News from Bulgaria / Dec 19, 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 IN PORTUGAL

Lisbon, December 18 (BTA spec. corr. Gratsiela Ingelska) - European integration and Bulgarian-Portuguese relations were in the focus of attention at today's meeting between Presidents Zhelyu Zhelev and Mario Soares. President Zhelev arrived in Lisbon for a three-day official visit today.

"I hope that ties between the two countries will deepen in the wake of your visit," President Soares said in his welcoming address to the Bulgarian delegation. Soares stressed that Portugal considered Bulgaria's desire for integration in the EU fully justified and timely, referring to this country's official application for EU membership presented at the Madrid summit on Saturday. Portugal became EU member in 1985.

Contacts between the two countries have intensified both at bilateral level and within the European organizations, President Zhelev said in his speech. He stressed that economic, cultural and military-technical contacts should develop on a priority basis. Zhelev expressed a hope that sooner or later Bulgaria will become a full member of the EU.

Before the official meetings Zhelev and the attending party were welcomed with full military honours. The guests visited the Convento dos Jeronymos where Zhelev laid a wreath at the tomb of the great poet Luis de Camoens. Later this afternoon Zhelev and the accompanying Bulgarian MPs met with Portuguese Parliament President Antonio Santos and leaders of the four parliamentary groups. Dr. Zhelev voiced satisfaction with the fact that Bulgarian politicians are among the first guests to Portugal's newly elected Parliament and wished the Portuguese politicians successful work.

The Bulgarian delegation visited NATO's Iberian Atlantic Command and met IBERLANT Commander Admiral Nuno Mateas. "Bulgaria's road to NATO through active cooperation within Partnership for Peace and with the policy of the Bulgarian President, is the best one," Admiral Mateas said at his meeting with the Bulgarian Head of State at the NATO base near Lisbon. On his part, President Zhelev briefed Admiral Mateas on the reforms in the Bulgarian army and expressed his hope for Bulgaria's accession to NATO as soon as it becomes possible.

[02] BONN CONFERENCE: IMPORTANT STEP ON DAYTON AGREEMENT

Sofia, December 18 (BTA) - Returning from Bonn, Bulgarian Foreign Minister Georgi Pirinski described the Bonn Conference as an important step toward compliance with and implementation of the Dayton agreements. In his address at the conference the Bulgarian Foreign Minister reportedly stressed that the measures for armament controls and building confidence among the three countries form one circle of issues; the other one includes the problems outside former Yugoslavia and the two should not be mixed up. Pirinski also stressed that Bulgaria is party to all multilateral accords on conventional armed forces in Europe and has signed bilateral agreements on confidence- building measures with Greece and Turkey. According to him, in this line of reasoning Bulgaria should not be named together with the three countries that are parties to the Dayton agreement, said the Bulgarian Foreign Minister. His views were supported by the Foreign Ministers of Romania and Greece, Teodor Melescanu and Karolos Papoulias.

Asked by the BTA if the Greek initiative for holding a Balkan conference has been discussed in Bonn, Foreign Minister Pirinski said the proposal was not on the agenda of the conference. "The initiative has been repeatedly brought to the fore by the Greek side and we, too, have ideas on this matter that we could discuss on Friday when Mr Papoulias comes here," Pirinski added.

[03] GREEK FOREIGN MINISTER PAPOULIAS MAY VISIT SOFIA

Sofia, December 18 (BTA) - Bulgarian Foreign Ministry Spokesman Radko Vlaikov today did not rule out the possibility of Greek Foreign Minister Karolos Papoulias paying a visit to Sofia before Christmas. At a briefing here today, Vlaikov said that the aim of the possible visit will be to continue the work on the agreements reached during the official visits of Bulgarian Prime Minister Zhan Videnov to Athens in June and of Greek President Costis Stephanopoulos to Bulgaria in November.

The Cabinet today approved two agreements which will be signed during Greek Foreign Minister Papoulias' forthcoming visit to Bulgaria. The first intergovernmental agreement envisages the opening of new border checkpoints with the appropriate road links at Kurdjali-Komothene, Gotse Delchev-Drama and Zlatograd or Roudozem-Xanthe. The second agreement is related to the use of the waters of the Mesta River.

The first agreement envisages that the reconstruction and upgrading of the E-85 road which links Haskovo and Kurdjali (Southern Bulgaria) and Komothene and Alexanroupolis (Greece), should be completed by the end of 1998, Deputy Prime Minister and Minister of Regional Development and Construction Doncho Konakchiev said at the Cabinet's press office. The agreement stipulates the same time limit for the opening of a new border checkpoint between the Southwestern Bulgarian town of Gotse Delchev and the Greek town of Drama. The Bulgarian officials propose that by the end of 1999, the sides sign an agreement for the opening of a border checkpoint that will link Plovdiv, Smolyan and Roudozem or Zlatograd in Southern Bulgaria with Xanthe in Greece. The document envisages that the two governments be given expert information on the feasibility of constructing a new railway link Dimitrovgrad-Momchilgrad- Komothene-Alexandroupolis.

A key point in the Bulgarian-Greek negotiations on the use of the waters of the Mesta River is what relative share of the waters can be granted to the Greek side. Until now, the share was 25 per cent, but, according to the Bulgarian Cabinet, it could be increased to 29 per cent, Konakchiev said. The second issue that needs to be decided is the term of the agreement. In the talks so far, the Bulgarian side insisted on a 30-year term, while Greece wanted a 50-year one. The Bulgarian Cabinet now will propose a 35-year term. It is proposed that the sides establish a standing Bulgarian-Greek water management committee which will coordinate the implementation of the agreements.

[04] FRENCH MINISTER BARNIER IN SOFIA

Sofia, December 18 (BTA) - Promotion of bilateral relations was the focal issue at a meeting between Bulgarian Prime Minister Zhan Videnov and French Minister Delegate for European Affairs Michel Barnier who arrived on a visit here yesterday.

Minister Barnier was sent by French President Jacques Chirac on a mission to all European Union associate members that have voiced a desire for full EU membership, and all members of the Fracophone movement including Bulgaria, Cabinet Spokesman Nikola Baltov said after the visit.

Mr Barnier confirmed France's desire to help the speedier accession of Bulgaria to the processes of European integration. The sides discussed ways of eliminating crime-fostering factors and drugs trafficking. The Bulgarian side reportedly reiterated the will and determination of the government to continue helping to solve these problems. It further voiced this country's desire to be up to the European standards that will facilitate its entry into united Europe.

Mr Barnier conveyed the personal greetings of French President Jacques Chirac and Prime Minister Alain Juppe to Bulgarian Prime Minister Zhan Videnov.

Later today the guest met Deputy Prime Minister and Minister of Foreign Economic Cooperation Kiril Tsochev. The two stressed the possibility for French support for Bulgaria's efforts to enter the EU.

The Bulgarian Deputy Prime Minister underscored the targets of bilateral cooperation to that end: accession of Bulgaria to New Forum; easing the access to the European market for Bulgarian-made goods; providing more PHARE funds to Bulgaria; cooperation in the sphere of investment projects.

Tsochev reportedly recalled Bulgaria's initiative for adopting a single strategy of the EU and its associate members for a trade regime for agricultural produce and related productions.

Bulgaria also brought to the fore the possibility for French assistance to involve Bulgaria in projects connected with the reconstruction of former Yugoslavia, which would help to at least partially compensate this country's embargo-related losses.

At a working breakfast given at the French Embassy in Sofia this morning by Ambassador Marcel Tremeau, Mr Barnier met representatives of the opposition in Bulgaria, said the press office of the opposition Union of Democratic Forces (UDF). Participating were UDF Deputy Chairpersons Nadezhda Mihailova and Vassil Gotsev, who briefed the French guest on the UDF stand on Bulgaria's future membership in EU and NATO.

Last night Mr Barnier was received by Bulgarian Foreign Minister Georgi Pirinski. The two discussed the situation in Bosnia-Hercegovina on the background of prospects for European security and Bulgaria's hopes for admission into the European structures after the filing of its official EU membership application.

The guest voiced the satisfaction of French President Jacques Chirac with Bulgaria's participation in the Francophone movement.

Pirinski said after the meeting, "I believe the most important thing is that the French Minister expressed the readiness of his country to provide active assistance to Bulgaria in the period of preparation for negotiations on its full EU membership."

The guest reportedly paid particular attention to Bulgaria's desire to join the reconstruction of former Yugoslavia. According to him, the neighbours of former Yugoslavia should be involved most actively in the regional stability plan. "I hope that the French Minister will present President Jacques Chirac with an objective picture about Bulgaria's expectations about and initiatives on all issues we discussed," said Pirinski.

[05] FRENCH MINISTER BARNIER: ENVIRONMENT, NUCLEAR SAFETY

Sofia, December 18 (BTA) - At a news conference here this evening on th second day of his visit to Bulgaria, French Minister Delegate of European Affairs Michel Barnier highlighted France' demand for equality of the European Union associate members in their admission as full members, and satisfaction with Bulgaria's participation in the Francophone movement. The news conference was held immediately before the guest's departure from this country.

Michel Barnier told journalists his talks in Bulgaria focussed on environmental protection, nuclear safety and everything pertaining to security.

He said environment-related problems were high on the agenda of his meeting with Bulgarian Deputy Prime Minister Kiril Tsochev who said Power Unit One of the Kozlodui Nuclear Power Plant, on the Danube, will stop operating in April. In September G-24 launched a campaign pressing for decommissioning Power Unit One, feared to be environment- hazardous. Mr Barnier said he has not yet received Bulgaria's official response to an offer for energy supplies in case it agrees to switch off Power Unit One.

It became clear that being a former environment minister, the guest is very well acquainted with the problem. In his capacity as such he voiced France' concern over the safety of nuclear power plants constructed with the help of the former Soviet Union.

Bulgaria is an independent and sovereign state and noone will dictate what it will do, the French Minister said adding that this is an important issue that will be addressed in the process of expansion of the European Union.

Michel Barnier said he wants to see the commitments being met and the dangerous reactors stopped but this is a decision to be taken by the Bulgarian authorities. He also stressed France' readiness to share its experience and start cooperating in this sphere.

The French Minister Delegate for European Affairs further said his country is ready to work with Bulgaria for the signing of an accord to let it back into the group of countries enjoying relaxed visa regulations.

Asked about the opportunities for getting Bulgaria out of the visa blacklist of the EU, Barnier recalled the decision for including Bulgaria among the 101 countries on the list was taken with consensus after an objective analysis. He also said that the condition in which this country has been placed should not be seen as discriminatory and that it could undergo an evolution.

Commenting on the situation in former Yugoslavia, Mr Barnier said, "I think that the risks for instability or the chances for stability do not concern the Balkan region only." He voiced his satisfaction with the signing of the peace accord in Paris last week, saying, however, that his visit to Bulgaria, a country so close to the conflict, has helped him understand how fragile this peace is. "It is on paper only, not in people's minds," he said.

[06] CONFERENCE ON IMPLEMENTATION OF EUROPEAN ENERGY CHARTER

Sofia, December 18 (BTA) - Bulgaria is actively preparing to sign the 1994 Treaty of the European Energy Charter and the energy efficiency protocol, Prime Minister Zhan Videnov told a conference on the implementation of the 1991 European Energy Charter in the Black Sea Region (Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine).

The forum was opened by Prime Minister Zhan Videnov and European Union Energy Commissioner Christos Papoutsis who is on a two-day visit to Bulgaria. Over 200 senior officials of the state-run and private energy sector are discussing specific regional issues of trade, investment, the environment and the transfer of technologies.

The forum was prepared by the Energy Directorate of the European Commission, within the framework of the EU's Synergy Programme. It is sponsored by Electricite de France and Eurogas. Forum International and a European consortium of energy consultancy firms and institutes also took part in the preparations.

Papoutsis and Videnov officially opened the Black Sea Regional Energy Centre whose establishment began last January. It was set up under the Synergy Programme, in a bid to help carry out energy policies and market reforms, encourage investment and coordinate projects sponsored by the Synergy, Tacis and Phare programmes.

"The establishment of the Centre in Sofia is another specific step in a strategic direction," Videnov said at the opening. "On many occasions, Bulgaria has declared its willingness to work for the future of united Europe, using its traditional advantages as a crossroads of communications and transport from different continents," the Prime Minister said. "The opening of the Centre would boost Bulgaria's relations with neighbouring countries and give a new impetus to the all-Balkan process."

On the initiative of the European Energy Commissioner, a working group of experts will be set up to work on the improvement of energy networks in the region (oil and gas pipelines, power grids). The group will analyze the state of energy networks, and allocate financing on a priority basis to strategic regional economic and political cooperation projects.

[07] BULGARIA, GERMANY: ECONOMIC CONTACTS

Sofia, December 18 (BTA) - Meeting with Klaus-Juergen Hedrich, Parliamentary Secretary of State at the German Economic Cooperation and Development Ministry, Deputy Prime Minister Roumen Gechev today presented the Government's economic policy, the Government Press Office announced today. Hedrich is heading a German economic delegation visiting at the invitation of the Bulgarian Government.

The official showed interest in the progress of privatization in Bulgaria and the plight of people laid off in its wake. Gechev, who is also Minister of Economic Development, briefed his guest on the Government's privatization programme and on plans for 1996 and 1997, when the private sector is expected to generate 60% of GDP. The Government succeeded in slashing unemployment by nearly 20%, as a result of better investment management, the Deputy Prime Minister said.

Earlier today, Hedrich and his delegation met with Alexander Bozhkov, deputy leader of the biggest opposition Union of Democratic Forces (UDF). Bozhkov presented the UDF stand on economic problems and the Government's activities.

[08] CABINET APPROVES LETTER OF INTENT

Sofia, December 18 (BTA) - At an extraordinary meeting today the cabinet approved its letter of intent required for the upcoming negotiations with the International Monetary Fund and the World Bank. The document prepared by the Finance Minister sets forth projects for the restructuring of the banking system, industrial restructuring, mass and cash privatization in 1996 and social reform, Government Spokesman Nikola Baltov said.

The cabinet met its commitment to submit to the international financial institutions its letter of intent before the meetings at which the state of Bulgaria's economy will be discussed. The IMF Board is meeting on December 20.

[09] COUNCIL OF MINISTERS' DECISIONS

The Cabinet approved an agreement on trade and economic cooperation between Bulgaria and the Federal Republic of Yugoslavia signed in Belgrade on December 11 during a visit by a Bulgarian government delegation.

The Cabinet heard a report on the forthcoming participation of a Bulgarian delegation in the international meeting on issues of the reconstruction of Bosnia-Herzegovina which will take place in Brussels on December 20-21. This is the first meeting which will specify the most urgent needs of the region's reconstruction, Baltov said. The Bulgarian delegation will be led by Deputy Foreign Minister Irina Bokova.

The Cabinet approved a project on cooperation between the defence ministries of Bulgaria and Britain.

[10] CABINET APPROVES BANK REHABILITATION PROGRAMME

Sofia, December 18 (BTA) - The Cabinet today approved the final version of the bank rehabilitation and restructuring programme. Half an hour later, the document was translated into English and sent to the International Monetary Fund (IMF) headquarters in Washington D.C.

For the first time in the past five years, the Cabinet "did its homework," Deputy Prime Minister and Minister of Economic Development Roumen Gechev said at the Cabinet's press office. In his view, the bank rehabilitation programme, as well as the cash and mass privatization programmes which were sent to the international financial institutions, present in a clear way the problems facing the Bulgarian economy, the ways to address them, the time limit to resolve them and who is in charge. "We hope that in early 1996 these issues will be on the agenda of the discussions with representatives of the IMF and the World Bank," Gechev said.

The programme envisages a three-stage restructuring of this country's commercial banking. The first stage, due to be completed by January 1996, will be the consolidation of banks through mergers of banks with majority state interest and of banks with different form of ownership. The second phase envisages that by the end of April 1996, some banks should be restructured and privatized through the sale to local and foreign investors of the share packages held by the Bank Consolidation Company. The third stage envisages that loss-making commercial banks be declared insolvent and liquidated, as well as the compulsory floating of shares of inefficient and loss-making banks. These procedures will be included in a special law due to be drafted by the end of the second quarter of 1996.

The programme envisages introducing a mandatory requirement that classified reserves do not exceed 5 per cent of the sum total of loans extended after January 1, 1996. The banks' minimum paid-up capital must increase from December 1996.

The programme emphasizes the need to complete a project for participation of the European Bank for Reconstruction and Development in the recapitalization of United Bulgarian Bank with 100 million dollars, which would solve many of its problems according to the UBB management.

The improvement of laws and regulations is said to be a major prerequisite for the implementation of the programme. Regulations must be amended and new laws enacted to ensure a better repayment of loans and more extensive rights of the creditors, to make it possible to demand immediate repayment and to withdraw the foreign travel passports of top executives of the worst defaulters, and to criminalize actions leading to fraudulent bankruptcies and bankruptcies due to negligence. The procedure of putting commercial banks into liquidation will be regulated. By January 1996 a regulation providing guarantees for deposits of members of the public will be enacted.

The programme contains as an option the drafting of a document outlining the functions of a Bulgarian Bank for Reconstruction and Development (BBRD), known as a "hospital bank". The Cabinet will ask the World Bank and the IMF to present more arguments for the need of such an institution because "we are not fully convinced of it", Roumen Gechev said. The programme envisages that the BBRD will be established by an Act of Parliament.