BTA 08-06-95

EMBASSY OF THE REPUBLIC OF BULGARIA

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

JUNE 8, 1995


CONTENTS

  • [01] BULGARIAN FOREIGN MINISTER TOURS BALKANS

  • [02] BULGARIA WILL ENTER E.U. AROUND YEAR 2003,

  • [03] KLIMENT VOUCHEV INTERVIEWED

  • [04] WATER PROBLEM

  • [05] PONZI COMPANIES

  • [06] BULGARIA - NATO

  • [07] BULGARIA - TATARSTAN

  • [08] HEATED PARLIAMENTARY DEBATES ON PONZI SCHEMES

  • [09] BUSINESS PRESS

  • [10] INTERNATIONAL BUSINESS FORUM; BULGARIA-TATARSTAN

  • [11] PRESIDENT OF FRENCH ACCOUNTING OFFICE

  • [12] FIRST STAGE OF NAVAL EXERCISE ENDS

  • [13] WEDNESDAY NEWS BRIEFS

  • [14] SOCCER: BULGARIA-GERMANY


  • [01] BULGARIAN FOREIGN MINISTER TOURS BALKANS

    Sofia, June 7 (BTA) - Bulgarian Foreign Minister Georgi Pirinski is on an official visit to Athens today and tomorrow, the Foreign Ministry said today. At the end of the week he will confer with his Romanian counterpart Teodor Melescanu. Pirinski is also scheduled to visit Zagreb and Belgrade. In late June he will meet Turkish Foreign Minister Erdal Inonu. In Athens Pirinski will confer with his Greek counterpart Karolos Papoulias. The current visit is to prepare an official visit by Bulgarian Prime Minister Zhan Videnov to Greece on June 19 and 20. The two sides will discuss customs regulations between the two countries within the framework of the European Union and a PHARE project financing investment projects for building new checkpoints between the two countries, Mr Yordan Kozhouharov, deputy chief of the Southeastern Europe Department of the Foreign Ministry, told journalists today. The Bulgarian side is expecting information on the meetings Papoulias had in Pale. The Bulgarian diplomat stressed that Pirinski's visit to Athens is part of a Balkan tour.

    On June 12 and 13 Pirinski will pay an official visit to Croatia at the invitation of his counterpart Mate Granic. During the visit the two sides are expected to initial an interstate treaty. Some texts of the treaty are yet to be coordinated. An agreement for cooperation in culture, education, science and sports is almost ready. On June 19 and 20 Pirinski will visit Belgrade at the invitation of his counterpart Vladislav Jovanovic. The two sides will exchange opinions on a draft agreement in culture as a result of the alleviation of the sanctions, Kozhouharov said. The Bulgarian chief diplomat will hold talks with Turkish Foreign Minister Erdal Inonu during his visit to Sofia in late June. The date of the visit is yet to be specified. Inonu will prepare a visit to Bulgaria by Turkish President Suleiman Demirel in early July. On Friday and Saturday Pirinski will have a working visit with his Romanian counterpart Teodor Melescanu in Varna (on the Black Sea). The two sides are expected to review the existing agreements between the two countries, as well as the construction of a second bridge across the Danube linking the two countries.

    [02] BULGARIA WILL ENTER E.U. AROUND YEAR 2003,

    Sofia, June 7 (BTA) - For the first time European Union associated members enjoy equal treatment, Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev said today. He returned from Luxembourg where he attended a meeting of the ministers of trade and economy of the EU member states, the six associated members and the association applicants of the Baltic region. Tsochev believes now there is a more serious attitude to associated members. "Bulgaria approves the EU White Paper as a basis for negotiations and its major elements as guidelines for future action, " Tsochev said upon his return. A five-hour meeting discussed EU legislative initiatives, regulatory measures, methods and systems of standardization in the accession of associated members to the common market. Bulgaria's recommendations are that the White Paper expand on the common agricultural market, the regional cooperation funds and PHARE technical assistance, said the Deputy Prime Minister. "The White Paper gives all countries a chance for an equal start; the rest depends on us, " Tsochev said. He believes Bulgaria will enter the EU around the year 2002 - 2003. On June 20 Bulgaria, Slovakia and the Czech Republic will sign a memorandum on the opening of a free trade zone, said Kiril Tsochev. The date was confirmed at a bilateral meeting with Czech Minister of Trade and Industry Vladimir Dlouhy held during Tsochev's one-day visit to Luxembourg. The Deputy Prime Minister believes that the talks on the free trade zone memorandum were the most important thing in his bilateral meetings. The free trade zone agreement will take effect as of January 1, 1996, and will provide for the duty-free trade with 60% of the industrial goods, with duty-free trade to be introduced for the remaining 40% within two years. The three sides will work for duty-free trade with agricultural produce. During meetings held in Luxembourg, Bulgaria agreed with Hungary and Romania on the launch of similar negotiations.

    [03] KLIMENT VOUCHEV INTERVIEWED

    Re-establishment of Bulgaria's foothold on the Eastern European special production markets and restoring the connections between military works are among the conditions for the survival of the Bulgarian military industry, Industry Minister Kliment Vouchev says in an interview for "Troud". The Minister says that during the visit of a Russian military delegation at the end of May negotiations were held for the signing of an agreement for the joint development of new automated systems, armaments and equipment. The Russian side will make its stand clear by the end of the summer.

    [04] WATER PROBLEM

    The dailies report the request of Sofia mayor Alexander Yanchoulev for urgent termination of the water rationing in the city. In a letter to the Chairman of the Municipal Council Yanchoulev calls on to the city councillors to show understanding and sense of responsibility. According to figures, cited by Yanchoulev, there are currently 200 million cu.m. water in Sofia's main reservoir, the Iskar dam, which is 60 million cu.m. more against the like period last year. According to Yanchoulev, further application of the water rationing would pose risks to the health of the Sofianites.

    [05] PONZI COMPANIES

    The Government is considering setting a special fund in support of the losers from the bankruptcies of the companies operating on pyramid schemes, "Troud" says. MPs of the Bulgarian Socialist Party are expected today to propose to the National Assembly to set up a committee of enquiry to investigate the operation of the Ponzi companies. The same request is made in a special declaration of the leadership of the Union of Democratic Forces (UDF), published in "Demokratsiya". The opposition MPs, however, insist that the Government be held responsible for having let the pyramid companies come into existence. "I will try and protect the interests of those, who lost their investments, " the daily quotes UDF leader Ivan Kostov as saying. He said he would use all possible means to resolve the problem.

    [06] BULGARIA - NATO

    The claims that the association of the Eastern European states with NATO is related to these countries' membership in NATO are ungrounded, says in an interview for "24 Chassa" Professor Stelios Alifandis, expert on the foreign policy of Greece, NATO and the EU and advisor in several Greek governments. He believes that at this stage the entry into the WEU is more significant than the association with the European Union. "Greece strongly supports the efforts of the Balkan states to join WEU, " says Mr Alifandis, and adds that the objective is to strengthen the positions of the Balkan group in the union. The relations between Bulgaria and Greece have always been a decisive factor for the stability in the Balkans, he says. In his view, the two states may initiate the establishment of a new framework of agreement, confidence and security in the Balkans.

    [07] BULGARIA - TATARSTAN

    Bulgaria and Tatarstan will sign today the first intergovernmental agreement for commercial, economic and cultural cooperation, "Douma" quotes as saying Tatar Prime Minister Farit Muhametshin who is on a visit here. An agreement for the establishment of a joint venture for cigarette production in Tatarstan's capital Kazan will also be signed today. The commercial exchange between the two states was 21 million US dollars in 1994, which is 5 per cent of Tatarstan's total trade, the daily quotes Mr Muhametshin as saying.

    [08] HEATED PARLIAMENTARY DEBATES ON PONZI SCHEMES

    Sofia, June 7 (BTA) - There were heated debates in Parliament this morning on the so-called financial pyramids. A parliamentary commission was set up to inquire into the problem and legislative amendments are expected. Five get-rich-quick funds collapsed last week alone in the Black Sea city of Varna, sinking the savings of some 70, 000 small investors. Last year there were victims of pyramids in Sofia too. Pyramids went bust in Pazardjik and Yambol (Southern Bulgaria) and Gabrovo (Northern Bulgaria). Varna proved the most affected, as apparently it has the greatest number of pyramids. At a rally last week swindled depositors demanded the resignation of the Government. During the almost two-hour debates on the setting up of a commission, it was stressed that the accumulated tension threatens public order. Attracted by the high interest rates offered by pyramid companies, many citizens preferred to put their savings there instead of in the banks. The existence of such pyramids deflects funds from the banking system and the budget and undermines confidence in the state institutions, it was pointed out during the debates. "The commission will not be able to restore the money of swindled depositors but it will disclose the truth, " said Peter Dimitrov, MP of the left-wing, who was later elected to chair the commission. Union of Democratic Forces (UDF) floor leader Yordan Sokolov laid the blame for the scandals with the pyramids on the parliamentary majority of the Bulgarian Socialist Party (BSP, the former communists) and the Government. The draft resolution for setting up an ad hoc committee on pyramids was moved by the majority which comes to confirm the saying that "a guilty conscience is never at ease, " Sokolov said. The Socialists argued that the conditions for the emergence of pyramids were created during the rule of the UDF (1991- 1992). During the debates MPs criticized the prosecution for not taking steps against the pyramids, especially after receiving information that their presidents were leaving Bulgaria with the depositors' money.

    MPs of all parliamentary factions expressed the opinion that the lack of tax control is responsible for the existence of pyramids and their unimpeded bankruptcy and insufficient customs control for the smuggling of depositors money out of the country. There were MPs who were against the setting up of a parliamentary commission, claiming that the problem is within the competence of the executive. The newly established commission will propose legislative amendments making it possible to close down the pyramids and punish the culprits. The illegally collected money may be confiscated to form a fund for assisting the victims. Many MPs stressed that the commission of inquiry would only establish the "size of the calamity". The problem is expected to be partially solved with the coming into force of the exchanges and securities act, passed on first reading.

    [09] BUSINESS PRESS

    Sofia, June 7 (BTA) - Bulgaria's exports exceeded imports by 78.8 million US dollars in the first quarter, writes "Standart News, " quoting balance of payments figures. Exports have brought in 2, 022 million US dollars, while imports have cost 1, 942 million US dollars. Customs statistics show, however, a trade surplus of 127 million US dollars, the daily notes. The discrepancy is due to the different methods of calculation, "Standart News" specifies.

    The Life Choice company transferred abroad more than 1 million US dollars in 1994, writes "24 Chassa, " quoting the results of an inspection conducted by the National Bank of Bulgaria. According to the newspaper, the company remitted this sum abroad for the purchase of generic drugs for Factor-R, a medicine which it advertises as an AIDS cure. The delivery, however, never arrived and auditors believe this was actually an export of capital, the daily says.

    Negotiations with the World Bank on a 150 million US dollar Financial Sector and Enterprises Structural Adjustment Loan (FESAL) will start in late June, "24 Chassa" reports.

    The National Electric Company will invite tenders for the import of coal from South Africa and Australia, writes "24 Chassa." The purchase will cost some 120 million US dollars. Two and a half million tonnes of coal are needed for the Varna and Rousse thermoelectric power stations, which run on imported fuel only. The two plants are designed to burn Ukrainian coal, but no import from Ukraine has been agreed so far. The South African coal is close in composition to the Ukrainian coal and can be used at these plants, the daily notes.

    A working group of experts is leaving for Moscow today to specify a preliminary protocol on the establishment of a joint venture for extraction, processing, transport and sale of crude oil and petroleum products, reports "Continent, " quoting Deputy Industry Minister Plamen Dimitrov. The sides will also consider the prospects for direct deliveries to Bulgaria.

    Twenty-one enterprises under the jurisdiction of the Agriculture Ministry have been sold since the start of the year, writes "Troud." Privatization has brought in 877 million leva, and the procedures have cost 2 million leva, the daily specifies. The new owners have assumed debts totalling 372 million leva and have undertaken to invest an extra 852 million leva.

    [10] INTERNATIONAL BUSINESS FORUM; BULGARIA-TATARSTAN

    Plovdiv, June 7 (BTA corr.) A Plovdiv '95 business forum gathered representatives of 65 foreign and 74 Bulgarian companies at the Augusta resort today. The forum is attended by businessmen from Tatarstan, Ukraine, Russia, Greece and Albania. At the opening of the forum the Prime Minister of Tatarstan, Farid Muhametshin, who is paying a brief visit here, said that commercial exchange with Bulgaria totals 20 million US dollars which is far below the economic potentials of the two partners, both in industry and in agriculture. The Prime Minister added that now Tatarstan is drafting its own legislation, different from the Russian one and that one of its main goals is to establish conditions for attracting investment and tax preferences. Today "Douma" cites Prime Minister Muhametshin as saying that Bulgaria and Tatarstan will sign their first intergovernmental agreement on trade, economic and cultural cooperation.

    According to this daily, the agreement may be signed today. The two sides will also sign an agreement on setting up a joint venture for cigarettes production in the capital of Tatarstan - Kazan. According to "Douma", in 1994 commercial exchange between the two countries was 21 million US dollars, accounting for 5% of the overall commercial exchange of that republic.

    [11] PRESIDENT OF FRENCH ACCOUNTING OFFICE

    Sofia, June 7 (BTA) - The President of the French Accounting Office Pierre Joxe arrived here today at the invitation of the Bulgarian cabinet. The French guest met Prime Minister Zhan Videnov and Deputy Prime Minister Roumen Gechev. Tomorrow he is expected to have talks with National Assembly Chairman Blagovest Sendov and President Zhelyu Zhelev. Pierre Joxe said upon his arrival at the Sofia Airport that he will discuss things that are of interest for all European states, and not only Bulgaria and France: the control on the utilization of national budget and ways of optimizing spendings. Pierre Joxe has been informed that the setting up of an Accounting Office in Bulgaria is on the agenda of this country's Parliament, but would not comment on the bills. He said he came here to hear the views of the Bulgarian government on having an all-European project on accounting offices. He further described his visit as part of the good tradition Bulgaria and France have established to exchange of expertise in government, and voiced expectations for positive results. The Bulgarian Parliament today passed at first reading two Accounting Office bills.

    [12] FIRST STAGE OF NAVAL EXERCISE ENDS

    Varna, June 7 (BTA corr.) - The first stage of the naval exercise "Cooperative Rescue 95" ended here today. Four frigates of the Netherlands, Italy, Greece and Turkey, two Bulgarian corvettes, three cutters, one towboat and one rescue ship took part in the exercise, including joint maneuvering, rescuing of distressed ships, moving groups onto damaged ships, giving first aid and evacuating injured persons, and towing. The NATO Navy Commander South Europe, Admiral Mario Angeli, and Bulgaria's Navy Commander Vice Admiral Hristo Kontrov observed the exercise. Romania will host its second stage.

    [13] WEDNESDAY NEWS BRIEFS

    Sofia, June 7 (BTA) - Miltiades Evert, leader of New Democracy, Greece's major opposition party, is arriving in Sofia tomorrow, Radio Athens said. He will be holding talks with President Zhelyu Zhelev, Foreign Minister Georgi Pirinski and Parliament Chairman Blagovest Sendov, the radio said.

    "We are opposed to the forcible holding of UN representatives hostage on any pretext and on any condition, " Yordan Kozhouharov, Deputy Chief of the Foreign Ministry's Southeast Europe Department, said today. "We would hail the fastest decision, humane as well as political, to release the hostages, " he said.

    Defence Minister Dimiter Pavlov today left for Brussels to attend the June 9 meeting of the North Atlantic Cooperation Council. He will set forth Bulgaria's practical observations on its participation in the Partnership for Peace plan, based on the implementing of its individual programme and its part in international exercises for humanitarian, rescue and peacekeeping operations. Pavlov will familiarize the participants with Bulgaria's defence policy aimed at stability in the Balkans.

    Deputy Prime Minister and Minister of Economic Development Roumen Gechev and cabinet ministers today met with World Bank experts to review the Bank's investment projects, the government press office said. Projects in the power industry, industry, trade, health care, education, social services and telecommunications were in the focus of attention. The Bank officials said there were problems with the utilization of loans extended by the Bank. They suggested that the government rethink the projects and come up with a clear opinion on them. Gechev said the government's decision would be consistent with the national economic interests. The government will shortly consider the projects in the light of the economic situation in this country and will duly inform the World Bank.

    The French Academy of Sciences donated to its Bulgarian counterpart 300 volumes of French scientific literature, including studies in geochemistry, paleography and biology, as well as collections of 17th century research papers.

    St Kliment Ohridski University of Sofia today conferred an honorary doctor's degree on the French geologist Jean Dercourt, as well as the University's honorary badge with a blue ribbon. Prof. Dercour teaches at the Pierre and Marie Curie University of Paris and is a member of the French Academy.

    The Danubian port of Rousse posts annual losses of 30 million leva due to the sanctions against Serbia and Montenegro, said Director Vassil Mitev. Shipping is in a critical condition, with the volume of freight handled in Rousse in 1995 twice as low as last year's.

    The oldest prelate of the Bulgarian Orthodox Church, Metropolitan Sofroni of Dorostol, died at the age of 97 in Rousse today.

    [14] SOCCER: BULGARIA-GERMANY

    Sofia, June 7 (BTA) - Bulgaria beat Germany 3-2 in a Group Seven qualifier for the 1996 European Championship tonight. Attendance: 50, 000. Referee: Piero Luigi Baireto. Line- ups: Bulgaria: Mihailov, Kremenliev, Trifon Ivanov, Tsvetanov, Houbchev, Yankov, Yordanov (Kostadinov), Stoichkov, Penev, Balukov, Lechkov (Sirakov); Germany: Koepke, Reuter, Strunz, Babbel, Helmer, Sammer, Eltz, Basler (Moeller), Klinsmann, Hassler, Herrlich. Scorers: Bulgaria: Stoichkov (45 min penalty, 66th penalty), Kostadinov (69th); Germany: Klinsmann (18th), Strunz (44th).


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