reward for responsible management and efficient service.

The remaining 87 percent of the net profits is paid directly to the Bulgarian Government. In this way, the success of the bank contributes to the general finances of the state and supports public needs.

Interest Paid on Deposits

The Bulgarian National Bank pays interest on deposits according to the length of time the money remains in the bank.

4 percent interest is paid on deposits made for five years.

3 percent interest is paid on deposits made for three years.

2 percent interest is paid on deposits made for one year.

For unlimited deposits and current accounts bearing interest, the bank pays 1 percent interest. However, when the deposited sums belong to banking institutions, no interest is paid.

Interest Charged on Loans

The bank charges 8 percent interest on mortgage loans, which are secured by real estate. Loans guaranteed by securities, goods, or similar guarantees are charged at a lower rate of 7 percent. These rates reflect the bank’s role as a secure but cautious lender.

The Bulgarian Agricultural Bank

Historical Background

The Bulgarian Agricultural Bank has its origins in an institution that existed during the period of Turkish domination. This earlier institution was created to support agricultural activity in rural areas, where access to credit was limited.

After the liberation of Bulgaria, this idea was developed further to meet the needs of farmers and rural communities. The Agricultural Bank was designed to help improve agricultural production, support landowners, and provide affordable credit to the farming population. In this way, it became an important partner of the Bulgarian National Bank and a key institution in the economic development of the country.

Liabilities of the Bulgarian National Bank

The liabilities of the Bulgarian National Bank show how its financial resources were distributed and how it met its obligations. These figures reflect the strong level of public confidence in the bank and the wide use of its services.

The capital of the bank amounted to 10,000,000 francs, which formed the financial foundation of the institution. In addition to this, the bank held a reserve capital of 4,393,000 francs and a reserve fund of 996,400 francs, created to protect the bank against possible risks.

One of the largest items was banknotes in circulation, which reached 40,217,400 francs. This figure shows the importance of the bank as the main issuer of paper money in the country. The value of mortgage preference stock stood at 16,904,200 francs, while term deposits reached 59,725,600 francs, proving that many individuals and institutions trusted the bank with long-term savings.

The bank also held unlimited deposits, deposits on security without interest, and current accounts, both with and without interest. Together, these deposits formed a major part of the bank’s liabilities. Funds belonging to the State Treasury, as well as foreign bills for collection and certificates against bills and bonds, also appeared on the balance sheet.

At the end of the accounting period, the bank recorded net profits of 2,528,300 francs. The total liabilities amounted to 202,418,200 francs, exactly matching the total assets and proving the correctness of the balance sheet.

Organisation and Administration

The central headquarters of the Bulgarian National Bank is located in Sofia, the capital of Bulgaria. From this center, the bank manages all its national operations.

The bank operates branches in Roustchouk, Varna, Plovdiv, Tirnova, and Bourgas. In addition, it maintains agencies in Viddin, Plevna, Sistova, and Sliven. The branches of the Bulgarian Agricultural Bank in district centers also act as correspondents of the National Bank.

The overall administration of the bank is carried out by an Administrative Council, appointed by the Prince. This council consists of a Governor and four administrators. Each branch is managed by a director, who is also appointed by the Prince.

Main Transactions of the Bank

The Bulgarian National Bank performs a wide range of financial operations. It accepts deposits from public institutions and private individuals, either for a fixed period or payable on demand, with or without interest.

The bank grants loans secured by mortgages, both to private persons and to government departments and communes. It also provides loans against bills, goods, or bills of lading, and allows uncovered current accounts.

In addition, the bank discounts commercial bills and Treasury bonds, collects commercial bills, and issues letters of credit, which it pays upon presentation. It buys and sells securities for clients and accepts different types of securities for safe keeping.

Finally, the bank receives State revenues, makes government payments within these revenues, and provides commercial information about merchants. The bank is allowed to issue banknotes up to three times its capital and reserve fund, provided that at least one-third of the value of the notes in circulation is held in bullion in its vaults Private Tour Istanbul.

Steady Growth of the Bulgarian National Bank

Steady Growth of the Bulgarian National Bank

As the operations of the Bulgarian National Bank expanded, its progress became stronger and more stable. Year after year, the bank increased its activities and improved its financial position. It placed its capital at the service of the commercial and industrial sectors, which greatly benefited the national economy.

Thanks to the support of the bank, many commercial, industrial, and banking institutions were created. These new establishments played an important role in the economic development of the Principality of Bulgaria. The bank acted as a key financial pillar and encouraged private initiative and investment.

Support for Commerce and Industry

The Bulgarian National Bank provided credit to merchants, manufacturers, and local institutions. By doing so, it helped businesses grow and operate with greater confidence. The availability of bank loans allowed enterprises to expand production, improve infrastructure, and employ more workers.

The bank also worked closely with communes, government departments, and agricultural banks. Its financial assistance supported both urban and rural development. These services proved invaluable during a period of rapid economic change.

Summary of Banking Operations (1885–1904)

The tables covering the period from 1885 to 1904 show a clear and continuous increase in the bank’s activities. During these years, the bank’s capital, reserve funds, and profits all grew steadily.

Banknotes in circulation increased significantly, reflecting the rising trust of the population. Term deposits and mortgage preference stock also expanded, showing that people were willing to save and invest through the bank. At the same time, the value of mortgage loans and loans to communes and agricultural banks increased, proving the bank’s active role in development.

The total volume of transactions rose from modest levels in the early years to very high figures by 1904. This growth clearly demonstrates the expanding influence and importance of the Bulgarian National Bank in the national economy.

Financial Position on December 31, 1904

The balance sheet of December 31, 1904, presents a clear picture of the bank’s strong financial position. The bank held large reserves in bullion and foreign assets, which strengthened its stability. Significant amounts were invested in Bulgarian state funds, securities, and loans.

Mortgage loans formed a major part of the bank’s assets. Loans were also granted to the Agricultural Bank, local authorities, government departments, and the Public Treasury. In addition, the bank maintained substantial deposits and current accounts through its branches and local correspondents.

By 1904, the Bulgarian National Bank had become a powerful and reliable financial institution. Its steady growth, wide range of operations, and strong balance sheet allowed it to support economic progress across the country. Through credit, investment, and public trust, the bank played a central role in Bulgaria’s commercial and industrial development Private Tour Istanbul.