News from Bulgaria / Mar 20, 96

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

Bulgarian Telegraph Agency Directory

CONTENTS

[01] GERMAN PRESIDENT HERZOG ON OFFICIAL VISIT IN SOFIA

Later today the sides signed a bilateral agreement on cultural cooperation that comes to replace a 1975 accord. "The new agreement is beyond the framework of cultural accords signed in the 1970s and 1980s with the then countries of the Eastern bloc. It meets the new potential and requirements for cultural exchange and provides a solid basis for a future-oriented development of Bulgarian-German cultural ties," reads a press release.

"The signing of this agreement actually closes the circle of accords necessary for a fully-fledged bilateral cooperation," President Zhelev told journalists specifying that Bulgaria and Germany have already signed all major economic agreements. "The cultural agreement provides groundwork for a broad cultural cooperation between the two countries," Zhelev said. He also said that the German cultural presence in Bulgaria has been tangible ever since this country's 1878 liberation from Ottoman rule and the German culture has always taken a due place in the cultural life in Bulgaria. This, according to Dr. Zhelev, stems from Germany's involvement in the political and economic life of Bulgaria.

German President Herzog, too, expressed his satisfaction with the signing of the cultural accord. "It is not only a matter of German culture being present in Bulgaria because we, too, want Bulgarian culture to be present in Germany, we want to know it more closely," said the German Head of State.

The agreement provides for cooperation in publishing, cinema, mass media, archives and libraries, in the protection of monuments of culture, in science and education, in professional training and academic exchanges.

"The extensive exchange provided for by the agreements hardly leaves any field out," President Herzog said. He said that the sides are due to sign additional accords such as on education and exchange of teachers.

In their statements for the press Presidents Zhelev and Herzog dis not mention the issues they have discussed in their one-to-one session. The agenda of the talks included, among other things, general issues pertaining to bilateral relations and the process of integration into the European Union and NATO, journalists were told by the presidential foreign policy advisor, Kamen Velichkov. He also said he saw in the statements of the two Presidents particular satisfaction with the results of their talks.

The delegation accompanying the German President includes members of the Bundestag, diplomats, representatives of Deutsche Bank and the Bank for Reconstruction and Development, of Siemens and Alcatel, and businessmen.

The opportunities for more active participation of Alcatel in the upgrading of Bulgarian telecoms, and for launching joint production of technical equipment were discussed during a meeting of the chief of the Bulgarian Posts and Telecommunications Committee (PTC), Lyubomir Kolarov, with Alcatel Vice President Klaus Kuete. Kolarov also met Adolf Huetl of the Siemens managing board, who is also in the German delegation headed by President Herzog. Siemens will be actively involved in the long-term programme for development of telecommunications in Bulgaria as a supplier of, and partner in the launch of, state-of-the-art telecoms technologies, said the PTC press office.

The Sofia schedule of the German President also includes meetings on Wednesday with Bulgarian Prime Minister Zhan Videnov and National Assembly Deputy Chairperson Nora Ananieva and an address to Parliament. Roman Herzog will have talks with students after a meeting with intellectuals.

[02] BULGARIAN PARLIAMENTARY DELEGATION IN JAPAN: MEETINGS

Tokyo, March 19 (BTA) - A Bulgarian parliamentary delegation continued its meeting today in the second day of its official visit to Japan, said a source from the delegation. Bulgarian National Assembly Chairman Blagovest Sendov and the MPs accompanying him had talks at the foreign policy committee with the House of Councillors of the Japanese Parliament. Later in the day they visited the Fujitsu manufacturer of computer equipment, telecommunications systems and semi-conductors.

During the meeting at the parliamentary foreign policy committee, the sides exchanged information on the work and role of parliaments for the foreign policy orientation of the two countries. Sendov reportedly stressed Bulgaria's efforts for developing friendly relations with Japan saying that Bulgaria relies on Japanese investment to overcome more quickly the period of transition to a market economy.

The visit at Fujitsu was prompted by its long-standing contacts with Bulgarian companies. The Bulgarian side voiced its desire for expanding further the existing cooperation. This goal is not within the parliamentary powers but lawmakers can provide favourable conditions for an active work of the executive for achieving this goal, Sendov said.

[03] LITTLE INTEREST IN MASS PRIVATIZATION

Four hundred sixty nine thousand voucher books were bought by pensioners, conscripts and university students at a reduced price of only 100 leva per book. One hundred forty thousand Bulgarians obtained voucher books against the payment of 500 leva, and about 1,000 orphans got voucher books free of charge. Irrespective of the price they are obtained at, the voucher books have a face value of 25,000 leva each. The largest number of voucher books were purchased in Sofia, and the smallest - in the area of Kyustendil and Kurdjali.

"Have you got your voucher book? If not, why? " Sofianites are asked in leaflets they find in their letter boxes. The authors of the leaflets are trying to dispel the fears potential participants may have about mass privatization. Programmes broadcast on national radio and television explain that the State does not intend to use mass privatization as a way to get rid of loss-making enterprises and that potential investors in it will not have to take over the debts incurred by privatized enterprises. "What may you lose by taking part in mass privatization? Only 500 leva, nothing else. And what do you gain by it? Investment vouchers which can buy you shares of much higher value," advertisments say.

Despite the massive campaign in the national media, people are in no hurry to obtain voucher books. Some think that the reason for it is the belated awareness campaign launched after the start of mass privatization. Another possible reason is that many will wait until the last moment to claim their voucher books. Others rely on an extension of the deadline which expires on April 8. Though the amount people have got to pay for obtaining their voucher books is small (one can buy two kilogrammes of meat or 2.5 kilogrammes of cheese for 500 leva), a lot of people are unwilling to participate in mass privatization because they do not believe they will benefit from it. "It's like the government bonds we bought 40 years ago. They just took our money," a pensioner says explaining her unwillingness to take part in mass privatization. Pensioners, who are over two million in Bulgaria, appear to be the most active participants in the mass privatization process.

"Mass privatization will be carried out without the masses," a national daily with a large circulation sarcastically observed. People just do not know what the question is about, experts of the Centre for Mass Privatization think. They are not worried by the small number of participants in mass privatization. This means that over 200,000 million leva's worth of assets of the more than 1,000 enterprises which are to be put up for mass privatization will be disrtibuted among a smaller number of investors, the experts say.

[04] FRENCH SECRETARY OF STATE FOR TRANSPORT ENDS VISIT

Sofia, March 19 (Alexander Kirov of BTA) - "We do not have to sign concrete documents but rather to achieve mutual confidence guaranteeing cooperation between Bulgaria and France," said Bulgarian Transport Minister Stamen Stamenov at Sofia Airport today after the end of the two day official visit here by a French delegation headed by French Secretary of State for Transport Ms Anne-Marie Idrac. Stamenov assessed the visit as a great success. A Bulgarian delegation will visit France this autumn, he added.

The French delegation was presented a programme including Bulgaria's priority infrastructure projects, Stamenov said. The programme provides for the construction of four transport corridors passing through this country. A trilateral meeting of the foreign ministers of Bulgaria, Greece and Romania on March 16 and 17 in Varna adopted a project for setting up a Balkan transport control centre in Sofia, Stamenov recalled. The project will be finalized in Thessaloniki (Greece) at the meeting of all Balkan foreign ministers later this year, Stamenov added.

"Over the past two days we also discussed the participation of French firms in the delivery of equipment for Sofia Airport," Stamenov said. According to him, this will probably be the Capegnon Bernard firm which won a tender for building Sofia Airport eighteen months ago.

France will invest mainly in Bulgaria's transport sector which is determined by Bulgaria's key geographic location, Ms Idrac said. "We insist that our investment be efficient and that the Bulgarian Government does not have to count on the foreign exchange reserves of its exchequer, Ms Idrac added. According to the French Secretary of State for Transport, specific agreements will be reached at the meeting of the two delegations in Paris in six months. France has proposed to the Bulgarian Government a project for modernizing and reforming the Bulgarian Stock Exchange. Ms Idrac said. This would facilitate the participation of French firms in Bulgarian infrastructure projects.

In 1994 the Ministries of Transport of Bulgaria and France signed an agreement on cooperation in transport. The two country's agreements in automobile transport, freight shipment, sea and air transport are outdated, Stamenov said. According to him, the main task of the launched negotiations is to bring Bulgarian legislation in harmony with European Union standards.

[05] WILL RESTRICTIONS ON HARD CURRENCY BUYING BE LIFTED?

The Finance Ministry and the central bank have drafted amendments to the effective exchange controls regulations. The draft decree will lift the existing restrictions on foreign currency purchases by members of the public and companies, as well as controls on the amount of hard currency one can take out of the country, the dailies say, quoting different sources including Finance Minister Dimiter Kostov.

Members of the public have the right to buy up to USD 2,000 a year on presentation of a foreign travel passport and take out of the country up to USD 1,000 in cash without a document and up to USD 10,000 with a note issued by a bank. Companies may buy foreign currency from banks on presentation of an imports document. The Cabinet is making a step towards a convertible lev, "Standart News" comments, adding that "a hasty change in exchange controls regulations may play a nasty trick on the incumbents".

No accounts will be blocked nor will restrictions of the pre-1988 type be introduced, according to Finance Minister Kostov quoted in "24 Chassa". The Cabinet will control the enforcement of hard currency regulations and tighten financial discipline, he said.

[06] LEBANESE COMPANIES IN BULGARIA

Some 2,500 Lebanese live in Bulgaria, who manage nearly 1,000 companies or subsidiaries of Lebanese companies, says Lebanese Ambassador Hussein Moussawi in an interview in "24 Chassa". He also says that many Lebanese want to invest in Bulgaria but are deterred by a fear that their investment may be blocked.

An agreement on mutual investment protection between Lebanon and Bulgaria is under preparation. The question of taxation also remains unresolved, Ambassador Moussawi says.

[07] FOREIGN INVESTMENTS IN BULGARIA

1995 registered a slowdown in the process of foreign direct investment, says a comprehensive article in "Pari" which is part of the report of the Agency for Economic Coordination and Development on "Bulgarian Economy in 1995 and Prospects for 1996-98".

Foreign investment in Bulgaria totalled USD 101,154,000 in 1995, which is by USD 132,850,000 less than the 1994 figure. The decrease is partly compensated by the considerable growth of indirect investment (USD 32 million) and the so-called other investments (USD 100 million).

The report stresses that the average investment is very small. Legal irregularities, uncertainties and instability are the biggest obstacles for foreign investment, the report says.

[08] LIST OF COMPANIES FACING LIQUIDATION EXTENDED