News from Bulgaria / Mar 11, 96

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

Bulgarian Telegraph Agency Directory

EMBASSY OF THE REPUBLIC OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

11 March, 1996

CONTENTS

[01] PRESIDENT ZHELEV EXTENDS CONDOLENCES ON BOMBINGS IN ISRAEL

The Bulgarian President condemned strongly and categorically the acts of terrorism in Israel, describing them as reprehensible both morally and politically, Velichkov told the media. Hope was expressed that the peace process in the area would go on because the political dialogue is the only alternative.

Ambassador Sharon familiarized President Zhelev with the measures the Israeli Government had taken to prevent other similar acts, Velichkov said.

[02] BULGARIA TO GET ECU 41 MILLION FROM E.C.

[03] SLOVENIAN PRESIDENT MILAN KUCAN ARRIVES ON A TWO-DAY OFFICIAL VISIT

[04] DEPUTY P.M. GECHEV'S MEETINGS IN U.S.

Later on Roumen Gechev had a meeting with Kyle Coch-Veser, Managing Director at the International Bank for Recontruction and Development. Kenneth Leigh, IBRD Regional Director for Europe, was present at the meeting.

Gechev met with David Mandelowitz and Lee Laroche, vice- presidents of the American Eximbank.

Gechev and the officials of the international financial institutions narrowed the differences over the problems of the Bulgarian economic reform, the press release of the Bulgarian Embassy says.

[05] BUSINESS PRESS 1996 FOREIGN INVESTMENT IN BULGARIA

Foreign investment in Bulgaria in 1996 is expected at $400 million, according to a signed article in "Continent", citing Deputy Prime Minister and Minister of Economic Development Roumen Gechev. Western companies are interested mainly in industry and transport in Bulgaria, the article says.

1996 will be crucial in attracting foreign capital, "Standart News" quotes experts of the Foreign Investment Agency as saying. After the failure of six cabinets to establish a favourable climate for investment, Prime Minister Videnov's team has explicitly expressed an intention to be more successful in doing so, the author writes.

According to Foreign Investment Agency data, 1995 foreign investment totalled $284 million. In the 1991-1994 period foreign investment added up to $850 million.

Germany accounts for the largest share of foreign investment in Bulgaria - 38.4%, "Standart News" writes citing Foreign Investment Agency chief Daniela Bobeva. It is followed by Switzerland, Belgium and Greece. The US comes fifth, followed by the Netherlands, Austria, Britain, the CIS and France.

Almost all state departments have presented investment projects which experts of the Agency will propose to foreign investors. The investment projects will be realized only if investors show interest in them. "Standart News" publishes the major projects by departments and their estimated costs.

[06] BULGARIAN- YUGOSLAVIAN TRADE

Bulgaria and Yugoslavia have decided to sign a banking agreement to regulate future cooperation, said also this Trade Ministry official. This is a pressing problem as bilateral trade has already got off the ground, he said. The Yugoslav side has named 2-3 major state- owned banks that have sufficient capital to make settlements. The banking agreement will be signed between the two countries central banks, but Yugoslavia has recommended that agreements be signed with another two banks: Belbank and Yugobank. The Governor of the National Bank of Bulgaria, Lyubomir Filipov reportedly told the Yugoslav partners that Bulgaria, too, can recommend stable Bulgarian banks, but this could be done through letters without naming them officially. ECU 160 million were appropriated for Bulgaria under the PHARE Indicative Programme for 1991-1992, ECU 90 million for 1993, and ECU 85 million for 1994.

[07] BULGARIAN-HUNGARIAN CONSULTATIONS

Mrs Bokova had meetings with Hungarian Foreign Ministry's State Secretary Ferenc Somogyi and with deputy state secretaries Andre Erdos and Istvan Pataki. The talks focused on European Integration issues and the two countries' preparations for full EU membership. The parties exchanged views on the upcoming intergovernmental conference of the EU and on the promotion of their relations with the EU members.

Mrs Bokova familiarized her Hungarian partners with the initiative of the Bulgarian Government for development of good- neighbourliness and for strengthening security and stability in South- Eastern Europe. The parties considered also some aspects of the peace process in former Yugoslavia, as well as the participation of Bulgaria and Hungary in the economic reconstruction of the region, the news release says.

[08] BULGARIA STANDS A GOOD CHANCE OF SIGNING AGREEMENTS WITH IMF AND THE WORLD BANK

"The World Bank has a positive attitude to the National Bank of Bulgaria's decision to revoke the licences of banks which do not meet the legal requirements for banking," Gechev said.

He had meetings with representatives of the two financial institutions in Washington. About 400 million dollars, which Bulgaria has been granted in the last few years from the World Bank, are either unutilized or distributed to fund lots of projects.

"In two or three weeks the World Bank Board of Directors may decide to channel the funds to other programmes," Gechev said.

The World Bank is ready to make a change in the programmes and rechannel the funds to the structural adjustment of banking and to enterprises which have serious financial troubles. "However, this does not apply to large Bulgarian enterprises which determine the national aspect of the country's economy," the Deputy Prime Minister and minister of Economic Development stated.

The West-East Conference decided to draw the G-7 attention to the need of increasing investments in the countries of Eastern Europe.

A joint declaration was signed, agreeing to preferential treatment of the countries hit by the Yugoembargo in the implementation of post-war rebuilding projects in the former Yugoslavia. The United states will provide funds for the reconstruction of the area.

[09] PRESIDENT MENEM OF ARGENTINA TO VISIT BULGARIA

Deputy Foreign Minister Gonzalez will meet with the deputy ministers of Foregn Affairs and Trade.

The relations of Bulgaria and Argentina have a history of 65 years. "Bulgaria is one of the most important countries in the region for Argentina," Gonzalez said. "For us it is especially important to get acquainted with the political situation here," he added.

[10] POLLUTION FINES OF 80 MLN LEVA IMPOSED LAST YEAR

Every month they were imposed fines exceeding 100,000 leva, Ministry of Environment statistics show. More than 660 enterprises in Bulgaria are potential sources of pollution.

The amount of fines imposed last year was 80,612,000 leva; 75.6 percent of the fines were collected, the rest were not paid mainly because of the financial dire straits most of the enterprises were in. The penalty proceedings against 84 economic units had to be dropped because they were closed down. In compliance with the Environmental Protection Act, the funds from fines are disrtibuted between the National Environmental Protection Fund (57,445,000 leva) and the municipal environmental funds (23,167,000).

[11] BUSINESS NEWS

Spent fuel will be stored at the facilities for a period of 50 years. The project will cost about 60 million US dollars. World leading companies, including the American Westinghouse, Germany's Siemens, France's Framatom and SGN, and the Russian Atommash showed interest in the tender.

The first Bulgarian fuel-charging terminal began to operate on the bank of the Danube, BTA was told by its correspondent in Vidin (Northwestern Bulgaria). The terminal is owned by the Vidin-based jointstock company Taifun. Situated at the 788th kilometre, it has a capacity of 1,200 t of fuel a day. The charging is done in accordance with a water-to-land or water-to-water basis. The first vessel, sailing under Ukrainian flag, has already been charged with 20 t of fuel and left for the Ukrainian port of Izmail.

The Bulgarian and the Romanian posts concluded a cooperation agreement that is first of its kind, Simeon Mehandzhiev, Director of the Regional Department of Posts, told the BTA correspondent in Rousse (on the Danube). The agreement makes it possible to accelerate the delivery of international mail to Bulgaria via Bucharest. It is planned to open an automobile service from Bucharest to Rousse. Mail coming from Western Europe will arrive in Sofia 24 hours earlier than now, the BTA correspondent says.

The infantile disease of mass privatization (which got off ground on January 8 this year in Bulgaria) is caused by the attempts to set up privatization funds in subordination to parties and trade unions, the BTA correspondent in Pazardjik (Southern Bulgaria) says citing a statement by Valentin Mollov, a well-known Bulgarian banker and businessman, made at a news conference in that town. Mollov visited Pazardjik for a meeting with representatives of the public in connection with the privatization fund established by him and other businessmen.

"The fund has raised the statutory capital of 10 million leva (one US dollar exchanges for 77.970 leva, according to the central exchange rate) and is showing interest in 150 Bulgarian enterprises in good economic condition," Mollov said. He expects that after the first year 250,000 - 280,000 shareholders of the fund will receive an income exceeding the average profitability of the Bulgarian economy by over 10 percent.

Twelve companies set up an Association of Publicity Agencies and Experts (APAE) in Sofia. "We will work out the rules of the game on the publicity market," Maxim Behar, Chairman of the Association, said. According to him, the organization will be an open one and it will fight against any monopoly on advertising. "We believe we are making history," Behar told BTA.

The regional administration of Montana (Northwestern Bulgaria) sent a request to the Ministry of Trade and Foreign Economic Cooperation for the opening of a representation of the State of Brandenburg in Montana, BTA learned from its local correspondent. In their reasoning the local authorities refer to the close contacts with the fgerman Ministry of Trade and the development of contacts of local businessmen with German consulting firms, the correspondent said.

[12] PARLIAMENT CHAIRMAN LEFT FOR YUGOSLAVIA

"The Bulgarian Parliament follows a consistent policy of integration with the European structures and will render assistance as far as possible so that Yugoslavia's representatives take part in the activities of all the international parliamentary institutions. This is in line with Bulgaria's efforts to contribute to the Europeanization of the Balkans and disprove, with its behaviour, the opinion that the region is Europe's powder keg," Sendov said in an interview for Tanjug.

"The relations between Bulgaria and Yugoslavia have stood the test of time," Sendov stressed in the interview. "Being modern people, we should focus on the present and future and leave the past to the researchers of processes and phenomena in the region," he said.