Subject: Ta nea toy BTA 20-Mar-95[**] Subject: BTA inf / Mar. 20, 95 From: georgek@engc.bu.edu (george kapodistrias) From: bulgaria@access1.digex.net (Embassy of Bulgaria) Ta nea apo thn Presbeia ths Boylgarias sthn Washington, D.C. [01] . PARLIAMENT RATIFIES INTERNATIONAL TREATIES [02] * BULGARIA, ROMANIA: WHERE TO BUILD NEW BRIDGE OVER THE DANUBE [H opoia isws enwvei thn Uessalonikh me thn Sofia, Kentrikh kai Boreia Eyrwph.] [03] . DEFENSE MINISTER ANSWERS QUESTION ABOUT VISIT TO MOSCOW [04] . NEW PROSPECTS BEFORE BULGARIAN-RUSSIAN ECONOMIC RELATIONS [05] . RUSSEL KINCAID ENCOURAGES CABINET'S AMBITIONS [06] . FOREIGN MINISTER PIRINSKI LEAVES FOR PARIS [07] . U.S. AIR FORCE CHIEF OF STAFF ARRIVES IN SOFIA [08] . BULGARIAN STATE RAILWAYS TO NEGOTIATE ASSISTANCE [09] ** NEW BORDER CHECKPOINT DISCUSSED [To synoriako shmeio elegxoy einai metajy Elladas-Boylgarias. O Ellhnas YpEj ua episkefuei thn Boylgaria sto telos Martioy. Dhlwseis kai apo tis dyo pleyres.] [10] BUSINESS NEWS BRIEFS . THE UNEMPLOYMENT FIGURE IN FEBRUARY WAS DOWN 1.7% . COMMERCIAL BANK REPRESENTATIVES MET IN VARNA TO DISCUSS A CENTRAL BANK PROJECT . AT A MEETING IN BLAGOEVGRAD THE TOWN COUNCIL AND REPRESENTATIVES OF THE USAID DISCUSSED THE EFFECTIVENESS OF PROJECTS CARRIED OUT WITH THE AGENCY'S HELP. [11] BUSINESS PRESS . THE REPRESENTATIVES OF THE IMF GAVE THEIR CONSENT NOT TO CLOSE DOWN MINERALBANK AND THE ECONOMIC BANK . THERE WAS A MIXED TRADING OF BULGARIA'S BRADY BONDS ON THE FREE INTERNATIONAL MARKET OF DEBT INSTRUMENTS. . BULGARIA WILL INSIST ON THE EU ELIMINATING OR REDUCING THE CUSTOM DUTIES CHARGED ON BULGARIAN WINE IMPORTS IN SWEDEN AND FINLAND Giwrgos Kapodistrias ------------------------------------------------------------------------------ From: bulgaria@access1.digex.net (Embassy of Bulgaria) Subject: BTA inf / Mar. 20, 95 Date: 22 Mar 1995 10:33:18 -0500 EMBASSY OF THE REPUBLIC OF BULGARIA - WASHINGTON D.C. BTA - BULGARIAN TELEGRAPH AGENCY BULLETIN OF NEWS FROM BULGARIA MARCH 20, 1995 [01] PARLIAMENT RATIFIES INTERNATIONAL TREATIES Sofia, March 17 - The National Assembly enacted legislation ratifying an Agreement between the governments of Bulgaria and the Republic of South Africa on air transport between and beyond their territories. The Agreement, signed in Sofia in August 1993, creates the relevant legal framework for steady and mutually advantageous operation of scheduled air services between the two countries. An air service between Sofia and Johannesburg has been in operation since July 1993, and it is adequately utilized. The agreement ratified today will help upgrade the level of bilateral trade and economic relations, the parliamentary Economic Committee believes. Parliament ratified the July 1970 European Agreement Concerning the Work of Crews of Vehicles Engaged in International Road Transport (AETR). It has already been signed by 24 countries of Central, Eastern and Western Europe, including Austria, Germany, France, Italy and the Czech Republic. In practice, Bulgarian carriers could hardly carry on transport without transiting the territory of at least one of the states signatories, the Council of Ministers writes in its reasoning for moving the agreement for ratification. Some 8,000 carriers with some 24,000 automobiles were licensed for international transport under AETR by the end of 1994. The National Assembly also ratified the acts of the 20th Congress of the Universal Postal Union, concerning the dispatching of various postal items. On the motion of the Chairman of the Committee on Agriculture Todor Todorov, Parliament referred back to the Government for redrafting the bill to ratify a loan agreement between Bulgaria and the International Bank for Reconstruction and Development. The Committee cited the need to specify certain clauses of the principal agreement and to draft additional instruments. Under the agreement, Bulgaria is to borrow 50 million US dollars from the World Bank for assistance to agriculture. [02] BULGARIA, ROMANIA: WHERE TO BUILD NEW BRIDGE OVER THE DANUBE Sofia, March 17 - From the economic point of view, it would be best to build a second bridge over the Danube River between Lom (Bulgaria) and Rast (Romania), Prime Minister Zhan Videnov said answering a question by Emil Kapoudaliev MP of the Union of Democratic Forces. The latter questioned the expediency of a bridge at that location and argued for building it between Vidin and Calafat. A bridge between Lom and Rast was proposed by a consulting firm with the assistance of the European Commission through the PHARE program. The internationally brokered solution came when Bulgaria and Romania had been negotiating for nearly one year with no agreement in sight. While Bulgaria wants the second bridge built in the western part of the country, most sites proposed by Romania are in the east, Videnov recalled. Construction costs will be lowest if a highway bridge is built between Lom and Rast, and a railway bridge between Vidin and Calafat, international experts concluded. According to them, it would be most expedient to build a highway and railway bridge at Lom-Rast as it would become an integral part of the European transport corridor linking Thessaloniki, Sofia, Central and Northern Europe. Bulgaria and Romania have not reached an agreement on the location of the bridge yet. It has been agreed, however, that it cannot be financed from the national budgets and financing should be sought from the European institutions. [03] DEFENSE MINISTER ANSWERS QUESTION ABOUT VISIT TO MOSCOW Sofia, March 17 - Defense Minister Dimiter Pavlov said 260,000 million leva a year are needed to meet Bulgaria's defense requirements. Answering a question about his recent visit to Moscow in Parliament today, he said that given the current economic situation such an appropriation must be ruled out; that is why the Defense Ministry seeks to guarantee national security without making political or other commitments, Pavlov said. He also said that Russian Defense Minister Pavel Grachev pledged that Russia would supply spare parts to the Bulgarian army in the near future. Grachev also said he hailed the steps taken by the new Bulgarian government to revitalize its contacts with Russia. [04] NEW PROSPECTS BEFORE BULGARIAN-RUSSIAN ECONOMIC RELATIONS Sofia, March 17 - In an address to the Presidents, Parliaments and Governments of Bulgaria and the Russian Federation, the participants in the Bulgarian-Russian meeting of industrialists and businessmen, which ended here today, called on the state leaders to take efficient measures for speeding up the overcoming of the economic crisis, for broadening commercial exchange and for restoring and developing the production and cooperation ties between the two countries. The forum was attended by over 40 Russian and scores of Bulgarian economic executives and was organized under the patronage of the Bulgarian Industry Union- Confederation and the Russian Union of Industrialists and Businessmen with the assistance of the Bulgarian-Russian Investment Bank. The leaders of the two business unions - Krustyu Stanilov and Arkadiy Volskiy signed a contract today on the setting up of a Bulgarian-Russian industrial center for coordinating efforts in restoring and broadening cooperation in different economic and scientific and technological spheres. The representatives of the business circles signed over 30 documents for cooperation between companies. Participants in the meeting expressed concern over the decline in Bulgarian-Russian trade and economic relations. At the opening of the forum Volskiy said that bilateral commercial exchange had dropped from US$ 14,400 million in 1990 to US$ 1,800 in 1994. In interaction with the state bodies, the industrialists and businessmen and their unions should play an important role in reviving business cooperation on the basis of confidence, good-neighborliness and mutual benefit on the road to building a socially-oriented market economy and the equal inclusion of Bulgaria and Russia in the system of modern European and world partnership, the address reads. In his speech at the opening of the forum yesterday Prime Minister Zhan Videnov said the Bulgarian government would go its part of the road. The forum is one of the main initiatives in preparation of the forthcoming meeting between Videnov and Russian Prime Minister Viktor Chernomyrdin in Sofia, Russian Ambassador in Bulgaria Alexander Avdeev said. Chernomyrdin is not only an advocate but also an active participant in promoting bilateral contacts, Ambassador Avdeev said. [05] RUSSEL KINCAID ENCOURAGES CABINET'S AMBITIONS Sofia, March 17 - The International Monetary Fund (IMF) mission today voiced their support for many of the steps taken by the cabinet and the central bank and gave hopes for a new loan this spring. The IMF mission arrived to this country on March 14 for negotiations on the fourth standby agreement. A meeting between cabinet ministers, central bank officials and IMF representatives today discussed the results of the talks IMF Mission Leader Russel Kincaid had in the first week of his visit, and agreed on the agenda for the next days. The question is no longer if there will be an agreement or not, but when it will be signed, said a senior central bank official who spoke on condition of anonymity. The IMF officials seem to be aware of the importance their support has for this country under the present economic situation and participants in the meeting said they showed a favorable disposition. The representatives of this international financial institution reportedly made it clear they attach great importance to the cabinet's policy on incomes. They are also quoted as saying the budget projections for a 45 per cent annual inflation were too ambitious. They, however, believe this target figure was feasible even though it means a nearly one-third drop of inflation. Russel Kincaid himself is quoted as saying at the meeting he would have been even more ambitious and put down a 30 per cent inflation rate. The question of fixing the exchange rate was not on the agenda. The only IMF requirement that emerged is to have an exchange rate predictable within a wider range, just like the economic growth, inflation, unemployment and incomes. The Mission officials also suggested that the foreign exchange rate be bound to the policy on incomes, so as to have incomes calculated in a dollar denomination. They believe this would prevent a collapse like that in March 1994, when the monthly pay in Bulgaria halved from 80 to 40 US dollars. Reports say Minister of Economic Development Roumen Gechev and central bank Governor Todor Vulchev made it no secret this was a new idea for them. The IMF officials paid particular attention to the reserves as a major part of the money turnover. As this parameter depends on the central bank policy, the IMF recommended a persistent restriction policy. The Mission believe the central bank's policy over the past months was consistent and recommended stiffer control. The Mission Leader voiced an uncertainty that the current plan to take the Economic bank and Mineralbank out of the crisis would be effective. He believes it would reduce their losses at the best. The central bank officials said for their part they have taken a firm decision not to refinance the above banks if they fail to handle the crisis. [06] FOREIGN MINISTER PIRINSKI LEAVES FOR PARIS Sofia, March 19 - Foreign Minister Georgi Pirisnki left for Paris today to attend the International Conference on Stability in Europe. The purpose of the Paris Conference is to affirm the political will of the Organization for Security and Cooperation in Europe member states to act in a way designed to prevent tensions in individual regions in Europe, which would lead to the continent's increasing integration, Pirinski told the press before his departure. [07] U.S. AIR FORCE CHIEF OF STAFF ARRIVES IN SOFIA Sofia, March 19 - General Ronald Fogelman, Chief of Staff, U.S. Air Force, arrived on a 25-hour visit here today. General Fogelman met with the Military Council and the Bulgarian Air Force Commander, Lieutenant General Miho Mihov, to discuss the structure and organization of military aviation in the United States and Bulgaria. Another subject for discussion was how the two countries' air forces are kept in high daily combat readiness, a Defense Ministry source said. General Fogelman said it may become possible for more Bulgarian military pilots to get training in the US, adding that this was a question of further negotiating. On his arrival the guest told the press the main purpose of his visit is to establish professional contacts with the Bulgarian air force command rather than to hold military- political talks. Tomorrow General Fogelman is scheduled to meet with Colonel General Tsvetan Totomirov, Chief of the Bulgarian General Staff, and General Stefan Dimitrov, Chief of President Zhelev's Military Office. [08] BULGARIAN STATE RAILWAYS TO NEGOTIATE ASSISTANCE Plovdiv, March 17 - The Bulgarian State Railways (BSR) have been given a mandate to negotiate for financial assistance with the World Bank and the European Bank for Reconstruction and Development. The negotiations will start in London on March 28 and will continue in New York on April 24. If they are successful, the State Railways will receive 170 million dollars. With this information BSR Director General Angel Dimitrov opened today's news conference "on wheels" along the Sofia-Plovdiv railway. The State Railways have 31,560 freight cars, of which 3,200 are outdated and will be decommissioned this year and 12,750 will have to be repaired over the next two years. Eighty of the 1,740 passenger cars are aged between 15 and 25, Dimitrov said. Bulgaria's railway network is 7,472 km long. The repair of 1,292 km was delayed and 1,200 km are due to be overhauled now. According to the 1995 plan, 250 km of major railways will be repaired, which will cost 1,000 million leva. Dimitrov said the company's most serious problems are stowaways and thefts. Ticket collectors registered 1,446 expired travel cards in the last two and a half months. The State Railways paid nearly 115 million leva in damages for stolen freight. [09] NEW BORDER CHECKPOINT DISCUSSED Smolyan, March 18 - The opening of a new border checkpoint was discussed at a Bulgarian-Greek meeting held in the Pamporovo resort (Southern Bulgaria) today. Members of the two countries' parliaments, regional governors, mayors and businessmen considered the opening of the Gorovo-Livaditis road and of a border checkpoint there. A group of Greek businessmen suggested that the border be opened along the axis connecting Plovdiv, Chepelare, Smolyan, Smilyan and Gorovo in Bulgaria, and Livaditis and Dafnona in Greece. They argued that this would be the best location from the economic and geographic point of view. The final decision will be taken by the two governments and the competent ministries. This view was shared by Nora Ananieva, Deputy Chairman of the Bulgarian National Assembly representing the Bulgarian Socialist Party, Atanas Zhelyazchev, Parliamentary Deputy Chairman for the Popular Union, and Panayotis Sgouridis, Vice President of the Greek parliament, who attended the meeting. Hopes that the idea will materialize are placed on the forthcoming visit to Sofia by Greek Foreign Minister Karolos Papoulias on March 30 and 31, as well as on parliamentary and business lobbies in the two countries, the press learned. Asked by BTA whether, in addition to a common border and collaborative projects along the lines of trans-frontier cooperation, Bulgaria and Greece can have identical views and shared interests in the Balkans, Sgouridis said: "Of course." "There is a new critical situation in the Balkan Peninsula now. This problem can be resolved only if we Balkan people realize that we do not need external help, that we can help each other instead. That is why the Greek [foreign] minister visited several Balkan countries," said he. Coming together in the name of a common idea is the most important point of this meeting, said Nora Ananieva. In her view, the sides should be ready to come up with a feasibility study and to advance the idea to a decision-making level. In a conversation with Sgouridis, Ananieva argued that "things rest largely with the Greek side". Bulgaria is interested in the idea, it would not create difficulties and is awaiting the experts' opinion. Clearly, this is the shortest, the most effective link economically, it strengthens the link between the North and the South in the Balkans, counterbalancing the East-West link which is more active now. This is a strategic matter on which the military must also have their say. According to Ananieva, the major problem is military-strategic and political rather than financial. [10] BUSINESS NEWS BRIEFS Sofia, March 19 - The unemployment figure in February was 490,772, down 1.7 per cent from January, the National Employment Service reported. The drop is due to the availability of seasonal jobs in farming and tourism. The number of unemployed who are not entitled to benefits increased to 336,799. Commercial bank representatives met in Varna to discuss a central bank project for the development of a creditworthiness information system. A credit register is one of the IMF's conditions for a Financial Sector and Enterprises Structural Adjustment Loan (FESAL). Sources of information about creditworthiness, information control and confidentiality were discussed at the meeting. A working group will summarize the different opinions. Several West European countries have made available credit registers to be used as models. At a meeting in Blagoevgrad (Southwestern Bulgaria) the town council and representatives of the US Agency for International Development (USAID) discussed the effectiveness of projects carried out with the Agency's help. USAID is drawing up a project for a geographic information system. It provided technical equipment and software for the link-up of the town council to an international electronic mail system. A Bulgarian-American business center was set up. A project for a dam near Blagoevgrad will be drawn up with the Agency's assistance, the town council said. [11] BUSINESS PRESS Sofia, March 17 - The representatives of the International Monetary Fund (IMF) gave their consent not to close down Mineralbank and the Economic Bank (the two state banks in serious trouble), the financial news daily "Pari" writes on its front page citing a statement by a well informed source in the National Bank of Bulgaria (BNB), made after the talks of the central bank and the IMF officials headed by Russel Kincaid, mission leader for Bulgaria. BNB officials confirmed last week's decision of the BNB Governing Board to purchase part of the bad debt bonds held by the two banks, as part of the rescue operation. However, Mr. Kincaid expressly stipulated that in the future the Economic Bank and Mineralbank should not be refinanced by the BNB, "Pari" writes. There was a mixed trading of Bulgaria's Brady bonds on the free international market of debt instruments, "Pari" writes referring to Reuters. The collateralized discount bonds (FLIRBs) were in demand at 41.25 cents for the dollar, going up to 41.375 cents in the afternoon, which is 0.5 cents higher compared to Wednesday prices. They were quoted at 42.0 cents for the dollar, which is also higher than Wednesday quotations of 41.625 cents. In the morning the past due interest bonds (IABs) bid at their Wednesday level, 32.375 cents for the dollar, later climbing to 33.125 cents. Ask prices varied from 33.125 to 33.625 cents for the dollar, going slightly down to 33 cents as the market closed. Yesterday's bid prices of the front loaded interest reduction bonds (FLIRBs) went down and fluctuated between 16.5 and 17 cents, down from 17-17.25 cents on Wednesday. Their asking price was 17.5-17.75 cents, as against 17.75-18 cents on Wednesday. Bulgaria will insist on the EU eliminating or reducing the custom duties charged on Bulgarian wine imports in Sweden and Finland, Kiril Tsochev, Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation, told "24 Chassa". The Bulgarian side is required to liberalize tariff treatment of Bulgarian exports of fruit concentrates to Austria, the paper says. ------------------------------------------------------------------------------