News from Bulgaria / Dec 15, 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] PARIS CONFERENCE ON BOSNIA AND HERZEGOVINA

Paris, December 14 (BTA) - Bulgaria was represented by Foreign Minister Georgi Pirinski at the Paris conference on Bosnia and Herzegovina, BTA learned form the Foreign Ministry's Information Department.

In his speech, Pirinski welcomed the initiative for broader discussions in the Organization for Security and Cooperation in Europe of the issues related to implementation of the peace agreement and building of the regional stability, security and cooperation. Bulgaria's comprehensive approach in the sphere of regional security includes: inviolability of the existing internationally recognized borders, establishment of the principles of Helsinki and Paris Convention on regional level, trans-boundary cooperation in view of easing of the free movement of goods, services, capital and people, development of the regional infrastructure and its link-up to the trans-European networks, promotion of trade and attracting of adequately structured foreign investments, increasing of the cooperation in culture, as well as in the humanitarian and social sphere.

Pirinski stressed that Bulgaria wants to participate on a priority basis in the programmes for the postwar reconstruction and development of former Yugoslavia and that it can have a key role in their implementation.

[02] DIPLOMATIC RELATIONS WITH BOSNIA AND HERZEGOVINA

Sofia, December 14 (BTA) - The Bulgarian government today decided to establish diplomatic relations with Bosnia-Herzegovina at embassy level. At this stage the Bulgarian diplomatic mission there will be headed by a charge d'affaires, First Deputy Foreign Minister Stefan Staikov said after today's regular sitting of the government.

He said the embassy would open in a view of Bulgaria's interest in promoting bilateral ties and cooperation and the need for providing more favourable conditions for Bulgaria's participation in the reconstruction of the areas hit by the Yugoconflict. In January 1992 Bulgaria recognized the sovereignty of Bosnia-Herzegovina, Macedonia, Slovenia and Croatia on the basis of the principle of equality, Staikov said. The decision for appointing a charge d'affaires was taken in principle and no candidacy for this office was discussed. Over 70 countries have to date established diplomatic relations with Bosnia-Herzegovina and 22 have opened diplomatic missions there.

The government further decided to restore the status of the head of the Bulgarian diplomatic mission in Belgrade from charge d'affaires to ambassador. Its demotion in October 1994 and the closure of the trade mission there have had an adverse effect on bilateral ties. The government also believes that the Dayton peace accord provides favourable preconditions for active and mutually beneficial cooperation between Bulgaria and the Federal Republic of Yugoslavia. The new realities did not find Bulgaria unprepared, said Deputy Foreign Minister Staikov. He recalled that in September the government took a decision for paving the way for Bulgarian-Yugoslav cooperation after the end of the war.

[03] PM VIDENOV NOT TO GO IN MADRID

Sofia, December 14 (BTA) - Bulgarian Prime Minister Zhan Videnov postponed a trip to Madrid where he was going to attend a European Union conference, because of the debates on the 1996 national budget bill to open at Parliament tomorrow, the cabinet spokesman said today.

A letter by National Assembly Chairman Blagovest Sendov today informed Videnov that the parliamentary committees are ready with their opinion on the budget bill and parliamentary debates on it will open at 9 a.m. tomorrow. In return, the Prime Minister reiterated the cabinet's desire to see work on the budget bill start immediately. Both stressed their intentions for the 1996 budget to be discussed in depth, said Deputy Prime Minister and Minister of Construction Doncho Konakchiev.

This important domestic policy commitment necessitates the presence of the Prime Minister here in Bulgaria and he will not attend the high-level EU conference in Madrid, said the cabinet spokesman. Foreign Minister Georgi Pirinski was mandated to file Bulgaria's application for full EU membership, the cabinet spokesman also said.

[04] GOVERMENT DECISIONS

Sofia, December 14 (BTA) - The Council of Ministers heard a report by the Deputy Prime Minister and Minister of Economic Development Roumen Gechev about the preparation of an economic restructuring package to be presented to the International Monetary Fund and the World Bank. Finance Minister Dimiter Kostov was assigned to draft a letter of intent clarifying the Cabinet's plans in restructuring, to be sent to the international institutions by December 20.

The Government considered a programme for the restructuring and stabilization of the banking sector, presented by Gechev. The programme will be finally adopted at the next cabinet sitting, when the parliamentary economic committee will have publicized its stand. It is part of the package to be presented to the international institutions.

The Cabinet made personnel changes in the interdepartmental council on the military-industrial complex and mobilization readiness. Deputy Defence Minister Vladimir Penchev's seat on the council was taken by Deputy Defence Minister Boris Radev.

The Government approved a draft agreement between the ministries of defence of Bulgaria and Belarus to be signed during a visit by the Belorussian Defence Minister on December 20 and 21.

[05] BALKAN AIRLINES FINANCIAL STATE

Sofia, December 14 (BTA) - Reduction of losses, setting up of a holding company with nine subsidiaries, closing of some loss-making services and attracting new investments are the key measures in the programme for the rehabilitation of Balkan Airlines, the national air- carrier, approved today by the cabinet.

The programme envisages that from US$ 24.5 million in 1995, the company's losses be cut to US$ 18 million in 1996, Transport Minister Stamen Stamenov said after the cabinet's meeting. The losses are mainly due to high-interest outstanding payments. In 1995, they amount to US$ 13.4 million, and are expected to increase to US$ 15 million in 1996. Balkan Airlines' financial burden can be alleviated by refinancing and rescheduling of the payments, so that payment of interest will be reduced by US$ 3 million, Stamenov said. Further measures are needed to reduce the bad debts, so that from the current US$ 2 million they decrease twofold in 1996, the Minister added.

Stamenov described as timely the financial aid of 1,400 million leva which the cabinet provided to Balkan Airlines in late November. Since 1990 until now, the company has not received government subsidies, he stressed. The 1,400 million leva-worth of aid will enable Balkan to return two of its planes which were impounded in London and Amsterdam because of outstanding leasing payments. Crews will fly there as early as today to return the aircraft, Stamenov said. After meetings with Boeing and Airbus representatives, the sides agreed to reduce the leasing charges, but to replace the leased aircraft with older models or with worn out ones, the Minister said. Another possible option is to sublease the aircraft.

The rehabilitation programme envisages that the air-carrier be restructured into a holding company with nine subsidiaries to deal with various businesses of passenger and cargo transport, ground services and technical maintenance.

Another measure that will help the company out of the crisis is the closing down of some loss-making air-services. Flights to Lisbon, Stockholm, Harare, Nairobi, Colombo will be discontinued while there will be fewer air-services to Budapest, Vienna, Munich, Frankfurt, Brussels, London and Zurich. Opportunities for setting up of joint ventures for the running of some services will be identified. More chartered flights for tourists, especially those to Britain and Germany, are envisaged. Cutting down of costs for representative offices is another option for decreasing the company's costs. According to Stamenov, the emphasis will be on increasing the number of cargo flights as they can yield considerably higher profits.

[06] PARLIAMENT DECISIONS

Sofia, December 14 (BTA) - Parliament today passed at second reading a Protection, Rehabilitation and Social Integration of Disabled Act. The law regulates the rights and privileges of over 360,000 Bulgarians who are mentally handicapped, deaf and blind, or have difficulty in exercising their right to labour.

The newly passed law sets the minimum pension for disabled at 65% of the minimum monthly wage in Bulgaria, and the social pension to disabled at 60% of the minimum monthly wage. Disabled aged over 16 are entitled to a monthly benefit equal to 15-25% of the minimum monthly wage (2,760 leva as of October 1, 1995), that will not be included in the income the monthly social benefit is calculated. Disabled people with a companion will receive a sum equal to 45% of the minimum monthly wage.

The cabinet will set up a Rehabilitation and Social Integration Fund (RSIF) to replace the existing Rehabilitation Fund. It will be headed by a Governing Board to include representatives of national organizations of disabled. The law envisages that the raising and utilization of the Fund be monitored by the National Accounting Office.

Persons using RSIF funds for purposes other than those initially envisaged, will repay them at an interest rate up by 30 percentage points from the base interest rate.

The Ministry of Construction and Territorial Development and local governments are given a three years' term to provide a suitable living and architectural environment for disabled. The Ministries of Transport and Construction will pool efforts in drawing up standards and rules for the use of transport facilities by disabled. Specialized and private transport services will facilitate disabled; light, sound and other signalling devices will be introduced for people with impaired eyesight and hearing.

Five percent of seats in sports halls will be designed for people with disabilities and they will use them free or at half price.

Over 4% of jobs in each company should be allocated for disabled. An employer employing more than the mandatory 4% is entitled to a bonus equal to 12 minimum monthly wages. Enterprises employing only disabled cannot be privatized and the goods and services they will produce will be specified by the government. Such enterprises will be granted preferential treatment.

Sofia, December 14 (BTA) - Parliament today passed at second reading amendments to the Monuments of Culture and Museums Act, sponsored by a group of MPs of the Socialists-led Democratic Left parliamentary coalition. The amendments update the effective law passed in 1969. During the amendment debates MPs voiced hope that a totally new law on monuments of culture and museums will be adopted within two years.

The amendments enlarge the circle of legal entities entitled to possess monuments of culture to include now the state, municipalities, legal and natural persons. The amendments further expands the list of articles that can be treated as monuments of culture.

Under the amended law the government is the only body that can clear the launch of archaeological excavations, prospecting, submarine or other studies of monuments of culture involving foreign institutes and experts. In all other cases a permit of the Institute of Archaeology, coordinated with the Ministry of Culture, will be required.

The amended law includes a new provision envisaging that donations by private persons or organizations for studies on, conservation and protection of and security for monuments of culture be deduced from the taxable income. The same will be valid for expenses on purchase of monuments of culture.

Parliament today also amended its rules of procedure, thus allowing the Bulgarian Business Bloc (BBB), the smallest faction at Parliament, to keep its parliamentary group. Prior to the amendments the rules of procedure envisaged that a parliamentary group should have at least 10 members to exist. The amendments introduce a ban on the setting up of parliamentary groups other than those initially included in the sitting National Assembly and envisages that a parliamentary group cannot consist of less than 7 members. The amendments were backed by the MPs of the Democratic Left and the BBB group around its leader George Ganchev. The BBB entered Parliament after winning 13 seats in the December 1994 elections. Later a group of MPs walked out of the BBB leaving its parliamentary group with less than the 10 members required. Each parliamentary group is entitled, among other things, to television air time for statements and for coverage of its events, and to a time quota during debates on significant bills and decisions.

[07] BUSSINESS NEWS

Sofia, December 14 (BTA) - The Bulgarian banking system may be ailing, but it has a huge inner potential and under a sensible programme of the Government and the Central Bank (the programme has already been approved and moved to the National Assembly), the banks will not be allowed to collapse, the financial "Pari" daily quotes BNB Governor Prof. Todor Vulchev as saying at a news conference yesterday.

The establishment of a Balkan energy ring has been discussed by representatives of the Energy Committee and the Yugoslavian Energy Ministry during the visit of a Bulgarian delegation to Belgrade early this week, today's dailies write, quoting the leader of the delegation, the Bulgarian Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev as saying.

Bulgaria will receive 20,000 licenses for transit cargo transportation across the territory of Yugoslavia during the visit of Yugoslavian Transport Minister to Sofia at the end of the year, "24 Chassa" says. "Novinar" specifies that these will be licenses for reciprocal trade.

Bulgaria and Yugoslavia have considered joint tourist projects, Deputy Minister of Economic Development Entseslav Harmandjiev is quoted as saying by "Standart News" on the same occasion. The Minister has come up with a project for linking the Adriatic Sea with the Black Sea.

The Bulgarian Telecommunications Company will be privatized in 1997 the latest, "Novinar" quotes the Director of the Privatization Agency Vesselin Blagoev as saying. The enterprizes from the energy sector, the military industrial complex, the Bulgarian State Railways etc. have not been earmarked for denationalization, the daily reminds.

Up to 1 million leva fine (1 USD currently equals 70,210 leva) will be charged on manufacturers and merchants, who violate the Wine Act, "24 Chassa" writes. The punishment is envisaged in a bill to amend the 1978 Wine Act, which has already been moved to the National Assembly. The acting legislation will have to consider the fact that the state-owned Vinprom does no longer have monopoly on the sector. According to official reports alone not less than 10 deaths from counterfeit alcohol have been registered.

[08] CARE CENTRE FOR HOMELESS CHILDREN OPENS IN SOFIA

Sofia, December 14 (BTA) - Some 20 children and their supervisors today hosted a modest ceremony on the opening of Sofia's first care centre for homeless children.

A former kindergarten, the Faith, Hope and Charity child care centre was opened by the President of the Free and Democratic Bulgaria Foundation, John Panitza. Attending were Bulgarian President Zhelyu Zhelev, Prosecutor General Ivan Tatarchev, Sofia Mayor Stefan Sofiyanski and the Ambassadors of the US and EU here, William Montgomery and Thomas O'Sullivan.

The children gave a concert and took pictures of themselves with the guests. Together with all who were present at the ceremony, contribution in the opening of the child care centre have the Child Hope Foundation of Britain and the BIBA association. More funds were made available under operation PHARE of the EU.

For a second month already, the centre is voluntarily attended by homeless children, most of them Gypsies living in and near Sofia's central railway terminal, who are free to go there any time to have food, warm up and get disinfested. Voluntariness is the basic principle in the work of the centre. The supervisors had a lot of amusing stories to tell about the centre inmates. After the ceremony was over, the guests were warned to keep an eye on their purses just in case.

[09] EARTHQUAKE

Sofia, December 14 (BTA) - An earthquake measuring 3.2 on the Richter scale was registered in Sofia at 18:20 hrs. local time today, the seismologist on duty with the Bulgarian Academy of Sciences Seismological Institute reported. The quake was epicentred 10 km southwest of downtown Sofia, according to the same source.

According to other sources, the quake measured 3 to 4 on the MSK scale in Sofia's Dragalevtsi, Simeonovo, Boyana and Vladaya districts, and 2 to 3 in other neighbourhoods.