News from Bulgaria / Dec. 27, 1995

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

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA

WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

CONTENTS

[01] HISTORIC MOMENT FOR BULGARIA AND GREECE

Sofia, December 22 (Andrei Sharkov of BTA) - "This is a historic moment for Bulgaria and Greece... A great day for our contacts... A new stage in Bulgarian-Greek relations is opening that will have an impact on the Balkans and European politics," Greek Foreign Minister Karolos Papoulias said at the end of his six-hour working visit here today. Foreign Minister Georgi Pirinski and Papoulias signed agreements on the use of the Mesta River waters and on the opening of new border crossings and roads between Bulgaria and Greece.

Under the Mesta River agreement Bulgaria will allow Greece to use 29 per cent of the average annual natural flow of the river. A Bulgarian-Greek commission will update the parameters of the agreement which will be in force for 35 years. Its signing is linked to the fact that Bulgaria is an associate EU member, Deputy Foreign Minister Stefan Staikov said at a briefing two days ago.

The commission will meet first within six months of the ratification of the document by the two parliaments, Pirinski told the press. It will try to complete its work in two years instead of three as envisaged in the agreement, he added.

Under the second agreement Bulgaria and Greece will open three border crossings and roads by the end of 1998. The new crossings will link the Bulgarian towns of Haskovo and Kurdjali with the Greek towns of Komotini and Alexandroupolis, Gotse Delchev (Bulgaria) with Drama (Greece), and Zlatograd (Bulgaria) with Xanthe (Greece). An expert commission will define their exact location within six months of the agreement's entry into force.

The European Union will provide financial support for the construction of the border crossings, Papoulias said at a joint press conference after the signing of the agreements. The new border crossings will meet European standards, and existing ones will be brought up to standard, Pirinski said. The two Foreign Ministers said the renovation of the Svilengrad-Ormenion crossing would be speeded and it would be opened next spring. Instead of separating the two countries, their common border links Bulgaria to Greece and therefore to Europe and the European Union, Papoulias said.

On December 15 in Athens the two countries signed agreements on readmission of illegal aliens and on seasonal employment. They materialize the agreements underlying the Joint Declaration Prime Ministers Zhan Videnov and Andreas Papandreou adopted in Athens on June 20, reads a joint Bulgarian-Greek communique. The documents contribute to peace and stability in the Balkans, the Black Sea region and Europe, journalists were told by the two Foreign Ministers.

The agreements are most beneficial to Bulgarian-Greek cooperation and consistent with the European integration processes, said Prime Minister Zhan Videnov, with whom the Greek guest met today. The two voiced their regret that the documents had not been signed during a visit here Greek Prime Minister Andreas Papandreou was scheduled to pay in early December.

The sides today repeatedly expressed their recognition of the efforts of a number of Bulgarian and Greek statesmen, politicians and diplomats to find a final solution to the problems facing the two countries for decades. After the meeting, the Bulgarian Prime Minister asked the Greek guest to convey to Greek Prime Minister Papandreou his wishes for quick recovery and success in the field of Bulgarian- Greek contacts.

Speaking at a joint news conference, the two countries' Foreign Ministers expressed a shared unequivocal wish to build an oil pipeline from Bourgas on the Black Sea to the Greek port of Alexandroupolis. What has yet to be settled are trade and technical matters, the two said.

At the news conference, Karolos Papoulias described bilateral relations as exemplary. "The friendship between Bulgaria and Greece is not aimed against a third country; we are open to everybody," the two Foreign Ministers told journalists.

During the talks, Pirinski and Papoulias discussed the possibility to call a new meeting of the Foreign Ministers of Bulgaria, Greece and Romania as a follow-up to their meeting in Ioannina last August. The Greek Foreign Minister said the Bulgarian side accepted the Greek initiative for a Balkan meeting. According to Papoulias, the countries of the Danubian region and Black Sea Economic Cooperation could be invited to the meeting. The forum would be most timely in view of the end of the Yugoconflict and the future reconstruction of the war- hit region, said the two Foreign Ministers.

[02] PARLIAMENT AMENDED LABOUR CODE

Sofia, December 22 (BTA) - The MPs adopted several amendments to the Labour Code at second reading. The final amendment version is based on drafts made by the Council of Ministers and three MPs.

Parliament revoked an article in the Labour Code which allowed the dismissal of employees "for the sake of efficiency" without obliging their managers to cite the reasons for it. According to the sponsors of the amendment, its revocation is absolutely necessary for a democratic society; they specified that the application of the article had led to unjustified and inefficient dismissals.

Several days ago seven journalists were dismissed from national radio based on this article. This drew protests from their colleagues at the other national media. Public figures and politicians, including President Zhelyu Zhelev, also protested against the dismissals. The opposition press says that about 1,000 inconvenient journalists have been dismissed under this article in the past few years.

Under the newly adopted amendments, the law courts will not consider disputes arising in connection with the dismissal of persons holding elective offices at representative state bodies, public organizations and political parties and movements. The amendment also applies to senior officials at the Council of Ministers, ministries, committees and other central departments.

Parliament drafted and approved new paragraphs specifying the relations between employers and employees when no contract of employment is made. The Labour Inspectorate will investigate all cases when labour relations are concealed by contracts of personal services. The MPs increased the penalty payable for violations of the Labour Code.

The amendments to the Labour Code, passed today, were supported by the Bulgarian Committee on Human Rights and are another major step to the approximation of Bulgarian and EU legislation and on the road to Bulgaria's full membership in EU, reads a declaration of the Democratic Left circulated this evening.

[03] I.M.F. APPROVES GOVERNMENT MEASURES FOR STABILIZATION

Sofia, December 22 (BTA) - At a two-hour sitting in Washington the International Monetary Fund (IMF) heard a report of its mission to Bulgaria on the economic situation in Bulgaria and the intentions of the government and central bank for next year, the National Radio said today.

The IMF also reviewed the programmes for structural reform and for restructuring of banking, included in a packet of document the Bulgarian government had submitted. The IMF approved the measures for stabilizing the national currency, curbing inflation and achieving a sustainable economic growth, the radio report said. The IMF executive directors expressed their regret that a Bulgarian-IMF agreement was not reached for 1995, something they believe could have been done.

Throughout 1995, Bulgaria failed to reach an agreement with the IMF. The major stumbling blocks were the crisis in the banking sector and the absence of a programme for rehabilitation of banks, the sluggish structural reform and the poor financial discipline. The fourth standby agreement with the IMF that could be signed in 1995, is connected with the extending of the FESAL loan by the World Bank that has been on the negotiating table for three years now. Bulgarian Prime Minister Zhan Videnov last week said Bulgaria will make regular payments on its external debt. The payments due in 1996 amount to USD 1,200 million. Analysts, however, say this cannot be done without the help of international financial institutions.

The next IMF Mission is expected in Bulgaria in February- March 1996 after this country passes the 1996 budget act and the programme for rehabilitation of banks, former IMF mission leader for Bulgaria Russel Kincaid said two weeks ago before his departure from this country.

[04] AGRICULTURE MINISTER TAKES MEASURES FOR MEETING GRAIN BALLANCE

Sofia, December 22 (BTA) - Agriculture Minister Vassil Chichibaba today signed an order for providing the necessary amount of wheat for all flour mills in Bulgaria. Measures have been taken to ensure sufficient quantities of flour for the production of bread and pastry for domestic needs, the press office of the Ministry of Agriculture said today.

The measures are taken at a time when the country is in the grips of "a bread and grain crisis" fear. Mass media level bitter attacks against the government and other institutions involved in the export and import of grain. In January the opposition is planning to move a vote of no confidence in the cabinet for okaying the export of grain without making sure there are sufficient quantities to meet domestic demand. The trade unions back the opposition forces. Some sources say the government will have to open the national grain reserve.

[05] MILITARY

Sofia, December 22 (BTA) - "The peoples of Bulgaria and Belarus share decades-long friendship and relations between the two countries will grow even more," Belarussian Defence Minister Lieutenant General Leonid Maltsev said today before his departure for Belarus. Gen. Maltsev paid a three-day official visit to Bulgaria at the invitation of Bulgarian Defence Minister Dimiter Pavlov.

During the visit, the two countries' defence ministries signed a plan for military-technical cooperation. Earlier today, Gen. Maltsev met with Bulgarian Prime Minister Zhan Videnov . The Belarussian Defence Minister stressed that the agreement signed by the two countries' defence ministries forms the legal basis for the concrete programmes for the implementation of the Bulgarian-Belorussian agreements. The meeting between Videnov and Gen. Maltsev discussed issues related to the all-European security, about which the two officials reportedly shared similar views.

"The forthcoming visit to Bulgaria of the Prime Minister of the Republic of Belarus early next year will help the further expansion and promotion of the cooperation between Bulgaria and Belarus," Videnov said.

Gen. Maltsev, who visited Bulgaria for the first time, was received by President Zhelyu Zhelev and National Assembly Chairman Blagovest Sendov.

[06] BUSINESS PRESS

Sofia, December 22 (BTA) - The investment programme of Sofia Airport allocates USD 1.5 million for purchasing state-of-the-art equipment for servicing aircraft and passengers, "Douma" reports. This daily quotes Sofia Airport Manager Hristo Danchev as saying that the overhaul of Sofia Airport will start next year. This year the Airport posted a 530 million leva profit, "Continent" says.

There will be no electricity supply rationing this winter, National Electricity Company (NEC) CEO Trifon Tsvetkov said, the dailies report. Electricity consumption marked up 12% in 1995. In winter consumption goes up by an additional 10% but repair works in power engineering have been completed, Tsvetkov added.

This year the Committee for Tourism's privatization proceeds totalled 1,220 million leva, the chief of the Committee's Privatization Department, Borislav Gulubov, said, according to "Douma".

Private Bulgarian businessmen have invested USD 5 million in Romania. Over 65 Bulgarian and Bulgarian-Romanian companies have been registered in Romania, "Troud" reports, adding that the setting up of a Bulgarian-Romanian Chamber of Industry and Commerce and of a joint bank is underway.

[07] BUSINESS NEWS BRIEFS

Sofia, December 24 (BTA) - The mechanical engineering plant in Levski (Northern Bulgaria) exported cold-resistant airsheds worth over 250,000 US dollars to Russia. The local mechanical engineers designed 18 models of metal structures. Equipped with special insulation panels resistant to extreme heat and cold, the airsheds are intact even at minus 60 C. About 95 per cent of the plant's output is designed for export.

A Bulgarian-British woodworking enterprise opened shortly before Christmas in the village of Dobrinishte, the Pirin area (Southwestern Bulgaria). The British partner, Willy West, invested 500,000 dollars in the joint venture set up with Bulgarian Danail Samardjiev. The joint venture is equipped with Austrian and Italian machines. Its capacity is 50 cubic metres of logs or 70 cubic metres of pulp per shift. The partners plan to construct a wood-drying plant in 1996 and later close the production cycle, adding a furniture and frames workshop to it.

Belovo, the sole featherweight paper plant in Bulgaria, made a breakthrough in the Middle East market, said the plant's Director General Ivan Choroleev. The first 40 tonnes of paper were supplied to Iran, another 100 tonnes were sent to Egypt. The enterprise intends to export its products to Greece, Turkey and Macedonia.

The northeastern Bulgarian town of Razgrad and the Irish town of Armagh will cooperate in agriculture and tourism, Razgrad Mayor Venelin Ouzounov said on returning from Armagh. The visit was paid in accordance with the Remdep programme of the British Know-How Fund.

The steel works Metakom, based in Pleven (North Central Bulgaria), launched the production of hoist bridges used in heavy machine building. The trial lot is designed for Scotland, Manager Todor Petkov said. About 20 per cent of the output was exported in 1995. Nineteen tonnes of mining equipment tubing were sold to South Africa. The works made motor car castings for Austria and cast highly alloyed steel parts for Germany.

Rodina-91, a tailoring factory in Pernik (Western Bulgaria), became a member of the Scandinavian Federation of Textile and Clothing based in Copenhagen. Foreign businessmen showed interest in its ladies' and children's ready-to-wears. The enterprise needs assistance to improve the organization of production and buy new machines.

[08] TODOR VULCHEV TO SERVE AS CENTRAL BANK'S GOVERNOR

Sofia, December 22 (BTA) - The Governor of the National Bank of Bulgaria (BNB, the central bank) Todor Vulchev will retain his position until his mandate expires. This emerged today as, at the move of the Socialist floor leader Krassimir Premianov, the National Assembly cancelled the discussions on the election of a new BNB governor.

The issue was the first item on the agenda of today's extraordinary meeting of the National Assembly, marking the end of the autumn session. The ruling Left had put up for this position MP of the Bulgarian Socialist Party (BSP) and Chairman of the Parliament's Economic and Finance Committee Atanas Paparizov. Today's meeting was attended only by MPs of the Democratic Left and of the Popular Union. The opposition Union of Democratic Forces (UDF) and the ethnic Turks' Movement for Rights and Freedoms (MRF) were not present in the plenary hall, motivating themselves with the fact that the Parliament may not organize extraordinary meetings during its Christmas recess.

Prof. Vulchev's resignation was moved yesterday to the National Assembly. At the beginning of the meeting he familiarized the MPs with the letter he had sent and with which he actually filed his resignation. According to press reports, Mr Vulchev was asked by the Left to resign, so that the legal controversies on the term of expiry of his mandate can be terminated. Prof. Vulchev was appointed BNB Governor in January, 1991 and the legislation on the BNB entered into force as late as in June, 1991. Under the law, BNB governor and vice-governor are mandated for a period of five years. According to the opposition, the filing of resignation does not change the situation because BNB Governor's mandate may only be terminated in advance in particularly specified cases: if he has been unable to perform his duties for more than a year or of he has been convicted.

The Left moved to the National Assembly a bill to amend the BNB Act, which will be considered after the Christmas recess. The bill is based on the principles of team management of the central bank, but allows the Governor to hold at bay the vice governors, Prof. Vulchev said today. He called on to the MPs to consider critically all suggestions that may undermine BNB's independence.

The "Popular Union" does not accept the amendments, as it believes they will disturb the independence of the Bank's Governing Board, MP of the Popular Union Ventsislav Dimitrov said. In his view, the candidature of BNB's governor should be voted by a consensus by the National Assembly. In his view, the BNB is a national institution so its governor should enjoy the confidence of all political forces. The current BNB Governor Prof. Todor Vulchev was elected almost unanimously by the Parliament which allowed the Central Bank's governing board to survive several governments and to ensure stable management of this institution, Ventsislav Dimitrov pointed out.

[09] BULGARIA REPORTS IMPROVEMENT OF MACROECONOMIC PARAMETERS

Sofia, December 22 (Ekaterina Toteva of BTA) - "1996 will be decisive for the progress of privatization in Bulgaria," Deputy Prime Minister and Minister of Economic Development Roumen Gechev told a news conference here today. He believes, however, that next year will be harder than 1995 in a view of the 1,250 million leva foreign debt payments Bulgaria should make.

According to figures publicized at the news conference today, inflation this year is unlikely to go beyond 34% which is way down the 40-45% provided for by the 1995 National Budget Act. The 1995 consumer price index is expected to be 4 times lower than in 1994. These results are attributable to the restructuring of internal resources, their more efficient utilization and the increase of the foreign exchange reserves. Gechev said last month the foreign exchange reserves reached the record high USD 1,600 million, much higher than the USD 900 million in 1994.

Gechev stressed the comparatively stable exchange rate as one of the positive trends in 1995. With its programme the government has set itself the task to pursue this policy into 1996 as well. Among the other objectives of the cabinet for 1996 are financial stabilization and sustainable growth of the Gross Domestic Product (GDP). In 1995 the GDP was double the 1994 figure (3% and some 1.4% respectively). The cabinet expects that by the end of its term the GDP will go beyond 5%, Gechev said. The industrial growth was 2.5% up from that of the GDP.

The 1995 cabinet programme envisages a tangible slowdown of the shrinking of real incomes of the population but at no point does it promise an increase, Gechev also said. The trend will persist into 1996 to turn into a growth in 1997. The latest data show that the real incomes of the population dropped 6% in 1995 (30% in 1994).

The Deputy Prime Minister assessed the progress of privatization as satisfactory, measuring it through the number of privatization deals. 1995 saw the closing of 1,325 deals while the previous year they were only 555. The privatization proceeds amount to 6,617 million leva. The poor coordination between the competent ministries and the Privatization Agency held down the pace of cash privatization.

The Ministry of Economic Development expects that agreements with the International Monetary Fund and the World Bank will be signed sometime in mid-1996, Gechev said. According to him, even if it does not happen, the Bulgarian economy will suffer no fatal consequences.

Speaking at a parallel news conference, Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev said, "For the first time in the past five years of transition to a market economy, Bulgaria has posted a tangible trade surplus amounting to USD 500 million leva. This is the only serious source of proceeds into the budget, as nothing has come from privatization and investment."

The data on the development of Bulgaria's foreign trade in 1995 outline a clear European orientation. Over 45% of Bulgarian exports went to EU countries. Bulgaria managed to ease the access to international markets for its goods. It was achieved due to the negotiations with the EU for boosting Bulgarian export of agricultural and textile products for EU countries, said Tsochev.

The news conference paid particular attention to the practical opportunities for participation of Bulgarian companies in the reconstruction processes in the Middle East and neighbouring Yugoslavia. Iraq, Libya and Syria have all specified and acknowledged their debt to Bulgaria. Iraq is expected to repay its USD 2,000 million debt through oil deliveries once the UN embargo is lifted.

Kiril Tsochev also said that on February 8-10 Bulgaria will held the final round of negotiations on accession to the World Trade Organization.

[10] WEEKLY ROUNDUP Sofia, December 24 (BTA)

MADRID, December 16 Foreign Minister Georgi Pirinski presented Bulgaria's application for full EU membership. The ceremony was attended by Bulgarian President Zhelyu Zhelev.

SOFIA, December 17-18 French Minister Delegate for European Affairs Michel Barnier made an official visit to Sofia. He was received by President Zhelev, Prime Minister Zhan Videnov and Parliament Chairman Blagovest Sendov.

BONN, December 18 Foreign Minister Pirinski attended the conference on arms control in former Yugoslavia in compliance with the Dayton accord.

LISBON, December 18-20 President Zhelev made an official visit to Portugal.

SOFIA, December 19 Bulgaria and Romania signed a document on complementary measures for confidence and security building and military contacts.

SOFIA, December 19-21 The Foreign Ministries of Bulgaria and India held political consultations.

SOFIA, December 20-22 Serb Minister of the Environment Jordan Aleksic paid an official visit here.

SOFIA, December 20-21 Romanian Interior Minister Ioan Doru Taracila made a visit here.

SOFIA, December 21 Bulgaria and Britain signed a military cooperation agreement.

SOFIA, December 21-22 A Belarussian military delegation led by the Defence Minister, Lieutenant General Leonid Maltsev, made a visit here. A cooperation agreement was signed.

SOFIA, December 22 Greek Foreign Minister Karolos Papoulias made a brief working visit here.

[11] BULGARIAN PATRIARCH HOLDS CHRISTMAS SERVICE

Sofia, December 24 (BTA) - Patriarch Maksim of Bulgaria held a Christmas evening service at St Alexander Nevsky Cathedral on Sunday.

The service was attended by the American and Australian Metropolitan Iossif, the Holy Synod's Chief Secretary, Metropolitan Gelasi, and the Cathedral priests. They said a prayer for peace in the world and for the unity of Christian churches.

Patriarch Maksim prayed for the welfare of all living things. "Tonight we are all waiting for Christ to visit our souls," he said, wishing health, happiness and prosperity to all Christians.

[12] BULGARIAN BECOMES BEST U.S. FOOTBALLER IN 1995

Sofia, December 26 (BTA) - Bulgarian Stilyan Shishkov was voted best 1995 footballer in the U.S. Shishkov is a third-year student of Business Administration in the city of Greenwood in South Carolina. He plays football in the University Football League in the U.S. national football championship. This year The U.S. Football Federation officially invited Shishkov to become a professional footballer in the new U.S. professional football league. He signed the contract earlier this month.

In 1995 Shishkov won the best scorer and best striker awards in the U.S. University Football League. Shishkov was nominated to be included in two honorary teams as well as in the best U.S. team. He was named most useful player in the Lender team.