News from Bulgaria / Dec 5, 95

From: bulgaria@access1.digex.net (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] PRESIDENT ZHELEV LEAVES ON OFFICIAL VISIT TO ITALY

Sofia, December 4 (BTA) - "I will ask Italian President Oscar Luigi Scalfaro to back Bulgaria's efforts for entry into NATO and the European Union as Italy next year takes over the EU presidency," Bulgarian President Zhelyu Zhelev told journalists before his departure on an official visit to Italy this morning. Dr. Zhelev said Bulgaria will also ask Italy's support for the East-West corridor. The President further said he will have a tete-a-tete with Pope John Paul II to ask him if he believes there was "a Bulgarian connection" in the attempt on his life years ago. Besides talks with his Italian counterpart Oscar Luigi Scalfaro, Dr. Zhelev's Italian agenda includes meetings with the Chairwoman of the Chamber of Deputies of the Italian Parliament, Irene Privetti, Rome Mayor Francesco Ruteli, Prime Minister Lamberto Dini, and a visit to the Naples headquarters of NATO Allied Forces Southern Europe. After his visit to Italy, the Bulgarian Head of State will pay a one-day visit to Albania to discuss the development of bilateral relations. The East-West corridor, and particularly the financing of the projects, will also be on the agenda.

[02] P.M. VIDENOV HOLDS TALKS WITH AECCI CHIEF

Sofia, December 4 (BTA) - Prime Minister Zhan Videnov today received the Chairman of the Association of European Chambers of Commerce and Industry (AECCI) Mr Robert de Wilder, who is visiting Bulgaria, the Cabinet's press office said. Mr de Wilder said that AECCI is ready to provide active assistance to Bulgaria for ensuring this country's enterprises' free access to capital markets and the spreading of the activities of the chambers of commerce and industry in new branches of the economy. Exchange of information, intensification of the activities of the small and medium-sized enterprises and the efficient usage of the trade register for the export and import growth were listed as other directions of the cooperation with the Bulgarian chambers of commerce and industry, the press release says. Videnov familiarized Mr de Wilder with the main macroeconomic indicators of this country's economy. Videnov stressed the cabinet's intentions for ensuring non-inflationary economic growth in 1996 as well, the cabinet's press release says. Mr de Wilder was informed about the cabinet's programme for intensified restructuring of the industry through privatization and implementation of investment schemes. The talks set forth the views of this country's cabinet on the implementation of infrastructure projects which will be carried out with active international participation. Mr de Wilder expressed AECCI's readiness to provide the necessary assistance to its Bulgarian counterparts for better market access as well as for implementing of similar projects under the PHARE Programme.

[03] FOREIGN MINISTER PIRINSKI TO PAY OFFICIAL VISIT TO CYPRUS

Sofia, December 4 (BTA) - Bulgarian Foreign Minister Georgi Pirinski will pay an official visit to Cyprus on December 20-21, Foreign Ministry Spokesman Radko Vlaikov said today. Pirinski's schedule for December is very busy. On December 6 he will attend a sitting of the North Atlantic Cooperation Council in Brussels. On December 7-8 he will lead a Bulgarian delegation to a meeting of the Organization for Security and Cooperation in Europe foreign ministers in Budapest; on December 8-9 will participate in the London conference for the peace agreement on former Yugoslavia. An official visit to Britain at the invitation of British Secretary of State for Foreign Affairs Malcolm Rifkind is scheduled for December 11 through 13. On December 13-14 Pirinski will participate in the Paris conference on former Yugoslavia and on December 15-16 will attend a sitting of the European Union in Madrid to discuss the future of this organization.

[04] BULGARIAN-SYRIAN POLITICAL CONSULTATIONS

Sofia, December 4 (BTA) - Representatives of the Bulgarian and Syrian foreign ministries are holding bilateral political consultations in Sofia, it was said at the regular news conference of the Bulgarian Foreign Ministry today. The Syrian delegation is headed by Deputy Foreign Minister Raslam al-Loush. The Bulgarian and Syrian officials reviewed the state of the bilateral relations and the situation on the Balkans and the Middle East. The talks stressed the great importance which the two countries attach to the further promotion of the mutually beneficial cooperation in various spheres, joint participation in regional projects inclusive. Today, Mr al-Loush was received by Bulgarian Foreign Minister Georgi Pirinski. The two officials expressed their satisfaction with the upward trend of development of the Bulgarian-Syrian relations. The sides agreed that Syrian Foreign Minister Farouuk al-Shara will pay an official visit to Bulgaria in the near future. During Syrian Foreign Minister's forthcoming visit, the two countries' foreign ministries will sign a protocol on cooperation. During their consultations today, the Bulgarian and Syrian officials said that they expect further expansion of the legal framework of the bilateral relations. The drafting of the agreements on mutual investment protection and avoidance of double taxation is expected to be completed soon. On Tuesday Mr al-Loush will be received by Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev.

[05] NEW IMF MISSION LEADER ANNE McGUIRK ARRIVES

Sofia, December 4 (BTA) - The IMF Mission which arrived on a five-day visit here today has set itself two tasks, former IMF Mission Leader for Bulgaria Russel Kincaid said at Sofia Airport. He will present his successor, Mrs Anne McGuirk. The IMF Mission and Bulgarian government officials will discuss the government's macroeconomic plans for 1996. Structural policy, the state of the banking sector, financial discipline and privatization will be the main subjects for discussion, Kincaid said. The signing of a fourth standby agreement will not be on the agenda. The IMF Executive Board will discuss the economic situation in Bulgaria later in December, Kincaid said. He will give the Board an update on the situation and the government's plans for 1996 based on the current visit.

The IMF is ready to help Bulgaria in every possible way, including a standby agreement, for which we will be working next year, Mrs McGuirk said.

[06] BULGARIA, POLAND TO COOPERATE IN MILITARY PRODUCTION

Sofia, December 4 (BTA) - Bulgaria and Poland will restore bilateral cooperation in the manufacture and exchange of special and military products, said the press office of the Defence Ministry. The restoration of cooperation is a result of a visit to Poland by a Bulgarian military delegation led by Ivan Kolev, Deputy Chair of the Interdepartmental Council on the Military-Industrial Complex operating with the government. A readiness to that effect was voiced both at meetings on government level and at talks between producers of and traders in special products, the Defence Ministry's press release says. Poland will back Bulgaria's desire to be among the founders of New Forum in Paris this December. The documents on Bulgarian- Polish cooperation in the production of and trade in special products will be prepared during a visit to this country by a Polish delegation expected here in January-February next year at the invitation of the Bulgarian government.

[07] BUSINESS PRESS

Sofia, December 4 (BTA) - The mission of the International Monetary Fund (IMF), led by the newly appointed IMF Mission Leader for Bulgaria, Anne McGuirk, will arrive here today, "Pari" writes. Ms McGuirk will be accompanied by her predecessor Russel Kincaid who will introduce her to Bulgarian officials.

"The National Bank of Bulgaria (BNB) saved two Plovdiv brokers from going into 5,000 million leva worth debt," "Troud" writes, commenting on last week's purchase of AgroBusiness Bank by BNB. "Agrobusiness Bank's owners, brokers Hristo Alexandrov and Hristo Danov, actually declared bankruptcy selling the bank's shares for a mere," the paper says. The central bank took this measure to avoid a chain reaction of bankruptcies in the financial system. "However, making this decision, BNB confessed its inability to cope with the aggressiveness of private owners, who allowed the easy wasting of money of common depositors," "Troud" writes.

The Sofia City Tax Department blocked the accounts of the Kremikovtsi Metallurgical Works (near Sofia), the papers write. The measure was taken due to the company's debts to the exchequer amounting to 5,000 million leva. Since the beginning of 1995 Kremikovtsi has not paid its taxes although it operates at a profit, "Troud" says. The company owes another 5,000 million leva to creditors and suppliers. Kremikovtsi's new management already presented a scheme for the debts' repayment to tax authorities.

TouristSportBank will change its name to Commercial and Savings Bank under a decision taken at an extraordinary general meeting of the shareholders on Saturday. The bank's new memorandum of association provides greater freedom to take measures against debtors. The bank's bad debts total 1,420 million leva.

[08] CABINET RAISES LOCAL TAXES

Sofia, December 4 (BTA) - A cabinet's ordinance today raised local taxes. The tax revision is necessitated by the inflationary processes in this country and will bring about additional proceeds of 1,500 million - 2,000 million leva to the municipal budgets, Finance Minister Dimiter Kostov said.

The luxury car tax increases by 100 per cent, while the tax on cars with 1,800 cu m engines goes up by 50 per cent. Owners of cars produced more than 15 ago get a 30 per cent tax reduction. The tax on coaches goes up twofold, while the tax payable on public transport buses is 8 per cent of the set amount. The ordinance increases other local taxes.

[09] CABINET WANTS BUDGET UPDATED

Sofia, December 4 (BTA) - The cabinet has moved in Parliament that the 1995 Budget Act be updated by increasing the budget deficit by 10,000 million leva at the most, needed to cover larger outlays on interest payments, Finance Minister Dimiter Kostov said at the government press office after the cabinet meeting today. Kostov explained that the budget set the average annualized interest rate at 53 per cent, while actually it was between 55 and 60 per cent, which led to larger outlays. Overall, the revenue target is being met except for revenues from contributions by the National Bank of Bulgaria, Kostov said. Some 201,000 million leva will be collected in revenues out of a target of 215,000 million, with the central bank accounting for half of the shortfall. According to Kostov, the target for the budget deficit could be met at the cost of tensions in the state-financed sector. The cabinet believes that the proposed increase in the budget deficit would not have a negative impact on the economy and would not necessitate changes in the 1996 macroeconomic framework, Kostov said. The planned deficit for 1995 is 48,700 million leva, while it will actually reach 52-53,000 million but will not exceed the projected 4.9 per cent of GDP and will even be lower than that because the additional expenditure will be offset by surpluses in extrabudgetary accounts. Ivan Kostov, leader of the opposition Union of Democratic Forces, broke the news about the proposed increase in the budget deficit at a press conference in Plovdiv earlier today. BTA's correspondent in that southern city reported that Ivan Kostov said this signalled an unprecedented financial failure. Ivan Kostov recalled that the largest increase in the deficit so far, by 5,000 million leva, was made by Lyuben Berov's cabinet.

[10] CABINET'S LAW-MAKING PRIORITIES IN DECEMBER

Sofia, December 4 (BTA) - The cabinet will introduce before Parliament some 20 Bills including Bills of amendment in December. At its regular meeting today the cabinet adopted a schedule of its law- making priorities until the year's end. Three Bills were approved today which will ensure that the 1996 revenues target will be met: amendments to the Accountancy Act, the Tax Administration Act and the Taxation Procedures Act. Further on the cabinet will approve Bills on profits tax, income tax and on contributions to municipalities, as well as a draft decree amending the implementing regulations on Decree 56 on Business Activity. The cabinet will work on the State Receivables Act, the Excise Duties Act, Decree 2242 regulating free trade zones, and the Liquid Fuels Tax Act. Also in December the cabinet will consider amendments to the Banks and Lending Act. The National Health Act will be amended. A Bill on professional organizations in the health services will be introduced. Bills on State Ownership and Municipal Ownership will be discussed in connection with amendments to the Ownership Act. Chapter Three of the Commercial Code is being drafted to regulate commercial deals. The cabinet will also discuss amendments to the Act to Settle the Housing Problems of Long-Standing Home-Purchase Savings Depositors and will review the nomenclature of tariff rate schedule.